Improving the profitability of retail merchandising decisions—Revisited

McGinnis, Michael A.; Gable, Myron; Madden, Rachel

doi:10.1007/bf02729486

Cited by 2 publications

(3 citation statements)

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“…While other measures can be used to assess buyer performance (such as sales revenues, inventory turnover, etc. ), GMROI is often preferred in retailing because it is easy to compute, its components are readily available to all retailers, and more importantly, it measures how profitably business assets have been deployed, which is consistent with corporate ROI goals (Fairhurst and Fiorito, 1990;Bates, 1979;McGinnis et al, 1984). Moreover, the measure is sensitive to buyer forecasting errors, which may lead to products being liquidated at clearance prices because too much product was bought or it was offered at too high a price, or sales lost due to stockouts because not enough product was bought or it was offered at too low a price.…”

Section: Resultsmentioning

confidence: 99%

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Improving the crystal ball: harnessing consumer input to create retail prediction markets

Kaufman‐Scarborough

Morrin

Bradlow

2010

Journal of Research in Interactive Marketing

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Purpose -Retail buyers' decisions result in billions of dollars of merchandise being purchased and offered for sale by retailers around the world. At present, retail buyers do not appear to be adequately harnessing consumer input to improve their forecasts. The purpose of this paper is to address this issue by introducing a new approach involving both retail buyers' consensus forecasts and those from a sample of "ordinary" consumers. Design/methodology/approach -The authors introduce a new approach to online forecasting that involves both retail buyers' consensus forecasts and those from a sample of "ordinary" consumers. Findings -The results suggest an opportunity to create what are termed retail prediction markets that offer significant potential to improve the accuracy of buyers' forecasts. Originality/value -The authors go beyond crowd sourcing technology and show how retail prediction markets may offer significant potential to improve the accuracy of retail buyers' forecasts.

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Section: Resultsmentioning

confidence: 99%

“…GMROI is a commonly used measure of buyer performance in the retail industry (McGinnis et al, 1984). GMROI is arrived at by dividing total gross margin dollars by average inventory at retail.…”

Section: Resultsmentioning

confidence: 99%

Improving the crystal ball: harnessing consumer input to create retail prediction markets

Kaufman‐Scarborough

Morrin

Bradlow

2010

Journal of Research in Interactive Marketing

View full text Add to dashboard Cite

show abstract

“…The higher the ratio the better the result will be. 31 In the studies of Alabama Community Pharmacies, results showed that the managers should monitor prescription department inventory cost and target gross margin, as GMROI. 32 Our study results showed that the inventory management of pharmacies is an important basis for a better performance.…”

Section: Discussionmentioning

confidence: 99%