Smith & Hawken, an outdoor-accessories retailer, has experienced growing Internet sales and declining catalog sales. These trends seem consist ent with conventional wisdom, which suggests that the Internet will make catalogs obsolete. Yet, Smith & Hawken, like many retailers with growing Internet sales, has no plans to discontinue its catalogs. In fact, the total number of catalogs mailed in the United States by all companies has jumped from 16.6 billion in 2002 to 19.2 billion in 2005 Why catalog shoppers and internet shoppers are not independent customer segments. catalog shoppers frepuently choose to complete their sales transactions online rather than placing telephone orders. This explains why catalogs remain a compelling marketing medium even though catalog sales are declining for many companies. If retailers separately analyze catalog sales and internet sales, they may discontinue the catalogs segment while overlooking the adverse impact of this decision on internet segment margins.
Smith & Hawken, an outdoor-accessories retailer, has experienced growing Internet sales and declining catalog sales. These trends seem consist ent with conventional wisdom, which suggests that the Internet will make catalogs obsolete. Yet, Smith & Hawken, like many retailers with growing Internet sales, has no plans to discontinue its catalogs. In fact, the total number of catalogs mailed in the United States by all companies has jumped from 16.6 billion in 2002 to 19.2 billion in 2005 Why catalog shoppers and internet shoppers are not independent customer segments. catalog shoppers frepuently choose to complete their sales transactions online rather than placing telephone orders. This explains why catalogs remain a compelling marketing medium even though catalog sales are declining for many companies. If retailers separately analyze catalog sales and internet sales, they may discontinue the catalogs segment while overlooking the adverse impact of this decision on internet segment margins.
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