SUMMARY OF EVERYTHING
LECTURES + MANDATORY & OPTIONAL READINGS
+ BOTH TEAM ASSIGNMENTS + EXAM 2021-22
N o t e : G u e s t l e c t u r e s o m i t t e d d u e t o p o s s i b l e i r r e l e va n c e & c o n f i d e n t i a l i t y .
Furthermore, Week 3 and 6 are Assignment presentation weeks, hence no lectures or readings.
E n h a n c e d w i t h a d y n a m ic t a b le o f c o n t e n t s .
, MADS MADLAD |2
Note from MADS MADLAD:
Thank you for buying my summary. I sincerely hope it helps you excel and learn
from this course. When I was writing these I sometimes struggled with this
program, but there were no summaries available.
This is why I decided to write something that is truly complete with a lot of
effort put into it. It helped me and my friends get good grades, but I also
always had you in mind, the future reader. When necessary, I always went the
extra mile to make this summary, more readable, organized and complete.
If you feel like it, leave me a review of how the course is going using this
summary, it will make my day to hear your opinion good or bad!
Check out my other extensive summaries for other MADS courses:
Available on:
Contact info:
If you need help or have an inquiry, contact me: https://www.georgedreemer.com
Connect with me on LinkedIn: https://www.linkedin.com/in/georgedreemer/
Donations:
By no means am I looking for fellow students to send me money! But if you feel like sending
me some ETH or BTC, you can do so here:
--> ETH: 0x123e086c6808459e7fC6Ac7F64a77dBA1dDe0149
--> BTC: bc1qgwzc82vph5v8rmzef4ywechjf85772n7m2e22g
, MADS MADLAD |3
wishes you good luck & perseverance.
Grades Testimony:
, MADS MADLAD |4
Table of Contents
Week 1............................................................................................................... 8
Lecture 1: Introduction & The Tale of Retail ................................................... 8
What is retail?.............................................................................................. 8
The Tale of Retail ......................................................................................... 8
1. Agrarian economy .................................................................................... 8
2. Industrial revolution ................................................................................ 8
3. Service revolution .................................................................................... 9
4. Information and Network Revolution ...................................................... 9
From retail format to Eco-system .............................................................. 10
From trust in the firm to trust in the use ................................................... 10
Lecture 2: The Customer Journey ................................................................. 10
5 Entities of Retailing (traditionally)........................................................... 10
What do we want from our shoppers? ...................................................... 11
Retailing, then and now ............................................................................. 11
Battle for the shopper: Shopper Marketing ............................................... 11
Customer Experience & Journey ................................................................ 12
Mapping the Customer Journey – 6 insights .............................................. 12
Customer Journey Perspectives: Retailer vs. Shopper ............................... 13
Omni-channel Customer Journey............................................................... 13
Types of Channels – Offline vs. Online ....................................................... 14
Touch Point Elements ................................................................................ 15
Store Environment ..................................................................................... 15
Journey-based Segments ........................................................................... 16
Omni-channel Management ...................................................................... 16
Long tail vs. Short tail ................................................................................. 17
Impact of Digital Transformation ............................................................... 17
Reading 1: Loyalty Formation for Different Customer Journey Segments ..... 18
Reading 2: Online and offline retailing .......................................................... 21
, MADS MADLAD |5
Reading 3: The impact of digital transformation on the retailing value chain
..................................................................................................................... 23
Reading 4: Towards the identification of customer experience touch point
elements ....................................................................................................... 26
Assignment 1 Case: Makeup Shake-up – L’Oréal .......................................... 29
L’Oréal Company Background .................................................................... 29
Key Trends Influencing Path-to-Purchase .................................................. 29
Channels in U.S. Beauty Market: Primary & Secondary + Key Figures ........ 30
5 Beauty Shopper Personas + Other Data .................................................. 31
Week 2............................................................................................................. 34
Lecture 3: Shopping Motivations & Shopper Segmentation.......................... 34
Recap: Customer Journey .......................................................................... 34
Showrooming ............................................................................................ 34
Webrooming.............................................................................................. 34
Reasons for Consumer Shifting to Online Shopping ................................... 35
Consumer Buying Process: Shopper........................................................... 35
Shopper Motivations: Why do we buy? ..................................................... 36
Hedonic vs. Utilitarian Consumption (Motivation) ..................................... 36
Shopper Segmentation: Motivation-based Clusters ................................... 37
Shopper Segmentation: Journey-based Clusters ........................................ 38
In-store Shopping: Impulse vs. Unplanned Buying ..................................... 39
In-store decision making ............................................................................ 41
Precursors to Unplanned Purchasing ......................................................... 42
Shop Marketing Model: ............................................................................. 43
Lecture 4: Samir Selimi Guest Lecture........................................................... 43
Single- vs. Multi- vs. Cross- vs. Omni-Channel ............................................ 43
Everything Digital? ..................................................................................... 43
Omni-channel in Practice: Outside-In ........................................................ 44
Reading 5: Hedonic shopping motivations .................................................... 47
Reading 6: Shopper-Facing Retail Technology............................................... 50
, MADS MADLAD |6
Reading 7: The Interplay Among Category Characteristics, Customer
Characteristics, and Customer Activities on In-Store Decision Making.......... 54
Week 4............................................................................................................. 58
Lecture 5: The Basics of Generating Sales in Retail ....................................... 58
Brand/supplier’s perspective ..................................................................... 58
Retailer’s perspective ................................................................................ 58
Market perspective.................................................................................... 60
Category Management .............................................................................. 61
Assortment ................................................................................................ 63
Lecture 6: Guest lecture................................................................................ 66
Omitted ..................................................................................................... 66
Reading 8 – Assortment: Consumers’ Perceptions of the Assortment Offered
in a Grocery Category: The Impact of Item Reduction .................................. 67
Abstract / Key Takeaway (in-short) ............................................................ 67
Reading 9 – Assortment: How does assortment affect grocery store choice?
..................................................................................................................... 69
Abstract / Key Takeaway (in-short) ............................................................ 69
Key Takeaways (in-depth) .......................................................................... 69
Reading (not for exam) – Useful for Assignment 2 on assortment: How Many
Versions of a Product Do Consumers Really Want? ...................................... 71
Key Findings: .............................................................................................. 71
Reading (not for exam) – Useful for Assignment 2 on assortment: Which
products should you stock? .......................................................................... 72
Key Findings: .............................................................................................. 72
Assignment 2: Kruidvat Case Summary ......................................................... 73
Key Findings: .............................................................................................. 73
Week 5............................................................................................................. 77
Lecture 7: Pricing & Promotions ................................................................... 77
Factors that affect Price ............................................................................. 77
Tactics to deal with price increases............................................................ 77
Store image & Price perception ................................................................. 77
, MADS MADLAD |7
Price tracking & Price tactics ...................................................................... 78
Price elasticity ............................................................................................ 78
3 Sources of short-term Sales increase: Brand switching, category incidence,
purchase quantity ...................................................................................... 79
Wrap up ..................................................................................................... 79
Reading 10 – Promotion: Is 75% of the Sales Promotion Bump Due to Brand
Switching? No, only 33% Is ........................................................................... 80
Abstract / Key Takeaway (in-short) ............................................................ 80
Key Takeaways (in-depth) .......................................................................... 80
Reading 11 – Price: New Empirical Generalizations on the Determinants of
Price Elasticity ............................................................................................... 81
Abstract / Key Takeaway (in-short) ............................................................ 81
Key Takeaways (in-depth) .......................................................................... 81
Reading 12 – The Good-Better-Best Approach to Pricing .............................. 85
Week 7............................................................................................................. 89
Lecture 8: Sustainability in Retailing ............................................................. 89
New customers, new journeys, and a new P in Marketing ......................... 89
Exam 2021-22 .................................................................................................. 91
, MADS MADLAD |8
Week 1
Lecture 1: Introduction & The Tale of Retail
What is retail?
Retail is the sale of different goods and services to customers with the intention
to make a profit.
• Always interacting with the customer (difference with B2B)
• Always interested in profit first
• What makes retailing sustainable? Is it just money – no
The Tale of Retail
1. Agrarian economy
The Agrarian economy, the time when mechanization happened.
• Retail Developments
o Potatoes, gran and straw cardboard initiated in area of Groningen
o First retail chain – De Gruyter
o First warehouse/dept. store – Winkel van Sinkel
o First confection (sweets) store – C&A
2. Industrial revolution
Beginnings of mass-production.
• Retail Developments
o Availability of affordable, high-quality goods
▪ Upscale dept. store – Hirsch
▪ Vroom & Dreesmann
▪ Verkade (biscuits) introduces franchising
• They called it star stores
• Very progressive and innovative with customer loyalty
programs (distributed pictures to collect in order to
complete an album and unlock the story)
▪ HEMA
, MADS MADLAD |9
• Introduced unity-prizing, everything in the store
costed 0.25 or 0.50 cents
o Confectionary chains initiated the birth of mass-producing clothing
3. Service revolution
Spurred the growth of self-service concepts, travelling industry, entertainment,
out of home dining
• Self-service concepts and data marketing
o V&D Customer media: the first to introduce the magazine as a
marketing tool and customer loyalty generator.
o FEBO automatiek: emergence of vending machines
o AH adopts the US approach: introduced barcodes, baskets
o Dirk van den Broek: incorporated a travel agency through offering
a voucher to people who spent X amount, which give discounted
travel to Italy.
o Kruidvat: in 1975 there was a breakthrough in the pharmacy
industry
o Bakker Bart: introduced ready-made sandwiches (take-home
dining)
o Praxis: one of the first do-it-yourself stores
4. Information and Network Revolution
Digitization and connectedness define this revolution.
• Entertainment (movies, music, gaming) and traveling taken over by online
• Pinduoduo: combining social media and ecommerce together
o Better prices and less waste thanks to seeing directly what
customers are most interested in.
• Benefit of online + offline (O&O): higher revenue
• Retail developments
o Online & Offline (O&O) integration
o Seamless experience
o Information provision
o Order automation
o Autonomous delivery
, M A D S M A D L A D | 10
o Customization, Hyper Personalization
o AI powered product design
o Spatial internet
From retail format to Eco-system
Combining many aspects of shopping and social into one eco-system.
• WeChat: combines many digital functions of social media in one function
From trust in the firm to trust in the use
Nowadays shoppers are influenced by other shoppers or people in general,
more than the firm’s marketing efforts.
• Influencer Marketing
• Review Marketing
• Co-creation
Lecture 2: The Customer Journey
5 Entities of Retailing (traditionally)
o Retailer -> Store
o Supplier -> Product
o Customer/Shopper
LECTURES + MANDATORY & OPTIONAL READINGS
+ BOTH TEAM ASSIGNMENTS + EXAM 2021-22
N o t e : G u e s t l e c t u r e s o m i t t e d d u e t o p o s s i b l e i r r e l e va n c e & c o n f i d e n t i a l i t y .
Furthermore, Week 3 and 6 are Assignment presentation weeks, hence no lectures or readings.
E n h a n c e d w i t h a d y n a m ic t a b le o f c o n t e n t s .
, MADS MADLAD |2
Note from MADS MADLAD:
Thank you for buying my summary. I sincerely hope it helps you excel and learn
from this course. When I was writing these I sometimes struggled with this
program, but there were no summaries available.
This is why I decided to write something that is truly complete with a lot of
effort put into it. It helped me and my friends get good grades, but I also
always had you in mind, the future reader. When necessary, I always went the
extra mile to make this summary, more readable, organized and complete.
If you feel like it, leave me a review of how the course is going using this
summary, it will make my day to hear your opinion good or bad!
Check out my other extensive summaries for other MADS courses:
Available on:
Contact info:
If you need help or have an inquiry, contact me: https://www.georgedreemer.com
Connect with me on LinkedIn: https://www.linkedin.com/in/georgedreemer/
Donations:
By no means am I looking for fellow students to send me money! But if you feel like sending
me some ETH or BTC, you can do so here:
--> ETH: 0x123e086c6808459e7fC6Ac7F64a77dBA1dDe0149
--> BTC: bc1qgwzc82vph5v8rmzef4ywechjf85772n7m2e22g
, MADS MADLAD |3
wishes you good luck & perseverance.
Grades Testimony:
, MADS MADLAD |4
Table of Contents
Week 1............................................................................................................... 8
Lecture 1: Introduction & The Tale of Retail ................................................... 8
What is retail?.............................................................................................. 8
The Tale of Retail ......................................................................................... 8
1. Agrarian economy .................................................................................... 8
2. Industrial revolution ................................................................................ 8
3. Service revolution .................................................................................... 9
4. Information and Network Revolution ...................................................... 9
From retail format to Eco-system .............................................................. 10
From trust in the firm to trust in the use ................................................... 10
Lecture 2: The Customer Journey ................................................................. 10
5 Entities of Retailing (traditionally)........................................................... 10
What do we want from our shoppers? ...................................................... 11
Retailing, then and now ............................................................................. 11
Battle for the shopper: Shopper Marketing ............................................... 11
Customer Experience & Journey ................................................................ 12
Mapping the Customer Journey – 6 insights .............................................. 12
Customer Journey Perspectives: Retailer vs. Shopper ............................... 13
Omni-channel Customer Journey............................................................... 13
Types of Channels – Offline vs. Online ....................................................... 14
Touch Point Elements ................................................................................ 15
Store Environment ..................................................................................... 15
Journey-based Segments ........................................................................... 16
Omni-channel Management ...................................................................... 16
Long tail vs. Short tail ................................................................................. 17
Impact of Digital Transformation ............................................................... 17
Reading 1: Loyalty Formation for Different Customer Journey Segments ..... 18
Reading 2: Online and offline retailing .......................................................... 21
, MADS MADLAD |5
Reading 3: The impact of digital transformation on the retailing value chain
..................................................................................................................... 23
Reading 4: Towards the identification of customer experience touch point
elements ....................................................................................................... 26
Assignment 1 Case: Makeup Shake-up – L’Oréal .......................................... 29
L’Oréal Company Background .................................................................... 29
Key Trends Influencing Path-to-Purchase .................................................. 29
Channels in U.S. Beauty Market: Primary & Secondary + Key Figures ........ 30
5 Beauty Shopper Personas + Other Data .................................................. 31
Week 2............................................................................................................. 34
Lecture 3: Shopping Motivations & Shopper Segmentation.......................... 34
Recap: Customer Journey .......................................................................... 34
Showrooming ............................................................................................ 34
Webrooming.............................................................................................. 34
Reasons for Consumer Shifting to Online Shopping ................................... 35
Consumer Buying Process: Shopper........................................................... 35
Shopper Motivations: Why do we buy? ..................................................... 36
Hedonic vs. Utilitarian Consumption (Motivation) ..................................... 36
Shopper Segmentation: Motivation-based Clusters ................................... 37
Shopper Segmentation: Journey-based Clusters ........................................ 38
In-store Shopping: Impulse vs. Unplanned Buying ..................................... 39
In-store decision making ............................................................................ 41
Precursors to Unplanned Purchasing ......................................................... 42
Shop Marketing Model: ............................................................................. 43
Lecture 4: Samir Selimi Guest Lecture........................................................... 43
Single- vs. Multi- vs. Cross- vs. Omni-Channel ............................................ 43
Everything Digital? ..................................................................................... 43
Omni-channel in Practice: Outside-In ........................................................ 44
Reading 5: Hedonic shopping motivations .................................................... 47
Reading 6: Shopper-Facing Retail Technology............................................... 50
, MADS MADLAD |6
Reading 7: The Interplay Among Category Characteristics, Customer
Characteristics, and Customer Activities on In-Store Decision Making.......... 54
Week 4............................................................................................................. 58
Lecture 5: The Basics of Generating Sales in Retail ....................................... 58
Brand/supplier’s perspective ..................................................................... 58
Retailer’s perspective ................................................................................ 58
Market perspective.................................................................................... 60
Category Management .............................................................................. 61
Assortment ................................................................................................ 63
Lecture 6: Guest lecture................................................................................ 66
Omitted ..................................................................................................... 66
Reading 8 – Assortment: Consumers’ Perceptions of the Assortment Offered
in a Grocery Category: The Impact of Item Reduction .................................. 67
Abstract / Key Takeaway (in-short) ............................................................ 67
Reading 9 – Assortment: How does assortment affect grocery store choice?
..................................................................................................................... 69
Abstract / Key Takeaway (in-short) ............................................................ 69
Key Takeaways (in-depth) .......................................................................... 69
Reading (not for exam) – Useful for Assignment 2 on assortment: How Many
Versions of a Product Do Consumers Really Want? ...................................... 71
Key Findings: .............................................................................................. 71
Reading (not for exam) – Useful for Assignment 2 on assortment: Which
products should you stock? .......................................................................... 72
Key Findings: .............................................................................................. 72
Assignment 2: Kruidvat Case Summary ......................................................... 73
Key Findings: .............................................................................................. 73
Week 5............................................................................................................. 77
Lecture 7: Pricing & Promotions ................................................................... 77
Factors that affect Price ............................................................................. 77
Tactics to deal with price increases............................................................ 77
Store image & Price perception ................................................................. 77
, MADS MADLAD |7
Price tracking & Price tactics ...................................................................... 78
Price elasticity ............................................................................................ 78
3 Sources of short-term Sales increase: Brand switching, category incidence,
purchase quantity ...................................................................................... 79
Wrap up ..................................................................................................... 79
Reading 10 – Promotion: Is 75% of the Sales Promotion Bump Due to Brand
Switching? No, only 33% Is ........................................................................... 80
Abstract / Key Takeaway (in-short) ............................................................ 80
Key Takeaways (in-depth) .......................................................................... 80
Reading 11 – Price: New Empirical Generalizations on the Determinants of
Price Elasticity ............................................................................................... 81
Abstract / Key Takeaway (in-short) ............................................................ 81
Key Takeaways (in-depth) .......................................................................... 81
Reading 12 – The Good-Better-Best Approach to Pricing .............................. 85
Week 7............................................................................................................. 89
Lecture 8: Sustainability in Retailing ............................................................. 89
New customers, new journeys, and a new P in Marketing ......................... 89
Exam 2021-22 .................................................................................................. 91
, MADS MADLAD |8
Week 1
Lecture 1: Introduction & The Tale of Retail
What is retail?
Retail is the sale of different goods and services to customers with the intention
to make a profit.
• Always interacting with the customer (difference with B2B)
• Always interested in profit first
• What makes retailing sustainable? Is it just money – no
The Tale of Retail
1. Agrarian economy
The Agrarian economy, the time when mechanization happened.
• Retail Developments
o Potatoes, gran and straw cardboard initiated in area of Groningen
o First retail chain – De Gruyter
o First warehouse/dept. store – Winkel van Sinkel
o First confection (sweets) store – C&A
2. Industrial revolution
Beginnings of mass-production.
• Retail Developments
o Availability of affordable, high-quality goods
▪ Upscale dept. store – Hirsch
▪ Vroom & Dreesmann
▪ Verkade (biscuits) introduces franchising
• They called it star stores
• Very progressive and innovative with customer loyalty
programs (distributed pictures to collect in order to
complete an album and unlock the story)
▪ HEMA
, MADS MADLAD |9
• Introduced unity-prizing, everything in the store
costed 0.25 or 0.50 cents
o Confectionary chains initiated the birth of mass-producing clothing
3. Service revolution
Spurred the growth of self-service concepts, travelling industry, entertainment,
out of home dining
• Self-service concepts and data marketing
o V&D Customer media: the first to introduce the magazine as a
marketing tool and customer loyalty generator.
o FEBO automatiek: emergence of vending machines
o AH adopts the US approach: introduced barcodes, baskets
o Dirk van den Broek: incorporated a travel agency through offering
a voucher to people who spent X amount, which give discounted
travel to Italy.
o Kruidvat: in 1975 there was a breakthrough in the pharmacy
industry
o Bakker Bart: introduced ready-made sandwiches (take-home
dining)
o Praxis: one of the first do-it-yourself stores
4. Information and Network Revolution
Digitization and connectedness define this revolution.
• Entertainment (movies, music, gaming) and traveling taken over by online
• Pinduoduo: combining social media and ecommerce together
o Better prices and less waste thanks to seeing directly what
customers are most interested in.
• Benefit of online + offline (O&O): higher revenue
• Retail developments
o Online & Offline (O&O) integration
o Seamless experience
o Information provision
o Order automation
o Autonomous delivery
, M A D S M A D L A D | 10
o Customization, Hyper Personalization
o AI powered product design
o Spatial internet
From retail format to Eco-system
Combining many aspects of shopping and social into one eco-system.
• WeChat: combines many digital functions of social media in one function
From trust in the firm to trust in the use
Nowadays shoppers are influenced by other shoppers or people in general,
more than the firm’s marketing efforts.
• Influencer Marketing
• Review Marketing
• Co-creation
Lecture 2: The Customer Journey
5 Entities of Retailing (traditionally)
o Retailer -> Store
o Supplier -> Product
o Customer/Shopper
