The term “clicks-or-bricks” refers to a business model in which a company has either an online (clicks) or an offline (bricks) presence. Many companies have both. Sometimes that business model is referred to as “clicks-and-mortar” or “clicks-and-bricks.” In one version, a chain store may allow a customer to order goods online and pick them up at a local store. In another version, large items such as appliances or furniture may be viewed at a local store and then ordered electronically for home delivery. In both instances, the “bricks” portion necessitates a location decision.
Even companies that are seemingly pure “clicks,” selling electronic products such as computers, still have warehousing and delivery facilities behind businesses that trade in material goods. Again, location decisions are necessary.
The choice of which business model to use requires considering the costs of having a physical presence and what the balance between the two should be. Of course, customer preferences and shopping patterns are important. For example, some reasons people shop online include ease of price comparison, convenience, availability of hard-to-find items, research recommendations, and elimination of the need to travel. Reasons for offline shopping include immediate possession of an item, ease of returns, the security risks of online shopping, the need to use a credit card, the burden of logistics for returns, and the ability to “kick the tires” (e.g., try on clothing or footwear, judge quality).

Questions:
1.1 Critically analyze the following statement:
Retail outlets that do not have an Internet presence often complain that customers come in to “kick the tires” but then purchase online from a competitor.
1.2 Suggest alternative ways outlets can overcome the above challenge.
1.3 Explain the significant role of location decisions in online purchasing.
1.4 Discuss the possible threats to online purchasing.

Answer rating: 100% (QA)

11 This phenomenon is called showrooming and it is a common challenge in the retail industry Customers use physical stores to check out and verify the product quality but later they buy the same produ... View the full answer