Friday 7 November 2014

Reviewing "The Dark Side of Retailing" Journal

“The Bad News spreads Faster than Good News” this is most believed saying in the Retailing Arena.
Knowing what is bad for the business is most important for any business. The author of this journal is trying to find out which retail business practices lead to perceptions of corporate social irresponsibility (CSIR) from the customers ‘perspective and to develop a measurement scale for this construct. By using quantitative data from online survey, multi group confirmatory analysis, and real time interview and paper survey. Author has drilled down to demographic analysis on this research paper
The biggest drawback of this research paper is that author is focusing customer perspective of USA only, In addition to this paper was published in March 2007 by that time almost all retailers where globally expanded for instance Wal-Mart had 6779 stores around the globe (wal-mart 2007 annual report) in which they had only 3785 stores in USA, thus Wal-Mart is operating around 50% of its store apart from USA hence customer perspective towards CSIR difference from country to country, culture to culture and Person to Person.
The research identifies 14 factors which represents perception of CSIR in retailing, thru qualitative analysis from online survey and real time interview. Research team has coded each response am created correlation perspective from that they have identified to what extent the consumer regard the specific corporate behaviour thru correlation matrix. Finally author has ranked each CSIR from Consumer Perspective and derived demographic results to the findings.
Ranking
CSIR
Consumer Perspective
Understanding on each Perspective
1
Societal rules
Cheating on taxes
Paying bribes
Ignoring the law
Breaking the law
2
Employee discrimination
Discriminating employees based on race
Discriminating employees based on gender
Discriminating employees based on age
Discriminating employees based on looks
3
Local working conditions
Having employees work in an unclean environment
Having employees work in an unsafe environment
Treating employees disrespectfully
Providing poor working conditions to employees
Not allowing employees to take sufficient breaks
4
Dishonesty
Making misleading claims to customers through advertising
Having sales people make false claims to customers about products
5
Pricing policies
Overpricing products to customers
Charging customers higher prices than originally advertised
Charging customers high prices due to a monopolistic position
6
Natural environment
Selling products whose production harms the natural environmenta
Producing extensive amounts of waste
Contributing substantially to environmental pollution
7
Employee benefits
Providing very limited benefits to employees
Providing very limited medical insurance to employees
Making health-care coverage very expensive for employees
Referring employees to health care provided by the state instead of
providing medical insurance themselves
8
Foreign labour
Paying extremely low wages to workers in developing countries
Having workers in developing countries work under very poor
conditions
9
Employee wages
Paying very low wages to employees
Not paying employees living wages
Paying employees less than the market average
Paying employees not more than minimum wage
10
Local businesses
Forcing local small businesses into bankruptcy
Selling goods below cost to put local competitors out of business
Creating a local monopolistic position for themselves
Forcing local retailers into bankruptcy
11
Local employment
Increasing unemployment in local communities
Replacing existing jobs with lower wage jobs in local communities
Causing local businesses to reduce jobs in local communities
Reducing their own workforce in local communities
12
Offensive material
Exposing customers to provocative images through advertising
Exposing customers to products that are offensive to some people
Exposing customers to products and images that are not family
friendly
13
Foreign economies
Paying extremely low wages to workers in developing countries
Having workers in developing countries work under very poor
conditions
14
Sales practices
Selling customers products they cannot afford
Selling customers products they do not really need
Selling customers products that are bad for their health

Personal Review
Author found Societal rules is the most important issue as per Consumer Perspective and as per demographic findings its proven that most females are sensitive towards it, author has validated this by stating women’s personality traits tend to be less economically oriented and more philanthropically driven in comparison to men (Ibrahim and Angelidis, 1994). Since more retailers target market consists are women. Hence retailers need to be cautious about avoiding business practices which could potentially be interpreted as socially irresponsible.
I completely disagree as this findings are clearly based on media rather actual consumer perspective, yes media influence the consumer on the larger scale but not everybody presume what media shows. It’s completely redundant stating women’s are “less economically oriented and more philanthropically driven in comparison to men”. How often do you find shopper regardless of their gender stating “No Wal-Mart bribed the local officer to take the retail licence I will not shop in Wal-Mart here on”?.
To Conclude, Author has clearly stated in his research that the “Both the exploratory interviews and the quantitative main study are based upon convenience samples. While common in scholarly research of this kind, such samples do not facilitate making general inferences about a specific population in a strict statistical sense”. Hence needs additional evidence to enhance the findings. This Is the clear evidence that this research is paper is to gain knowledge and not decision making or this is not actual market scenario. 

1 comment:

  1. "Knowing what is bad for the business is most important for any business. Knowing bad things about your retail business is equally important.

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