The new software made gave an option of speedier check out, nutrients & ingredients list, & a cumulative list of what has been purchased during an on-line shopping trip. In December 1998 Peapod started their 1st dedicated distribution center leading to a reduced delivery costs to customers, efficient assortment of grocery, diary & frozen products & to be replenished just in time basis by suppliers. Delivery charges varies from $ 9.95 per order with no monthly fees to $5 per order plus $4.95 flat charges per month or unlimited deliveries for $19.95 per month.
[...] The waiting period for a product/ service is indicative of the value being place by consumers for that product/service Breadth of assortment Wider the breadth of assortment or the availability of product variety higher is the service outputs of the channel The higher the service output of the channel, higher is the distribution costs because of the inventory carrying costs which is passed onto the end user. Trends in B2B buyer preferences Outsourcing refers spinning off particular corporate activities or functions to outside providers. [...]
[...] Hence the added cost of increasing the service outputs of this channel will not increase the market share of the channel. However if competitors increase their channel output service levels it would become imperative for the existing channel to incorporate necessary changes Meeting service output demands Ease of entry: Competition is not only from existing firms ,channels already existing or entrants to the industry but from those channels that fail to deliver the service outputs of the end users. This is because competition can leverage technology to meet those service outputs ex Citibank ATM's. [...]
[...] Also off these segments the branded products segments placed high importance on home delivery & said that it enhanced their shopping experience of the people in this segment were females & from dual income families Also 70% and more of families had an income of $60,000 annually Relevance of peapod operations to shoppers Anderson consulting has through a study found that 42% of Americans would like to have the comfort of shopping from home for commodities or staple items Also that by the year of retail grocery volume is expected to be from on-line shopping Louis P Bucklin's frame work for marketing channels Other things being equal ( in particular price, end users will prefer to deal with a marketing channel that provides a higher level of generic service outputs like: Bulk breaking Spatial convenience Waiting or delivery time Product variety Bulk Breaking Ability of the end user to buy in desired small quantities though the original produced packaging could be big. [...]
[...] Hence it is important while formulating a channel to block entry of new competitors. Other elements of excellence in marketing offering: The marketing channel is one part of the overall marketing mix. A truly superior product or a tremendously low price can lead end users to buy through a channel that does not quite meet their service output requirements. This just means that the existence of an unmet service output demand means there is a potential threat to the channel that [...]
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