Customers use a personal computer and a modem to browse through product offerings and place orders. H. Value-Chain Partnership Strategies 1. Retailers need strong relationships with their channel partners. A seamless, timely flow of products is needed to satisfy customers. Upstream marketers depend on the information about consumer needs and buying patterns that retailers can provide.
Category management is the practice of managing each product category as a separate business.
The purpose is to stock, price, and promote the products in each category on the basis of the actual buying behavior of consumers. Many retailers are stressing category management. To be effective, category management must be a team effort among value-chain partners. B. The Wheel of Retailing 1. The wheel of retailing is a theory that describes retail evolution as a cycle of continuing to upgrade to serve more upscale customers.