OPERATIONS

Study: Convenience trumps price for both in-store and online shoppers

BY Marianne Wilson

Boston — The number one reason people choose to shop either in-person or online is convenience and not price, according to the results of a new survey released by Continuum, a global design and innovation consultancy. Continuum’s 2012 Service Design Report looked at data from more than 1,000 consumers across the country and uncovered the top reasons they choose whether to shop in-stores or online.

The top reasons respondents say they shop in stores are:
• For convenience (40%);
• They don’t trust the quality online (22%);
• They don’t want to pay for shipping/returns (17 %);
• For better prices (17%); and
• For personal interaction (4%).

The top reasons respondents say they shop online are:
• For convenience (43%);
• It is easier to find what they are looking for (29%);
• For better prices (25%); and
• To avoid interaction with employees (3%).

The fact that convenience seemed to matter more for shoppers than price was a surprise, given that many large national big box chains have begun to fiercely combat a trend known as ‘showrooming’ where consumers browse a physical store before buying an item online, presumably because it is cheaper. But showrooming is still something that shoppers enjoy, with 70% saying they found browsing in stores and then finding the product cheaper online was a satisfying experience.

"There is clearly a benefit for retailers to concentrate not only on price but also how they are designing as holistic an experience as possible for their customers to be able to efficiently interact with their brand whether it is in-person or online," said Craig LaRosa , principal of Continuum’s Service Design group. "A one-size-fits-all approach does not work when it comes to designing a great customer experience or service."

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Mar-25-2013 09:38 am

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Mar-25-2013 09:38 am

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Mar-13-2013 08:14 am

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A.Jhon says:
Mar-13-2013 08:14 am

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Macy’s Terry Lundgren joins P&G Board

BY Staff Writer

New York — Procter & Gamble named Macy’s chairman, president and CEO Terry Lundgren as the newest member of its board of directors.

Lundgren fills a position vacated by current P&G director Johnathan Rodgers who is not seeking re-election when P&G’s holds its annual shareholder meeting in October.

"We are delighted to welcome Terry Lundgren to the board," said P&G chairman, president and CEO Bob McDonald. "He brings extensive leadership, strategy and risk management experience, as well as exceptional knowledge of the consumer industry and dynamic marketing practices. His hands-on experience in organizational optimization will be invaluable as we continue to drive our productivity programs forward."

Lundgren will serve on the governance and public responsibility and the innovation and technology committees of P&G’s board. Retiring board member Rodgers has served on the board since 2001.

Lundgren has served as chairman, president and chief executive officer of Macy’s since 2004. He joined Federated Department Stores in 1975 and became president of its Bullock Wilshire operation in 1987. He was next appointed chairman and CEO of Neiman Marcus in 1988 and six years later returned to Federated as chairman and CEO of its merchandising group. Federated acquired Macy’s in 1994. In 1997, Lundgren was named president and chief merchandising officer of the combined company. He became COO in 2002 and CEO the following year.

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M.Donovan says:
Mar-25-2013 09:45 am

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Mar-25-2013 09:45 am

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NicoleScott says:
Mar-08-2013 07:12 am

I've missed this news. Good to find it here. Anyway, Lundgren has proven to be a good leader, so without a doubt, he is a big asset now to the company. - Kale Flagg

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Gymboree names former Gap exec as CEO

BY Katherine Boccaccio

San Francisco — Gymboree Corp. announced Tuesday that it has appointed Mark Breitbard as CEO, effective Jan. 14. Breitbard joins Gymboree from Gap Inc., where he was president of Gap North America.

He also has served as EVP of GapKids and babyGap.

Breitbard succeeds interim CEO Kip M. Garcia, who will resume his former duties as president. Garcia stepped in when former CEO Matthew McCauley resigned last September.

Interim COO Yvonne Hao will return to her role as an operating partner at Bain Capital.

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NicoleScott says:
Mar-08-2013 07:28 am

He is the right person for the position. Yet, we still have to see of his capacity to perform his job. - Kale Flagg

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