Chap7.2

Question 1

What are the 3 online retail transformation and describe them

Answer 1

1. E-commerce
   - Activity of buying and selling products or online services over the internet
2. Better online customer experience
   - Personalization
   ———- Offerings and experience tailored to customer’s behaviors and preferences
   ———- Retailers to use AI to gain actionable insights on customers behavior and preference

• AR/VR
  – help buyers choose a product in an environment where buying can be made more realistic

3. Digital selling
   - Selling through live stream
   – Host acts as their own demonstrators show off all features of the product
   – Highly interactive as questions can be asked to the host
   – Shoppers drawn to live auction bidding
   – hosts are mix of celebrities or influencers

Question 2

What are the 2 offline retail transformation and describe them

Answer 2

1. Better offline customer experience
   - Digitized customer service
   —— Virtual assistants as customer support through the rising popularity of AI and chat apps
   ——- Reduce staff, increase efficiency and customer satisfaction
   ——- Robot handles typical issues like questions or product returns
   ——- Online chat service is 24/7, drives brand loyalty and sales revenues, can handle concurrent users

• In-store digitization
  ——- Technologies allow for rich in-store experiences and better customer engagement
  ——- Wifi Beacon: send out notifications as user traverse through the store
  ——- Interactive display: recognize user and recommend them items, make offers, push discounts

2. Store/Warehouse transformation
   - Product selection/placement
   - Inventory Management
   - Warehouse Management
   - Delivery

Question 3

What are the 2 online + offline and describe them

Answer 3

1. Optimized user journey
   – Using online like mobile app and getting the product on hand offline
   – To enhance the customers already existing journey
2. Omnichannel Shopping experience
   – Seamlessly integrating all shopping channels online and offline so as to order anywhere, fulfil from anywhere

Question 4

Benefits of offline and online payment

Answer 4

Offline
1. Instant gratification
2. Onsite demonstration
3. Real experience
4. Strong sense of value

Online
1. Convenient and time saving
2. Save money
3. Access to massive global goods

Question 5

Benefits of retail transformation

Answer 5

1. Better customer experience offline and online
2. Higher conversion, greater efficiency, lower cost for retailers