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Chapter 2 - Building and Sustaining Relationships in retailing

Retail Marketing and Management

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Dr Waheed Asghar
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2 views

Chapter 2 - Building and Sustaining Relationships in retailing

Retail Marketing and Management

Uploaded by

Dr Waheed Asghar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Dr.

Waheed Asghar
MA English
MBA
PhD
Generatio
n
X
Y
Z
• “Core Customers” are the best customers for the
retailers R
E
L
• “Free-riders” are customers who are highly A
T
satisfied with the company but not highly profitable I
O
N
• “Vulnerable customers” are profitable but not S
satisfied with the retailer H
I
P
• “Lost causes” who don’t value the retailer’s goods or
services and are not profitable. they frequently
complain and return products, spread bad word of
mouth, misuse promotions, and lower staff morale
through their interactions.
Customer Service
Expected Retail Strategy
• An expected retail strategy represents the
minimum value chain elements a given
customer segment
• In most cases, the following are expected value
chain elements:
• Store cleanliness, convenient hours, well-
informed employees, timely service, popular
products in stock, parking, and return
privileges.
• If applied poorly, expected elements cause
customer dissatisfaction and relate to why
shoppers avoid certain retailers.
Augmented Retail Strategy

• Includes the extra elements in a value chain


that differentiate one retailer from another.
• In most cases, the following are augmented
value chain elements:
• Exclusive brands, superior salespeople,
loyalty programs, delivery, personal
shoppers and other special services, and
valet parking.
• These are the key to continued customer
patronage with a particular retailer.
Potential Retail Strategy
• A potential retail strategy comprises value chain
elements not yet perfected by a competing firm in
the retailer’s category
• In most cases, the following are potential value
chain elements:
• 24/7 store hours (an augmented strategy for
supermarkets), unlimited customer return
privileges, full-scale product customization,
instant fulfillment of rain checks through in-store
orders accompanied by free delivery,
• The first firms to capitalize on potential features
typically gain a head start over their adversaries.
Classifying Customer Services
PLANNING INDIVIDUAL CUSTOMER SERVICE

• After a broad customer service plan is


outlined, individual customer services need to
be planned.
• A department store may offer credit, layaway,
gift wrapping, a bridal registry, free parking, a
restaurant, a beauty salon, carpet installation,
dressing rooms, clothing alterations,
restrooms and sitting areas, the use of baby
strollers, home delivery, and fur storage.
Customer Satisfaction
“Retail satisfaction” consists of three categories:
• shopping systems satisfaction, which includes
availability and types of outlets;
• buying systems satisfaction, which includes selection
and actual purchasing of products; and
• consumer satisfaction, which is derived from the use
of the product.
 Dissatisfaction with any of the three aspects could
lead to customer disloyalty, decrease in sales, and
erosion of the market share
 Getting Feedback is important ……….. But How?
Customer Feedback
• To obtain more feedback, retailers must make it easier for
shoppers to complain.
• Make sure shoppers believe their concerns are addressed,
and sponsor ongoing customer satisfaction surveys.
• Ask questions as these and then take corrective actions:
1. “Overall, how satisfied or dissatisfied are you with the
store?”
2. “How satisfied or dissatisfied are you with the price of the
items you purchased?”
3. “How satisfied or dissatisfied are you with the quality of the
merchandise?”
4. “Please tell us something we could do to improve our store.”
Turning around Weak Customer Service - Examples
SHOPPER’S PERSPECTIVE: TYPES OF REWARD
CATEGORIES
1. Economic rewards include price reductions and purchase
vouchers. T
2. Hedonistic rewards include things such as points that can be
exchanged for spa services or participation in games or
sweepstakes.
3. Social-relational rewards include things such as mailings about
special events or the right to use special waiting areas at
airports.
4. Informational rewards include things such as personalized
beauty advice or information on new goods or services. These
rewards will attract consumers who like to stick with one brand
or store.
5. Functional rewards include things such as access to priority
checkout counters or home delivery. Consumers who want to
reduce the time they spend shopping will value these most.
Elements Contributing to Effective Channel Relationships
Selected Factors Affecting Consumer Perceptions of Service Retailing

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