Case study 12-2 stop & shop’s scan it! app

Case Study 12‐2 Stop & Shop’s Scan It! App

The grocery store and supermarket shopping industries have combined annual revenues in the hundreds of billions of dollars. With little variation in available item selection and less money being spent on groceries in the downtrodden economy, competition for customer loyalty continued to grow. By using business analytics to help process buying habits of its customers, Stop & Shop, a Quincy, Massachusetts‐based grocer, tried to get a better grasp on the hard‐to‐understand concept of customer loyalty in grocery shopping.

Stop & Shop introduced Scan It!, a portable electronic device for customers shopping in its stores. The device allowed customers to “scan and bag” products, expediting checkout times at the end of their shopping trip. Additionally, the device offered deals based on the location of the scanner (and therefore the customer) in the store. Location‐specific discounts in real time became increasingly popular among customers as use of Scan It! grew by 10% in both the first and second quarters after it’s introduction. The most beneficial aspect of the Scan It!, however, came with the powerful analytics software built into the device by Modiv Media in which Stop & Shop owns a minority interest. The software kept track of each customer’s past and present purchasing habits in order to individualize coupons in real time for the customer.

The scanner resulted in three positive trends for Shop & Stop. Customer loyalty grew, allowing the company to secure an increased customer base than area demographics would predict. Additionally, each shopper’s basket size increased as the individually tailored coupons enticed customers to buy more. Lastly, Shop & Stop’s customer base grew as word of mouth marketing brought in more customers to try the state‐of‐the‐art device.

However, after a couple of years, Stop & Shop saw customer adoption plateau. In October 2011, the grocer created the Scan It! app for the iPhone and Android. By eliminating the need to sign in and retrieve a scanner at the store, customer adoption of the device continued its upward climb. Additionally, as customers became increasingly concerned about saving money while shopping, Stop & Shop built in budgeting software to allow customers to track their spending more effectively. Ads for the new app proclaimed: “New Mobile App Allows Customers to Shop, Bag, and Tally Their Grocery Order with Their Personal iPhone® and Android™ Devices.” Scan It! was heralded as “a first of its kind grocery app that allows customers to use their personal mobile device to scan, tally, and bag their groceries while they shop.”

Stop & Shop had bundled an app that not only rewarded customers who shopped at its stores by helping them save money but also tracked information on sales, which the company loaded into its data warehouse and used to understand its customers. Analytics then helped Stop & Shop put the right items on its shelves to maximize sales and create customer loyalty.

Discussion Questions

  1. What is the benefit of the Scan It! data to Stop & Shop? What are some of the questions the company could answer about its customers?
  2. How would you assess the level of capabilities of Stop & Shop’s use of analytics? What might the company do differently with the data to gain more value?
  3. What is the benefit of Scan It! for the customers? What concerns might shoppers have about their privacy? How would you advise Stop & Shop management to respond to these concerns?

Sources: Adapted from http://www.internetretailer.com/2011/10/26/stop‐shop‐expands‐availability‐scan‐it‐mobile‐app (accessed September 6, 2015); http://stopandshop.com/shopping/shopping‐tools/scanit/ (accessed September 6, 2015); and http://southeastfarmpress.com/vegetables/supermarket‐guru‐seeking‐next‐big‐trend (accessed September 6, 2015).

Chapter 12 CASE STUDY ANALYSIS

Case Study 12-2 Stop & Shop’s Scan It! App

After reading Chapter 12 and completing the bulb for Chapter 12, please write a 2 to 4 page paper addressing the discussion questions at the end of the case. Your paper should include a title page and should be written with paragraphs using correct grammar and usage. Please do not write the questions in your paper, but incorporate your answers within your paper.

Your paper should include an introduction, background of the case, and answers to the question in a paper format. Again, please do not bullet your answers and do not include the case questions, but write a paper that flows from paragraph to paragraph. You must use APA and cite the text book.

Grading Rubric:

Required Element of the Case Study Paper

Points

Introduction

15

Case background

20

Answers to questions within the paper, no bullets and no case questions

35

Write coherently to support a central idea in an appropriate format, with correct grammar, usage, and mechanics.

10

Chapter 12: Case Study Total Points

80

Discussion Questions

  1. What is the benefit of the Scan It! data to Stop & Shop? What are some of the questions the company could answer about its customers?
  2. How would you assess the level of capabilities of Stop & Shop’s use of analytics? What might the company do differently with the data to gain more value?
  3. What is the benefit of Scan It! for the customers? What concerns might shoppers have about their privacy? How would you advise Stop & Shop management to respond to these concerns?







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10