Page 233 - DMGT554_RETAIL_BUYING

Retail Buying

Notes about getting our intellectual property into the hands of the people who need it. Now that
we’ve carefully catalogued our product photos, we’re using Cumulus as a distribution
mechanism.”
In a continually changing industry where value-added content and differentiation is the
key to success, Monster and Cumulus are a winning combination. By building its e-
commerce initiative on Cumulus, Monster is able to successfully merchandise its product
portfolio, gain market share, and stay ahead of its competition.

Questions
1. Analyze the case and examine the problem faced by the company while distribution
of merchandising.

2. Explain how the company overcomes the problem.
Source: http://www.canto.com/de/resources/case-studies/case_study_monster.php

14.4 Summary

 Information is of utmost importance in the operation of every market, including, recently
emerged, online markets for products and services.
 Market participants utilize available and relevant information to decide upon their actions
and improve their welfare by trading and consuming resources.

 An important component of all information that market participants utilize, is information
that pertains directly to the products and services that are traded.
 Indeed, it has been claimed that the real economic impact of the Internet goes well beyond
online sales.
 The World Wide Web offers an unprecedented opportunity to product manufacturers and
service providers to thoroughly and to cost-effectively inform consumers about the details
of new service and product offerings, regardless of whether the sales take place over
physical or electronic channels.

 This dissertation focuses on the mechanism by which sellers decide what information
about their products to make available, and how, as it is believed to hold the key to
understanding product information dissemination in the Internet.

 Buyers of products and services require comprehensive and timely information to decide
between multiple options and sellers disseminate product information to attract those
buyers that are willing to pay more for their products.
 This communication was considered vital to the movement of the merchandise from the
store’s she and racks to the consumers’ homes.

 A vendor offering such a product, who improved the quality of her product information,
would experience an increase in market share and discover a newly presented opportunity
to raise her product price.

 Vendors that offer highly differentiated products at a price premium should view any
improvement in the thoroughness, accuracy and timeliness of the information that
consumers obtain about their products, as if it were an increase in their product quality.
 Knowledge products can take many different forms depending on the audience and their
information needs.

 The dissemination is as important as the development of knowledge products.

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