The East Java Observer

Welcome to Banyuwangi

2009-12-10T20:39:00.001+07:00

BANYUWANGI AT A GLANCE

Banyuwangi is the eastern-most regency of East Java. To the north lies the regency of Situbondo. The regencies of Jember and Bondowoso neighbor Banyuwangi to the west. To the east lies the island of Bali and to the west lies the Indonesian Ocean. Banyuwangi is situated on the coordinate 70 45’ 15” S and 113’ 38.2” E. Because of its location, Banyuwangi has diverse natural scenery, rich art, culture, customs and traditions.

The beauty of nature is spread across Banyuwangi from the west to the east. Mountains, forests and beaches mark the landscape of the regency. For instance, Ijen Crater, in the western part of Banyuwangi is famous for its beautiful crater lake, the traditional sulfur miners who amazingly climb up and down the slope of Mount Merapi, and the plantations that cover the Crater’s slope. The National Park of Meru Betiri is famous for its Java Tiger and turtles. These locations form the center of the Tourism Developed area which is called the Diamond Triangle, which connects one Tourism Object to another.

Banyuwangi also has various art, culture, customs and traditions. One of the typical arts of Banyuwangi is Gandrung, a welcoming dance for distinguished guests. The dance is the defining dance of Banyuwangi. Besides Gandrung, Seblang, Kuntulan, Damarwulan, Angklung, Ketoprak, Barong, Kendang Kempul, Jaranan are arts that can be seen in Banyuwangi. Other customs that can be observed in Banyuwangi include the sea offering, metik (a celebration performed before rice and coffee harvesting), Rebo Wekasan, Kebo Visit Banyuwangi the Real Tropical Country keboan, Ruwatan, Tumplek punjen, Gredoan, Endog-endogan, etc. These events are performed every year and are included in the Calendar of Events of Banyuwangi. The typical handicrafts and traditional foods are available across Banyuwangi. The products and places that should be visited are Batik Tulis at Temenggungan and Tempo, Bamboo handicraft at Kecamatan Rogojampi and Kalipuro, etc. Banyuwangi also has typical food products; such as bagiak, selai pisang (banana jam) etc.

There native people of Banyuwangi are Banyuwanginese. They have their own dialect which combines the languages of Javanese and Balinese. Ethnic Javanese, Madurese, Balinese and people from Banjar also call Banyuwangi home. The diverse natural scenery, the rich art, culture, customs and traditions, constitute worthy treasures that must be introduced to all people. The people of Banyuwangi and the local government will be supported and benefited by tourism. The income from tourism will provide the capital to develop the regency of Banyuwangi. Tourists will also benefit from their rich experiences as they visit Banyuwangi.

Trenggalek Tourism

2009-11-30T23:50:00.002+07:00

Trenggalek is situated on the South-West of Surabaya, the Capital city of East Java Province, and bordered by Tulungagung in the East, Indonesian Ocean in the South, Pacitan and Ponorogo in the West, Ponorogo and Tulungagung Regencies in the North.

Trenggalek covers 126.140 Ha, a part of it, is mountainous and the rest is lowland. And tourism places which is very exciting as the other objects.

Trenggalek regencies is enriched with various potential natural resources such as: maining material (marble, limestons, meteorit, orcher, piropillit, feldspar, caolin, trass, sandstons, etc). Agriculture product (rice, corn soja), plantation products (coffee, colve, cacao, coconut mangosteen, zalacca and durian), forest products (such as terpentine as row material for gondorukem / gum) and tourism places which so exciting as the other objects.

There are many visitors often visit this regency to spent their holiday. The visitors are interesting with Trenggalek's tourism objects, such as: Prigi Beach, Damas Beach, Pelang Beach, Karanggongso Beach, Lowo Cave, and also Trenggalek's traditional art and food. Its beautiful and origin beaches are able to invite many visitors. Those visitors are also interesting in Trenggalek's anniversary. It usually held some of traditional attraction, which very interesting.

As coastal area, Trenggalek has many fishermen who can catch many fresh fishes from the sea. They have annual ceremony that called "Larung Semboyo". This ceremony is mean to thank to God because of His blessing to all fishermen.

Don't be hesitated to visit Trenggalek. Enjoy its beaches, traditional food and the other interesting places in Trenggalek.

Trowulan Tourism

2009-11-26T10:26:00.002+07:00

WELCOME TO TROWULAN TOURISM

Trowulan site is supposed to be the center of Majapahit Kingdom years ago that has 11 km x 9 km width. This site covers Mojokerto and Jombang regency region. In this region, there are a lot of archaeological heritage for example, temple (Bajangratu, Gentong, Wringinlawang, etc), pool (Segaran Pool, Tikus), gateway, foundation of building, and artifact like statue, relief, some equipment of ceremony, and household.

These ancient heritage amounts make the researcher interesting. First research noted in 1815 by Wardenaar as Raffles command, booked in "History of Java" (published 1817, Raffles masterpiece). The next researchers are WR Van Hovell (1849), JFG BRUMUND (1854), and Jonathan Rigg, which published as "Jurnal of The Indian Archipelago and Eastern Asia". Hereinafter, there were many researches to this site, include Mojokerto regent RAA Kramadjaja Adinegara, Tikus temple inventor in 1914. During his leadership it also built museum Mojokerto that save many Majapahit Kingdom objects that being found in this site.

The famous ancient researcher in this site is Henri Maclaine Port. This Dutch Architect had built special research office of Trowulan site. The dig result (1924 - 1926) matched with description in Kitab Negarakertagama and resulted reconstruct sketch of Majapahit city. Majapahit city tight depicted in roads network form and circumference wall formed foursquare blocks. Through air photograph (1981), there is canals and dam around this site. This thing can be made one of evidence that Majapahit Kingdom was agrarian kingdom with adequate fertile soil and irrigation.

After Maclaine Pont research, since 1953 the research in this site done by Dinas Purbakala dan Peninggalan Nasional Seksi Bangunan (Department of Archeology And National Heritage of Building Section) in Trowulan. Since 1970 presents Pusat Penelitian Arkeologi Nasional (Center of National Archeology Research) to dig and check exhaustively in this site.

Eastern Javanese history usually divided into three dynasti periods. The first was the period when the kings of Kadiri ruled over Java (10th - 1222 AD) they ware succeeded by the dynasty of Singasari (1222 - 1293 AD), which in turn was replaced by the kings of Majapahit (1293 - early 16th century).

Majapahit’s Power reached its summit under the rule of King Hayam Wuruk. Gajah Mada was again prime minister until his death in 1365 AD. After Hayam Wuruk died in 1389 AD. The country was split up by fraternal conflicts. Hayam Wuruk had been succeeded by the crown princess Kusumawarddhani, who had married with a relative, Prince Wikramawarddhana.

Surabaya Culinary

2009-11-08T09:53:00.002+07:00

Surabaya is Indonesia's second-largest city, and the capital of the province of East Java. It is also one of the biggest cities in Southeast Asia, located on the northern shore of Eastern Java at the mouth of the Mas River and at the side of the Madura Strait. It is known as the city of heroes, because of its heroic role in the history of Indonesia. In 2007, the population of the city is approximately 4 million

* Semanggi

Semanggi (Clover leaf), consist of two kinds of vegetable, that is clover leaf, and stewed sprout, presented with mixture petis (shrimp black paste). Its flavour is typical representing of sweet potatoes, peanut, and brown sugar, and also equiped by the crisply puli crackers.

Semanggi is usually vended by a woman which circling around some area, its seller generally ages woman which still impose the jarit (kind of saroong) at the same time carry on the basket contain the clover substance on the back and one plastic big contain the crisply puli crackers. For you which curious with this unique food, can stop by to Surabaya Plaza Hotel, Every day start at 13.00 – 17.00 wib.

* Rujak Cingur

Rujak Cingur is sort of like vegetables salad, but with spicy sauce. This food have become the unique taste of Surabaya. Its mixed flavour is really unique, because combine the young banana slice, roasted peanut, demerara, onion fry, and petis (shrimp black paste). Feel the sweet, briny, fresh and a few casquette uniting by various slice of fruit type. There is, cucumber, yam bean (bengkuang), young mango, pineapple and kedondong added with lontong (compressed rice), tofu, tempe, bendoyo or krai, and also vegetables like bean sprout, kangkung ( water convolvulus), and string bean. According to its name, not left behind cingur (unique cows beef). At some places, rujak presented on the banana leaf (pincuk).

The following is some places that you can find Rujak Cingur :

1. Rujak Cingur Achmad Jais, Jl Achmad Jais
2. Rujak Cingur Pores Embong Sawo, Jl Embong Sawo
3. Rujak Cingur Delta Plasa Surabaya, Jl. Pemuda
4. Rujak Cingur Peneleh, Jl Peneleh
5. Pujasera Galaxy Mall, Jl Kertajaya Indah Timur
Have a look at the recipe of Rujak Cingur here.

* Nasi Pecel

Nasi Pecel is a traditional meal from one town in East Java, Madiun. It made from different vegetables and serve with peanut sauce and warm plain rice (nasi putih). And usually accompany with some flour cracker (rempeyek). In the reality has a lot of version. For example pecel Blitar, Nganjuk, Kediri, Ponorogo, and Madiun. Although its substance has no difference with others, but each have its uniqueness. Its difference starts from vegetable type and its flavour. In its presentation, there are multifarious steam vegetables and also fresh lalapan (vegetable that you can directly eat). As reference, there is nothing wrong if you try the place following :

1. Pecel Ketabang, Jl Ketabang Kali behind Plasa Surabaya
2. Warung Bu Kus, Jl Bratang (near Hotel Narita)
3. Pecel Tapaksiring, Tennis Court PJKA Jl Tapaksiring
4. Pecel Pandigiling, Jl Pandigiling In front of Purnama Motel
5. Pecel Kertajaya, Jl Kertajaya (near Suzana kiosk)
6. Pecel Madiun, Jl Indrapura
Have a look at the recipe of Pecel here.

* Lontong Balap

Some say, it is the original food of Surabaya, besides Semanggi Suroboyo, and Rujak Cingur. Lontong balap, according to its name consist of slices of lontong (compressed rice), added with bean sprouts soup, fried tahu (fried tofu), lentho, soy sauce, fried union, and chilli sauce. Lentho made of rice peanut (in Surabaya so called tholo added with the flour, koempheria galanga, leaf onion, orange purut, and salt).

For some people, eat the lontong balap not yet complete, otherwise added with the cockle satay. The question is why it is called lontong balap (Balap in English mean Race)? It is said, this name emerge from the style of lontong balap merchants in the past. All merchant used the big bamboo stick accommodating two clay frying-pans. Big size measure, it is clear weight shouldered. As a result, the merchants had to quicken their journey, provoking race. Since then, the term of lontong balap was emerged. So, where do we can enjoy the lontong balap ? Here are the list :

1. Lontong Balap in front of Grahadi, Jl Gubernur Suryo (near kantor pos)
2. Lontong Balap Rajawali, Jl Rajawali (opposite of Bank Eksekutif)
3. Lontong Balap Garuda, Jl Kranggan
4. Lontong Balap RIA, Jl Kombes Duryat
5. Warung Lontong Balap, Jl Kepanjen (in front of SMPN 2 Surabaya)
6. Lontong Balap Kertajaya, Jl Raya Gubeng Kertajaya XV
7. Lontong Balap Raya Gubeng, Jl Raya Gubeng (beside BNI)
Have a look at the recipe of Lontong Balap here.

* Sate Kelopo (Satay with Coconut)

Satay with coconut or sate kelopo (in Javanese), differing from other type of satay, because the steak is scattered by
the coconut rasp. This makes the odorous aroma and crispy likely compared to chicken or goat satay. If you want to try, you can find it at Jl. Walikota Mustajab; most of Surabayanese mention the road as Ondomohen.

It is about Rp. 8.500,- for 10 sticks. It's more expensive than normal satay because its substance is special. It is selected by a flesh gulp in which its quality is nicest. This flesh is then locked out from its muscles so that is not hard eaten.

* Rawon

Rawon is a local dish from East Java, especially in Surabaya, made from beef with a special herb called 'Kluwek' that makes the dish has a black colour. You can find it easily in local restaurant, but one well-known place of rawon seller is Rawon Setan, setan - literally in English means ghost, this name was given because this warung start to open around midnight, the time when the ghost usually comes.

When you come here, you have to be patient to get a sit. If you want to try, just go to Jl. Embong Malang (in front of Westin Hotel). But don't be surprise if you see the place because you won't find it like a very nice restaurant. Have a look at the recipe of Rawon.

* Tahu Campur

Another traditional dish from Surabaya. But based on story, actually people from Lamongan (a town in East Java) who were the first time made it. That is why most of tahu campur seller in Surabaya named their restaurant/warung with "Tahu Campur Lamongan". Literally "Tahu Campur" in English means Tofu Mixture. Tahu Campur is like a beef soup, but taste is different because it has petis (shrimp black paste) inside. So the taste is quite strong, and some people don't like the smell of petis. It also has different ingredients such as tofu, cassava croquettes, bean sprouts, green salad and serve with prawn crackers.

If you want to try and taste it, you can go to Jl. Kalasan, Pacar Keling where you can find street food stall of "Tahu Campur Kalasan H. Mahfud". It's really delicious, big slices of meat and the price is not so expensive.
Have a look at the recipe of Tahu Campur here.

Here other delicious culinary places in Surabaya you can't miss:

1. Ayam Goreng Pemuda, Jl. Pemuda 38 and Ayam Goreng Sriwijaya, Jl. Sriwijaya 30-32

Main menu is Chicken, either fried or grill. They have the best sambal ever!!

2. Soto Ayam Ambengan "Sadi Asli", Jl. Ambengan 3 A

This speciality from this restaurant is Soto Ayam (Javanese Style Chicken Soup).

3. Masakan Padang, New Antika Jl. Raya Darmo I

The speciality from this restaurant is all kind of dishes from Padang, a region in West Sumatra.You can easily find masakan Padang in big cities all around Indonesia. But here, their dishes are very delicious and would make your mouth watering!!

4. Kepiting Cak Gundul, Jl. Dukuh Kupang

Want to eat craps with different kind of taste? Spicy, sweet, but delicious? Come and enjoy it here! Prepare yourself for big portion of meals.

Click here to find more information about Surabaya tourism

More to come ... And if you have any information about best and delicious culinary places in Indonesia that you want to share with us, feel free to Contact Us.

SUMENEP - THE EDGE OF MADURA

2009-11-03T06:06:00.002+07:00

Just over 30 km beyond Sampang is the capital city of Pamekasan. There is not much for the visitor to see here unless it is bull racing season. The town of Sumenep on the north eastern end of the island, while smaller than Pamekasan, is more vibrant and has some interesting historical sites as well as some good beaches nearby. The city's old palace (kraton) and museum are worth visiting, as is the large Jamiq mosque with its green tiered roof. Above the town is the royal mausoleum called Asta Tinggi, from where there are good views of the town and coast beyond.
The two main beaches near Sumenep are Slopeng and Lombang. The former, which lies on the north coast some 21 km from the town, is a beautiful location with tall palm trees shading the edge of the beach. At weekends and on holidays Slopeng is popular with families from Sumenep, but otherwise it is quite deserted. A few of the local village people have set up stalls and offer fresh young coconuts and Siwalan fruit, taken directly from the surrounding trees, to passing travellers.

At Lombang, on Madura's north eastern point, a long and narrow stretch of white sand is backed by short cemara trees. Aside from the occasional fisherman the beach is deserted, making it the perfect place for 'getting away from it all'.

A narrow but good road runs the whole way down Madura's attractive north coast, from Slopeng to Bangkalan. There are many small villages and quiet beaches to stop at on the way, in particular the fishing communities of Pasongsongan and Pasean, where narrow estuaries are packed solid with colourful sailing boats.

Before arriving at Bangkalan, which is the last major town before Kamal, it is well worth visiting the Aermata tomb of Ratu Ibu, who was the consort of Prince Cakraningrat I of Madura and a descendant of Sunan Giri, one of the famed Wali Songo, or 'nine saints', who originally propagated the Muslim religion in Java. The tomb, which is set on a hill about 4 km inland from the town of Arosbaya and approached by a long flight of steps, dates back to the mid 17th century.

Madura is also a well known center for batik production and has its own unique style. In the performing arts, the island is famous for its topeng dalang, a mask dance/theatre, which at one time was only seen within the royal palace.

THE EXOTIC BANGKALAN

2009-11-03T06:03:00.003+07:00

EXOTIC BANGKALAN

The sea crossing from East Java's mainland to the small island of Madura takes just half an hour. A regular ferry service transports cars and passengers across the narrow strait between Surabaya's harbour of Tanjung Perak and Kamal on Madura's south west coast. Measuring some 160 km in length and about 40 across at its widest point, Madura supports a population of close to 2.3 million inhabitants, most of whom are farmers or fishermen. Although the island is a part of the province of East Java, it is home to a completely separate ethnic group, which has its own language and customs. Renowned over the centuries for their sailing prowess, the Madurese are a tough, high spirited people, whose character appears well suited to the harsh climate and dry landscape.
Madura's most famous attraction is the annual bull racing (kerapan sapi), which takes place during the dry season in August and September. These exciting and colourful tournaments consist of a race between two pairs of bulls, each team pulling a rider and sled. Following a series of heats, which take place in different parts of the island for some weeks, the highlight of the season occurs when the finals are held in Pamekasan, Madura's capital. Recently a new bull racing stadium has been built in Bangkalan with the object of attracting more tourists to the island.

Madura is not so large and it is possible to travel the whole way round it in a couple of days. However, there is quite alot to see and more time is needed to explore even the major places of interest.

Starting at Kamal and moving along the southern coast, the first stop is the town of Sampang, near to which lies Camplong Beach. The best time to be here is shortly after sunrise or at dusk, when the blue sailed Madurese fishing boats (prahu) are either arriving or setting off. The air is clearer at these times and from the beach there is a good view of the mountain ranges on the mainland to the south

Bromo Tengger Semeru National Park

2009-11-03T05:57:00.001+07:00

Bromo Tengger Semeru National Park

The Bromo Tengger Semeru National Park covers some 800 square kilometers in the centre of East Java. It is the largest volcanic region in the province and there stands Mt. Semeru, which rises 3676 meters above sea level. At its northern end is the spectacular Tengger Caldera, Java's largest, with its 10 km barren desert-like sea of sand. Within the caldera rise the deeply fissured volcanic cones of Batok and Bromo, the latter is still active with a cavernous crater from which smoke blows skyward. Temperatures at the top of mount Bromo range about 5 to 18 degrees Celcius . To the south is a rolling upland plateau dissected by valleys and dotted with several small scenic lakes, extending to the foot of Mount Semeru, a towering grey forest-skirted cone dominating the southern landscape.

The Tenggerese Society
The Tenggerese are an ethnic group inhabiting the highlands of East Java's Tengger mountain range, They live almost entirely from the cultivation of crops and embrace a Hindu/Buddhist religion. According to the East Java Parisada Hindu Darma, the relegion of the Tengger people is Mahayana Buddhism. The Tengger have no temples, but instead Punden, Poten or Danyang. The annual Yadnya Kasada is a holy ceremony held at the crater and sea of Mount Bromo is a holy festival of thanksgiving and a time for the inauguration of priest.

Flora and Fauna
Most of the parts of Bromo Tengger Semeru National Park as the area of are fertile, the flora grows well including: pinus, merkusii, fir tree, and eldeweiis (anavalis sp. the protected plants ). The typical animal living in the National Park include: Timor deer, (Cerveos timorenses) wild dog, leopard (Panthera tigris sundaicus), pangolin (Manis para manis javanicus), flying squirrel (Petaurista petaurista), and other bird species.

Malang Tourism Destination

2009-10-30T09:16:00.004+07:00

Two Interested sites at Malang

Malang is one of clean and cool cities in East Java has, without any doubt, been famous since long time ago. Historical remmants scattered around Malang Showing that it hat played important roles in may eras and stretching out from 112° 17' 10,90° up to 112° 57' 0,00° east Longitude and extending from 7° 44' 55,11° up to 8° 26' 35,45° South Latitude.

Malang regency border Blitar and Kediri Regencies on the West; Jombang, Mojokerto and Pasuruan Regencies on the North; Probolinggo and Lumajang Regencies on the East and Indian Ocean on the South.

Balekambang Beach
The beach possessing three islands with distance of about one hundred meters each, two of which have been connected with one meter-wide bridge to the shore, Balekambang offers a different atmosphere of beach resorts in the Southern part of Malang. One of the three islands called Ismoyo island has a Hindu temple, established by local Hinduists.

Annually, the ritual and traditional ceremonies Jalanidhipuja (Hindu ceremony) and Suran (Javanese New Year ceremony) are held here every year. The parking area, stalls, inns, souvenir shops, and the others tourism facilities has provided for the visitors. This beautiful beach is located at Srigonco village, Bantur district, about 57 km away to the south from Malang and accessible by public transportation.

Visit Balekambang Beach tourism and enjoy its wonderfull waves with softe sea wind. Watch the sunset and sunrise in this beach and do some of beach activities, such as; swimming, sun bathing, fishing, etc.

Coban Pelangi
Coban Pelangi is a beautiful waterfall, which located about 32 km away to the East Malang. It has natural, cool, and clean water that gives a peaceful impression. This waterfall can be reached on the way to Mount Bromo via Malang city.

Find a lovely mountain resort, beautiful panorama, impressive view of apple fruits and 5 vegetables. The Water fall site is in the village named Gubuk Klakah, the one belonging to Poncokusumo district.
The visitors will enjoy its fresh air, nature scenery, and of course the beautiful waterfall. Visit Coban Pelangi Waterfall in Malang regency.

Surabaya Art & Culture

2009-10-26T23:27:00.000+07:00

Karawitan

Karawitan, the Javanese traditional music orchestra consisting of a gamelan and a flute or human voice (see photo above), is also played in East Java occasionally on traditional events such as ceremonies for thanksgiving, weddings and the like.

Karawitan is unique in that it uses a five note scale. It is widely played in Java and Bali with various customisation especially in language and rhytym and often uses a gong to keep time.

You can listen to this enchanting and beautiful music every night in the lobby of the Hotel Elmi as the thick smoke from kretek (clove) cigarettes swirls around the room. An experience you'll soon not forget.

Art & Culture

Similar to Central Java's culture, Surabaya's is influenced by Madura. People from these two regions speaks the same language (although in different accent), and they have no problem communicating each other using those accents. That said Surabaya people are more direct than other Javanese in Central Java region, but actually it is just an expression of their openness to others (doesn't mean other Javanese are not open).

The whole range of the region's performing arts can be sampled in Surabaya. Surabaya is also the place to watch Reog, one of Java's oldest and and most unique performances. Reog is the local name for the ancient trance dance which occurs in different forms and under different names from Banten to Bali. The performer rides a flat hobby horse of woven bamboo and is literally whipped into a trance state while strange looking characters look on. A surreal experience to be sure.

The Javanese great epics, Mahabarata and Ramayana, are also performed occasionally in the Art Centre on Jl. Genteng Kali. Modified from its original version to meet local taste and philosophy, those epics are very popular among the local population.

The most distinctive drama-like performance in Surabaya is ludruk which was originally performed only by men. It is usually performed as a comedy, heroic story or legend. Nowadays it's played by both men and women and performed occasionally at Surabaya's Taman Hiburan Rakyat (Amusement Park) on Jl. Kusuma Bangsa

Commonly requested phone number for traveller at Surabaya

2009-10-26T23:13:00.000+07:00

Here are some commonly requested phone numbers as well as a few that are a little bit harder to find. We've put this page together for those of you who are members of various organizations like Rotary and wish to meet fellow Rotarians or are looking for your home church to worship and fellowship while in Surabaya.

Airlines - Foreign International
Airline Tel. Address
Cathay Pacific 531 7543 Jl. Basuki Rahmat 106-128
Eva Airlines 546 5123 Jl. Basuki Rahmat 106-128
Garuda Indonesia Airlines 532 1640 Hyatt Regency Surabaya
Japan Airlines 532 1733 Jl. Basuki Rahmat 106-128
Malaysia Airlines 531 8632 Graha Bumi Modern
Qantas Airlines 545 2322 Graha Bumi Modern, 5th Floor
Saudi Arabian Airlines 532 5802 Jl. Basuki Rahmat 106-128
Singapore Airlines 531 9215 Menara Mandiri

Airlines - Domestic Indonesia
Airline Tel. Address
Batavia Airlines 531 8406 Jl. Gubeng 68E
Mandala Airlines 545 591 Jl. Urip Sumoharjo 15C
Merpati Nusantara 568 6917 Jl. Raya Darmo III
Pelita Air Service 531 1292 Jl. Panglima Sudirman 42 - 44

Social Clubs & Organizations
Rotary Clubs Day Time Venue
Surabaja Darmo Mon 12.15 JW Marriott Hotel
Surabaya Jembatan Merah Mon 19.30 Hotel Shangrila
Surabaya Kaliasin Thu 13.30 JW Marriott Hotel
Surabaya Rungkut Wed 12.30 Sheraton Hotel
Surabaya Tunjungan Mon 18.00 Hyatt Surabaya
Surabaya Central Wed 18.30 Shangri-La Hotel
Surabaya Timur Fri 12.30 Hyatt Regency
Surabaya Metropolitan Tue 12.30 Jl. Pucang Anom Timur 23

Shopping Tips Traveling at Surabaya

2009-10-26T23:06:00.001+07:00

Shopping Tips

Unlike other destinations in this meandering archipelago, Surabaya boasts no truly unique art or craft items aside from some locally inspired batik patterns.

However, if Surabaya is your only stop in Indonesia, you can find a wide range of products from Bali, Irian Jaya, Jogjakarta, Sumatra, Sumba etc. all reasonably priced and readily available, including batik clothing, placemats, tablecloths.

Also available are wood carvings, masks, wooden utensils, wayang puppets, decorative items, rattan furniture etc. Larger stores and reputable dealers accept credit cards; however read the caveat in the main section of this page. For smaller purchases it better to use cash.

Shopping:
Most shopping is "centered" as in Mega Mall shopping centres. The largest, most comprehensive of these is without question, the centrally located, Tanjungan Plaza. This five story mega mall in city centre is neatly divided into two sections: international brand name fashion and food featuring a Sogo Department Store (from Japan), and budget retailers and food stalls anchored by Indonesian retailing giants Rimo and Matahari.

As well there are child and adult amusement centres complete with a variety of "rides", a Cinema 21 movie theater complex. Western brand coffee shops and fast food outlets are scattered throughout the plaza. Brand name and discount clothing outlets, electronics, appliances, jewelry, beauty parlors all in one convenient location. An internet station is in the basement nearest the Plaza Tunjungan entrance.

Using Credit Cards
Credit cards are widely accepted in Surabaya. Cards accepted by merchants are usually displayed on the front door or near the cashier.

You are well advised to use your credit cards very selectively. Also it's a good idea to keep all receipts for verification.

Unfortunately Indonesia is a source of a great deal of credit card fraud. Thieves insert small memory chips into those devices used to swipe the card, then return to 'service' the device, take out the chip and then start making illegal cards. Many times you will be long gone before fraudulent charges start showing up on your statement.

Many expats living in Surabaya use their credit cards at ATMs to get cash and then pay cash for their purchases - a good habit to get into while in Indonesia.

In addition, it is common practice to add 3% to the cost of your purchase for the privilege of using plastic. You do not have to accept this, but arguing with the shop keeper is not going to help. But if you want to get this 3% back make sure the retailer or restaurant writes this surcharge down as an extra charge for using the card and then claim it from your month end billing

Surabaya Travel Trips

2009-10-26T22:53:00.000+07:00

Healthy Traveling

Indonesia in general is getting better in terms of hygiene and medical facilities but it still has a way to go. You do not want to have a medical emergency here. Play safe and make sure you have medical insurance before you come. Best to have insurance that will evacuate you if you get terribly sick or have a serious injury and need airlifted to Singapore or home. Here are a couple of other common sense points that should keep you in good shape and enjoying your visit.

Drink plenty of fluids (water and fruit juices) to avoid dehydration. Drink bottled water ONLY - ice in drinks, however, is not a problem. Use common sense when choosing a place to eat. Eat in your hotel or established restaurants that are clean and well patronized by local expatriots.

If you are using prescription drugs bring a sufficient supply. Pharmacies (Apotiks) often can fill a prescription but the dosage may not be quite the same as your doctor has prescribed. Take prompt care of any cuts or burns - do not risk infection in this environment. Malaria is not a problem in Jakarta. For additional information there's a list of hospitals and clinics in the Emergency Info section. Additional information on health matters may be obtained from the Centres for Disease Control and Prevention. The CDC home page on the Internet is at http://www.cdc.gov.

Travel Tip
Outward Bound - When planning your departure, on the way out of the hotel, keep a little extra money handy.

The hotel can advise you approximate cost for taxi ride to the airport (don't forget the tolls). As well, keep in mind that all foreign visitors departing Indonesia from Surabaya Juanda Int'l Airport are required to pay an airport tax of Rp. 100,000.- That said, as mentioned earlier it is against the law to leave Indonesia with more than Rp. 10,000,000.-.

Departure tax for a domestic flight is Rp. 15,000.- often this will have already been included in the ticket price - but sometimes not, especially if you have purchased the ticket locally as local agents like to quote the absolute lowest fare - or fear losing your business.

Business Hours
Most shops in the major shopping centres are open from 10.00am until 8.00pm, seven days a week. Restaurants start serving from 7.00am or so until 10.00pm. Government offices and banks operate from 8.00am till 3.00pm, Monday to Thursday and 8.00am till 12.00noon on Fridays. Banks are closed on Saturdays.

Phone Home
All telephone numbers listed herein are local numbers. To reach any number in Surabaya dial: International access code + 62 + 31 + (local number). Wherein "62" is Indonesia country code and "31" is the area code for Surabaya. Be advised most telephone numbers are 7 digits but some now have 8 digits. Cellular service in Indonesia is GSM. If you bring your own handphone you may purchase a prepaid calling chip from any Satelindo distributor (and it's usually cheaper than using your home country telephone service or in-room hotel phone).

Telecommunication capabilities have improved greatly over the last few years but patience is the keyword when trying to dial overseas from Indonesia - especially during office hours. Most better hotels offer International Direct Dialing (IDD) and Home Country Direct (HCD) services. Overseas calls can also be made at state-run telephone offices known as a wartel (warung telephone).

Need to get online? Both AT&T Globalnet & AOL have local access numbers in Surabaya (check before you leave home). If you plan to be in Surabaya for a while and need to be connected there are several local ISPs. That said, it isn't that easy to find a internet shop in Surabaya (there is one in the basement level of Tunjungan Plaza) so for most it will be cheaper and easier to use the business centre in your hotel.

Here's a neat concept: The local phone company allows anyone internet access on its network without having to establish an user account or pay any monthly fees (the telcom makes its money by adding a 50% surcharge to its normal per minute tariff) making it easy to check web based e-mail accounts (i.e. Yahoo, Hotmail) on your laptop. To access dial 0809 - 89999 / username: telkomnet@instan / password: telkom.

Place of Interest at Surabaya

2009-10-26T22:35:00.000+07:00

Surabaya being more a destination for business travelers quite honestly lacks attractions for the casual tourist within in the city itself. There are a few, but if you are going to be in Surabaya for a more than a few days or perhaps through a weekend, it would well worth your time to get outside the city for some golf. There are eight golf courses within 30-40 minutes of the downtown areas.

For non-golfers a trip through the countryside to the city of Malang or a visit to the top of Mt. Bromo to see the sunrise are a great way to see Indonesia and meet its people.

Red Bridge
Description: Known locally as Jembatan Merah, the Red Bridge is so named because the railings are painted bright red. Once the heart of Colonial Surabaya, when the Red Bridge neighborhood was in its prime, it was the geographic centre of the city, halfway between the docks in the north and the gracious suburban administrative precinct in the south. It is historically important because it was at this location during the Battle of Surabaya that the British General Mallaby lost his life.

History tells us that the end of colonialism in Indonesia has its origin at the former Hotel Oranje (currently the Hotel Majapahit/Mandarin Oriental) which opened in 1910. It was (and still is) without question Surabaya's finest hotel. Countless settlers, ship owners and cruise ship passengers, including Charlie Chaplain, were served in its palatial dining room and sipped Bols on its polished terraces. This is the location of the "Flag incident which ignited the Revolution"

Grahadi
Description: The residence of the former Dutch governor, still stands. An oasis of tranquility preserved by the presence of today's Governor of East Java. Opposite the residence stands the corpulent figure of Joko Dolog, a 13th-century statue which has long been Surabaya's trademark.

The Surabaya Zoo
Address: Jl. Setail No. 1 Surabaya.
Description: Claiming to be "the largest zoo in S.E. Asia" this "Kebun Binatang" may be of interest to some visitors. A short 15 minute drive along a tree shaded six lane road from the city centre, this is a good place to see the famous (infamous?) Komodo dragons. However, don't expect much more. The zoo is not as well maintained as it could be for animals or visitors alike. Shaded walkways are often slippery - especially after a rain, not all the birds are in cages, and the smell can often be quite pungent in the heat of the day.
Admission: Admission in a mere Rp. 6,000.- (80 US cents).
Hours: 7.00am to 5.00pm.

Kali Mas
Description: This harbor is the home to the notorious "Bugis Schooners," tall-masted sailing ships and the preferred means of transport for the Bugis sailors (the "boogie man" of nightmares). The dock complex at Tanjung Perak, the historic port of Surabaya, remains much as it was, except for its new air conditioned passenger terminal, may be of interest to some who have never witnessed a working port (and busy it is). The port is also home to the Indonesian Navy which

House of Sampoerna (East Java Indonesia)

2009-10-26T22:16:00.000+07:00

Situated in "old Surabaya", this stately Dutch colonial style compound was built in 1862 and now a preserved historial site.
Previously used as orphanage managed by the Dutch, it was purchased in 1932 by Liem Seeng Tee, the founder of Sampoerna, with the intent of it being used as Sampoerna's first major cigarette production facility

Today the compound is still functionung as a production plant for Indonesia's most prestigious cigarette, Dji Sam Soe. In commemmoration of Sampoerna's 90 th anniversary in2003, the central complex has been painstakingly restored and now is open to public.

How if the market is consist of sales person only ?

2009-10-26T11:33:00.000+07:00

This is not something new. Remember the time when Asian companies rose economically to be a power to be reckoned with in the late 70s. Many Asian companies started to form their brand of management. This is especially so with Asian hotel chains. . . . the likes of Shangri-la, Dusit, etc.

Then it was purely Salespersons running the show. Putting it bluntly, the salesperson is paid 1 sales person salary but have to figure out marketing process along the way - thrown in for free.

It took so long for Asia to put a value in attending trade shows. By the time the masses did, the buyers' trend have moved on. More and more buyers are now affluent to meeting the people they want to meet and do something else-while-I-am-there.

The costs of participating trade shows have also escalated unreasonably. Many event organisers are still in denial, thinking that their industry are crisis proof.
Many buyers do fly in into the city only to meet salespersons outside the show. Of course, pre-appointments is critical for this take place. Furthermore, the buyer do not need to hunt for their next appointment. They just plunked to a seat in a coffee house; all the sellers comes kow-tow to him/her. The buyer get to finish up everything in 1 day and move to other agenda while he/she is still in the city.

It is tough for the seller to be at the show and be at this "outside" appointment. Tougher still if the seller is still in door-to-door salesperson mode.

I've noticed a number of seller now organises walk-in appointments at a specified venue for buyers to attend. . . . right smack in the same dates as the trade show itself. This is having initiative on the part of the seller. He commands the full attention of all who buyers who did attend. The idea still works.

It will continue to be tough for salesperson if he/she
* do not improvise at these tough times
* do not have a systematic approach to acquiring business, or do not review and discard outmoded ones to embrace current technologies.
* continue to sell his/her product based on the product's fact sheets. For his/her sake, if they themselves, can't see how and why a buyer would benefit from buying their product, should it be not predictable that there would be no sale at all?

By attending a number of ASEAN TOURISM FORUM (ATF) in the past, I always get tickled when sellers compared among themselves as to how many appointments they managed to secure before the actual trade exchange (travex).
Even more tickled when seeing some 'professional' sellers slamming the registration counter for saying they do not have any pre-scheduled appointments confirmed fo the seller. . . like zero appointment for 3 days!
These sellers literally leave the success/failure of the show in the hands of tourism volunteers in ATF! Ironic, isn't?

Is it not possible for salesperson to decide who they want to meet at shows, be they customers or prospects?

Is it not possible to write to these customers and prospects, to enquire if they'd be attending the up and coming show? And, to those who are participating, is it not possible for salesperson to tell them that the seller is keen in scheduling the buyer for an appointment during the show?

Is it not possible to meet outside the time and/or venue of the show?

Is it not possible to have all issues and discussions resolved way beofre the show and only meet at the show for contract signing?

I have heard so many answers to the above questions, explaining the difficulties of this and that; but I have yet to meet 2 salespersons who actually tried.

"The impending crisis is now here. What change should a salesperson make this morning that ensures relevance to customers' needs this afternoon? Asking this question implies the seller is awake? Actually, brainstorming and deciding an approach, shows he/she has character. Implementing those resolves, marks his/her leadership."

About Negotiating Skill

2009-10-26T11:29:00.000+07:00

Most of the time when we talk about negotiating skills, we talk about how you can improve how YOU negotiate. However, in the real world, negotiations are often done by teams of negotiators.

The reasons for this are fairly simple: negotiations more often than not can take a long time and just the physical strain of active negotiating can wear a single person down quickly. Additionally, often special subject matter knowledge is required in order to hammer out specific issues and no one person posses all of that information. It takes a team to negotiate well.

There is, of course, one additional reason for preferring to negotiate using a team instead of a lone individual. During a negotiation so much is happening that a single individual is often hard pressed to stay on top of all of it.

Using a team for your negotiations allows you to use a group of people to capture all that is occuring. You can also use the team to jointly review what has transpired and make better decisions.

There are several reasons for not wanting to use a team as a part of a negotiation process. Here are three of them:

Requires Coordination:
When you are the sole negotiator, once you know what you want to accomplish and how you are going to make it happen, then you are set. However, if you have a team of negotiators, then you need to make sure that everyone on your team REALLY understands what the goals are. This can be a challenge to do, especially if your goals change during the negotiation.

Sharing Information:
In order for a team of negotiators to work together successfully, they need to all be aware of the same information. This will require that all information about the negotiation be collected, shared, and reviewed prior to the start of the negotiations. This can be a challenge under the best of circumstances and if the team is geographically distributed then it becomes even more difficult.

Showing Disunity:
In the end, negotiating is all about power. Having team members become confused or showing disunity will reduce your power and increase the other side’s power.

With all that being said, you would think that nobody would ever use a team to perform a negotiation. However, you would be wrong. There are a number of compelling reasons why teams should be used more often for negotiatons than they currently are:

Better Coordination:
Using a team allows you to distribute the tasks of negotiating among team members. This means that documents that need to be produced or facts that need to be checked can be done in parallel to the negotiations and this will speed the process up and reduce confusion.

More Experts:
A single negotiator can only provide his / her expertise to the negotiations. A team can provide a much broader collection of experts and this should help the discussions move much faster.

Moral Support:
Since a negotiation can continue for a long time, it’s easy to become disheartened if it appears as though an agreement will never be reached. If you are working with a team, it will be must easier to “keep a stiff upper lip” and not give up.

Listen Better:
One set of ears can only hear so much. In fact, not only can multiple ears simply hear better, but they can also hear things differently which might help the negotiation move along faster.

Plan Better:
A plan that is created by a single negotiator is as good as that negotiator. A plan that is created by multiple negotiators is often much better because it reflects the different inputs of multiple people.

What has your experience been: do you do better when you negotiate by yourself or when you negotiate as part of a team? When you are on a team, what role do you play? Which type of negotiation more often leads to a successful outcome? Leave me a comment and let me know what you are thinking.

(The Accidental Negotiator)

About Internet Marketing

2009-10-25T17:15:00.000+07:00

Internet marketing is associated with several business models:

* e-commerce — this is where goods are sold directly to consumers (B2C) or businesses (B2B)
* Publishing — this is the sale of advertising
* lead-based websites — this is an organization that generates value by acquiring sales leads from its website
* affiliate marketing — this is process in which a product or service developed by one person is sold by other active seller for a share of profits. The owner of the product normally provide some marketing material (sales letter, affiliate link, tracking facility).
* local internet marketing - this is the process of a locally based company traditionally selling belly to belly and utilizing the Internet to find and nurture relationships, later to take those relationships offline.

There are many other business models based on the specific needs of each person or the business that launches an Internet marketing campaign.
[edit] One-to-one approach

The targeted user is typically browsing the Internet alone therefore the marketing messages can reach them personally. This approach is used in search marketing, where the advertisements are based on search engine keywords entered by the user.

And now with the advent of Web 2.0 tools, many users can interconnect as "peers."
[edit] Appeal to specific interests

Internet marketing and geo marketing places an emphasis on marketing that appeals to a specific behaviour or interest, rather than reaching out to a broadly-defined demographic. "On- and Off-line" marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury of targeting by activity and geolocation. For example, a kayak company can post advertisements on kayaking and canoeing websites with the full knowledge that the audience has a related interest.

Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience—people who engage in certain activities (e.g., uploading pictures, contributing to blogs)— so the company does not rely on the expectation that a certain group of people will be interested in its new product or service.
[edit] Geo targeting

Geo targeting (in internet marketing) and geo marketing are the methods of determining the geolocation (the physical location) of a website visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, Internet Protocol (IP) address, ISP or other criteria.
[edit] Different content by choice

A typical example for different content by choice in geo targeting is the FedEx website at FedEx.com where users have the choice to select their country location first and are then presented with a different site or article content depending on their selection.
[edit] Automated different content

With automated different content in Internet marketing and geomarketing, the delivery of different content based on the geographical geolocation and other personal information is automated.
[edit] Advantages

Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.

Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action. Such measurement cannot be achieved through billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time.

Internet marketing as of 2007 is growing faster than other types of media.[citation needed] Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web analytics for instance—Internet marketing can offer a greater sense of accountability for advertisers. Marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloing each advertising medium. The effects of multichannel marketing can be difficult to determine, but are an important part of ascertaining the value of media campaigns.
[edit] Limitations

Internet marketing requires customers to use newer technologies rather than traditional media. Low-speed Internet connections are another barrier. If companies build large or overly-complicated websites, individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery.

From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.

A survey of 410 marketing executives listed the following barriers to entry for large companies looking to market online: insufficient ability to measure impact, lack of internal capability, and difficulty convincing senior management.[2]
[edit] Security concerns

Information security is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private. Encryption is the primary method for implementing privacy policies.

Recently some companies that do business online have been caught giving away or selling information about their customers. Several of these companies provide guarantees on their websites, claiming that customer information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from the database, also known as opting out. However, many customers are unaware if and when their information is being shared, and are unable to stop the transfer of their information between companies if such activity occurs.

Another major security concern that consumers have with e-commerce merchants is whether or not they will receive exactly what they purchase. Online merchants have attempted to address this concern by investing in and building strong consumer brands (e.g., Amazon.com, eBay, Overstock.com), and by leveraging merchant/feedback rating systems and e-commerce bonding solutions. All of these solutions attempt to assure consumers that their transactions will be free of problems because the merchants can be trusted to provide reliable products and services. Additionally, the major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have also provided back-end buyer protection systems to address problems if they actually do occur.
[edit] Broadband-induced trends

Online advertising techniques have been dramatically affected by technological advancements in the telecommunications industry. In fact, many firms are embracing a new paradigm that is shifting the focus of online advertising from simple text ads to rich multimedia experiences. As a result, advertisers can more effectively engage in and manage online branding campaigns, which seek to shape consumer attitudes and feelings towards specific products. The critical technological development fueling this paradigm shift is Broadband.

In March 2005, roughly half of all American homes were equipped with broadband technology. By May 2008, broadband technologies had spread to more than 90% of all residential Internet connections in the United States. When one considers a Nielsen’s study conducted in June 2008, which estimated the number of U.S. Internet users as 220,141,969, one can calculate that there are presently about 199 million people in the United States utilizing broadband technologies to surf the Web.

As a result, all 199 million members of this burgeoning market have the ability to view TV-like advertisements with the click of a mouse. And to be sure, online advertisers are working feverishly to design rich multimedia content that will engender a “warm-fuzzy” feeling when viewed by their target audience. As connection speeds continue to increase, so will the frequency of online branding campaigns.
[edit] Effects on industries

Internet marketing has had a large impact on several previously retail-oriented industries including music, film, pharmaceuticals, banking, flea markets, as well as the advertising industry itself. Internet marketing is now overtaking radio marketing in terms of market share.[3] In the music industry, many consumers have been purchasing and downloading music (e.g., MP3 files) over the Internet for several years in addition to purchasing compact discs. By 2008 Apple Inc.'s iTunes Store has become the largest music vendor in the United States.[4]

The number of banks offering the ability to perform banking tasks online has also increased. Online banking is believed to appeal to customers because it is more convenient than visiting bank branches. Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry.[citation needed] Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet.[citation needed]

Internet auctions have gained popularity. Unique items that could only previously be found at flea markets are being sold on eBay. Specialized e-stores sell items ranging from antiques to movie props.[5][6] As the premier online reselling platform, eBay is often used as a price-basis for specialized items. Buyers and sellers often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item's selling price. It is increasingly common for flea market vendors to place a targeted advertisement on the Internet for each item they are selling online, all while running their business out of their homes.

The effect on the advertising industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually.[7][8][9] PricewaterhouseCoopers reported that US$16.9 billion was spent on Internet marketing in the U.S. in 2006.[10]

This has had a growing impact on the electoral process. In 2008 candidates for President heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries candidates added, on average, over 500 social network supporters per day to help spread their message.[11] President Barack Obama raised over US$1 million in a single day during his extensive Democratic candidacy campaign, largely due to online donors.[12]

About Predictive Analysis

2009-10-24T18:20:00.000+07:00

Predictive analytics encompasses a variety of techniques from statistics and data mining that analyze current and historical data to make predictions about future events. Such predictions rarely take the form of absolute statements, and are more likely to be expressed as values that correspond to the odds of a particular event or behavior taking place in the future.
In business, predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision making for candidate transactions.
One of the most well-known applications is cr scoring, which is used throughout financial services. Scoring models process a customer’s cr history, loan application, customer data, etc., in order to rank-order individuals by their likelihood of making future cr payments on time. Predictive analytics are also used in insurance, telecommunications, retail, travel, healthcare, pharmaceuticals and other fields.

Types of predictive analytics
Generally, predictive analytics is used to mean predictive modeling, scoring of predictive models, and forecasting. However, people are increasingly using the term to describe related analytic disciplines, such as descriptive modeling and decision modeling or optimization. These disciplines also involve rigorous data analysis, and are widely used in business for segmentation and decision making, but have different purposes and the statistical techniques underlying them vary.

[] Predictive models
Predictive models analyze past performance to assess how likely a customer is to exhibit a specific behavior in the future in order to improve marketing effectiveness. This category also encompasses models that seek out subtle data patterns to answer questions about customer performance, such as fraud detection models. Predictive models often perform calculations during live transactions, for example, to evaluate the risk or opportunity of a given customer or transaction, in order to guide a decision.

[] Descriptive models
Descriptive models “describe” relationships in data in a way that is often used to classify customers or prospects into groups. Unlike predictive models that focus on predicting a single customer behavior (such as cr risk), descriptive models identify many different relationships between customers or products. But the descriptive models do not rank-order customers by their likelihood of taking a particular action the way predictive models do. Descriptive models are often used “offline,” for example, to categorize customers by their product preferences and life stage. Descriptive modeling tools can be utilized to develop agent based models that can simulate large number of individualized agents to predict possible futures.

[] Decision models
Decision models describe the relationship between all the elements of a decision — the known data (including results of predictive models), the decision and the forecast results of the decision — in order to predict the results of decisions involving many variables. These models can be used in optimization, a data-driven approach to improving decision logic that involves maximizing certain outcomes while minimizing others. Decision models are generally used offline, to develop decision logic or a set of business rules that will produce the desired action for every customer or circumstance.

[] Predictive analytics

[] Definition
Predictive analytics is an area of statistical analysis that deals with extracting information from data and using it to predict future trends and behavior patterns. The core of predictive analytics relies on capturing relationships between explanatory variables and the predicted variables from past occurrences, and exploiting it to predict future outcomes.

[] Current uses
Although predictive analytics can be put to use in many applications, we outline a few examples where predictive analytics has shown positive impact in recent years.

[] Analytical Customer Relationship Management (CRM)
Analytical Customer Relationship Management is a frequent commercial application of Predictive Analysis. Methods of predictive analysis are applied to customer data to pursue CRM objectives.

[] Direct marketing
Product marketing is constantly faced with the challenge of coping with the increasing number of competing products, different consumer preferences and the variety of methods (channels) available to interact with each consumer. Efficient marketing is a process of understanding the amount of variability and tailoring the marketing strategy for greater profitability. Predictive analytics can help identify consumers with a higher likelihood of responding to a particular marketing offer. Models can be built using data from consumers’ past purchasing history and past response rates for each channel. Additional information about the consumers demographic, geographic and other characteristics can be used to make more accurate predictions. Targeting only these consumers can lead to substantial increase in response rate which can lead to a significant reduction in cost per acquisition. Apart from identifying prospects, predictive analytics can also help to identify the most effective combination of products and marketing channels that should be used to target a given consumer.

[] Cross-sell
Often corporate organizations collect and maintain abundant data (e.g. customer records, sale transactions) and exploiting hidden relationships in the data can provide a competitive advantage to the organization. For an organization that offers multiple products, an analysis of existing customer behavior can lead to efficient cross sell of products. This directly leads to higher profitability per customer and strengthening of the customer relationship. Predictive analytics can help analyze customers’ spending, usage and other behavior, and help cross-sell the right product at the right time.

[] Customer retention
With the amount of competing services available, businesses need to focus efforts on maintaining continuous consumer satisfaction. In such a competitive scenario, consumer loyalty needs to be rewarded and customer attrition needs to be minimized. Businesses tend to respond to customer attrition on a reactive basis, acting only after the customer has initiated the process to terminate service. At this stage, the chance of changing the customer’s decision is almost impossible. Proper application of predictive analytics can lead to a more proactive retention strategy. By a frequent examination of a customer’s past service usage, service performance, spending and other behavior patterns, predictive models can determine the likelihood of a customer wanting to terminate service sometime in the near future. An intervention with lucrative offers can increase the chance of retaining the customer. Silent attrition is the behavior of a customer to slowly but steadily reduce usage and is another problem faced by many companies. Predictive analytics can also predict this behavior accurately and before it occurs, so that the company can take proper actions to increase customer activity.

[] Underwriting
Many businesses have to account for risk exposure due to their different services and determine the cost needed to cover the risk. For example, auto insurance providers need to accurately determine the amount of premium to charge to cover each automobile and driver. A financial company needs to assess a borrower’s potential and ability to pay before granting a loan. For a health insurance provider, predictive analytics can analyze a few years of past medical claims data, as well as lab, pharmacy and other records where available, to predict how expensive an enrollee is likely to be in the future. Predictive analytics can help underwriting of these quantities by predicting the chances of illness, default, bankruptcy, etc. Predictive analytics can streamline the process of customer acquisition, by predicting the future risk behavior of a customer using application level data. Proper predictive analytics can lead to proper pricing decisions, which can help mitigate future risk of default.

[] Collection analytics
Every portfolio has a set of delinquent customers who do not make their payments on time. The financial institution has to undertake collection activities on these customers to recover the amounts due. A lot of collection resources are wasted on customers who are difficult or impossible to recover. Predictive analytics can help optimize the allocation of collection resources by identifying the most effective collection agencies, contact strategies, legal actions and other strategies to each customer, thus significantly increasing recovery at the same time reducing collection costs.

[] Fraud detection
Fraud is a big problem for many businesses and can be of various types. Inaccurate cr applications, fraudulent transactions, identity thefts and false insurance claims are some examples of this problem. These problems plague firms all across the spectrum and some examples of likely victims are cr card issuers, insurance companies, retail merchants, manufacturers, business to business suppliers and even services providers. This is an area where a predictive model is often used to help weed out the “bads” and reduce a business's exposure to fraud.

[] Portfolio, product or economy level prediction
Often the focus of analysis is not the consumer but the product, portfolio, firm, industry or even the economy. For example a retailer might be interested in predicting store level demand for inventory management purposes. Or the Federal Reserve Board might be interested in predicting the unemployment rate for the next year. These type of problems can be addressed by predictive analytics using Time Series techniques (see below). Wrong Information....

[] Statistical techniques
The approaches and techniques used to conduct predictive analytics can broadly be grouped into regression techniques and machine learning techniques.

[] Regression Techniques
Regression models are the mainstay of predictive analytics. The focus lies on establishing a mathematical equation as a model to represent the interactions between the different variables in consideration. Depending on the situation, there is a wide variety of models that can be applied while performing predictive analytics. Some of them are briefly discussed below.

[] Linear Regression Model
The linear regression model analyzes the relationship between the response or dependent variable and a set of independent or predictor variables. This relationship is expressed as an equation that predicts the response variable as a linear function of the parameters. These parameters are adjusted so that a measure of fit is optimized. Much of the effort in model fitting is focused on minimizing the size of the residual, as well as ensuring that it is randomly distributed with respect to the model predictions.
The goal of regression is to select the parameters of the model so as to minimize the sum of the squared residuals. This is referred to as ordinary least squares (OLS) estimation and results in best linear unbiased estimates (BLUE) of the parameters.
Once the model has been estimated we would be interested to know if the predictor variables belong in the model – i.e. is the estimate of each variable’s contribution reliable? To do this we can check the statistical significance of the model’s coefficients which can be measured using the t-statistic. This amounts to testing whether the coefficient is significantly different from zero. How well the model predicts the dependent variable based on the value of the independent variables can be assessed by using the R² statistic. It measures predictive power of the model i.e. the proportion of the total variation in the dependent variable that is “explained” (accounted for) by variation in the independent variables.

[] Discrete choice models
Multivariate regression (above) is generally used when the response variable is continuous with an unbounded range. Often the response variable may not be continuous but rather discrete. While mathematically it is feasible to apply multivariate regression to discrete ordered dependent variables, some of the assumptions behind the theory of multivariate linear regression no longer hold, and there are other techniques such as discrete choice models which are better suited for this type of analysis. If the dependent variable is discrete, some of those superior methods are logistic regression, multinomial logit and probit models. Logistic regression and probit models are used when the dependent variable is binary.

[] Logistic regression
For more details on this topic, see logistic regression.
In a classification setting, assigning outcome probabilities to observations can be achieved through the use of a logistic model, which is basically a method which transforms information about the binary dependent variable into an unbounded continuous variable and estimates a regular multivariate model (See Allison’s Logistic Regression for more information on the theory of Logistic Regression).
The Wald and likelihood-ratio test are used to test the statistical significance of each coefficient b in the model (analogous to the t tests used in OLS regression; see above). A test assessing the goodness-of-fit of a classification model is the Hosmer and Lemeshow test.

[] Multinomial logistic regression
An extension of the binary logit model to cases where the dependent variable has more than 2 categories is the multinomial logit model. In such cases collapsing the data into two categories might not make good sense or may lead to loss in the richness of the data. The multinomial logit model is the appropriate technique in these cases, especially when the dependent variable categories are not ordered (for examples colors like red, blue, green). Some authors have extended multinomial regression to include feature selection/importance methods such as Random multinomial logit.

[] Probit regression
Probit models offer an alternative to logistic regression for modeling categorical dependent variables. Even though the outcomes tend to be similar, the underlying distributions are different. Probit models are popular in social sciences like economics.
A good way to understand the key difference between probit and logit models, is to assume that there is a latent variable z.
We do not observe z but instead observe y which takes the value 0 or 1. In the logit model we assume that follows a logistic distribution. In the probit model we assume that follows a standard normal distribution. Note that in social sciences (example economics), probit is often used to model situations where the observed variable y is continuous but takes values between 0 and 1.

[] Logit vs. Probit
The Probit model has been around longer than the logit model. They look identical, except that the logistic distribution tends to be a little flat tailed. In fact one of the reasons the logit model was formulated was that the probit model was extremely hard to compute because it involved calculating difficult integrals. Modern computing however has made this computation fairly simple. The coefficients obtained from the logit and probit model are also fairly close. However the odds ratio makes the logit model easier to interpret.
For practical purposes the only reasons for choosing the probit model over the logistic model would be:
• There is a strong belief that the underlying distribution is normal
• The actual event is not a binary outcome (e.g. Bankrupt/not bankrupt) but a proportion (e.g. Proportion of population at different debt levels).

[] Time series models
Time series models are used for predicting or forecasting the future behavior of variables. These models account for the fact that data points taken over time may have an internal structure (such as autocorrelation, trend or seasonal variation) that should be accounted for. As a result standard regression techniques cannot be applied to time series data and methodology has been developed to decompose the trend, seasonal and cyclical component of the series. Modeling the dynamic path of a variable can improve forecasts since the predictable component of the series can be projected into the future.
Time series models estimate difference equations containing stochastic components. Two commonly used forms of these models are autoregressive models (AR) and moving average (MA) models. The Box-Jenkins methodology (1976) developed by George Box and G.M. Jenkins combines the AR and MA models to produce the ARMA (autoregressive moving average) model which is the cornerstone of stationary time series analysis. ARIMA (autoregressive integrated moving average models) on the other hand are used to describe non-stationary time series. Box and Jenkins suggest differencing a non stationary time series to obtain a stationary series to which an ARMA model can be applied. Non stationary time series have a pronounced trend and do not have a constant long-run mean or variance.
Box and Jenkins proposed a three stage methodology which includes: model identification, estimation and validation. The identification stage involves identifying if the series is stationary or not and the presence of seasonality by examining plots of the series, autocorrelation and partial autocorrelation functions. In the estimation stage, models are estimated using non-linear time series or maximum likelihood estimation procedures. Finally the validation stage involves diagnostic checking such as plotting the residuals to detect outliers and evidence of model fit.
In recent years time series models have become more sophisticated and attempt to model conditional heteroskedasticity with models such as ARCH (autoregressive conditional heteroskedasticity) and GARCH (generalized autoregressive conditional heteroskedasticity) models frequently used for financial time series. In addition time series models are also used to understand inter-relationships among economic variables represented by systems of equations using VAR (vector autoregression) and structural VAR models.

[] Survival or duration analysis
Survival analysis is another name for time to event analysis. These techniques were primarily developed in the medical and biological sciences, but they are also widely used in the social sciences like economics, as well as in engineering (reliability and failure time analysis).
Censoring and non-normality which are characteristic of survival data generate difficulty when trying to analyze the data using conventional statistical models such as multiple linear regression. The Normal distribution, being a symmetric distribution, takes positive as well as negative values, but duration by its very nature cannot be negative and therefore normality cannot be assumed when dealing with duration/survival data. Hence the normality assumption of regression models is violated.
A censored observation is defined as an observation with incomplete information. Censoring introduces distortions into traditional statistical methods and is essentially a defect of the sample data. The assumption is that if the data were not censored it would be representative of the population of interest. In survival analysis, censored observations arise whenever the dependent variable of interest represents the time to a terminal event, and the duration of the study is limited in time.
An important concept in survival analysis is the hazard rate. The hazard rate is defined as the probability that the event will occur at time t conditional on surviving until time t. Another concept related to the hazard rate is the survival function which can be defined as the probability of surviving to time t.
Most models try to model the hazard rate by choosing the underlying distribution depending on the shape of the hazard function. A distribution whose hazard function slopes upward is said to have positive duration dependence, a decreasing hazard shows negative duration dependence whereas constant hazard is a process with no memory usually characterized by the exponential distribution. Some of the distributional choices in survival models are: F, gamma, Weibull, log normal, inverse normal, exponential etc. All these distributions are for a non-negative random variable.
Duration models can be parametric, non-parametric or semi-parametric. Some of the models commonly used are Kaplan-Meier, Cox proportional hazard model (non parametric).

[] Classification and regression trees
Classification and regression trees (CART) is a non-parametric technique that produces either classification or regression trees, depending on whether the dependent variable is categorical or numeric, respectively.
Trees are formed by a collection of rules based on values of certain variables in the modeling data set
• Rules are selected based on how well splits based on variables’ values can differentiate observations based on the dependent variable
• Once a rule is selected and splits a node into two, the same logic is applied to each “child” node (i.e. it is a recursive procedure)
• Splitting stops when CART detects no further gain can be made, or some pre-set stopping rules are met
Each branch of the tree ends in a terminal node
• Each observation falls into one and exactly one terminal node
• Each terminal node is uniquely defined by a set of rules
A very popular method for predictive analytics is Leo Breiman's Random forests or derived versions of this technique like Random multinomial logit.

[] Multivariate regression splines
Multivariate adaptive regression splines is a non-parametric technique that builds flexible models by fitting piecewise linear regressions.
An important concept associated with regression splines is that of a knot. Knot is where one local regression model gives way to another and thus is the point of intersection between two splines.
In multivariate and adaptive regression splines, basis functions are the tool used for generalizing the search for knots. Basis functions are a set of functions used to represent the information contained in one or more variables. Multivariate and Adaptive Regression Splines model almost always creates the basis functions in pairs.
Multivariate and adaptive regression spline approach deliberately overfits the model and then prunes to get to the optimal model. The algorithm is computationally very intensive and in practice we are required to specify an upper limit on the number of basis functions.

[] Machine learning techniques
Machine learning, a branch of artificial intelligence, was originally employed to develop techniques to enable computers to learn. Today, since it includes a number of advanced statistical methods for regression and classification, it finds application in a wide variety of fields including medical diagnostics, cr card fraud detection, face and speech recognition and analysis of the stock market. In certain applications it is sufficient to directly predict the dependent variable without focusing on the underlying relationships between variables. In other cases, the underlying relationships can be very complex and the mathematical form of the dependencies unknown. For such cases, machine learning techniques emulate human cognition and learn from training examples to predict future events.
A brief discussion of some of these methods used commonly for predictive analytics is provided below. A detailed study of machine learning can be found in Mitchell (1997).

[] Neural networks
Neural networks are nonlinear sophisticated modeling techniques that are able to model complex functions. They can be applied to problems of prediction, classification or control in a wide spectrum of fields such as finance, cognitive psychology/neuroscience, medicine, engineering, and physics.
Neural networks are used when the exact nature of the relationship between inputs and output is not known. A key feature of neural networks is that they learn the relationship between inputs and output through training. There are two types of training in neural networks used by different networks, supervised and unsupervised training, with supervised being the most common one.
Some examples of neural network training techniques are backpropagation, quick propagation, conjugate gradient descent, projection operator, Delta-Bar-Delta etc. Theses are applied to network architectures such as multilayer perceptrons, Kohonen networks, Hopfield networks, etc.

[] Radial basis functions
A radial basis function (RBF) is a function which has built into it a distance criterion with respect to a center. Such functions can be used very efficiently for interpolation and for smoothing of data. Radial basis functions have been applied in the area of neural networks where they are used as a replacement for the sigmoidal transfer function. Such networks have 3 layers, the input layer, the hidden layer with the RBF non-linearity and a linear output layer. The most popular choice for the non-linearity is the Gaussian. RBF networks have the advantage of not being locked into local minima as do the feed-forward networks such as the multilayer perceptron.

[] Support vector machines
Support Vector Machines (SVM) are used to detect and exploit complex patterns in data by clustering, classifying and ranking the data. They are learning machines that are used to perform binary classifications and regression estimations. They commonly use kernel based methods to apply linear classification techniques to non-linear classification problems. There are a number of types of SVM such as linear, polynomial, sigmoid etc.

[] Naïve Bayes
Naïve Bayes based on Bayes conditional probability rule is used for performing classification tasks. Naïve Bayes assumes the predictors are statistically independent which makes it an effective classification tool that is easy to interpret. It is best employed when faced with the problem of ‘curse of dimensionality’ i.e. when the number of predictors is very high.

[] k-nearest neighbours
The nearest neighbour algorithm (KNN) belongs to the class of pattern recognition statistical methods. The method does not impose a priori any assumptions about the distribution from which the modeling sample is drawn. It involves a training set with both positive and negative values. A new sample is classified by calculating the distance to the nearest neighbouring training case. The sign of that point will determine the classification of the sample. In the k-nearest neighbour classifier, the k nearest points are considered and the sign of the majority is used to classify the sample. The performance of the kNN algorithm is influenced by three main factors: (1) the distance measure used to locate the nearest neighbours; (2) the decision rule used to derive a classification from the k-nearest neighbours; and (3) the number of neighbours used to classify the new sample. It can be proved that, unlike other methods, this method is universally asymptotically convergent, i.e.: as the size of the training set increases, if the observations are iid, regardless of the distribution from which the sample is drawn, the predicted class will converge to the class assignment that minimizes misclassification error. See Devroy et alt.

[] Popular tools
There are numerous tools available in the marketplace which help with the execution of predictive analytics. These range from those which need very little user sophistication to those that are designed for the expert practitioner. The difference between these tools is often in the level of customization and heavy data lifting allowed. For traditional statistical modeling some of the popular tools are SAS, S-Plus, SPSS and Stata. For machine learning/data mining type of applications, KnowledgeSEEKER, KnowledgeSTUDIO, Enterprise Miner, GeneXproTools, Clementine, KXEN Analytic Framework, InforSense and Excel Miner are some of the popularly used options. Classification Tree analysis can be performed using CART software. R is a very powerful tool that can be used to perform almost any kind of statistical analysis, and is freely downloadable. WEKA is a freely available open-source collection of machine learning methods for pattern classification, regression, clustering, and some types of meta-learning, which can be used for predictive analytics. RapidMiner is another freely available integrated open-source software environment for predictive analytics, data mining, and machine learning fully integrating WEKA and providing an even larger number of methods for predictive analytics.
Recently, in an attempt to provide a standard language for expressing predictive models, the Predictive Model Markup Language (PMML) has been proposed. Such an XML-based language provides a way for the different tools to define predictive models and to share these between PMML compliant applications. Several tools already produce or consume PMML documents, these include ADAPA, IBM DB2 Warehouse, CART, SAS Enterprise Miner, and SPSS. Predictive analytics has also found its way into the IT lexicon, most notably in the area of IT Automation. Vendors such as Stratavia and their Data Palette product offer predictive analytics as part of their automation platform, predicting how resources will behave in the future and automate the environment accordingly.
The widespread use of predictive analytics in industry has led to the proliferation of numerous productized solutions firms. Some of them are highly specialized (focusing, for example, on fraud detection, automatic saleslead generation or response modeling) in a specific domain (Fair Isaac for cr card scores) or industry verticals (MarketRx in Pharmaceutical). Others provide predictive analytics services in support of a wide range of business problems across industry verticals (Fifth C). Predictive Analytics competitions are also fairly common and often pit academics and Industry practitioners (see for example, KDD CUP).

[] Conclusion
Predictive analytics adds great value to a businesses decision making capabilities by allowing it to formulate smart policies on the basis of predictions of future outcomes. A broad range of tools and techniques are available for this type of analysis and their selection is determined by the analytical maturity of the firm as well as the specific requirements of the problem being solved.

[] Education
Predictive analytics is taught at the following institutions:
• Ghent University, Belgium: Master of Marketing Analysis, an 8-month advanced master degree taught in English with strong emphasis on applications of predictive analytics in Analytical CRM.

[] References
• L. Devroye, L. Györfi, G. Lugosi (1996). A Probabilistic Theory of Pattern Recognition. New York: Springer-Verlag.
• John R. Davies, Stephen V. Coggeshall, Roger D. Jones, and Daniel Schutzer, "Intelligent Security Systems," in Freedman, Roy S., Flein, Robert A., and Lederman, Jess, ors (1995). Artificial Intelligence in the Capital Markets. Chicago: Irwin. ISBN 1-55738-811-3.
• Agresti, Alan (2002). Categorical Data Analysis. Hoboken: John Wiley and Sons. ISBN 0-471-36093-7.
• Enders, Walter (2004). Applied Time Series Econometrics. Hoboken: John Wiley and Sons. ISBN 052183919X.
• Greene, William (2000). Econometric Analysis. London: Prentice Hall. ISBN 0-13-013297-7.
• Mitchell, Tom (1997). Machine Learning. New York: McGraw-Hill. ISBN 0-07-042807-7.
• Tukey, John (1977). Exploratory Data Analysis. New York: Addison-Wesley. ISBN 0.

Knowing about Brand Community

2009-10-24T18:16:00.000+07:00

A brand community is a community formed on the basis of attachment to a product or marque. Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture. Among the concepts developed to explain the behavior of consumers, the concept of a brand community focuses on the connections between consumers. A brand community can be defined as an enduring self-selected group of actors sharing a system of values, standards and representations (a culture) and recognizing bonds of membership with each other and with the whole.
The term "brand community" was first presented by Albert Muniz Jr. and Thomas C. O'Guinn in a 1995 paper for the Association for Consumer Research Annual Conference in Minneapolis, MN. In a 2001 article titled " Brand Community", published in the Journal of Consumer Research (SSCI), they defined the concept as "a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand." This 2001 paper recently has been acknowledged by Thomson Scientific & Healthcare to be one of the most cited papers in the field of economics and business.
Brands which are used as examples of brand communities include Apple Inc. (Macintosh, iPod, iPhone), Ford Bronco, Holga and Lomo cameras, Jeep, Lego, Miata, Mini Cooper, Palm, PocketPC, Royal Enfield motocycles, Saab, Saturn automobiles and Subaru, and Harley Davidson. Brand communities are characterized in shared consciousness, rituals and traditions, and a sense of moral responsibility

Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.
Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. In the U.S., retailers often provided boardwalks in front of their stores to protect customers from the mud. Online retailing, also known as e-commerce is the latest form of non-shop retailing (cf. mail order).
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.
Most retailers have employees learn facing, a hyperreal tool used to create the look of a perfectly-stocked store even when it is not.

Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
In Western countries, retail prices are often called psychological prices or odd prices.
Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons, where the retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Another example is the practice of discounting for youths or students. Retailers who are overstocked, or need to raise cash to renew stocks may resort to "sales", where prices are "marked down", often by advertised percentages - "50% off".

[] Retail industry
Retail industry has brought in phenomenal changes[citation needed]in the whole process of production, distribution and consumption of consumer goods all over the world[citation needed]. In the present world most of the developed economies are using the retail industry as their vital growth instrument[citation needed]. At present, among all the industries of U.S.A. the retail industry holds the second place in terms of employment generation[citation needed]. In fact, the strength of the retail industry lies in its ability to generate large volume of employment[citation needed].
Not only U.S. but also the other developed countries like the UK, Canada, France, Germany & Australia are experiencing tremendous growth in their retail sectors[citation needed]. Key Canadian retailers include Canadian Tire, Grand & Toy, Harry Rosen, Loblaw, Winners Merchants, Reitmans, Shoppers Drug Mart, The Hudson's Bay Company, and Sleep Country Canada. This boom in the global retail industry was in many ways accelerated by the liberalization of the retail sector.[citation needed]
Observing this global upward trend of retail industry, now the developing countries like India are also planning to tap the enormous potential of the retail sector. Wal-Mart, the world's largest retailer, is interested in opening shops in India. Other popular brands like Pantaloons, Big Bazar (India), and Archies (U.S.) are rapidly increasing their market share in the retail sector. According to a survey[citation needed], within five years, the Indian retail industry is expected to generate 10 to 15 million jobs by direct and indirect effects. This huge employment generation can be possible because being dependent on the retail sector shares a lot of forward and backward linkages.
Emergence of a strong retail sector can contribute immensely to the economic development of any country[citation needed]. With a dominant retail sector, the farmers and other suppliers can sell their products directly to the major retail companies and can ensure stable profit. On the other hand, to ensure steady supply of goods, the retail companies can inject cash into the production system. This whole process can result into a more efficient production and distribution system for the economy as a whole[citation needed].

[] Etymology
Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities or items.[citation needed]

[] Retail types
There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done in town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 20th century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as Amazon.[2].
Buildings for retail have changed considerably over time. Market halls were constructed in the Middle Ages, which were essentially just covered marketplaces. The first shops in the modern sense used to deal with just one type of article, and usually adjoined the producer (baker, tailor, cobbler). In the 19th century, in France, arcades were invented, which were a street of several different shops, roofed over. Counters, each dealing with a different kind of article, were invented; it was called a department store. One of the novelties of the department store was the introduction of fixed prices, making haggling unnecessary, and browsing more enjoyable. This is commonly considered the birth of consumerism [3]. In cities, these were multi-story buildings which pioneered the escalator.
In the 1920s the first supermarket opened in the United States, heralding in a new era of retail: self-service. Around the same time the first shopping mall was constructed [4] which incorporated elements from both the arcade and the department store. A mall consists of several department stores linked by arcades (many of whose shops are owned by the same firm under different names). The design was perfected by the Austrian architect Victor Gruen[5]. All the stores rent their space from the mall owner. By mid-century, most of these were being developed as single enclosed, climate-controlled, projects in suburban areas. The mall has had a considerable impact on the retail structure and urban development in the United States. [6]
In addition to the enclosed malls, there are also strip malls which are 'outside' malls (in Britain they are called retail parks. These are often comprised of one or more big-box stores or superstores