July 18, 2008

: The impact of electronic POP displays and electronic demos on supply chain management

 

 

Introduction

            The retail brand experience requires individual brands-driven growth. Retailers are generally concern with the concept of effective merchandising through efficient and consistent medium. The need to support store-based selling events, to provide a hands-on experience and to understand the value of category expertise necessitates displays as brand communicators (Liljenwall, 2004, pp. 232-233) Point-of-purchase (POP) displays are used to stimulate sales at the point of sale or purchase. As part of the marketing mix, POP displays may not be physical retail locations but also on cyber-locations and found to have a major influence on consumer behaviour (pp. 25-26).

            Electronic demos or non-interactive multimedia presentations are ways to test marketing and pricing strategies and to provide detailed product and service information to potential customers (Shim, 2000, p. 33). Retailers can provide answers to frequently asked questions (FAQs) to consumers and present technical information of product features, characteristics and application (p. 42). Electronic demos contain referrals to website visits to retailers for virtual orientation and/or provide informations on local retail establishments' location, directions in getting to the place, contact numbers, hours of operation, return policies and warranties (p. 38).

            Supply chain is defined as the alignment of firms in order to bring products or services to the market. It is a network of facilities and distribution options which functions for production, inventory, location, transportation and information. From this definition, we can now define supply chain management (SCM) as the systemic and strategic coordination of basic business functions within the supply chain (Hugos, pp. 2-6). Electronic data interchange (EDI) is widely used in supply chain management since it slashes transaction costs associated with order-payment processes and provides a high degree of control and coordination in scheduling and receiving product deliveries (p. 19).

            Sharing and exchanges of information for supply chain actors are evidences of massive benefits of electronic connections including world wide websites (www) and extranets and intranets. Such digital enablement, however, might have a different effect from electronic advertising, through POP displays and electronic demos, perspective. These two factors directly affect the distribution and commercialization functions of SCM. In lieu to this, this study will discuss in detail the impact of electronic POP displays and electronic demos in SCM. The purpose of the study is to reveal relationships between electronic advertising based on the two systems and optimal SCM.

Research Questions

            This study will address the following questions:

  • What are the positive and negative implications of electronic POP displays and electronic demos on the five basic functions of SCM?
  • What are the positive and negative effects of electronic POP displays and electronic demos on distribution and commercialization functions of SCM?
  • What are the implications of electronic POP displays and electronic demos on individual supply chain actors?
  • What are the impacts of electronic POP displays and electronic demos on economic and competitive status of physical supply chains?
  • What are the challenges and issues placed by electronic POP displays and electronic demos on SCM?

Research Aims and Objectives

            The research primarily aims at exploring the pros and cons of electronic advertising strategies based on electronic POP displays and demos on supply chain management. To carryout this aim, the following objectives must be achieved:

  • To investigate the effects of electronic POP displays and electronic demos on supply chain, on supply chain actors, on SCM, on its five basic functions and on its specific function as distribution and commercialization
  •  To explore the impacts of electronic POP displays and electronic demos on physical supply chains' economic and competitive forces
  • To present the challenges and issues placed by electronic POP displays and electronic demos on SCM

Methodology

            This study will be correlational and descriptive in nature. The correlational research will reveal the relationships between the variables. The descriptive research will present facts that concern the nature and status of the situation, events and systems,  practices that exist, processes that are on-going, effects that are being felt and trends that are developing based on the responses of the participants (Best, 1970).   

Bibliography

 

Best, J.W. (1970). Research in Education, 2nd Ed. Englewood Cliffs, N.J.: Prentice Hall, Inc.

 

Hugos, M. (2006). Essentials of Supply Chain Management. John Wiley and Sons. Inc. pp. 2-6 & 19.

 

Liljenwall, R. (2004). The Power of Point-of-Purchase Advertising: Marketing at Retail. Point-of-Purchase Advertising International. pp. 25-26 & 232-233.

 

Shim, J. K. (2000). The International Handbook of Electronic Commerce. Lessons Professional Publishing. pp. 33, 38 & 42. 

             


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