BBARIL 4th

BBARIL 4thSemester
SemesterAssignment
Assignment
Answers

BRL-110 ( IT Applications In Retail )

BRL-110 ( IT Applications In Retail )
Tutor Marked Assignment ( TMA )
Tutor Marked Assignment ( TMA )
Assignment 2024
MA)

Course Title : IT APPLICATION IN RETAIL

Assignment Code : BRL-110/TMA/2024

Made By Ashutosh BBARIL Maximum Marks: 100

Attempt all the questions.

(A) Short Type Questions

1. What is information technology? What are its applications? (10)

Ans: Information technology (IT) refers to the use, development, and management of
computer-based systems, software, and networks to store, process, transmit, and retrieve
information. It involves the use of computers, telecommunications, and other digital
technologies to manage and manipulate data.

The applications of information technology are vast and pervasive in modern society. Here
are some key applications:

1. Communication: IT is extensively used for communication purposes. This includes email,

instant messaging, video conferencing, and social media platforms, enabling real-time
communication and collaboration among individuals and organizations across the globe.

2. Data Management: IT supports the storage, organization, and retrieval of large amounts
of data. Databases and data management systems facilitate efficient handling of structured
and unstructured data, ensuring data security and integrity.

3. Business Operations: IT plays a critical role in various business functions, such as

inventory management, customer relationship management (CRM), supply chain
management (SCM), human resource management (HRM), and financial management.

● Page 1
Enterprise resource planning (ERP) systems integrate these functions to streamline
business processes.

4. Entertainment: IT has revolutionized the entertainment industry. From online streaming

platforms for movies, music, and gaming to virtual reality (VR) experiences, IT has
transformed how people consume and engage with various forms of entertainment.

5. Education and E-Learning: IT has significantly impacted the education sector through
online learning platforms, educational apps, virtual classrooms, and e-books. It provides
students access to a vast range of online resources, encourages interactive learning, and
enables remote education.

6. Health Care: IT plays a crucial role in healthcare with applications like electronic health
records (EHR), telemedicine, digital health devices, medical imaging, and health information
systems. IT improves patient care, enables remote consultations, streamlines administrative
tasks, and enhances medical research.

7. Cybersecurity: As IT advances, so does the need for cybersecurity. IT plays a critical role
in protecting sensitive data, information systems, and networks from unauthorized access,
cyber threats, and data breaches.

8. Research and Development: IT facilitates scientific research, data analysis, simulations,

modeling, and experimentation across various disciplines. It aids in the development of
innovative technologies and solutions.

These are just a few examples of the extensive applications of information technology, which
continue to evolve and shape various aspects of our daily lives and industries.

2. Explain various functions of Merchandise Management System? (10)

Ans: Merchandise Management System (MMS) refers to software or tools used by retailers
and businesses to manage various aspects of their merchandise inventory. It helps in
streamlining the merchandising operations by providing effective control and visibility over
inventory, sales, purchasing, and other related processes. Here are some key functions of a
Merchandise Management System:

1. Inventory Management: MMS helps in managing and tracking inventory levels, stock
movements, and stock locations. It provides real-time visibility of stock availability, enables
efficient stock replenishment, and helps avoid overstocking or stockouts.

2. Purchasing and Replenishment: MMS assists in automated purchasing, ensuring optimal

inventory levels by generating purchase orders based on pre-defined criteria like min/max
levels, reorder points, or sales forecasts. It streamlines the ordering process, manages
vendor relationships, and tracks inbound shipments.

3. Sales and Demand Forecasting: MMS helps in analyzing sales data to generate accurate
demand forecasts and sales projections. It considers factors like sales history, seasonal

● Page 2
trends, promotions, and market conditions to predict future demand. This enables
businesses to plan inventory levels and optimize purchasing decisions.

4. Pricing and Promotion Management: MMS facilitates centralized management of pricing

and promotions. It enables businesses to create and manage pricing structures, discounts,
promotional offers, and pricing rules. It automates pricing updates and ensures consistency
across all sales channels.

5. Allocation and Store Replenishment: MMS assists in allocating inventory to different

stores or distribution centers based on demand, sales patterns, and store capacities. It
optimizes store replenishment by determining the quantities to be sent to each location,
balancing stock levels, and minimizing stock transfers.

6. Analytics and Reporting: MMS provides a comprehensive view of merchandise-related

data through reports, dashboards, and analytics tools. It helps in analyzing sales trends,
inventory turns, stock aging, profitability, and other performance metrics. This enables
businesses to make data-driven decisions, identify areas for improvement, and measure the
effectiveness of merchandising strategies.

7. Integration with Other Systems: MMS can integrate with other business systems like
point-of-sale (POS), e-commerce platforms, and financial systems. This integration ensures
seamless data flow and synchronization between various systems, enabling accurate and
up-to-date information across the organization.

Overall, Merchandise Management System acts as a central hub that connects various
merchandising functions, ensuring efficient inventory management, demand forecasting,
purchasing, pricing, and reporting. It helps retailers and businesses optimize their
merchandise operations, improve customer satisfaction, and achieve better financial
performance.

3. Explain the different types of purchase orders. Also define the functions of
MMS related to purchase order. (10)

Ans: Different types of purchase orders can vary depending on the specific requirements
and processes of the organization. Here are some common types of purchase orders:

1. Standard Purchase Order: This is the most common type of purchase order. It is used for
regular purchases of goods or services from suppliers. It includes details such as item
description, quantity, price, delivery terms, and payment terms.

2. Blanket Purchase Order: A blanket purchase order is a long-term agreement with a

supplier to provide goods or services over a specified period. It allows multiple releases
against a single purchase order, eliminating the need to create individual purchase orders for
each release.

3. Scheduled Purchase Order: A scheduled purchase order establishes a predetermined

schedule for the delivery of goods or services over a specific timeframe. It specifies delivery
dates and quantities required at each scheduled release.

● Page 3
4. Contract Purchase Order: A contract purchase order is used for purchasing goods or
services based on a legally binding contract between the buyer and the supplier. It includes
terms and conditions that govern the procurement, pricing, delivery, and performance
requirements.

Now, let's discuss the functions of a Merchandise Management System (MMS) related to
purchase orders:

1. Purchase Order Generation: MMS allows the generation of purchase orders automatically
or manually based on inventory levels, demand, or predefined criteria. It streamlines the
procurement process by providing a standardized format for purchase orders.

2. Vendor Management: MMS helps manage vendor relationships by maintaining vendor

databases, tracking vendor performance, and storing vendor-specific information like contact
details, payment terms, and delivery schedules.

3. Purchase Order Tracking: MMS tracks the status of purchase orders, providing visibility
into the procurement process. It allows users to monitor purchase order progress, delivery
dates, and any changes made to the orders.

4. Receiving and Inspection: MMS helps in receiving goods against purchase orders,
enabling users to verify the quantity and quality of the received items. It automates the
process of reconciling received quantities with ordered quantities.

5. Invoice Matching: MMS facilitates matching purchase orders with invoices received from
vendors. It compares prices, quantities, and terms to ensure accurate billing and resolves
discrepancies, if any.

6. Inventory Management: MMS updates inventory levels based on purchase orders. It helps
in maintaining optimal stock levels, tracking stock movements, and triggering reorder points
for efficient inventory management.

7. Analytics and Reporting: MMS provides reports and analytics on purchase orders, vendor
performance, order fulfillment, and other related metrics. It enables users to analyze
purchasing trends, identify cost-saving opportunities, and measure procurement efficiency.

The functions of MMS related to purchase orders aim to streamline the procurement
process, ensure accurate and timely ordering, improve vendor management, and enhance
overall inventory management and cost control.

4. Distinguish between the following: (4×5)

a) Barcode Scanner and RFID

Ans.4 (a) Barcode Scanner:

1. Technology: Barcode scanners use optical technology to read barcodes. They use a laser
or LED light to scan and capture the information encoded in the barcode.

● Page 4
2. Data Storage: Barcodes store data in a series of black and white lines and spaces. Each
character or digit is represented by a specific pattern of lines.
3. Line of Sight: Barcodes require a direct line of sight between the scanner and the
barcode. The scanner needs to be close enough to the barcode to read it accurately.
4. Scanning Speed: Barcode scanners can quickly scan barcodes, capturing data in
milliseconds. They are suitable for high-speed scanning applications.

RFID (Radio Frequency Identification):

1. Technology: RFID uses radio waves to communicate between a reader and an RFID tag.
The reader emits radio frequency signals, and the RFID tag responds by transmitting its
stored data.
2. Data Storage: RFID tags can store more data compared to barcodes. They can store
unique identifiers, additional product information, and even have read-write capabilities for
data updates.
3. Line of Sight: RFID does not require a direct line of sight. The reader can communicate
with multiple tags simultaneously, even if they are hidden or enclosed within other objects.
4. Range: RFID has a longer read range compared to barcodes. It can read tags from a
distance, ranging from a few centimeters to several meters, depending on the frequency and
technology used.

b) Institutional Sign and Informational Sign

b) Institutional signs and informational signs serve different purposes and convey distinct
types of information:

Institutional signs: These signs are typically used to represent and identify specific
institutions, organizations, or facilities. They often include names, logos, and symbols
associated with the institution. The primary function of institutional signs is to establish the
visual presence and branding of the entity. They are commonly found on the exteriors of
buildings, entrances, or parking areas, providing wayfinding cues and creating a sense of
identity for the institution.

Informational signs: These signs are designed to convey specific information or instructions
to the intended audience. They aim to provide guidance, assistance, warnings, or
regulations. Informational signs are usually text-based, presenting clear and concise
messages to help people understand directions, safety measures, rules, or any other
relevant information. They can be found in various settings, including public spaces,
workplaces, transportation systems, and educational institutions.

c) Interior Display and Window Display

b) Interior Display: Interior displays refer to visual presentations and arrangements of

products or promotional materials within a store or indoor space. These displays are
designed to attract the attention of customers and enhance the aesthetic appeal of the
interior environment. They are strategically positioned within the store to showcase specific
products, highlight sales or seasonal promotions, and create an inviting atmosphere. Interior
displays utilize various elements like shelving, racks, props, mannequins, lighting, and

● Page 5
signage to effectively showcase and market products to customers already inside the
establishment.

Window Display: Window displays, on the other hand, are visual presentations placed in the
storefront windows of retail establishments, aimed at attracting the attention of passersby
and enticing them to enter the store. Window displays serve as the store's primary marketing
tool and aim to capture the interest and curiosity of potential customers. These displays
often feature eye-catching designs, creative arrangements, and thematic elements that
incorporate specific products or a brand's identity. Window displays play a vital role in
drawing foot traffic, creating brand visibility, and setting the overall tone for the store.

d) CRM and Social CRM (10)

d) CRM (Customer Relationship Management) is a system that focuses on managing and

maintaining customer interactions, data, and relationships. It involves the use of software to
effectively track customer interactions, sales opportunities, and support requests. CRM
systems are primarily focused on internal processes and provide a holistic view of customer
data to improve sales, marketing, and customer service.

Social CRM, on the other hand, expands traditional CRM by incorporating social media
channels into the mix. It involves monitoring and managing customer interactions and
engagements on social media platforms. Social CRM allows businesses to gather social
data, identify customer sentiments, and respond to customer inquiries and feedback. It
enables companies to leverage social media interactions to better understand customers
and build stronger relationships by providing personalized and timely responses.

5. Write short notes on the following:

a) Data Polling

Ans: 5 (a) Data polling is a technique used in computer systems and networks to retrieve
data at regular intervals from a data source. It involves periodically querying or requesting
data from a source to check for updates or new information. This can be done by sending
requests from a client to a server, or by continuously checking a data stream for new
updates.

Data polling is commonly used in various applications such as real-time data monitoring,
web scraping, and Internet of Things (IoT) devices. For example, a weather app may
periodically poll a weather API to get the latest weather conditions, or an inventory
management system may poll a database to check for stock availability.

However, data polling can have drawbacks. It can be resource-intensive as it requires

frequent requests or checks, which can result in increased network traffic and slower
response times. Additionally, if the polling interval is too short, it may put unnecessary strain
on the server and result in inefficient use of resources.

As an alternative to data polling, data streaming or event-driven architectures may be used.

With data streaming, data is continuously sent from the source to the recipient, allowing for
real-time updates without the need for frequent polling. Event-driven architectures rely on

● Page 6
triggering events to notify the recipient of new data, eliminating the need for continuous
polling.

Overall, while data polling is a widely-used technique, it is important to consider the specific
application and requirements to determine the most suitable data retrieval approach.

b) Security Logs

b) Security logs are a vital component of any secure computer system or network
infrastructure. They are records or documents that capture and store important events or
activities related to security within the system. Security logs provide a detailed trail of
information that can be analyzed and reviewed to identify potential security breaches,
unauthorized access attempts, or any suspicious activities.

These logs contain valuable data such as login attempts, file modifications, error messages,
system changes, and network traffic patterns. By examining these records, system
administrators and security professionals can detect patterns, identify vulnerabilities, and
investigate incidents to prevent future threats or intrusions.

Security logs also play a crucial role in compliance and regulatory requirements. Many
industries and organizations are required to maintain detailed security logs for auditing and
accountability purposes. These logs can be used to demonstrate adherence to security
policies, track user activities, and facilitate forensic analysis in case of security incidents or
investigations.

To ensure the effectiveness of security logs, it's important to implement proper log
management practices such as centralized log storage, log rotation, and secure access
controls to prevent unauthorized modifications or deletions. Regular review and analysis of
these logs can greatly enhance the overall security posture of an organization and help in
identifying and mitigating potential security risks.

c) KPI and Compliance Visibility

c) KPI stands for Key Performance Indicator, which is a measurable metric used to evaluate
the success and effectiveness of an organization or a specific aspect of its operations. KPIs
are essential for monitoring progress, making informed decisions, and ensuring that
objectives are being achieved. In the context of compliance visibility, KPIs can provide
valuable insights into the adherence and effectiveness of compliance programs.

Compliance visibility refers to the ability to monitor, measure, and assess compliance with
regulatory requirements, industry standards, and internal policies. It involves having clear
visibility into the compliance efforts and identifying any gaps or areas of concern. By
establishing relevant KPIs, organizations can track and measure various compliance-related
factors such as training completion rates, incident resolution time, policy adherence, and
audit findings.

KPIs provide a quantitative and objective picture of compliance performance, enabling

organizations to identify areas of improvement, track progress over time, and demonstrate

● Page 7
compliance to internal stakeholders and regulatory bodies. They serve as a powerful tool for
management to evaluate the success of compliance initiatives and allocate resources
effectively.

Overall, utilizing KPIs for compliance visibility enhances transparency, accountability, and
overall compliance effectiveness within an organization. It helps organizations drive
continuous improvement and build a culture of compliance, reducing the risk of regulatory
violations and associated consequences.

d) Integrated Marketing Campaign Management

d) Integrated Marketing Campaign Management is a strategic approach to planning,

implementing, and monitoring marketing campaigns across multiple channels in a
coordinated and cohesive manner. It involves utilizing various marketing channels such as
advertising, public relations, social media, email marketing, and content marketing to deliver
a consistent and unified message to target audiences.

The goal of integrated marketing campaign management is to ensure that all marketing
efforts work together harmoniously and reinforce each other, ultimately driving desired
outcomes. By integrating different channels and tactics, organizations can create a seamless
and comprehensive customer experience, strengthening brand awareness, engagement,
and conversions.

This approach requires careful planning, clear objectives, and effective communication
across different marketing teams and departments. It involves defining target audiences,
identifying key messages, selecting appropriate channels, and developing consistent
creative assets that resonate with the audience at each touchpoint.

Furthermore, integrated marketing campaign management necessitates continuous

monitoring and measurement of campaign performance across channels. By analyzing data
and feedback, organizations can optimize their strategies, improve campaign effectiveness,
and allocate resources more efficiently.

Overall, integrated marketing campaign management enables organizations to maximize the

impact of their marketing efforts, ensuring a consistent and holistic brand experience for
customers. It fosters synergy and alignment between marketing channels, leading to
improved brand recognition, customer engagement, and ultimately, business growth.

6. Briefly comment on the following: (4×5)

a) “Networks and telecommunications are the important components of
information systems”.

Ans 6. a) "Networks and telecommunications are the important components of information

systems" is an accurate statement. In today's interconnected world, networks and
telecommunications play a crucial role in enabling the effective flow of information and data
within and between organizations.

● Page 8
Information systems rely on networks to facilitate communication and data transfer.
Networks allow multiple devices and systems to connect and interact with each other,
providing the infrastructure for information exchange. Without networks, information systems
would be isolated and unable to share data or communicate effectively.

Telecommunications, on the other hand, refers to the transmission of information, such as

voice, data, and multimedia, over long distances using various technologies including wired
and wireless communication. Telecommunications systems provide the means for
information to be transmitted securely and quickly, enabling real-time communication and
collaboration in information systems.

The importance of networks and telecommunications is further emphasized by the rise of

cloud computing and digital transformation. With the increasing reliance on cloud services
and remote access to information, robust networks and efficient telecommunications become
even more essential for organizations to operate effectively and securely.

Overall, networks and telecommunications form the backbone of information systems,

enabling the smooth and efficient exchange of information and data. They are fundamental
components that underpin the effective functioning of organizations in today's digital age.

b) The person who chooses the POS software must have an intimate knowledge of the inner
working of the business.

b) The statement "The person who chooses the POS software must have an intimate
knowledge of the inner working of the business" highlights an important aspect of selecting
the right Point of Sale (POS) software. A POS system is a vital tool for managing sales,
inventory, and customer transactions, making it essential that the person responsible for
choosing it understands the specific needs and operations of the business.

Having an intimate knowledge of the inner workings of the business allows the person to
identify the specific requirements and functionalities needed from a POS software. This
includes understanding the type of products or services being sold, the target customer
base, the sales volume, and any unique operational aspects that need to be considered.
Without this understanding, it becomes challenging to choose a POS software that aligns
with the business's specific needs and challenges.

Furthermore, an intimate knowledge of the business enables the person to anticipate future
needs and growth potential, ensuring that the chosen POS software can scale and adapt to
changing requirements. It also facilitates effective integration of the POS system with
existing business processes, such as inventory management or customer relationship
management systems.

Selecting the right POS software requires a deep understanding of the business's
operations, goals, and unique requirements. By leveraging this knowledge, the person
making the selection can make an informed decision that maximizes the benefits and
efficiency of the POS system for the business.

● Page 9
c) Due to global supply chain, the food products available on supermarket shelves may have
travelled hundreds of kilometers before reaching the store.

c) The statement "Due to the global supply chain, the food products available on
supermarket shelves may have traveled hundreds of kilometers before reaching the store"
highlights the extensive reach and complexity of modern food distribution systems. With the
growth of globalization and trade, the availability and diversity of food products in
supermarkets have greatly expanded.

The global supply chain for food products involves various stages, including production,
processing, packaging, transportation, and distribution. Food products often go through a
long journey, crossing regional or even international borders, before finally reaching the store
shelves. This journey can involve hundreds or even thousands of kilometers of travel.

The global supply chain has both advantages and challenges. On one hand, it allows for a
wide variety of food products to be available to consumers throughout the year, regardless of
local agricultural seasons. It also introduces consumers to a diverse range of cuisines and
ingredients from different cultures.

However, the long-distance transportation can have implications for the quality and
freshness of the food. Depending on the type of product and transportation methods used,
there may be concerns about the environmental impact, energy consumption, and carbon
emissions associated with long-distance transportation.

Overall, the global supply chain for food products has revolutionized the availability and
accessibility of various food items in supermarkets. However, careful consideration should
be given to the environmental impact and potential trade-offs regarding freshness and
quality in this complex and expansive process.

d) “Business Intelligence (BI) is a tool to fulfill promises to customers”.

d) The statement "Business Intelligence (BI) is a tool to fulfill promises to customers"

captures the essence of the role that BI plays in the customer-centric approach of modern
businesses. BI refers to the collection, analysis, and presentation of data to support
decision-making and help organizations gain insights into their operations.

By leveraging BI tools and techniques, businesses can gather and interpret customer data,
preferences, and behaviors. This data-driven approach enables companies to make
informed decisions, develop tailored strategies, and ultimately deliver on their promises to
customers. BI provides a deeper understanding of customer needs, allowing businesses to
create personalized experiences, improve products and services, and enhance customer
satisfaction.

With BI, organizations can monitor key performance indicators, track customer feedback,
identify trends, and anticipate market demands. This enables them to allocate resources
effectively, optimize operations, and respond quickly to changing customer needs.
Furthermore, BI helps businesses identify areas of improvement, uncover potential
bottlenecks, and implement data-backed solutions to enhance overall efficiency.

● Page 10
Ultimately, by using BI as a tool, businesses can align their efforts and strategies with
customer expectations, enabling them to deliver on their promises and create lasting
customer relationships. BI empowers organizations to be customer-centric, responsive, and
agile, improving their ability to meet and exceed customer expectations in an ever-evolving
marketplace.

7. Discuss the benefits and considerations of implementing a CRM system. (10)

Ans: Implementing a Customer Relationship Management (CRM) system offers various

benefits to businesses, but it also requires careful consideration and planning to ensure
successful adoption and utilization. Here are some key advantages and considerations:

Benefits of CRM implementation:

1. Improved customer relationships: A CRM system centralizes customer data, allowing
businesses to gain a comprehensive view of their customers. This facilitates personalized
and targeted interactions, leading to stronger relationships and increased customer
satisfaction.

2. Increased sales and revenue: CRM enables businesses to track and manage sales
processes, automate sales tasks, and identify cross-selling or upselling opportunities. It also
provides insights into customer buying patterns to help optimize sales strategies and boost
revenue.

3. Enhanced marketing effectiveness: CRM systems enable targeted marketing campaigns

based on customer data and behavior. This assists in segmenting customers, executing
personalized marketing initiatives, and improving conversion rates.

4. Streamlined business processes: CRM automates and streamlines various business

processes, such as lead management, customer service, and support. This reduces manual
effort, improves efficiency, and ensures consistent, timely interactions with customers.

Considerations when implementing CRM:

1. Data quality and management: High-quality data is crucial for effective CRM
implementation. It is important to ensure accurate and up-to-date data entry, establish data
governance practices, and regularly clean and maintain the database.

2. User adoption and training: Proper user adoption is critical for the success of a CRM
system. Employees should be given adequate training and ongoing support to ensure they
understand the system, embrace its benefits, and utilize it effectively.

3. Integration with existing systems: The CRM system should integrate seamlessly with other
existing business applications to avoid data silos and enhance data flow across different
functions, such as sales, marketing, and customer service.

4. Customization and scalability: CRM systems should be customizable to align with specific
business requirements. They should also have the ability to scale as the business grows and
evolves, accommodating increasing amounts of data and user needs.

● Page 11
In conclusion, implementing a CRM system can deliver significant benefits by enabling
improved customer relationships, increased sales, enhanced marketing effectiveness, and
streamlined business processes. However, careful attention must be given to data quality,
user adoption, system integration, and customization to ensure a successful implementation
and maximized return on investment.

(B) Essay Type Questions

8. What are the areas of big data analytics in retail? Explain any two with their respective
KPIs. (15)

Ans: In the retail industry, big data analytics plays a crucial role in understanding customer
behavior, optimizing operations, and improving overall business performance. Some key
areas of big data analytics in retail include:

1. Customer analytics: By leveraging data from various sources such as customer

transactions, loyalty programs, online behavior, and social media, retailers can gain valuable
insights into their customers' preferences and behaviors. Two important metrics or Key
Performance Indicators (KPIs) in this area are:

i. Customer Lifetime Value (CLV): CLV measures the value of a customer over their entire
relationship with the retailer. It helps in identifying high-value customers who generate
greater revenue and profits, enabling targeted marketing efforts and personalized
experiences.

ii. Customer Churn Rate: Churn rate measures the rate at which customers stop
purchasing from a retailer. Analyzing historical data and customer behavior patterns can help
predict and reduce churn. By identifying the factors that lead to customer churn, retailers can
take proactive measures to retain customers and minimize revenue loss.

2. Inventory analytics: Managing inventory efficiently is critical for retailers to avoid

overstocking or stockouts, optimize replenishment, and improve overall operational
efficiency. Big data analytics can provide insights into factors like demand patterns,
seasonality, and external factors that can impact inventory management. Two important KPIs
in this area include:

i. Inventory turnover: Inventory turnover measures how quickly a retailer sells and
replenishes its stock. By using big data analytics, retailers can identify slow-moving
inventory, adjust purchasing decisions, and avoid excess stock to optimize cash flow and
reduce carrying costs. A higher inventory turnover ratio indicates better efficiency in
inventory management.

ii. Stockout rate: Stockout rate measures the percentage of products that are out of stock
at any given time. By analyzing historical data, demand patterns, and external factors,
retailers can better predict and plan for stockouts, reducing customer dissatisfaction and lost
sales. A lower stockout rate indicates better inventory management and improved customer
satisfaction.

● Page 12
These are just two examples of the many areas where big data analytics can provide
valuable insights for retailers. By leveraging data effectively, retailers can optimize various
aspects of their operations, personalize customer experiences, and make data-driven
decisions, ultimately leading to improved business performance.

9. What is meant by online retailing? Discuss the advantages and shortcomings of

e-retailing. (15)

Ans: Online retailing, also known as e-retailing or e-commerce, refers to the process of
buying and selling products and services over the internet. It involves the use of online
platforms, such as websites and mobile applications, to showcase and sell products, accept
payments, and handle customer transactions.

Advantages of e-retailing:

1. Global reach: Online retailing allows businesses to reach a global customer base without
the need for physical stores or local presence. This opens up vast market opportunities and
potential for growth, irrespective of geographical boundaries.

2. Convenience and accessibility: E-retailing offers convenience to customers as they can

shop anytime, anywhere, and on any device. It eliminates the need for customers to travel to
physical stores, provides access to a wide range of products, and enables comparison
shopping with just a few clicks.

3. Cost-effectiveness for businesses: Establishing and maintaining an online store is

generally less expensive compared to opening and managing a physical store. It reduces
overhead costs such as rent, utilities, and staff. Online retailing allows businesses to expand
their customer base and scale operations more efficiently.

4. Personalization and targeted marketing: Online retailing allows businesses to collect and
analyze customer data, enabling them to offer personalized recommendations, promotions,
and targeted marketing campaigns. This leads to better customer engagement, higher
conversions, and increased customer loyalty.

Shortcomings of e-retailing:

1. Lack of physical interaction: One disadvantage of e-retailing is the absence of in-person

interaction between customers and sales associates. This can lead to difficulties in receiving
immediate assistance or personalized advice, which may be desired for certain product
categories or shopping experiences.

2. Security and trust concerns: Online retailing involves the transfer of personal and financial
information over the internet, raising concerns about security and privacy. Customers may
be hesitant to provide sensitive information, leading to potential loss of sales. Businesses
must invest in robust security measures to address these concerns.

3. Product and service visibility: With the abundance of online retailers, it can be challenging
for businesses to stand out from the competition and gain adequate visibility. Building brand

● Page 13
reputation, attracting website traffic, and ensuring discoverability requires targeted marketing
efforts and investments in search engine optimization (SEO) and online advertising.

4. Logistical challenges: Efficient order fulfillment, inventory management, and reliable

delivery logistics are critical aspects of e-retailing. Businesses need to invest in efficient
inventory management systems, establish partnerships with reliable logistics providers, and
ensure prompt and accurate delivery to meet customer expectations.

Overall, while e-retailing offers numerous advantages such as global reach, convenience,
and cost-effectiveness, there are challenges including lack of physical interaction, security
concerns, visibility issues, and logistical complexities. Successful e-retailers must address
these challenges effectively to provide a seamless and trusted online shopping experience
for customers.

WhatsApp for more quality assignments - 9910736314

● Page 14