Business course gives retail transaction insight, in store and online

November 13, 2017

MKT 455 E-tailing and Retailing aims to make students aware and well informed of sales strategies and consumer behavior.

 E-tailing and Retailing
E-tailing and Retailing

You get what you pay for. Sometimes it鈥檚 an experience. Occasionally you perceive value. Other times it鈥檚 actual cost.

But no matter what it is鈥College of Business Marketing Lecturer Chris Samfilippo wants his Marketing 455: E-tailing and Retailing students to be aware and well informed of sales strategies and consumer behavior when they make financial business interactions in the retail space.

Samfilippo said awareness is important for all people鈥攊n the business community and beyond鈥攖o learn the complexities and nuances of shopper behavior.

鈥淭he bottom line is that we鈥檙e all making these financial decisions every day,鈥 said Samfilippo, who notes that the course introduces students to significant issues and analysis of 21st century retailing strategy and management and teaches them about customer experience, service and satisfaction. 鈥淚t is beneficial to have knowledge in an area that鈥檚 such an integral part of our lives.鈥

As Samfilippo uses examples in class and involves his students in the discussion, his message becomes even more apparent.

A slide with an American Girl doll shows up. In the Wednesday night class, he asks students why a product that has materials that most likely cost under $10 could have a retail price鈥攚hich is cost plus markup鈥攐f $100 or more.

Raised hands, many from students having owned one, shared answers. 鈥淵ou could customize her appearance to look like you.鈥 鈥淪he was a special occasion only, not an everyday doll.鈥 鈥淪he was more than a doll; she鈥檚 a friend.鈥

Samfilippo then asked if the doll was worth the asking price. Nods of yes were seen around the room.

鈥淭his is what I want to point out. Price is obviously a factor in sales, but so is value. That company has turned their doll鈥攅ssentially plastic, buttons, fabric and a variety of synthetic materials鈥攊nto something priceless. They are selling friendship, a childhood experience. This has increased what people are willing to pay for it,鈥 he said. 鈥淭here is nothing wrong with that鈥攖here is nothing dirty about making money. But it鈥檚 important to realize these things on both sides of the sale.鈥

He said successful marketing鈥攂oth online and in stores鈥攖ypically sells more than just the item. They sell brand image.

鈥淒ove sells beauty, not soap. The Ritz-Carlton sells an experience, not a hotel room. DeBeers diamonds sell forever-lasting love, not a stone,鈥 he said. 鈥淵ou probably know this on a surface level, but do you stop to think about how it affects your buying habits? Or how it can affect your buyer鈥檚 shopping habits?鈥

Marketing senior Zeinab Zein said she added the course because she wanted some 鈥渂ehind-the-scenes鈥 insight into the retail process. And she now uses the knowledge when she shops.

Recently looking to buy linens for her 2-year-old son鈥檚 toddler bed, Zein saw Thomas the Tank Engine sheets in a Pottery Barn Kids print catalog. 鈥淚 was on the fence because the sheets were a bit pricey, in my opinion. So I wanted to go to the store and see them before deciding to purchase.鈥

While at the store, Zein noticed the soft lighting, the use of bookshelves and peg-style hanging racks for home-like product placement, and the friendly sales staff.

鈥淭aking Professor Samfilippo鈥檚 class, I recognized these things for what they were鈥攁 well-done sales strategy鈥攁nd I appreciated what went into the interaction even more. The atmosphere was clean, relaxing and comfortable鈥攈ow you want your family to feel at home. And the saleswoman was so personable that I felt like I was just having a conversation, mom to mom, about the item.

鈥淚 came out with those sheets and feeling good about the purchase.鈥

In addition to understanding a good sales strategy and consumer behavior, the course examines how new technologies impact the retail world and discusses predictions of retailing in the future.

Samfilippo, who taught the course in the 1990s prior to the course adding e-tailing to its name, said online shopping is an important part of the ever-evolving retail sales strategy. He said it gives more opportunity for both consumers and businesses to interact with one another.

Even with online retail sales increasing鈥Forbes reported during the 2016 Thanksgiving shopping weekend, 40 percent of sales occurred on a mobile device. That鈥檚 up 15.2 percent from the same time period in 2015鈥擲amfilippo said physical retail spaces aren鈥檛 going anywhere any time soon.

鈥淥nline shopping offers convenience, price comparison and customer reviews, which is my favorite part,鈥 he said. 鈥淏ut we, as humans, still want that social interaction; for shopping to be an event, an experience to share. And it鈥檚 up to the businesses to continue to give people positive transactions鈥攖hrough promotions, price and atmosphere鈥攖o keep them coming back.鈥

And having both is a good thing, he said. With a layered retail landscape, there鈥檚 more room for creative business marketers and savvy customers to thrive鈥攁nd find satisfaction in getting what was paid for.