Marketing Essay Example | Topics and Well Written Essays - 2500 words - 7

Marketing - Essay Example Furthermore, it has also been observed that, firms which offer interchangeable service channels are deemed to be ‘extremely appealing’ by the customers (Bendoly et al. 2005, Pp. 314). There is a substantial rise in the use of telephones and internet which are increasingly being integrated into the multi-channel service systems, and are substituted by the traditional means of communication such as face-to-face channel. Multi-channel retailing affords the customers to use additional service channels which entails a wider range of service outlets; increased convenience of shopping; time savings as well as reliability (Coughlan et al. 2001). Multi channel retailing offers several benefits to the firms in the form of service innovation; cost reduction; increased automation; customization of services; greater flexibility etc., among others (Bitner et al.2000). Maximising customer satisfaction is the key objective of multi channel retailing (Moriarty & Moran, 1990; Coelho & Eas ingwood, 2003) which is accomplished through an integration of various channel formats (Montoya-Weiss, Voss, & Grewal, 2003). Of all the channels of distribution, internet is ranked highly by both the sellers as well as the customers, as an appropriate and effective tool for enhancing the shopping experience of the customers. According to claims made, in recent research reports, there are various evidences which point to the fact that consumers with access to multiple retail channels, spend comparitively more than those with access to single channel of distribution. Furthermore, multiple channel retailers are known to have a wide base of loyal customers and repeat shoppers, as compared to those who offer a single channel of distribution (Berman, 2007). Such major shift in consumer preferences have acted as a major trigger for the retailers, compelling them to review their channel integration strategies, and take active steps in transforming the way they approach and target their cus tomer segments. Multi channel retailiers today, clearly have an edge over their single channel counterparts, both - in terms of competitive standing in the industry as well as higher customer satisfaction. Definition of Multichannel Retailing According to Levy & Weitz (2009) Multi channel retailing refers to an integrated set of activities which involves sale of products or services to the customers, via more than one channel of distribution. Berman and Evans (1998) classify retailing in accordance with store based and non-store based. Multi-channel retailing thus, refers to the integration of store based retailing with the non-store based channel. Multi-channel retailing in the Banking sector There has been a significant increase in the revenue growth in retail banks across the globe. This is because, of a tremendous shift in the number of channels used to reach their customers, leading to an enhanced customer experience; better market segmentation; ability to deliver an effective product mix; and a remarkable improvement in the service operations. The key channels of distr