Market Research: Online Trade vs. Stationary Trading for Montblanc

This report presents a market research analysis focusing on the luxury goods company Montblanc, specifically examining the shift from stationary to online trading and its impact on customer behavior. The report begins with an introduction to Montblanc, its brand identity, and the challenges posed by the rise of online platforms. It identifies the problem statement as the need to understand factors influencing stationary customers. The research aims to analyze these factors and recommend strategies to retain stationary customers. The literature review explores the meaning and importance of stationary trading, its differences from online trading, and the factors influencing customer choices. The report also includes statistics comparing stationary and online trade. The research methodology outlines the inductive research approach and the interpretivism philosophy. This report aims to provide insights into Montblanc's market dynamics and propose strategies for maintaining a strong presence in both online and stationary markets.

Market research: Online trade versus
stationary trading

Table of Contents
INTRODUCTION...........................................................................................................................1
Problem statement...........................................................................................................................1
Aim and Objectives.........................................................................................................................2
Existing literature.............................................................................................................................2
Meaning and importance of stationary trading............................................................................2
Difference between online and stationary trading.......................................................................4
Factors that can influence the stationary customers....................................................................4
Research methodology.....................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

Table of Figures
Figure 1: Stationary trade vs online trade statistics.........................................................................3

INTRODUCTION
Montblanc is the German manufacturing company involved in producing luxury writing
instruments, jewellery, watches and luxury goods. It is often identified by the consumers and
other people through its ‘snow peak logo’. This has been able to make several models of pen
with a fountain pen model represented as the cornerstone of the company called as Meisterstuck.
They are not involved in offering spare parts but provide guarantee of 2 years on almost every
product. It belongs to the industry of luxury goods and only handpicked retailers are able to sell
their products due to high prices (Díaz, Gómez and Molina, 2017, 48).
In last few years, online market has been able to experience the boom and has been able to
become quite popular among people belonging to every age. Instead of vising to a local store
with the aim to purchase a particular product, people feel that ordering it online is rather more
convenient option. Hence, the large of amount of daily purchase, unless and until it is not urgent,
is ordered through online stores.
When a particular product is offered to people at an online platform, then it is known as
online trading. However, if the product is offered at the retail shops and people may not find the
same on online websites, then the trading is termed as stationary trading.
Problem statement
Stationary trading has been able to get a major hit due to emergence and existence of online
trading in the market. Due to existence of online platform, shopping behaviour of the customers
has been changing to a great extent. Montblanc have also been able to experience this change
where it has always been presenting its brand in a high value and sophisticated manner. The
brand is always characterized by functional elegance which is carried out by timelessly striking
designs and intricate craftsmanship (Stationary trade vs e-commerce: the transition, problems
and benefits to e- commerce, 2017). Moving with the time and current type of market going on
the industry, the company have been able to offer a wide range of its products at the online
platform as well. Further, the company has also been able to generate high revenues through its
existence online which is ultimately affecting its presence at the stationary stores. It is important
for the company to take appropriate steps that can help in winning back the stationary customers
as offline presence of the company is equally in comparison to the online one. Hence, the present
research deals in understanding the factors that can influence stationary customers at Montblanc
which is an existing problem statement for the company.
1

Aim and Objectives
The aim for current research is “To analyse the factors influencing the stationary customers
at Montblanc”
Based on the above aim, following objectives can be formulated for the present research.
These are:
 To understand the meaning and importance of stationary trading
 To ascertain the difference between online and stationary trading
 To assess the factors that can influence the stationary customers at Montblanc
 To recommend on ways which can be adopted by Montblanc to win the stationary customer
back.
Existing literature
Meaning and importance of stationary trading
According to Riquelme and Román, (2014, 412) stationary trading refers to offering
products offline, where a customer has to turn to the shop to select its product and directly get
the delivery from there. There are certain businesses which simply cannot establish themselves at
the online platform. Online platform can be used to advertise the brand but it is difficult to tap
customers directly from there. Further, there are certain other businesses who have been existing
in the market from the time when online platform does not used to be quite popular among the
crowd of customers. In that case, it is not advised to any company to just deal through the online
platform as there are certain group of customers who do not tend to rely online for shopping
there products. Moreover, an offline store also helps in giving a physical form to the products
where the people can directly come and purchase their products. However, in comparison to this,
as per the views of Cavallo, (2017, 290) trust is the major factor when a company try to form to
form its balance in the company. A high percentage of people trust stationary stores due to their
familiarity to the business and they may not be reluctant to what is ultimately being offered to
them. There are large numbers of scam sites that are also available online which reduce the trust
of the customers towards the company. It is easy to see the merchandise or products at the
stationary shops before they get into any purchasing agreement with the company. Other benefits
and importance of stationary trading are customer are sure regarding the payment that if it is
made accurately and safely or not. Moreover, people can be sure that if the product will be able
to fulfil the needs and requirements of the company or not. Touching and trying out the product
2

helps in giving the surety that the product people are purchasing is effective and appropriate
enough. Hence, in that case, stationary trading happens to be rather more convenient option for
the customers.
Figure 1: Stationary trade vs online trade statistics
(Source: Stationary trade vs e-commerce: the transition, problems and benefits to e- commerce,
2017)
According to Landers and et.al., (2015, 380) a great amount of benefit has been noticed for
the seller as well, in terms of stationary trading. By interacting with the customers, face to face, it
becomes easy to make out that what is actually required by them. It results in providing better
offerings to them. A customer trader relationship can easily be developed through the same
making it more beneficial for the company. Moreover, a personal connection establishing with
the company can help in building loyalty of the customers. It also helps in reducing the chances
of return of products to the minimum as the customer have already been satisfied with its quality
due to his physical presence while purchasing. However, in comparison to this, as per the views
of Liu, Batra and Wang, (2017, 376) stationary stores are well more cemented in comparison to
the online trading stores. Further, the shopping experience, a customer gets while purchasing
from the stationary store, cannot be compared with the online stores, as the kind of satisfaction
they tend to feel is way more than online one. Companies, which are only existing on online
platform also opts to open brick and mortar store so that unique experience cannot be snatched
from the customers and can express their brand in physical manner.
3

Difference between online and stationary trading
According to Luo and et.al., (2016, 182) when a variety of products are offered at a physical
store rendering physical display of the products to them from where the customers can directly
take the ownership of the product while purchasing the same from that store. The process of
indulging into physical buying is commonly called as stationary trading. However, in contrast to
this, online traders directly offer their products and services at their websites. The online
offerings are considered to be a convenient option as the company do not need much of
investment and management as in case if brick and mortar store. However, it has been assessed
by the researchers that, people tend to put more time and efforts to reach to a physical store,
which ultimately increase their chances to buy products from them. However, in contrast to this,
as per the views of Scarpi, Pizzi and Visentin (2014, 263) if the customer is not satisfied with the
products which have been purchased from a particular website online, there are least chances that
the purchases will be made again. In that case, the chances of buying product again from a
physical store are much higher.
Factors that can influence the stationary customers
According to Gallino and Moreno, (2014, 1444) there are various factors that can help in
influencing the customers towards stationary shopping which the organization have to consider.
Hence, in that case, better options being derived by the management of the company can help in
effectively focussing on the customers of stationary trade. Offering the best and latest at the brick
and mortar store can help in attracting the customers towards it. Another important role is played
by advertisement and marketing schemes opted by the company as it helps in making the
customers aware regarding what business is actually offering and how it can be purchased by
them. However, in contrast to this, as per the views of Díaz Gómez and Molina, (2017, 48) the
companies who have already been able to establish themselves in the industry have to keep their
customers updated regarding what is coming up next with them so that appropriate market
segment can be attracted towards it.
According to Nenycz-Thiel, Romaniuk and Dawes, (2016, 645) promotional activities play
an important role in understanding the requirements of the customers and offering them
accordingly. The researchers have suggested that a convincing promotion strategy being
prepared by the management of the company can help in attracting large number of customers
towards. Hence, to enhance the functioning of a stationary store, it becomes important to opt for
4

various marketing and promotional methods as well. It can be in the form of personal selling,
discount coupons, multimedia display, and advertisement in the form of TV, Newspaper and
Billboards etc. Personal mailing in another convincing option that is adopted by the organization
at a very large scale. However, as per the views of Nargundkar and Manoharan, (2016, 1)
personal selling and personal mailing is the most effective techniques as the customer feel the
sense of belongingness through these methods. Moreover, the methods tend to be effective to
solving out the queries that may arise in the minds of customers with respect to quality and other
aspects of product or services being offered by the company. Other important aspect of personal
selling is that it becomes easy to convince people regarding the brand as the approach gets
moulded as per the age and behaviour of the customer.
Research methodology
Research Approach
Research approach is considered to be one of the most significant aspect of research
methodology. It helps in reaching to an effective solution that can help the reader to gain
information regarding the subject matter. It helps in keeping the right path for reach and takes
every possible aspect into consideration which can distract the researcher’s path. A proper
guidance and direction helps in attaining the aims and objectives (Brinkmann, 2014, 1009).
There are basically two types of research, these are, inductive and deductive. Inductive basically
flows in the direction that can help in generating a new theory. However, deductive approach can
help in testing the existing theories. Hence, in the present research, inductive approach of
research will be used to attain the stated objectives.
Research Philosophy
Research philosophy is considered as an overarching term which has strong association to
enhancement of ideas and knowledge. There are various types of research philosophies, such as
positivism, interpretivism, etc. Positivism approach helps in forming the hypothesis which is
tested to move forward with the solution the research question can be extended (Boulay and
et.al., 2014, 1025). However, in case of interpretivism philosophy, an effective and elaborative
solution to the research questions. In the present research, interpretivism approach will be
followed by the researcher which will effectively help in analysing the factors influencing the
stationary customers at Montblanc
Research Design
5

Research design helps in reaching to the outcome at the right time in an appropriate
manner. It is important that the research design is rightly chosen in order to investigate several
components of the research. It acts a blueprint for the whole research. Hence, it becomes
important for4 the researcher to choose right type of research design that can ultimately help in
drawing out better results. There are various types of research designs (BNS and HV, 2013, 17).
It includes, exploratory, explanatory, descriptive etc. In the present research regarding
influencing stationary customers, descriptive research design will be used. It will help in
searching for in depth knowledge regarding the subject matter. It is the best suited strategy that
can be used by the researcher for the present research.
Type of investigation
Basically, there are two types of investigation techniques. These are: qualitative and
quantitative. Qualitative technique helps in conducting the in depth regarding the subject matter.
It helps in analysing each and every aspect of the research (Lewis, 2015, 474). However, in case
of quantitative research, appropriate statistical tool is used by the researcher that can help in
finding and analysing various aspects of the research and reach to a concrete solution. In the
present research, qualitative type of investigation will be conducted so that in depth knowledge
regarding the subject matter can be collected by the scholar.
Data Collection method
It is important to appropriately collect data that can help in better dealing aims and
objectives of the research being framed by the researcher. Basically, there are two types of data
collection methods that can be used by the researcher (Riquelme and Román, 2014, 415). These
are primary type and secondary type. Primary methods help in collecting first hand data for the
research and reach to the solution that is first derived in the current research. However, in
secondary type of data collection, the research that has already been done by the other researcher
is critically analysed as it helps in leading to find research gap and reach to a common
conclusion. Both type of data collection methods will be used in the present research. Primary
data will be collected through a questionnaire format and secondary data will be collected from
books, journals, online sources etc (Dinner, Van Heerde and Neslin, 2014, 535).
Sampling
Sample is the subset of whole population and is generally selected in a manner where the
results can be generalized to the whole population. In the present research of analysing the
6

factors influencing the stationary customers at Montblanc, views regarding same will be
collected from 20 managers in a questionnaire format.
Data Analysis method
In order to analyse the data, two types of methods can be used. In qualitative method,
themes are formulated to reach to an effective outcome. However, in case of quantitative
method, statistical tool is used to analyse the collected data. Qualitative approach is said to be
more effective as it helps in presenting in depth analysis and knowledge aspects to the readers.
Hence, qualitative type of data analysis method will be used by the researcher. Themes will be
formulated by the scholar to review the collected data in detail.
Research limitations
There are various limitations that can be faced by the researcher while conducting the
present research. These are:
Restricted access to secondary research: It is difficult to come up with all the data that is
available on various secondary sources (Liu, Batra and Wang, 2017, 375). There are certain
websites and may be restricted and does not allow entry of other scholar. It can limit the
knowledge of research which could have proved to be essential for the stated topic of the
research.
Time and budget constraint: A limited time is given to the research so that it does not loose its
relevance in the given time period. In that case, it becomes difficult for the researcher to cover up
all important aspects of the research. It ultimately leads to have certain deviations in the research
and its outcomes. Budget constraint is also another limitation where limited amount of finances
is available with the researcher that can limit the scope of researcher for the readers. In order to
cope up with these constraints a duration wise chart will be prepared indicating all the activities
so that issues regarding time and budget can be sort out.
CONCLUSION
Based on the above research proposal, it can be indicated that the aim of present research is
to analyse the factors influencing the stationary customers at Montblanc. The company,
Montblanc, is a premium brand involved in offering writing instruments to its customers. It has
been able to set up its online stores and has been able to draw out maximum revenues through
the same. Offering the best and latest at the brick and mortar store can help in attracting the
customers towards it. However, the requirement has been generated to improve offerings on
7

stationary set up as well. Hence, in that case, research proposal deals in understanding various
research methodology aspects that can be used by the team to understand the issue and reach to a
valid conclusion. Primary type of data will be collected in the form of questionnaire from 20
managers of Montblanc to assess the same and reach to a concrete and effective result stream.
8

REFERENCES
Books and Journals:
BNS, R. and HV, R., 2013. An overview of interpretive phenomenology as a research
methodology. Nurse Researcher (through 2013). 20(6). p.17.
Boulay, J. and et.al., 2014. When children express their preferences regarding sales channels:
Online or offline or online and offline?. International Journal of Retail & Distribution
Management. 42(11/12). pp.1018-1031.
Brinkmann, S., 2014. Interview. In Encyclopedia of critical psychology (pp. 1008-1010).
Springer New York.
Cavallo, A., 2017. Are online and offline prices similar? evidence from large multi-channel
retailers. American Economic Review. 107(1). pp.283-303.
Díaz, A., Gómez, M. and Molina, A., 2017. A comparison of online and offline consumer
behaviour: An empirical study on a cinema shopping context. Journal of Retailing and
Consumer Services. 38. pp.44-50.
Dinner, I.M., Van Heerde, H. J. and Neslin, S. A., 2014. Driving online and offline sales: The
cross-channel effects of traditional, online display, and paid search advertising. Journal
of Marketing Research. 51(5). pp.527-545.
Gallino, S. and Moreno, A., 2014. Integration of online and offline channels in retail: The impact
of sharing reliable inventory availability information. Management Science. 60(6).
pp.1434-1451.
Landers, V. M. and et.al., 2015. The effect of online versus offline retailer-brand image
incongruity on the flow experience. Journal of Marketing Theory and Practice. 23(4).
pp.370-387.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice. 16(4). pp.473-475.
Liu, W., Batra, R. and Wang, H., 2017. Product Touch and Consumers’ Online and Offline
Buying: The Role of Mental Representation. Journal of Retailing. 93(3). pp.369-381.
Luo, P. and et.al., 2016, August. From online behaviors to offline retailing. In Proceedings of the
22nd ACM SIGKDD International Conference on Knowledge Discovery and Data
Mining (pp. 175-184). ACM.
Nargundkar, R. and Manoharan, S., 2016. Online Versus Offline Price Expectations of Indian
Consumers. Journal of Contemporary Research in Management. 11(4). p.1.
9