RETAILING AND E-COMMERCE  52:630:368    Fall 2005   3 credits
Sec 01:  Tuesday and Thursday 3:00 to 4:20 pm – BSB 335
Dr. Carol Kaufman-Scarborough, Professor of Marketing - Office:  BSB 219

1. Office: Business and Science 219.

2. Contact information:
Rutgers Office Phone:856-225 6592
Cell/voice mail:  856-577-8767

3. Office Hours:  Tuesday 2:00 to 3:00 pm; Tuesday and Thursday 4:30 to 5:30 pm and by appointment.

4. Prerequisite: 52:630:201 Principles of Marketing and 52:010:202 Management Accounting

5. Course website:  Class procedures, topic area notes, and announcements are found at this URL:

 Course Description/Objectives

This course provides the student with a comprehensive view of retailing and an application of marketing concepts in a practical retail managerial environment. We will analyze current multi-channel retail strategies among bricks-and-mortar and web-based firms.  Retailing is changing today, and the successful business will know how to identify, adapt, and plan with the changes, without moving away from its core competencies.  We will consider:  the development of a retail format and its strategy, the analysis of a target market, demographic analysis related to site selection, retail personnel issues, and category management. Buying, financial analysis, and pricing will also be investigated.

The course will investigate the changing role of e-commerce in retailing.  We will also cover the major building blocks of retailing, such as site-selection and display analysis.  We will look historically at some firms that have failed, such as W.T.Grant, some that have changed, such as WaWa, and some that are continually-evolving, such as We’ll look at some that are controversial, such as Wal Mart and Toys’R’Us. You are expected to read in advance of each class and think about how you’d respond to the questions that are noted on this syllabus. An outline of each topic’s notes is provided on my web page so that you can come to class prepared and ready to think!  Much of our class will be spent in discussion of case examples. Many are in the text, so bring it regularly. Course projects are designed to enable students to build career skills in retail anthropology, demographic analysis for site selection, and identification of “best practices” for online retailers.

 Teaching Methodology

Retailing today takes advantage of cutting-edge technologies, such as geodemographic mapping, website development, and database management.  If you work with me, you will build strong analytical skills for retail market evaluation and have current retail information at your fingertips.  You are expected to be up to date in class readings and make connections between retail strategies with course topics.

My approach in teaching this class is to consider you as the future business leaders in Southern New Jersey, not merely as students who are attempting to complete a class (although some of you may fall into this category).  My goal is to place you on the cutting edge of knowledge in making strong and actionable recommendations to retailers.

Grading Policies

1.  10 points: Every class:  Participation and in-class exercises, discussion papers, advance preparation and discussion of web exercises:

2.  10 points:  Thursday, Sept 29th: Homework 1: Retail Anthropology: Customer traffic flow, crowdedness, and accessibility, Skills:
                      perception, ADA compliance, store assessment

3.  20 points:  Thursday, Oct. 6th:  Midterm:  concepts, examples, applications, Chapters 1-8, Chapter 18, handouts, notes, exercises:

4. 20 points:  Thursday, Oct. 27th:  Homework 2: Location, Location, Location!  This term we’ll analyze site selection for
                      Subway, the country's largest franchise. Skills:  retail site analysis, use and analysis of demographic data, mapping skills –select your site now!!!

5. 20 points:   Tuesday, Nov. 29th and Thursday, Dec. 1st:  GROUP TERM PROJECT:  TBA

6. 20 points:    Wednesday, Dec. 2st, 2-5 pm, Final Examination. NOTE CHANGE OF DAY OF THE WEEK!!


TEXT:  Retail Management:  A Strategic Approach (9th edition) by Barry Berman and Joel R. Evans.  Macmillan Publishing Company, New York, 2003. The text web page is

a. Online Reserve Articles – as assigned for class discussion
b. Case Analysis:  Forman Mills Case; Lane Bryant Case.
c.  I will be using several other texts, articles, and references in presenting course material. While we will follow the outline order of your text, classes will present in-depth discussions of major TOPICS in Retailing and E-Commerce.

Course Policies

Academic Integrity:  This class will ask you to work independently and in groups. In most cases, you are responsible for preparing your own work and documenting the work of others. Cheating, plagiarism, and other types of misconduct are not acceptable. In addition, today’s information environment has changed. Research is available on the Internet, but how can you use it and cite it properly? There are many forms of academic dishonesty, ranging from cheating, using the work of others, failing to properly cite sources, and purchasing papers from the Internet. Penalties can include expulsion from the University. “A Policy on Academic Integrity for Undergraduate and Graduate Students for Rutgers University—Camden”  was adopted by the Faculty Senate on February 10, 2004, representing both the Faculty of Arts and Sciences and the School of Business.  You can read specific examples, definitions, and policies, found at this URL:
You might also benefit from the video found at: (very basic but contains reference to Rutgers own policies).

Attendance and Late Work:  Excessive absences will be reflected in the final grade.  Attendance is defined as being in class for the entire class.  All assignments must be handed in on time; late work will receive reduced credit.  Each day late receives a letter grade deduction. No makeup exams will be scheduled without prior notification and a physician's excuse.

Course Withdrawals:  Nov. 29th - last day to withdraw for all courses for Fall 2005 without academic penalty. Don’t just disappear if you decide to drop the class! University records must be updated.

Incompletes and Problems:  If you find that you are having trouble completing course work or need further explanation of class topics, please schedule an appointment with the instructor.  If you need this class for graduation, you should be sure that your performance is up to standard throughout the course. It is too late to wait until the last week of classes to ask for help.  Office hours are held throughout the entire semester for this purpose. "Incompletes" will only be given through prior consultation with the instructor, under extreme circumstances.

Participation:  You are expected to participate in class; just sitting there isn't enough. You are expected to read the cases in advance as assigned on the syllabus. Your contributions are expected to help the class learn and understand the topics under consideration.  Negative participation (talking, unnecessary interruptions, etc.) will result in deductions from the participation component of your grade. Here is where excessive absences come in; you can’t participate if you are not in class.

Professionalism:  As future business professionals, you are expected to conduct yourselves with professional courtesy to your classmates and to your instructor. This means being on time for class, reading course assignments, turning cell phones off during class, and basically conducting yourself in a manner that you would when on the job.

Preparation:  Assigned chapters and cases should be read prior to their discussion in class.  Students will be called on at random to participate in assigned discussions. Please inform the instructor when you have failed to be prepared for class. Class meetings will organize retail concepts, clarify the material and correlate real examples from the business world. Handouts, notes, and films will be included on examinations.

Testing:  You are expected to be in class at the scheduled exam times.  The instructor MUST be notified IN ADVANCE if you are unable to take an exam on time.  Make up tests are given only in the case of an extreme emergency or serious illness.  Substantiation is required.


Assignments:  Dates are approximate; any changes will be announced in class.  NOTE: topics do not strictly follow the order of the textbook since they are related to your assignments. You are responsible to be in attendance for the entire class.

1:  September 1
Class Procedures:  syllabus, assignments, information sheet, online readings
Chapter 1:  Introduction and overview
Discussion:  “Back to School Comes Earlier” – what does this mean for Retailers?
Go Over Homework 1

2:  September 6, 8 – hand in info sheet today
Chapter 2:  Building and Sustaining Relationships through customer value
What are basic principles of good retailing?  How can retailers create customer value? What about customer complaints?  Does e-tailing correct some of the complaints? Or create new ones? What is meant by the buzzword “relationship marketing?”  Lifestyle marketing
a.  Which stores do you visit again and again? Why? How can retailers build relationships with their customers?  Do consumers desire “unique, personalized shopping” or do they want to save time?
b.   Classic Video:  Stew Leonard’s – what can we learn about customer service?

Chapter 3:  Strategic Planning in Retailing
Developing a retail strategy:  what is your mission?  What are your goals?  Who are your customers?  If so, what is the marketing mix and location that will let you achieve your goals? How can you control your activities and predict those factors that you cannot control?
a. Using a service concept typology:  Patronage builders, patronage solidifiers, basics, disappointers
b. Service retailing:  intangibility, inseparability, perishability, and variability
c. Using consumer evaluative factors for service quality evaluation
d. Strategic planning process, retail consistency – we’ll return to this often
e. **** Read and be ready to discuss Sears-Lands’ End merger case. Update with merger with Kmart. Will Sears and Kmart succeed? and
f. How can retailers use the concept of positioning in creating their desired image? Goodwill Industries
g. The Impact of the Legal environment on retailing.  What do you know about the Americans with
       Disabilities Act (ADA) and retailing responsibilities under Title III.
Discuss Wal Mart,  Bed Bath and Beyond, Target’s competition in the “back to school” market.
How do their actions compare with industry forecasts?  When is the back to school season?
How has it changed from 10 years ago?

3: September 13 and 15th
Chapter 18, Retail Atmospherics, Establishing and Maintaining a Retail Image
NOTE:  these concepts are needed for Homework 1
What are the elements of retail atmospherics?  How can the retailer design their store environment in order to maximize customer satisfaction?  Can these same ideas be applied to e-commerce?  How can web sites be designed in order to maximize customer satisfaction?

How do retailers create desired images in the minds of their customers?  Why is Neiman’s upscale and Dollar General a bargain center?  Why do certain people shop at Home Depot, while others prefer their local, neighborhood hardware store?  We will consider all the parts of retail image:  exterior, general interior, store layout, and interior displays.  How do these work together to form a servicescape?  How can store layouts, décor, and displays contribute to customer satisfaction?  What is the impact of the Americans with Disabilities Act?
Envirosell focuses on in-store research:

Chapter 7 – How Can Consumer Behavior Theory Predict Retail Shopping Behavior?
Major CB areas: demographics, lifestyle data, group and individual attributes. How do people shop given the time scarcity they experience?  What are their attitudes towards shopping in-store vs. online? Read and discuss Lowe’s Case on page 207 – understanding the female customer.
See American Demographics at  Note, AD is available through our library site.

4:  September 20 and 22nd
Chapter 8: Marketing Research
Tools from Marketing Research: What kind of secondary data helps retailers plan their strategies?
 Reliable sources such as,

Primary research:  How should information be gathered and processed to take advantage of today’s database and e-commerce technologies. The role of loyalty programs. What is data mining and data warehousing? What types of data would need to be collected in order to answer specific retail questions. Survey formats. Semantic differentials. Mystery shoppers – do they provide valid results? What do we need to know about our customers in order to meet their needs?

Chapter 4, 5: Ownership and Strategy Mix Issues
Retail institutions can be categorized by ownership, type of store and its typical strategy mix, nonstore sales, and service versus product retailing; why are these classifications useful?  Will independent stores disappear as large chains move into their areas? Will department stores continue to exist?  What are power centers and lifestyle centers? How are these definitions changing today? What are the pros and cons about franchising?

5: September 27 and 29th
September 29th   Homework 1 –  due TODAY
C. 4 and 5 (continued): How does retailing change over time, and change back again?  What can we learn from classic retail concepts like the “Wheel of Retailing”? *** Read Reserve article ***** Which retailers are likely to survive the next 10 years?  Look at the shaky position of Kmart. Look at the success of Wal-Mart and the increased profits of  What are some of these firms doing that others are not? How do we know that scrambled merchandising will be profitable? There are certain operational definitions of the various store types that are used by industry to establish benchmarks for performance.  These help us to know if our stores are operating profitably. Let’s consider traditional supermarkets, multichannel supermarkets, and online delivery services.
Width and depth of assortment – p. 351-352.

Sept. 29th - Chapter 6: Web, Nonstore and Nontraditional Retailing
We will develop skills in website development for retailers, and consider other related forms such as video kiosks and video catalogs.  What type of web site flow is best for the customer in maximizing a web site’s usability?  What type of help is necessary? What info should be built into databases?  What are recommendations for effective web sites.
a.  How DO people use the web? When do people get stuck? What are their fears?
b.  Why CAN’T people shop on the web?  Research about persons with color deficiencies. A web site that allows you to check the color vision of your web site:
c. Can blind and visually-impaired persons shop online? Excerpts from Dr. KS’s research. What is Web Accessibility?

6: October 4 and 6th
October 4th
Review for Midterm - Midterm covers chapters 1-8, and Chapter 18
Finish Web issues
Assignment discussion – mandatory attendance
Explain and discuss Homework 2, present basic concepts in Chapter 9 for Homework 2 on Site selection.
 a. Demonstrate mapping programs
 b. Demonstrate Census tract site
 c. Discuss homework requirements
Explain and discuss Term Project - handout

October 6th – Midterm Examination

7:  October 11 and 13th
Chapter 9
Have you ever noticed a retail store that just keeps changing owners? Or that goes out of business frequently?  Many times this is related to a poor selection of site. We begin our next section on location and site selection.  Trading area analysis is founded on some of the basic models presented in chapter 9. Let’s try to develop some insight into what factors contribute to a profitable location.  We need to consider concepts such as retail overlap, points of indifference, buying power indexes, and how GIS systems can greatly add to our abilities to make good strategic location choices. What types of relationships are the formulas trying to capture?  Think about Route 73 and Route 70 intersection, and the growth on Rt. 73 just south of that traffic circle. Or the growth in retail by Deptford and Moorestown malls. These are good illustrations of trading area overlap.

Chapter 10
Site selection also depends on certain patterns that are often related to locations.  We need to consider what is meant by isolated locations, unplanned business districts, and planned shopping centers.  For instance, Historic Haddonfield attempts to plan, organize, and influence business and community events, much like a shopping mall would.  What will be the Central Business District (CBD) of the future.  What criteria can be used in evaluating a retail site?

8, October 18 and 20th
Chapter 11 (Human Resources)
Dividing and organizing the tasks in retail organizations.  Basic plans used by retailers.  Selecting, training, compensating, motivating retail employees.  How have some firms built skills and pride into the relatively mundane tasks. Consider the last time you shopped in a bricks and mortar store. Were the sales personnel knowledgeable and courteous?  Are customers turning to the web to avoid poorly trained personnel?
Application VIDEO:  McDonald’s Olympics:
Application VIDEO:  Sears training video “Excelling at Customer Service for People with Disabilities”

Chapter 19, Promotional Strategy
How can a firm relate it promotional strategy to its goals?  What should be the balance among web and traditional promotions? What are the advantages and disadvantages of each type of medium. Let’s also consider some major firms that base their success on creative image delivery:

9: October 25 and 27th
Homework 2, Location Study - due October 27th – discuss in class
Chapters 12 and 13, Operations
We also turn to Operations Management; we will consider both financial and operational planning.  Given the number of retail bankruptcies and reorganizations, what can we learn from those firms in keeping our business healthy?  Montgomery Ward and Bradlees announced their closings. Sears and Home Depot recently closed several stores nationwide.  How did they choose which stores to close?  Will such a move be effective? What are some of the benchmarks that we track in order to make corrections before problems become too large to handle? The Strategic Profit Model provides many cues and the financial ratios are important signals for strategic corrections. See text for some sample benchmarks. These relationships must be in balance for a firm to prosper. Correct retail decisions create the balance. E.g. How much must we sell, at what level of margin, to turn inventory efficiently to stay in business?

Suppose that you were planning how to set up a store format that maximized the right choices for customers, but minimized inventory costs.  In this section, we consider store space, stock allocation, inventory planning, and so forth.  What is meant by prototype stores and how are they developed? What is the impact of category management? How can we use skills from Operations Management to streamline our inventory? How can store shrinkage be controlled?

Application:  discuss K-Mart history and current strategy

10:  November 1st and 3rd
Chapter 14 and Begin Chapter 15:  Developing and Implementing Merchandise Plans
How can information on trends be used to try to maximize on merchandise planning? See table 14-3 for ways that Retail Assortments are generally analyzed.  How can understanding depth and width of assortment help us in creating an efficient merchandise mix that also minimizes inventory costs and stockouts?  How can we determine the optimal mix of brands and sizes? What is category management? How can we develop ways to plan for inventory and for reductions?  How can we plan to have buying resources when we need them (Open-to-Buy).

 VIDEO and case, page 486:  Category management for condiments, discuss extension to web grocers.

11:  November 8 and 10th
Guest Professors Week – mandatory class
Finish Chapter 15 and  Chapter 16 on Financial Merchandise Management
  How can a retailer forecast demand? How can retailers learn about trends and use them to plan their merchandise? How must e-tailers factor delivery times into seasonal web shopping? Consider the confusing holiday season for December 2004.  Were retailers so far off in their forecasts? See what’s discussed at the International Council of Shopping Centers:
In-class problem set – you are expected to do these calculations. Retail math is simple, but can give indications of underlying retail strategy problems.

12:  November 15 and 17th
Chapter 17 Pricing in Retailing
How can retailers determine optimal prices?  How can they work with multiple placements of discounts:  coupons, in-store promotions, Web-based promotions, etc.?  How much pricing information is at consumers’ fingertips today?  How is pricing related to demand?  What are some basic types of pricing practices?  How does government regulate the prices that can be charged?  How are discounts related to selling prices and to overall strategies?  Other pricing strategies have evolved that assume that consumers are responsive to price certainty:  e.g. EDLP.  And yet others appeal to the bargain seeker through formats such as dollar stores.
Web exercises:    Comparison web site:
Will sites like this be able to continue?

WEEK OF November 20th – No Retailing Class

13:  November 29th and December 1st
Term Project Presentations

14:  December 6 and 8th
Discuss Chapter 20 Integrating and Controlling Retail Strategy
What are the significant differences between a service retailer and a goods-based business. How does a successful retailer put all this together and maintain the business over time, relating each step in the retail strategy to long- and short-term goals?

15 – December 13th - LAST CLASS –Review and discussion

FINAL EXAMINATION:  Wednesday, December 21, from 2:00 to 5:00 pm

NOTE:  Detailed handouts will be given on all assignments.


Homework 1:  – Retail Anthropology
Due Thursday, September 29th :  worth 10 points

This assignment requires you to conduct some retail investigation in the field.  Your report should be presented in summary style (like this description) and should be 4-5 pages long. Examples of this type of research are found at this URL:

Professional retail analysts often hire consulting firms to conduct studies that watch how consumers act and move in store settings. This is called “Retail Anthropology.”  There are several issues that can help retailers make sure that their store design is optimized for their customers. We’ll look at three specific ones:  customer traffic flow, crowdedness, and accessibility.  You will compare three retailers on these attributes.  For this exercise, use simple rating scales from 1-10, where a “10” is best and “1 “is worst. Make a chart like the one below to summarize your findings.

a. Visit three retail stores in an industry that interests you, such as department stores, discount stores, clothing stores, hardware stores, electronics stores, shoe stores, etc. Describe the industry, the three stores you picked, and tell why you selected each. Please choose a specific product category, such as shoes, within department or discount stores.

b.  Customer traffic flow:  In each store, first watch how people move through the store. Do they follow similar paths? Are they attracted by certain displays or areas of the stores? Is the traffic flow efficient?

c. Secondly, compare how crowded each store is. Are the aisles wider in one store versus the other? Do customers get in each other’s way?

d. Finally, are all the stores equally accessible to people with disabilities?  Do they have: automatic doors, ramps, handicapped accessible restrooms, water fountains, fitting rooms (if applicable), checkout counters? Are displays accessible to people in wheelchairs?  If needed, is braille used? Hearing devices?

e. Fill in your chart and briefly discuss your findings.  Were there patterns in the ways that customers behaved?  Were certain stores “better” than others?  What would you recommend if you were a consultant?

f.  Could the stores you visited use e-commerce to improve in these three areas? - see chart on syllabus.

Stores:  Traffic Flow,  Crowdedness,  Accessibility,  Overall Score

Store 1
Name and address

Store 2
Name and address

Store 3
Name and address

Location, Location, Location! Project

This term we’ll analyze site selection logic for Subway.  A handout will be distributed that outlines this project.

At age 17 Fred DeLuca borrowed $1,000 from a friend and started SUBWAY® Restaurants in 1965.  How did he do it? Today there are 23795 restaurants in 83 countries. Subway is now considered to be the #1 Franchise in 2005 by Entrepreneur Magazine.  And according to a report by the Associated Press, Subway operates 13,247 stores in the United States, 148 more than McDonald’s as of Dec. 31. Subway opened 904 units last year, while McDonald’s opened 295

Sources of Information on Retailing and E-Commerce

1.  Library:
a. Business and Industry Database is a gold mine for retail practitioner publications
b. Retailing class online reserve articles

2. Marketing Journals, available through journals online:
Retail section:
Internet Marketing section:

3.  E-Commerce Times:

4. Nua internet:  This is one of the most informative about global media habits and use:

5. National Retail Federation:
NRF and its Internet retailing initiatives recently combined with, the leading trade association for online retailers:

6. International Council of Shopping Centers:

7. According to their web site, Retail Forward is a “global management consulting and market research firm specializing in retailing and consumer products marketing”.

8.  Screenreader Simulation

Goodwill Industries

What do you know about Goodwill Industries?  What is sold?  What happens to what the retail stores earn?   Check it out at

Reserve Articles – online

The articles below are on electronic and hard-copy reserve. Go to the library web site, IRIS, click on “Reserve Desk”, and input my name “Scarborough, Carol” or “Retailing and E-Commerce”. You can print the articles out for yourself.

Bellizzi, Joseph A.; Bristol, Terry (2004), “An assessment of supermarket loyalty cards in one major US market,” Journal of Consumer Marketing,  21 (2), p144 –155.

Brooks, Charles M.; Kaufmann, Patrick J.; Lichtenstein, Donald R. (2004), “Travel Configuration on Consumer Trip-Chained Store Choice,” Journal of Consumer Research, 31(2): 241 –249.

Brown, Christina L.; Krishna, Aradhna (2004), “The Skeptical Shopper: A Metacognitive Account for the Effects of Default Options on Choice”, Journal of Consumer Research, 31 (3): 529-540.

Childers, Terry L., Christopher L. Carr, Joann Peck, and Stephen Carson (2001), “Hedonic and Utilitarian Motivations for Online Retail Shopping Behavior,” Journal of Retailing, Volume 77, Number 4 (Winter), 511-535.

Cowley, Elizabeth (2005), “Views From Consumers Next in Line: The Fundamental Attribution Error in a Service Setting,” Journal of the Academy of Marketing Science, 33 (2): 139-153.

Crockett, David; Wallendorf, Melanie (2004), “The Role of Normative Political Ideology in Consumer Behavior,” Journal of Consumer Research, 31 (3): 511 –529.

Darke, Peter R.; Chung, Cindy M. Y. (2005), “Effects of pricing and promotion on consumer perceptions: it depends on how you frame it,” Journal of Retailing, 81:1: 35-48.

Heim, Judy (2000), “Locking Out the Disabled:  Office Buildings Have Wheelchair Ramps, TV has Closed Captions, but Many Web Sites are Inaccessible to People with Disabilities. Things Don’t Have to be that Way,” PC World magazine, September. Retrieved online.

Jones, Keith S., J. Shawn Farris, Peter D. Elgin, Brent A. Anders, and Brian R. Johnson (2005), “A Report on a Novice User’s Interaction with the Internet through a Self-Voicing Application,” Journal of Visual Impairment and Blindness, January, 40-54.

Levy, Michael, Dhruv Grewal, Robert A. Peterson, and Bob Connelly (2005), “The Concept of the ‘Big Middle’”, Journal of Retailing, 81 (2):  83-88.

Mathwick, Charla; Rigdon, Edward (2004), “Play, Flow, and the Online Search Experience,” Journal of Consumer Research, 31(2): 324 – 333.

Moschis, George; Curasi, Carolyn; Bellenger, Danny (2004), “Patronage motives of mature consumers in the selection of food and grocery stores”, Journal of Consumer Marketing, 21 (2) 23 – 34.

Shaefer, K. (2003). “E-space inclusion: A case for the Americans with Disabilities Act in cyberspace,” Journal of Public Policy and Marketing, 22(2), 223-227.

Thompson, Craig J.; Arsel, Zeynep (2004), “The Starbucks Brandscape and Consumers' (Anticorporate) Experiences of Glocalization,” Journal of Consumer Research, 31 (3): 631 –643.

Retail Marketing, Fall 2005 Class Information Sheet

NAME: __________________________; EMAIL ___________________________

Your major __________________________________________________________

Any Special needs? __________________________________________________


Approximate Hours per Week____________________________________________

Other Marketing Courses taken in the past?

Other Marketing Courses being taken this semester?

Any retail experience or skills?

Do you shop on the Internet?___________   Why or why not? ________________________

What would you like to learn in this class? Any specific topics of interest?