Services Retailing

Drivers Of Retail Growth
CHANGING CONSUMER DEMOGRAPHICS

Growing disposable incomes Youngest population in the world Increasing literacy levels Higher adaptability to technology Growing consumerism Fiscal incentives for home loans Changing mindsets-willingness to borrow/lend Desire to improve lifestyles Banks vying for higher market share
2-1
Customer Service
Expected customer service is the service level that customers want to receive from any retailer, such as basic employee courtesy Augmented customer service includes the activities that enhance the shopping experience and give retailers a competitive advantage
2-2
Fundamental Decisions
What customer services are expected and what customer services are augmented for a particular retailer? What level of customer service is proper to complement a firms image? Should there be a choice of customer services? Should customer services be free? How can a retailer measure the benefits of providing customer services against their costs? How can customer services be terminated?
2-3
Table 2-1: Typical Customer Services

Credit Delivery Alterations/ Installations Packaging/Gift wrapping Complaints/Return handling Gift certificates Trade-ins Trial purchases Special sales Extended store hours Mail and phone orders
2-4
Table 2-1: Miscellaneous Customer Services

Bridal registry Interior designers Personal shoppers Ticket outlets Parking Water fountains Pay phones Baby strollers Restrooms Restaurants Baby-sitting Fitting rooms Beauty salons Fur storage Shopping bags Information
2-5
Figure 2-6: Turning Around Weak Customer Service

Focus on Customer Concerns Empower Frontline Employees
Show That You Are Listening
Express Sincere Understanding
Apologize and Rectify the Situation

2-6
Three Kinds of Service Retailing

Rented goods services Owned goods services Nongoods services
2-7
Four Characteristics of Services Retailing

Intangibility Inseparability Perishability Variability
2-8
Figure 2.8a: Characteristics of Service Retailing

Intangibility
No patent protection possible Difficult to display/communicate service benefits Service prices difficult to set Quality judgment is subjective Some services involve performances/experiences
2-9
Figure 2.8b: Characteristics of Service Retailing

Inseparability
Consumer may be involved in service production Centralized mass production difficult Consumer loyalty may rest with employees
2-10
Figure 2.8c: Characteristics of Service Retailing

Perishability
Services cannot be inventoried Effects of seasonality can be severe Planning employee schedules can be complex
2-11
Figure 2.8d: Characteristics of Service Retailing

Variability
Standardization and quality control hard to achieve Services may be delivered in locations beyond control of management Customers may perceive variability even when it does not actually occur
2-12
Figure 2-9: Consumer Perceptions of Service Retailing
2-13
Figure 2-10: Innovative Marketing at McDonalds
2-14
Figure A2-1: Lessons in Service Retailing
2-15
Retail Bank Components

Checking Accounts Savings Accounts Time Deposit
Liabilities
Fee Based
Wealth Management
Assets
Personal Loan Credit Cards Mortgage Auto
2-16
Pillars
Banking of Retail
(New) Paradigm Distributions

Risks/Analytics
Operations/Collections
Customer Service
Product Offering
2-17
Distribution Strategy
Building Distribution
2-18
Integrated Retail Logistics and Information Systems
2-19
Why important?
Incredible competitive advantage Why Wal-Mart is #1 Why Carrefour (France) is #2
Relates to Asset Turnover : Net Sale/Total Assets (assets include inventory ) Want enough to satisfy customers, but nothing extra
2-20
Integrated Info Systems and Logistics match flow of goods and information
2-21
Information FlowQuick Response System

Electronic Data Interchange (EDI)computer to computer exchange (very expensive) Today, Internet is replacing or supplementing EDI (much cheaper) 2-22
Advantages of Quick Response

For retailer Reduces lead time Increase product availability Reduces logistics expense 2-23 For vendor Timely info on product demand (dont get stuck making things that arent selling) Better
Advantages of Quick Response (contd)

For Customer:
Better assortment of goods Better availability of goods Fresher merchandise
2-24
Quick Response
What kinds of merchandise?
Initially basic merchandise Today, everything
2-25
Data Warehousing
Purchase data stored in a data warehouse generally organized by store
2-26
What bought individual item plus whole basket of goods When Who bought if have customer profile (customer loyalty programs) How paid for -- credit card, cash,
Logistics
Process of managing the flow of merchandise from vendor to distribution center to store to customer
2-27
Distribution Centers
Very sophisticated Big Few employees very automated Ideally, not used to store goods; instead cross dock -- take off delivery truck and load truck destined for a particular store
2-28
Who uses distribution centers

Retailers who have widely fluctuating demand for specific items at the store level more accurate sales forecast is demand is aggregated across stores Retailers who require frequent replenishment Retailers who carry large # of items Retailers with large number of outlets within 150 200 miles
2-29
Vons Storage and Retrieval Center vs. Saks Distribution Center

Both are highly automated Vons does store product Saks state of art facility cross docking
2-30
The Internet and Retailing

More than just a selling device Used to join retailers and vendors Replacing EDI because it is cheaper Good ex: ASNs to Saks Distribution Center sent via Internet from vendors to DC warehouse management system
2-31

Services Retailing

Uploaded by

Copyright:

Available Formats

Services Retailing

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Services Retailing

Uploaded by

Copyright:

Available Formats

Drivers Of Retail Growth

CHANGING CONSUMER DEMOGRAPHICS

Table 2-1: Typical Customer Services

Table 2-1: Miscellaneous Customer Services

Figure 2-6: Turning Around Weak Customer Service

Show That You Are Listening

Express Sincere Understanding

Apologize and Rectify the Situation

Three Kinds of Service Retailing

Four Characteristics of Services Retailing

Figure 2.8a: Characteristics of Service Retailing

Figure 2.8b: Characteristics of Service Retailing

Figure 2.8c: Characteristics of Service Retailing

Figure 2.8d: Characteristics of Service Retailing

Figure 2-9: Consumer Perceptions of Service Retailing

Figure 2-10: Innovative Marketing at McDonalds

Figure A2-1: Lessons in Service Retailing

Retail Bank Components

Personal Loan Credit Cards Mortgage Auto

(New) Paradigm Distributions

Integrated Retail Logistics and Information Systems

Information FlowQuick Response System

Advantages of Quick Response

Advantages of Quick Response (contd)

Better assortment of goods Better availability of goods Fresher merchandise

Initially basic merchandise Today, everything

Who uses distribution centers

Vons Storage and Retrieval Center vs. Saks Distribution Center

The Internet and Retailing

You might also like