801 Retail XI Text Book

RETAIL
Class XI
Retail Sales
Associate
(Job Role)
Qualification Pack: Ref. Id. RAS/Q0104

Sector: Retail
Textbook for Class XI
Retail Sales Associate

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ISBN ???-??-????-???-?
First Edition ALL RIGHTS RESERVED

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Foreword
The National Curriculum Framework–2005 (NCF–2005) recommends

bringing work and education into the domain of the curricular, infusing it in
all areas of learning while giving it an identity of its own at relevant stages.
It explains that work transforms knowledge into experience and generates
important personal and social values such as self-reliance, creativity and
cooperation. Through work one learns to find one’s place in the society. It is
an educational activity with an inherent potential for inclusion. Therefore,
an experience of involvement in productive work in an educational setting
will make one appreciate the worth of social life and what is valued and
appreciated in society. Work involves interaction with material or other
people (mostly both), thus creating a deeper comprehension and increased
practical knowledge of natural substances and social relationships.
Through work and education, school knowledge can be easily linked
to learners’ life outside the school. This also makes a departure from
the legacy of bookish learning and bridges the gap between the school,
home, community and the workplace. The NCF – 2005 also emphasises
on Vocational Education and Training (VET) for all those children who
wish to acquire additional skills and/or seek livelihood through vocational
education after either discontinuing or completing their school education.
VET is expected to provide a ‘preferred and dignified’ choice rather than a
terminal or ‘last-resort’ option.
As a follow-up of this, NCERT has attempted to infuse work across
the subject areas and also contributed in the development of the National
Skill Qualification Framework (NSQF) for the country, which was
notified on 27 December 2013. It is a quality assurance framework that
organises all qualifications according to levels of knowledge, skills and
attitude. These levels, graded from one to ten, are defined in terms of
learning outcomes, which the learner must possess regardless of whether
they are obtained through formal, non-formal or informal learning.
The NSQF sets common principles and guidelines for a nationally
recognised qualification system covering Schools, Vocational Education
and Training Institutions, Technical Education Institutions, Colleges
and Universities.
It is under this backdrop that Pandit Sunderlal Sharma Central Institute
of Vocational Education (PSSCIVE), Bhopal, a constituent of NCERT has
developed learning outcomes based modular curricula for the vocational
subjects from Classes IX to XII. This has been developed under the

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Centrally Sponsored Scheme of Vocationalisation of Secondary and Higher
Secondary Education of the Ministry of Human Resource Development.
This textbook has been developed as per the learning outcomes based
curriculum, keeping in view the National Occupational Standards (NOS)
for the job role and to promote experiential learning related to the vocation.
This will enable the students to acquire necessary skills, knowledge and
attitude.
I acknowledge the contribution of the development team, reviewers
and all the institutions and organisations, which have supported in the
development of this textbook.
NCERT would welcome suggestions from students, teachers and
parents, which would help us to further improve the quality of the material
in subsequent editions.
Hrushikesh Senapaty
Director
New Delhi National Council of Educational
June 2018 Research and Training
(iv)

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About the Textbook
Retailing is leading business activities register a remarkable transformation.

Till a few years ago, we bought most of daily use products from small
shops in our neighborhood or a close by market. Generally the shop keeps
sit in the shop and sell goods either individual as a sole proprietor with
help of few assistants. In last few years, however, the concept of large
departmental stores and malls has been introduced, which also provide
the same products.
The retail industry is divided into organised and unorganized sectors.
Organised retailing refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc.
These include the corporate-backed hypermarkets and retail chains, and
also the privately owned large retail businesses. Unorganized retailing, on
the other hand, refers to the traditional formats of low-cost retailing, like,
the local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
A retailer is one who stocks the manufactured goods and is involved in
the act of selling to the final customer or consumer, at a margin of profit.
Retailing is the last link that connecting the individual consumer with
the manufacturing and distribution chain. It adds value in terms of bulk
breaking and providing a wide variety of goods and services to customers
as per their needs.
The learner would be able to work as sales associate in organized
retailing and may look after overall sales operations like process credit
applications for purchases, help to keep the store secure, help to maintain
healthy and safety aspects, demonstrate products to customers, help
the customers in choosing right products, provide specialist support to
customers facilitating purchases, maximize sales of goods & services,
provide personalized sales & post-sales service support to the customers,
resolve customer concerns in retail stores. The major task of a sales
associate is to sell a company’s products by demonstrating and specifying
product quality. He/she is also responsible for ensuring that customers
are aware of all the promotions that are in demand as per needs of the
customers are led to their choice of product.
The student textbook has been developed with the contribution of
the expertise from the subject and industry experts and academicians
for making it a useful and inspiring teaching-learning resource material
for the vocational students. Adequate care has been taken to align the
content of the textbook with the National Occupational Standards (NOSs)

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for the job role so that the students acquire necessary knowledge and
skills as per the performance criteria mentioned in the respective NOSs of
the Qualification Pack (QP). The textbook has been reviewed by experts so
as to make sure that the content is not only aligned with the NOSs, but is
also of high quality. The NOSs for the job role of Sales Associate covered
through this textbook are as follows:
1. RAS/N0114-To process credit application for purchase.
2. RAS/N0120-To helps keep the store secure.
3. RAS/N0122-To help maintain health and safety
4. RAS/N0125-To demonstrate products to customers
5. RAS/N0126-To help customers choose right products
6. RAS/N0127-To provides specialist support to customers facilitating
purchase.
The Unit 1 of the textbook gives fundamental of retailing which
details the basics of retailing, sales associate services to customers, skills
for handling retailing business and duties and responsibilities of sales
associate. The Unit 2 help students to learn the detailed process of credit
application which covers the features and conditions for credit sales,
credit checks and getting authentication, processing credit requisites and
techniques for determining credit worthiness. Unit 3 deals with mechanism
for customers to choose right products which includes methods of selling,
sales promotional activities, responding to questions and comments and
techniques of closing sale. Unit 4 help in understanding specialist support
to customers which focuses on providing product information, techniques
to encourage customers to buy products, provide personalized service and
post sale service support. Unit 5 focuses on health and safety management
which explains the health and safety requirements, equipments and
material, dealing with accidents and emergencies and reporting accidents
and emergencies.
P. Veeraiah
Associate Professor and Head
Department of Business and Commerce
PSSCIVE, Bhopal
(vi)

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Textbook Development Team
Members
Ashish Kumar Pandey, Sales Trainer, 05–Regal Kasturi, Awadhpuri, BHEL,
Bhopal (M.P.)
Ch. Satyanarayana, Assistant Professor, Department of Commerce,
Nagarjuna Government College, Nalgonda – 508 001 (Telangana State)
Dharmendra Varshney, Principal, Dayal Group of Institutions, Lucknow
G. Narashimhamurthy (Retd.), Professor and Director, Vagdevi Degree and
P.G. College, Hanamkonda, Warangal (Telangana State)
Geeta Tomar, Associate Professor, Faculty of Management, Shri Guru
Sandipani Institute of Professional Studies, Ujjain (M.P.)
Jitendra Sharma, Knowledge Adviser, Impact Educare and Learning
Solutions, Bhopal (M.P.)
Kamran Sultan, Reader, Pandit Jawaharlal Nehru Institute of Business
Management, Vikram University, Ujjain (M.P.)
L. Suma Bala, HR Manager, Green Connection Pvt. Ltd, Hyderabad
P. Sugunakar Reddy, Associate Professor, Vagdevi Degree and P.G. College,
Hanamkonda, Warangal (Telangana State)
Pratima Singh Parihar, H.No. 223, Kwality Homes, Bimakunj, Kolar Road,
Bhopal (M.P.)
Rajesh Kumar Sharma, Consultant, Department of Business and
Commerce, Pandit Sunderlal Saxena Central Institute of Vocational
Education (PSSCIVE), Bhopal (M.P.)
Ramakar Raizada, Professor (Retd.), Department of Social Sciences
Education, Regional Institute of Education, Bhopal (M.P.)
Richa Srimal, Logistics Trainer, DM- 10/4 Dronachal Top, Newri Hills,
Lalghati, Bhopal (M.P.)
Rudra Saibaba, Former Principal, Mahatma Gandhi University, Nalgonda,
Principal (Retd.), Lal Bahadur College, Warangal (Telangana State)
Shivanagasreenu, Assistant Professor, Department of Commerce, Gopal
Rao Patel Government Degree College, Pardi B Road, Bhainsa, District:
Nirmal (Telangana State)
Shobh Varghese, Research Fellow, NIRD Project, NIRD, Hyderabad
Sunil S. Desai, Lecturer (Vocational), Jagruti Jr. College, Godhinglaj, Dist.
Kolhapur, Maharashtra

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Sushma Devi, Vocational Trainer – RS &M, GSSS, Chabutra, Hamirpur (H.P.)
T. Srinivasa Rao, Professor, Department of Commerce and Business
Management, SDLCE, Kakatiya University, Warangal (Telangana State)
Talat Siddique, Vocational Teacher (Retail), Nowboicha Higher Secondary
School, Doolahat, Nowboicha, District: Lakhimpur, Assam
Member-coordinator
P. Veeraiah, Associate Professor and Head, Department of Business and
Commerce, Psscive, Bhopal
(viii)

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Acknowledgement
The National Council of Educational Research and Training (NCERT)

expresses its gratitude to all members of the Project Approval Board (PAB)
and officials of the Ministry of Human Resource Development (MHRD),
Government of India, for their cooperation in the development of this
textbook. The Council acknowledges the contribution of Saroj Yadav,
Professor & Dean (A) and Ranjana Arora, Professor & Head, Department of
Curriculum Studies, for their efforts in coordinating the workshops for the
review and finalisation of this textbook.
The Council also acknowledges the Review Committee members—
Shipra Vaidya, Professor, Department of Commerce, NCERT, New Delhi,
Nitin Tantal, Associate Professor, Symbiosis University of Applied Science,
Indore, Madhya Pradesh and Vishal Khasgiwala, Associate Professor,
Symbiosis University of Applied Science, Indore, Madhya Pradesh for
carefully evaluating and giving suggestions for the improvement of this
book. The Council would also like to thank Rajesh Khambayat, Joint
Director, PSS Central Institute of Vocational Education (PSSCIVE), Bhopal,
for providing support and guidance in the development of this textbook.
Special thanks are due to A. Shankaraiah, Professor (Retd.), Department
of Commerce and Business Management, Kakatiya University, Warangal,
for constant encouragement and support during preparation of the
textbook.
The course coordinator P. Veeraiah is acknowledged for his untiring
efforts and contribution in the development of this textbook and for
providing photographs (Figs. 1.1,1.2, 1.3, 1.4, 1.5 (a&b), 1.6-1.16, 3.1,
3.3, 3.4, 4.2 – 4.5, 4.7, 5.2, the images other than these have been sourced
from the Creative Commons License, and we are also thankful to Geeta
Tomar, Consultant, Department of Business and Commerce, PSSCIVE,
Bhopal, for helping in developing this textbook.
The Council also acknowledges the copy editing and valuable
contribution of Shilpa Mohan, Assistant Editor (Contractual) and Sanjeev
Kumar, Copy Holder, Publication Division, NCERT, in shaping this book.
The sincere efforts of Pawan Kumar Barriar, DTP Operator, Sadiq Saeed
and Naresh Kumar, DTP Operators (Contractual), Publication Division,
NCERT are also duly acknowledged.

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Contents
Foreword iii
About the Textbook v
Unit 1: Fundamentals of Retailing 1
Session 1: Basics of Retailing 2
Session 2: Sales Associate Services to Customers 19
Session 3: Skills for Handling Retail Business 27
Session 4:Duties and Responsibilities of a Sales Associate 34
Unit 2: Process of Credit Application 39
Session 1: Features and Conditions for Credit Sales 40
Session 2: Credit Checks and Getting Authorisation 47
Session 3: Processing Credit Requisitions 52
Session 4: Techniques for Determining Credit Worthiness 57
Unit 3: Mechanism for Customers to Choose Right Products 62
Session 1: Methods of Selling 63
Session 2: Sales Promotional Activities 69
Session 3: Responding to Questions and Comments 78
Session 4: Techniques of Closing a Sale 84
Unit 4: Specialist Support to Customers 91
Session 1: Providing Product Information 92
Session 2: Techniques to Encourage Customers to Buy 97
Products
Session 3: Provide Personalised Service 103
Session 4: Post-sales Service Support 110
Unit 5: Health and Safety Management 120
Session 1: Health and Safety Requirements 120
Session 2: Equipments and Materials 125
Session 3: Dealing with Accidents and Emergencies 131
Session 4: Reporting Accidents and Emergencies 138
Answer Key 142
Glossary 148
Further Readings 151

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1 Funda mentals of
Retailing
The retail industry secures the fifth position as an

industry and is the second largest employer after
agriculture, providing bright and exciting job
opportunities in India.
Retail business is undergoing rapid transformation
in its marketing practices. Till a few years ago, we
bought most of the daily use products from small shops
in our neighbourhood or a nearby market. Generally,
the shopkeepers sit in the shop and sell goods — either
individually as a sole proprietor or with the help of a few
assistants. In the last few years, however, the concept
of large departmental stores and malls have come up,
which also provide the same products.
Today, the supermarket, departmental stores,
hypermarkets, malls and non-store retailing like
multilevel marketing and telemarketing, have replaced
or co-exist, transacting with the traditional retail
businesspersons, such as hawkers, grocers and
vendors, etc. There are various levels at which retail
businesses operate — ranging from small, owner-
operated and independent shops to those in the national
and international market.
An increase in income levels and the need for new
products and services, a rise in standard of living,
competition in the market and increasing consumption
patterns of customers have contributed to the demand

Unit 1.indd 1 29-10-2018 16:55:24
for creation of these type stores. The present unit on
fundamentals of retailing has been divided into four
sessions. First session discusses the basics of retailing,
the second session covers sales associate services to
customers, the third session deals with the skills for
handling retailing business and the last session explains
duties and responsibilities of sales associates.
Session 1: Basics of Retailing

Meaning and significance of retail business
A retailer is a merchant or occasionally an agent or a
business enterprise, whose main business is selling
directly to ultimate consumers.
A retailer or business enterprise performs many
marketing activities, such as buying, selling, grading,
and developing information about customer’s wants.
The retailer is an intermediary in the marketing
channel because he or she is both marketer and
customer, who sells to the last person to consume. He
or she is a specialist who maintains contact with the
consumer and the producer. Though producers may
sell directly to consumers, such method of distributing
goods to ultimate users is inconvenient, expensive and
time consuming as compared to the job performed
by a specialist in the line. Therefore, frequently the
manufacturers depend on the retailers to sell their
products to the ultimate consumers.
Here, it is also essential to understand the term
‘wholesaler’, as both wholesaler and retailers are
intermediaries in distribution channel. Wholesaler
sells to individuals or retailer for the business or
re-sale purpose. The wholesalers buy larger quantities
of goods from manufacturers and sell in small
quantities to retailers. Thus, in the distribution channel
the wholesalers operate between manufacturers and
retailers and retailers operate between wholesalers and
consumers (Figure 1.1).
Manufacturer Wholesaler Retailer Consumer
Fig. 1.1 Distribution channel

2
Retail Sales Associate – Class XI

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The corner grocer or the Kirana Store is a key Notes
element in the retail in India due to the unwillingness
of people to go long distances for purchasing goods for
daily needs. Convenience was indicated by consumers
as the most important reason in the choice of groceries
and fruit outlets, chemists and life style items while
merchandise was indicated as the most important in
durables, books and apparel. In recent years, there has
been a slow spread of retail chains in some formats like
super markets, departmental stores, malls and discount
stores. Factors facilitating the spread of chains are the
availability of quality products at lower prices, improved
shopping standards, convenient shopping and display
and blending of shopping with entertainment.
With the advancement in Information Communication
and Technology (ICT), electronic retailing or e-tailing
has become a reality. It is the sale of goods and services
through the Internet. E-tailing, can include business-
to-business (B2B) and business-to-consumer (B2C)
sales of products and services, through subscriptions
to website content, or through advertising, and selling
products through TV channels for which payments can
be made online through credit or debit cards.
The boom in retail industry has created many
employment opportunities; people with varied skills
and talent are required in the industry.
Organised and unorganised retail business

The retail sector is undergoing rapid growth in India.
Formerly, customers used to purchase goods from
kirana shops, from the mobile vendors or the mandis.
Now, it has shifted to bigger shops run by individuals
with few employees. Gradually, with a development in
standard of living there has been a rise in the retail
sector with more departmental stores coming into
existence. This reform in the retail sector has led to
the beginning of an organised sector. Therefore, the
retail sector can be seen as unorganised and organised
retailing. The retail industry is made up of two parts —
organised and unorganised retailing.
3
Fundamentals of Retailing

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Unorganised retailing: It refers to the traditional
formats of low-cost retailing, for example, the
local kirana shops, owner-manned general stores,
paan shops, convenience stores, hand cart and
pavement vendors, etc. It is featured by poor and old
infrastructure, insufficient funds, lack of technology,
insufficient upstream processes and absence of skilled
manpower (Figure 1.2). It is not registered under any
legal provision and does not maintain regular accounts.
They are small and scattered units which sell products
at a fixed or mobile location. Traditional units include
Mandis, Haats, Melas, the local Baniya, Kirana shops,
Paanwala and others like cobbler, fruit and vegetable
vendor, etc.
Fig. 1.2 Unorganised retailing
Organised retailing: It refers to trading activities

undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include
the corporate-backed hypermarkets and retail chains,
and also the privately-owned large retail businesses.
(Figure 1.3). It offers the customers more convenience,
4

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choice and control with
an experience of comfort
and speed. The examples
of organised retailing
may be supermarkets,
departmental stores,
hypermarkets, shopping
malls, multilevel marketing,
teleshopping, etc.
Organised retailing
is capable of generating
employment opportunities.
It offers huge potential for
growth in the coming years. Fig. 1.3 Organised retailing
Difference between organised retail and

unorganised retail business
The difference between organised and unorganised
retailing has been given below in Table 1.1.
Table 1.1: Difference between Organised and Unorganised Retail Business
S. Base of Difference Organised Retail Business Unorganised Retail Business

No.
1. Concept A modern retail business Family-run small traditional
where segregated items are retail stores with poor
brought under one roof. It infrastructure, inefficient
refers to running the business processes with lack of
in a systematic, advanced and technology, inadequate
scientific manner funding and absence of skilled
manpower
2. Registration and Compulsory by law Not compulsory by law
maintenance of
accounts
3. Number of items These type of retail units offer These type of retail units offer
large number of items and very few items and limited or no
their varied varieties varieties
4. Size and layout The size of a retail outlet is very The size is very small and
large and the stores and their usually the layout and design
layout is very attractive of the shop is not proper
5. Size and type of The size of employees is very The number of employees is less
employees large and there are varied and an employee is required to
categories with different perform varied functions
specialisations
5

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6. Capital The capital requirement is very The capital requirement is less
requirement high and ownership may not and the business is owned by
enjoy perpetual succession successors
7. Terms of The terms of employment are There is no job security in the
employment regular and job security exists unorganised sector as the units
in the organised sector, as are small and scattered which
the rules are regulated by the are largely outside the control
government of the government.
8. Business style Business units are run on Business units run on sole-
corporate style trading or partnership style.
9. Business network The network of retailers is The business network is
vast — operates number of narrow — confined to a
branches at different places particular locality and carries
business in a single unit
10. Some examples Supermarkets, departmental Cobbler, vegetable and fruit
stores, hypermarkets, shopping vendors, Kirana shops, the
malls, multilevel marketing, local Baniya, Paanwala, shops
Internet and teleshopping, etc. in Mandis, Haats, Melas, etc.
Different types of retail business establishments

Store retailing is classified in two categories.
1. Based on merchandise offered
2. Based on ownership
Based on merchandise offered

(a) Convenience stores (Fig. 1.4): These are small-
sized stores located in residential areas. They are open
for long hours and offer a limited line of convenience
products like eggs, bread, milk, vegetables, etc.
Fig. 1.4 Convenience store Fig. 1.5 Supermarket
(b) Supermarkets: A supermarket is a self-service shop

offering a wide variety of food and household products,
organised into aisles (Fig. 1.5).
6

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(c) Hypermarkets: A hypermarket (Figure 1.6) is
a retail store that combines a departmental store
and a grocery supermarket. Often a very large
establishment, hypermarkets offer a wide variety of
products, such as appliances, clothing and groceries.
Fig. 1.6 Hypermarket Fig. 1.7 Specialty store
(d) Specialty stores: Consumer outlets, such as

furniture, electronics, sports, appliances, jewellery
stores, that offer unique, often individualised products or
a large amount of products within a particular grouping
of consumer goods are considered to be specialty stores.
(Figure 1.7).
(e) Departmental stores: A
departmental store is a retail
establishment offering a wide
range of consumer goods in
different product categories
known as ‘departments’
(Figure 1.8). Departments are
made as per different types of
goods to be sold. It requires
a lot of capital to maintain
different departments and
a huge stock of goods. The Fig. 1.8 Departmental stores
profit or loss is calculated on the entire stock. It is a
combination of decentralised buying and centralised
selling. They also establish restaurants inside these
stores. They provide home delivery services.
7

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(f) Catalogue showrooms: Catalogue
retailers (Figure 1.9) usually specialise
in hard goods (houseware, jewellery,
consumer electronics, etc).
In a catalogue showroom (store), the
customers view products from printed or
online catalogues in the store and fill out
an order form. This order is then brought
to the sales counter, where an associate
arranges to retrieve the items from the
warehouse. Thus, the catalogue serves to
Fig. 1.9 Catalogue showrooms
act as an interface between the product
and the customer.
(g) Discount store: In this store products sell at a
discounted price, which is less than the actual price of
the products.
(h) Shopping mall: A shopping mall is a modern
term for a form of shopping center, in which one or
more buildings form a complex of shops representing
merchandisers with interconnecting walkways that
enable customers to walk from unit to unit.
(i) General store: General store is a retail store in
a small town or rural community that carries a wide
variety of goods, including groceries. These stores often
sell staple food items, such as milk and bread, and
various household goods, such as hardware and
electrical supplies.
( j) Warehouse store: A warehouse store is a food and
grocery retailer that operates stores geared towards
offering deeper discounted prices than a traditional
supermarket. Warehouse clubs sometimes charge a
membership fee also.
(k) Variety store: A variety store is a retail store that
sells a wide range of inexpensive household goods.
Based on Ownership
(a) Independent retailer: An independent retailer
(Fig. 1.10) is a small business, owned and operated by
an individual versus a corporation. An independent
retailer has direct contact with customers. For example,
8

Unit 1.indd 8 30-10-2018 10:14:38
local Baniya or Kirana store, and Paanwala. He or she
decides the retail strategy based on store location and
product mix.
Figure 1.10: Independent retailer Fig. 1.11 Chain retailer or corporate retail chain
(b) Corporate retail chain: A retail chain is one of a

group of stores engaged in the same kind of business
in different locations and under the same ownership
and management. Chain stores in malls or shopping
centers are always looking to improve their position
and strengthen their brand identity in the marketplace
(Figure 1.11). For example, Reliance, Bata, Arrow, Louis
Philippe, Food World, etc.
(c) Franchising: Franchising is an arrangement
where one party (the franchiser) grants another party
(the franchisee) the right to use its trademark or trade- Fig. 1.12 Franchise Operations
name as well as certain business systems and processes,
to produce and market a good or service according to
certain specifications. For example, Mc Donald’s, Pizza
Hut, Van Heusen, etc.
(d) Consumer cooperatives: Consumers’
cooperatives are enterprises owned and
managed by consumers which aim at
fulfilling the needs and aspirations of
their members. Consumers’ cooperatives
often take the form of retail outlets owned
and operated by their consumers. The
customers or consumers of the goods
and/or services the cooperative provides
are often also the individuals who have Figure 1.13: Consumer cooperative store
9

Unit 1.indd 9 29-10-2018 16:55:26
Notes provided the capital required to launch or purchase that
enterprise. For example, Apna Bazaars in Mumbai, etc.
Other modern retailers

(a) E-retailers: E-retailing is a form of electronic
commerce which allows consumers to directly buy goods
or services from a seller over the Internet using a web
browser. Consumers find a product of interest by visiting
the website of the e-retailer directly or by searching
among alternative vendors using a shopping search
engine, which displays the same product’s availability
and pricing at different e-retailers. E-retailers, for
example, Amazon, Flipkart, etc., accept the payment
through online or at the time of delivery but the
customer receives product directly from manufacturer
or wholesaler. It is ideal for the customers who do not
want to visit the retail stores. However, the customers
should be careful of defective products and non-secure
credit card transactions.
(b) Vending machines: A vending machine is a machine
from which products are sold. The customer inserts
money in a slot, selects a product from the menu and
the product is dispensed from the machine.
(c) Automated retail stores: Automated retail is
the category of self-service, standalone kiosks in
heavily trafficked locations, such as airports, malls
and convenience stores. They accept credit cards and
are usually open 24 hours throughout the week. For
example, Zoom shops, Red-box.
Functions of retailer
Retailers buy varieties of goods from various
manufacturers or wholesalers after estimating
customer demand. Thus, a retailer provides a wide
range of choice enabling the consumers to select the
products of their choice. There are four main functions
of retailer.
• Breaking bulk into small quantities: To reduce
cost of long distance transportation, producers
ship the goods in large quantities; middlemen
10

Unit 1.indd 10 29-10-2018 16:55:26
including the retailers open these large packages Notes
and make product available in much smaller
quantities to the consumers as per their needs.
• Providing products information to customers:
For retailers, product knowledge can mean more
sales. To effectively sell to a customer the retailer
shows how a particular product will address his
or her needs.
• Providing customer services: Good customer
service means helping customers efficiently, in
a friendly manner. It is essential to be able to
handle issues for customers and do your best to
ensure they are satisfied. Nowadays, services may
include free home delivery, gift wrapping credit
facility and after sales services.
• Creating a convenient, comfortable and
pleasant shopping experience for consumers:
The aim of retailer is to make the products
required by the consumer conveniently available.
Convenience is about speed, about being in
the right place at the right time and delivering
everything that a customer needs there and
then. The sales increase when the environment
inside the retail store is friendly and pleasant.
A warm welcome from the owner, offering the
right products at relevant times with exceptional
customer service, playing soft music, proper
lighting, space for easy movement, courteous and
well-dressed employees, etc., create a positive
environment for customers.
• Providing feedback to producers about
customer needs: To keep the product in demand
and make it available to buyers at a competitive
price, manufacturers have to constantly maintain
feedback from users and improve the product.
As due to their first-hand interaction with the
customers, retailers have a good understanding of
the customer needs, they share this information
in the form of feedback with the producers.
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Unit 1.indd 11 29-10-2018 16:55:26
Notes Essential requirements of retailers
Listed below are the essential requirements of retailers.
The retailer should
• establish the shop where customers are attracted.
• stock the goods which are needed by the
customers.
• sell quality goods at a competitive price.
• be up-to-date about the latest trends in the market.
• ensure window and counter display to promote
sales.
• always be accessible to customers.
Retailer’s services to the customers

Retailers provide a wide variety of services which boosts
the business. Some of them are
• selling of goods in little quantities as per their
need at reasonable prices,
• meeting the consumer demand and making
available the required stock,
• providing the consumer necessary information
for buying goods,
• guiding on replacement conditions for the damages,
• displaying and demonstrating goods to attract
the customers, and
• offering credit facility to regular and
reliable customers.
Activity 1
A field visit to learn fundamentals of retailing
Material required
Checklist, notebook and pen or pencils
Procedure
1. Visit a nearby retail/Kirana/General store in your locality.
2. Interact with the shopkeeper and customers.
3. Record the responses of following questions in 50 words.
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Unit 1.indd 12 29-10-2018 16:55:27
A. Questions for shopkeeper or his or her representative Notes
on counter
a. What are the different items and their varieties available
for sale in your shop?
S. Item Variety
No. 1 2 3 4 5 6
1. Bathing Soap Lux Hamam Rexona Breeze Pears Medimix
2.
3.
4.
5.
6.
7.
8.
9.
10.
b. The customers coming to the shop are from which areas?

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
c. Which modern methods of the retail business have you

adopted in your shop?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
d. What steps have you taken to satisfy your customers?

____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
e. On an average how many customers visit your shop

every day?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
B. Questions for Customers — (Interact with at least 5
customers and write consolidated remarks)
a. How often do you visit the shop?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
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Unit 1.indd 13 29-10-2018 16:55:27
Notes b. What types of services are offered by the retailer in the store?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
c. Do you wish to see new improvements in the shop
services?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
d. List the names of retailers of your locality — town/city

which come under the following categories:
Franchise
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Chain retailer
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Consumer cooperatives
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Independent retailer
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Convenience store
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
General store
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Mall (if available)
______________________________________________________
______________________________________________________
______________________________________________________
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Unit 1.indd 14 29-10-2018 16:55:27
Departmental store Notes
______________________________________________________
______________________________________________________
______________________________________________________
Discount store
______________________________________________________
______________________________________________________
______________________________________________________
e. Visit a retail outlet of an organised sector in your locality

and note down the following:
Name: ___________________________________
Which commodities are sold in the shop?

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
What facilities are available for customers?

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
How does a consumer feel about retail stores? (Write

after asking at least five customers.)
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
What suggestions are offered by the customers? (Write

after asking at least five customers)
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
What are the developmental plans of the businessman?

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
f. Visit a retail outlet of an unorganised sector in your

locality and note down the following:
Name: ___________________________________
Which commodities are sold in the shop?
15

Unit 1.indd 15 29-10-2018 16:55:27
Notes ______________________________________________________
______________________________________________________
______________________________________________________
What facilities are available to the customers?

______________________________________________________
______________________________________________________
______________________________________________________
How do consumers feel about the store? (Write after asking

at least five customers.)
______________________________________________________
______________________________________________________
______________________________________________________
What are the suggestions of the customers? (Write after

asking at least five customers.)
______________________________________________________
______________________________________________________
______________________________________________________
What are the developmental plans of the businessman?

______________________________________________________
______________________________________________________
______________________________________________________
g. Collect the details, discuss with friends, teachers, officials

of retail store and then finalise your report and submit to
your subject teacher.
Check Your Progress

A. Fill in the blanks
1. The goods sold in a retail store are for _________________ use.
2. Wholesalers operate between ____________ and retailer.
3. Unorganised retail is featured by __________ and ___________

units.
4. Local Baniya/Kirana shop comes under ______________

retailing.
5. All items are provided under one roof in ______________

retailing.
6. Retail is sale of _______________and ________________ from

individuals to end-user.
7. _____________________combine the features of supermarkets

and general merchandise stores.
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Unit 1.indd 16 29-10-2018 16:55:27
B. Multiple choice questions Notes
1. The purpose of retail business is to__________________________.

(a) go for partnership
(b) make maximum promotion
(c) extend to other localities
(d) offer products and services
2. Place utility is making the products available at _____________.
(a) showrooms
(b) convenient location
(c) distant places
(d) regional stores
3. The retail store changes format to suit the requirements of
___________.
(a) wholesalers
(b) producers
(c) consumers
(d) tax payers
4. Under organised retailing, the most common feature is that
________________.
(a) number of brands and products are large
(b) purchases are on credit basis
(c) few employees exist
(d) All of the above
5. Unorganised retail is confined to __________________.
(a) particular locality
(b) different branches
(c) chain of stores
6. The unorganised retail units operate based on _____________.
(a) partnership
(b) sole-trader
(c) chain stores
7. Retail store sale of goods and services from individuals to
________________.
(a) end-user
(b) consumers
(c) ultimate user
8. Retail has changed our lives and changed the ______________.
(a) way we speak
(b) way we eat
(c) way we live
(d) None of the above
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Unit 1.indd 17 29-10-2018 16:55:27
Notes C. State whether the following statements are True or False
1. Retailing is the final step in the distribution of goods.
2. Wholesalers are not intermediaries in the distribution
channel.
3. Kirana store is a form of unorganised retailing.
4. Size of employees is more in unorganised retail business.
5. Providing customer services is not a function of retailer.
D. Match the Column
Column A Column B
1. Wholesaler A Convenience stores
2. Kirana shops are the B Centralised buying and
best examples of decentralised selling
3. Provides different types C Automated retail stores
of products under one
roof
4. Small stores located D Organised retail sector
near residential areas
is called as
5. Hypermarket refers to E Customers drop money
and acquire product from
automated equipment
6. Departmental stores F Operates between
refers to manufacturer and
retailer
7. Vending machines G Unorganised retail sector
8. Red–box is an H Supermarket and general
example of merchandise store
E. Short answer questions

1. What is retailing?
2. Who are the intermediaries in the distribution channel?
3. What is unorganised retailing?
4. What is organised retailing?
5. What is modern retailing?
6. List some essential requirements of retailers.
F. Long answer questions

1. Differentiate between organised and unorganised retail with
examples.
2. Explain the types of retail business establishments.
18

Unit 1.indd 18 29-10-2018 16:55:27
3. Narrate the functions of a retailer.
F. Check your performance

1. Demonstrate the functions of retailers.
2. Differentiate between organised and unorganised retail
business.
Session 2: Sales Associate Services to

Customers
Concept of Customer
In business and commerce, a customer is an individual
or business that purchases the goods or services
produced by a business. Customers may belong to two
broad segments.
1. An entrepreneur, who purchases goods for resale.
2. An end-user, who does not sell but is the actual
consumer of the goods.
Difference between a customer and consumer

There is a difference between
customers and consumers. A
customer buys products from
businesses, while a consumer
uses the business products. You
can actually be both a customer
and a consumer in a business
transaction.
One who buys goods is a
customer but who consumes
goods is consumer (Figure 1.14).
Customers play the most
significant part in business.
Customer is the one who uses Fig. 1.14 Customers in retail
the products and services and judges the quality of
those products and services. Hence it is important
for an organisation to retain customers or make new
customers and flourish business. To manage customers,
organisations should divide their customers into groups
because each customer has to be considered valuable
and profitable. Customers can be of the following types:
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Unit 1.indd 19 29-10-2018 16:55:27
Notes (a) Loyal customers: These types of customers are
less in numbers but promote more sales and profit
as compared to other customers. These customers
revisit the organisation over time, hence, it is crucial
to interact and keep in touch with them on a regular
basis and invest much time and effort with them.
(b) Discount customers: Discount customers are also
frequent visitors but they are only a part of business
when offered with discounts on regular products and
brands or they buy only low-cost products.
(c) Impulsive customers: These customers do not have
any specific item into their product list but an urge to
buy what they find good and productive at that point
of time. Handling these customers is a challenge as
they are not particularly looking for a product and
want the supplier to display all the useful products
they have so that they can buy what they like from
that display.
(d) Need-based customers: These customers are product
specific and only tend to buy items to which they are
habitual or have a specific need for them. These are
frequent customers but do not indulge in buying most
of the times so it is difficult to satisfy them.
(e) Wandering customers: These customers are
normally new in the industry and most of the times
visit suppliers only for confirming their needs on
products. They investigate features of most prominent
products in the market but do not buy any of those
or show least interest in buying.
Concept of customer service

Customer service is always going to be one of the top
factors that impact how shoppers perceive a brand.
It is the task of identifying and fulfilling a customer’s
needs in a friendly and helpful manner. Retail
customer service is the act of providing customers with
assistance, answering their queries and helping them
solve problems. Customer services include providing
and delivering goods to customer and assistance before,
during, and after sales (Figure 1.15).
20

Unit 1.indd 20 29-10-2018 16:55:27
The 4Ps of customer service
How a customer is treated has a direct impact on
the bottom line of a business. Happy customers
come back for more and also promote the brand,
and that’s how a business grows. Customer
service means meeting the needs and desires of
the customers. The features of good customer
service or the 4Ps of customer service include:
Fig. 1.15 Customer service in retail
(a) Promptness: A retailer should fulfill his
promises by delivering products on time. There
should be no delay in delivering the products or in
the case of cancellation.
(b) Politeness: Politeness here means putting the
customers’ needs before your own. It means
consistently being welcoming, using their name,
being respectful and interested in the customer.
It means listening to them and watching language
around customers.
(c) Professionalism: All customer interactions should
be professional. A retailer should demonstrate
competence, knowledge and expertise in the field,
and should avoid demonstrating anxiety, frustration,
fear, or weakness.
(d) Personalisation: A retailer should personalise a
customer’s experience. Clients appreciate when
a business owner remembers their name, their
preferences and their unique needs. Personalisation
should be incorporated wherever possible in the
service delivery. It makes clients feel valued and
increases their loyalty and engagement towards
the business.
Customer service functions

A sales associate deals with customers and also solves
their problems quickly. They engage in providing
different types of services to customers. Customer
service functions include:
(a) Customer support: Interacting with potential
customers, answering their questions related to
21

Unit 1.indd 21 29-10-2018 16:55:27
products and services; suggesting information about
other products and services.
(b) Pre-sales: Providing necessary information to
customers regarding the products.
(c) Marketing: Marketing is done by responding to the
customer effectively, replying to mails, telemarketing,
proper management of marketing campaigns,
conducting surveys and polling.
(d) Sales: Sales include physical as well as e-selling.
(e) Technical support: Customers require and want
different technical support services, such as data
verification, address updates application support
and problem resolution.
(f) Social media customer services: It is a strategy
of providing customer service through social media
channels like Facebook and Twitter. Due to the
potential for high engagement between brands and
customers, social media and customer service, when
handled properly, work very well together.
Customer satisfaction
Customer Customer satisfaction occurs
grievances when the value and customer
service provided through a
Customer Customer retailing experience meet or exceed
feedback property consumer expectations (Fig. 1.16).
‘Customer satisfaction is
a measure of how products
Customer and services supplied by a
satisfaction
company meet or surpass
customer expectation’.
Customer Timely Importance of customer
focus supply
satisfaction
Special
Customer satisfaction plays a
requirements significant role within the business.
of customer It is not only a leading indicator to
measure customer loyalty, identify
unhappy customers and increase
Fig. 1.16 Customer satisfaction circle
22

Unit 1.indd 22 29-10-2018 16:55:27
revenue; but it also helps to attract new customers Notes
in a competitive business environment. The value of
customer satisfaction is as follows:
• It indicates consumer repurchase intentions and
loyalty.
• It shows point of discrimination.
• It reduces customer retrenchment.
• It increases the lifetime value of customer.
• It reduces the negative word of mouth.
• It helps in retaining customers.
(a) Customer retention strategies: The business may
incur loss if a retail store fails to attend customer
relationships. Some customer retention strategies
are
• writing blogs for educating customers,
• sending email for special promotions,
• conducting customer satisfaction surveys for
promotion,
• offering personalised experience to customers,
• setting customer expectations early,
• using social media to build group of engaged
customers,
• increasing customer retention by learning from
the best, and
• developing questionnaires and conducting
surveys.
There may be several other techniques which can

be utilised in the business as per the product, type of
customers, resources available with the firm, etc.
Activity 1
A field visit to learn the services to customers
Material required
Checklist, notebook, list of retail stores and pen or pencils
23

Unit 1.indd 23 29-10-2018 16:55:27
Notes Procedure
1. Visit a nearby unorganised retail, interact with the shopkeeper
and customers (about 5) and write responses to following
questions in 50 words.
A. Interaction with shopkeeper/customer
a. What steps have been taken for customer support or
satisfaction?
______________________________________________________
______________________________________________________
______________________________________________________
b. How are pre-sale enquires dealt with?

______________________________________________________
______________________________________________________
______________________________________________________
c. What type of after-sale services are provided?

______________________________________________________
______________________________________________________
______________________________________________________
d. Is any technical support provided to the customer?

______________________________________________________
______________________________________________________
______________________________________________________
e. Do you maintain any records of customer service? If so,

how?
______________________________________________________
______________________________________________________
______________________________________________________
f. What strategies have you adopted for customer

retention?
______________________________________________________
______________________________________________________
______________________________________________________
g. Do you take any feedback on customer satisfaction with

the product?
______________________________________________________
______________________________________________________
______________________________________________________
B. Interaction with customers — (at least 5)

a. Usually how many questions do you ask before
purchasing a commodity?
______________________________________________________
______________________________________________________
______________________________________________________
24

Unit 1.indd 24 29-10-2018 16:55:27
b. What percentage of the customers are satisfied with the Notes
products and services of the shop?
Product: _________________________ (Name)
Service of the shop: ______________________
c. Any suggestions for better service by the retailer and/or
improvement of the product
Suggestions for product improvement
______________________________________________________
______________________________________________________
Suggestions for better service by the retailer
______________________________________________________
______________________________________________________
2. Based on the views expressed by the shopkeepers and

customers make your assessment of services provided in
retail stores.
3. Collect the details, discuss with friends, teachers, officials of
retail store and then finalise and submit your field visit report
to your subject teacher.
Check Your Progress

1. A customer becomes consumer of the commodity when the
goods are purchased for _______________________.
2. _________________ is a measure of how products and
services supplied by a company meet or surpass customer
expectation.
3. _________________ customers don’t have any specific item
into their product list but urge to buy what they find good
and productive at that point of time.
B. Multiple choice questions

1. Which of these is a feature of good customer service?
(a) Politeness
(b) Personalisation
(c) Promptness
2. A dealer who purchases goods for re-sale is called
_________________.
(a) retailer
(b) intermediary
(c) consumer
25

Unit 1.indd 25 29-10-2018 16:55:27
Notes 3. A person who regularly buys milk from the supermarket is a
______________.
(a) loyal customer
(b) wandering customer
(c) impulsive customer
4. Which type of customers are normally new in the industry
and most of the times visit suppliers only for confirming their
needs on products?
(a) loyal customer
(b) wandering customer
(c) impulse customer
5. Which of the following is a customer service feature?
(a) Technical support
(b) Pre-sales education
(c) Social media customer service
6. Which of the following comes under customer retention
strategy?
(a) Conducting customer surveys
(b) Sending postcards on new products
(c) Using social media to build customers
C. State whether the following statements are True or False

1. In customer service, emails are used to send special
promotions.
2. Customer satisfaction surveys are not important in retailing.
3. Customer satisfaction increases customer churn.
4. Social media, such as Facebook, is used to build a community
of engaged customers.
5. Technical support is not required by customers.
6. Answering customer questions comes under pre-sales.
7. There is no need to treat customers professionally.
D. Match the columns

Column A Column B
1. Customer A Delivery on the committed time
2. Not Customers B Educate customers
3. Non Customers C Past Customers
4. External customers D Active in different market segment
5. Promptness E Recipient of good, service or an idea
6. Technical support F Not directly connected
7. Blogs G Personalised services
8. Customer delight H Data verification
26

Unit 1.indd 26 29-10-2018 16:55:27
E. Short answer questions Notes
1. Who is a customer?
2. Differentiate between loyal and impulsive customers.
3. What is meant by ‘customer services’?
4. Define the term ‘customer satisfaction’.
5. What is the importance of customer satisfaction?

1. How do you classify a customer? Explain.
2. Explain the 4Ps of Customer Service.
3. Discuss the various customer service functions of a sales
associate.
4. Explain the strategies followed by the retailer to retain
customers.
G. Check your performance

1. Demonstrate the functions of a sales associate.
2. Spell out the various customer services for convincing and
satisfying the customer.
Session 3: Skills for Handling Retail Business

Meaning of skill
‘Skill’ is an ability to do a task with pre-determined
results within a given period of time, energy, or both.
It is an ability to do work with expertise. Skills may
be — general or specific. General skills include time-
management, teamwork and leadership, self-motivation
for the work and domain-specific skills used in certain
jobs. Knowing which skills a person possesses helps
determine whether their training and experience has
prepared them for a specific type of workplace activity.
For example, requirement of carpentry skills for a
carpenter’s job.
Essentials of skill development

Skill development is an important instrument to
increase the efficacy and quality of labour for improved
productivity and economic growth. Skill building is a
powerful tool to empower individuals and improve their
social acceptance.
27

Unit 1.indd 27 29-10-2018 16:55:27
Notes In terms of retail, it encompasses:
(a) Taking stock of the retail store: Assessing where
the retailer stands and managing development
and taking realistic inventory of personal and
professional assets.
(b) Creating a plan: Creating a plan for development, it
enables the retailer to reach their goals.
(c) Creating environment for development: Creating
an environment for self-improvement. Consider the
following strategies:
• Practice consistent, self-directed learning
• Make a note of problems or mistakes
• Interact with peers at a professional level
• Pay attention to health
Skills for sales associate: customer services

Sales associates have broad and flexible responsibilities
that often include acting as cashier, customer service
representative, stocker, and stepping into other roles,
sometimes multiple roles, in a single day. Here are
some of the most important skills you’ll need to become
a sales associate.
(a) Patience: Patience is a necessary and often
overlooked virtue for retail employees. Not all
customers are exceptionally kind, and good retail
associates have the patience to diffuse tough
situations with difficult customers.
(b) Attentiveness: A sales associate is bound to spend
at least a portion of his or her day operating a point
of sale (POS) system or arranging merchandise. Both
of these key roles require a high level of accuracy.
A sales associate must focus his or her attention
to detail to ensure that transactions are processed
accurately and the sales floor looks its best.
(c) Communication skills: The required skills
include listening effectively and explaining the
specific benefits of various products and services
to customers. A sales associate must also clearly
28

Unit 1.indd 28 29-10-2018 16:55:27
explain the information and processes to the Notes
customer needs to complete a transaction. At the
same time, they must maintain a pleasant and
approachable demeanor.
(d) Product knowledge: One can never answer
customer questions or provide accurate information
without fully understanding the products that one
is selling. A sales associate should read all about
the product.
(e) Use “Positive Language”: Language is a part of
persuasion. Customers create perceptions about a
retailer based on his or her language. Minor changes
in conversational patterns go a long way in creating
happy customers.
(f) Acting skills: Sometimes retailer comes across
people who they will never able to make a happy
customer. Sometimes retailer will have to deal
with boring angry customers and complaining
customers. Every sales associate must have
basic action skills necessary to deal and maintain
their customer.
(g) Time management skills: Retailer may be busy
in much research-backed production activities.
However he or she must have the capability to
solve customer problems in limited time so that he
or she can think some additional improvement in
retail business.
(h) Goal oriented: The retailer sets goals and then use
strategies to attain them. Goal orientation is the
degree to which a person or organisation focuses on
tasks and the end results of those tasks.
(i) Resilience: Each day is packed with small
and large challenges. It may simple mean
running out of time to meet a sales goal or being
understaffed on an unexpectedly busy day. To
do this, a sales associate should learn to think
clearly, make decisions quickly and not take things
too personally.
29

Unit 1.indd 29 29-10-2018 16:55:27
Notes
Activity 1
A field visit to learn the skills for handling retail business
Material required
Checklist, questionnaire, notebook, list of retail stores and pen
or pencils
Procedure
1. Visit a nearby retail Kirana or General store of your locality
and interact with the shopkeeper or counter person and
at least 5–10 customers. Write down the responses to the
following questions in 50 words.
A Questions for shopkeeper or his or her representative on
counter
a. In what manner does the shopkeeper respond to the
customer returning or exchanging goods?
________________________________________________________
________________________________________________________
________________________________________________________
b. What skill(s) are involved in it?

________________________________________________________
________________________________________________________
________________________________________________________
c. In what manner are the new products introduced to the

customers?
________________________________________________________
________________________________________________________
________________________________________________________
d. What skill(s) are involved in it?

________________________________________________________
________________________________________________________
________________________________________________________
e. Mention a situation where the shopkeeper is seen using

‘patience’ skill.
________________________________________________________
________________________________________________________
________________________________________________________
f. Mention a situation which indicates the shopkeeper’s

alertness skill.
________________________________________________________
________________________________________________________
________________________________________________________
30

Unit 1.indd 30 29-10-2018 16:55:27
B Questions related to the customers
Notes
a. Mention a situation where clear communication skill was
needed on the part of the shopkeeper.
________________________________________________________
________________________________________________________
________________________________________________________
b. Observe the customers’ queries and mention the

situations where the shopkeeper lacked knowledge about
the product.
________________________________________________________
________________________________________________________
________________________________________________________
c. Observe the customers and shopkeeper interaction for

about half an hour and identify the skills used:
1. ______________ 5. ______________ 9. ______________
2. ______________ 6. ______________ 10. ______________
3. ______________ 7. ______________ 11. ______________
4. ______________ 8. ______________ 12. ______________
2. List out the different skills you find in sales associates in

organised and unorganised retail shops.
S.No. Name of skills Organised shop Unorganised shop
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
3. Collect the details.

4. Discuss with friends, teachers, officials of retail store and
then finalise.
5. Submit your field visit report to the subject teacher.
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Unit 1.indd 31 29-10-2018 16:55:28
Notes Check Your Progress
1. _____________________ is the degree to which a person
or organisation focuses on tasks and the end results of
those tasks.
2. A sales associates must also clearly explain the information
and processes the customer needs to complete a __________.
3. ______________ is a necessary and often overlooked virtue for
retail employees.

1. Why is there a need to have skillful sales associates?
(a) For displaying merchandise
(b) For interacting with customers
(c) For promoting loyalty among customers
2. The ability to readily listen to a complaining customer and to
understand him or her comes under which skill?
(a) Patience
(b) Attentiveness
(c) Communication skills
(d) Resilience
3. Skill is a(n)___________.
(a) inborn ability
(b) learned ability
(c) Both of the above
4. Some customers go on enquiring about a product and you
have insufficient time, which of the following skill will you
use here?
(a) Skill of patience
(b) Skill of attentiveness
(c) Skill of goal-orientation
5. Which of these is not a skill?
(a) Carpentry
(b) Reading and writing
(c) Cooking
(d) Rising up
6. Which of these is a specific skill?
(a) Team work
(b) Time management
(c) Barber work
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Unit 1.indd 32 29-10-2018 16:55:28
7. Which of these is an essential step of skills development? Notes
(a) Taking stock of yourself
(b) Creating a plan
(c) Creating an environment for development
C. State whether the following are True or False

1. It is not important to have goal in handling retail business.
2. Customer service representatives should possess the skill
of patience.
3. Attentiveness is the ability to listen to the customers
carefully.
4. Communicaton skills are not required for customer service.
Column A Column B
1. Skills A Maintaining cool
2. Attentiveness B Solve customer problems in limited
time
3. Calming presence C End conversation with satisfaction

4. Time management D Listen to customers carefully
skills
5. Closing ability E Ability to carry out a task

1. Define Skills.
2. How are time management skills important for a sales
associate?
3. Why are communication skills necessary for a sales
associate?

1. Discuss the essentials of skill development for a sales
associate.
2. Explain the skills required by a sales associate.

1. Demonstrate the skills required by a sales associate.
2. Draw a chart containing the various skills of sales associate.
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Unit 1.indd 33 29-10-2018 16:55:28
Notes Session 4: Duties and Responsibilities of a
Sales Associate
A sales associate is also referred to as a customer
services associate. A sales associate is responsible for all
sales activities and sales associate job duties, from greeting
customers to answering questions, offering assistance,
suggesting items, lending opinions and providing product
information. Individual responsibilities as a sales associate
may include demonstrating outstanding customer service
and selling skills, keeping the selling floor stocked with
merchandise, assisting in display of merchandise or
organising the selling floor and stock areas.
Duties of a sales associate
A sales associate deals with customers to provide for
their needs regarding retail products. They also deal
with and help in resolving customer complaints. For
instance, a sales or customer associate may assist
customers to resolve their problem. Usually, a sales or
customer service associate gathers information through
a telephone call.
The duties of a sales associate are as given below.
(a) Handling problems: Customer inquiries involve
complaint handling by sales associate. Sometimes,
sales associates solve customer problems or propose
some solutions. Sales associates ensure that
complaints file by customers are valid and solve
within bounds of their authority.
(b) Assisting sales: Sales associates help customers
identify and purchase products they desire. Their
duties include selling, restocking and merchandising.
The goal is to provide high class customer service and
to increase company’s growth and revenue through
sales maximisation.
(c) Clerical tasks: A sales associate many a times is
required to undertake clerical responsibilities, such
as obtaining or receiving merchandise, totalling bills,
accepting payments, taking orders, etc.
(d) Job specific responsibilities: All duties of a sales
associate largely depend on the type of retail store.
But the duties which are specific to their job role
34

Unit 1.indd 34 29-10-2018 16:55:28
include greeting customers, responding to questions, Notes
improving engagement with merchandise and
providing outstanding customer service, operating
cash registers, managing financial transactions and
balancing drawers.
Responsibilities of sales or customer service
associate
(a) Interact with customers: Customer service
associates may deal with customers face-to-face or
they may assist customers over phone or via email
or chat programs. Some phone- and Internet-based
associates may work remotely from home.
(b) Working directly with customers: A customer
service associate deals with customers in retail store.
(c) Resolve the issues of customers: Customers
approach sales associates when they face any issues,
such as incorrect price listed for a product, returns,
etc.
(d) Listen to customers: Every customer service
associate must listen to the customer. Effective
listening helps in solving customer problems easily
and quickly.
(e) Remain friendly and polite: The sales associate
should behave politely with customers.
Special activities of sales or customer service
associate
• Prepare for customer inquiries
• Respond to customer inquiries
• Document customer inquiries
• Improve quality service
• Identify new products
• Update job knowledge
• Participate in educational opportunities
A sales associate requires skills, such as product
knowledge, ability to inform customers, data entry,
analysing information, verbal communication, reporting
skills, managing processes, general consulting and
multitasking skills
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Unit 1.indd 35 29-10-2018 16:55:28
Notes
Activity 1
A field visit to learn the skills for handling retail business
Material required
Checklist questionnaire, notebook, list of retail stores and pen
or pencils
Procedure
1. Visit a mall or organised store and ask the manager to fill
open-ended questionnaire.
A. Questions for employer
a. What qualities do you think a customer service associate
should possess?
________________________________________________________
________________________________________________________
________________________________________________________
b. What is the nature of job for a customer service associate
in the store?
________________________________________________________
________________________________________________________
________________________________________________________
B. Questions for employee sales associates
a. What are your responsibilities in this store?

________________________________________________________
________________________________________________________
________________________________________________________
b. What are the duties and functions that you need to perform
in this store?
________________________________________________________
________________________________________________________
________________________________________________________
c. What is your method of operation to deal with customers?
________________________________________________________
________________________________________________________
________________________________________________________
2. Collect the details

then finalise.
4. Submit the field visit report to your teacher.
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Unit 1.indd 36 29-10-2018 16:55:28
Check Your Progress Notes
1. ___________________________ associate is also referred to as
customer services associate.
2. A sales associate always renders services to

the__________________________.
3. A sales service associate gathers their

__________________________ via a telephone call.
4. Most sales associate work at the ____________________

location.

1. Sales or customer service associate who work in retail may
have similar duties to bank tellers which is (are)_____________.
(a) counting money
(b) cashing cheques
(c) servicing accounts
2. Customer service associates may interact_____________ with
customers in the retail store itself.
(a) face-to-face
(b) over the phone
(c) via email

1. When customers have any issues that need to be resolved,
they cannot approach a sales associate.
2. Sales associate deal directly with customers.
3. Selling a company’s product is not a part of the sales
associate’s duties.
4. D. Match the column
Column A Column B
1. Customer inquiries A Return an item or refund
2. Clerical tasks B Studying products, services
and customer processes
3. Issue C Complaints
4. Preparation for D Documenting inquiry
customer inquiries
5. Recording of customer’s E Transferring calls
inquiry
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Unit 1.indd 37 29-10-2018 16:55:28
Notes E. Short answer questions
1. What are job specific responsibilities?
2. Handling problems is an important duty of a sales associate.
Why?
3. How do sales associates undertake the responsibility of
resolving issues of customers?
4. What are the clerical tasks of a sales associate?

1. Explain the duties of a sales associate in a retail store.
2. Discuss the responsibilities of a sales associate in a retail
store.
3. What are the special activities undertaken by sales associates
in a retail organisation?

1. Demonstrate the duties of a sales associate in a retail store.
2. Perform the responsibilities of a sales associate in a
retail store.
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Unit 1.indd 38 29-10-2018 16:55:28
Process of Credit
2 Application
Goods and services can be paid for upfront or on

delivery, or are supplied on credit (where payment is
deferred for a period of time after the goods or services
have been supplied).
Offering credit increases the risk of being paid
late, or not at all, so for new customers one should
always consider upfront or on delivery payments, also
in situations where one has outlaid large amounts of
money to supply the goods or service.
The present unit on ‘Process of Credit Application’
covers various aspects like features and conditions
for credit sales, identifying credit checks and
getting authorisation, describing the process of
credit requisitions demonstrate the techniques for
determining credit worthiness. This unit deals with the
features of credit sales, credit sales agreement, retail
credit facility flexibility, terms and conditions. It also
covers the difference between sales and agreement
to sale. Contract of sale, conditions and warranties,
credit checks and getting authorisation have also been
discussed.
While granting customer credit, the sales associate
has to follow certain steps which include creation of
credit policy, obtaining credit application, checking
customer references, getting a personal guarantee, run a
credit check, setting limits of credit and payment terms.

Unit 2.indd 39 29-10-2018 16:55:56
Notes The credit requisition contains information on the desired
products, details of possible vendors, delivery instructions,
accounting details, contact information, etc. The sales
associate has to follow the criteria in processing credit sale
application. Before credit sales are permitted, the sales
associate or the retailer has to obtain credit worthiness of
a buyer.
With this background in view the present unit titled
‘Process of Credit Application’ has been divided into
four sessions. The first session deals with the features
and conditions for credit sales and covers retail credit
facility, terms and conditions in credit sales. The second
session is on credit checks and getting authorisation.
It will focus on the legal and company procedures for
carrying out credit checks and getting authorisation. The
third session is devoted to processing credit requisitions
and deals with documentation requirements. The last,
i.e., fourth session deals with techniques determining
credit worthiness.
Session 1: Features and Conditions for

Credit Sales
Credit sales refer to sales that involve extending credit
to the customer. The customer takes the product now
and agrees to pay for it later. Credit sales are a type
of trade credit. They create receivables, or money owed
to the company from customers.
Credit sales terms often require payment within one
month of the invoice date, but may also be for longer
periods. The due amount may be collected in different
forms, such as lump-sum payment, Hire Purchase
system and Installment Purchase System. Retail firms
sell goods on credit due to the following benefits:
• Meet the competition: When competitors are
making sales on credit to customers, any business
will need to do the same just to stay competitive.
• Increase in sales: An increase in sales may or
may not happen when one starts selling on credit.
If your competitors are not offering credit terms,
then you will gain sales by offering credit terms,
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Unit 2.indd 40 29-10-2018 16:55:57
because your customers will buy from you instead, Notes
of having to pay cash, of your competitors.
• Better customer loyalty: Offering credit to
customers indicates that you respect and trust
them to pay before their due dates. Customers
will reward these gestures of confidence by
continuing to buy from you.
Characteristics of credit sales

Credit sale is selling goods to customer by transferring
from seller to customer without paying the money
immediately. Payment of goods can be done as per the
agreement. The characteristics of credit sale are as
given below.
• The transferor normally deals in goods and
services.
• The title of the goods lies with the seller before it
is sold on credit.
• There are fewer formalities especially in case of
open account.
• It is usually extended for three months.
• It depends on terms imposed by seller.
• No security is required.
• It can be facilitated with different financial
institutions with easy terms and at a continuous
rate.
• Almost half of short financial requirement of
retail is met by this type of mutual trust and
good relation.
Credit sale agreement

A credit sale agreement is an agreement for the sale of
goods under which the purchase price, or part of it, is
payable by installments.
Definition of ‘retail credit facility’

Retail credit facility is a financing method which
provides loan facility to retail consumers for purchasing
goods and services. Retail credit facilities lend funds
to customers wanting to purchase high-valued items
41
Process of Credit Application

Unit 2.indd 41 29-10-2018 16:55:57
Notes but are short on capital. Thus, retail credit facilities
may enable a greater number of consumers access
to a retailer’s goods. The risk of default is the main
factor behind high rate of interest rate charged by retail
credit facilities.
Structure of a credit agreement
Thus, retail credit facilities may enable a greater
number of consumers access to a retailer’s goods. A
credit agreement details the borrower’s responsibilities.
It includes details of loan warranties, lending amounts,
interest rates, loan duration, default penalties, and
repayment terms and conditions. The contract includes
basic information of the customer and also includes the
purpose of the loan.
Repayment terms of credit facility
The repayment terms include the interest rates and
date for repayment, in the case of a term loan, or the
minimum payment amount and recurring payment
dates, in the case of a revolving loan. The agreement
details whether interest rates may change and specifies
the date on which the loan matures, if applicable.
Conditions used for sale of goods on credit
A contract of sale is a legal contract for the exchange of
goods, services or property from seller to buyer for an
agreed upon value in money paid or the promise to pay
the same. It is a specific type of legal contract. There are
some provisions in a contract of sale, which have been
discussed below.
• The contract of sale, is an agreement in which
a seller agrees to transfer goods to a buyer at a
price. It is made when there is both an offer as
well as agreement to buy or sell goods for a price.
• It can be made in writing or by word of mouth.
• A contract of sale is a generic term, which includes:
(a) Sale and (b) Agreement to sell.
Agreement to sell
Agreement to sell constitutes the terms and conditions
of sale of by the seller to the buyer. These terms and
42

Unit 2.indd 42 29-10-2018 16:55:57
conditions include the amount at which it is to be sold Notes
and the future date of full payment.
Essential elements of contract of sale

There are various essential elements which must be
present in a contract of sale. These are as given below.
(a) Essential elements of a contract: All other
essentials of a valid contract as per the Indian
Contract Act, 1872, must be present. The parties
of a contract must be competent, their consent
must be free, and the object of contract must be
lawful and so on.
(b) Bilateral contract: To make a contract of sale
there must be at least two parties. These parties
must be distinct, that is, a seller and buyer.
(c) Transfer of property: In a contract of sale the
objective is to transfer the general property, from
the seller to the buyer, in the case of goods.
(d) Goods: The subject-matter of the contract of sale
of goods, must be some goods. The purpose of
this contract is to transfer the property in these
goods from the seller to the buyer.
(e) Price — the consideration: In a contract of sale
the consideration is price. Price or consideration
may by partly in money and partly in goods.
Difference between condition and warranty

In a contract of sale, the subject matter is ‘goods’.
There are many sale transactions which occur in the
normal course, all around the world. There are certain
provisions which need to be fulfilled because it is
demanded by the contract. These prerequisites can
either be a condition and warranty. The condition is the
fundamental stipulation of the contract of sale whereas
warranty is an additional stipulation.
In other words, condition is the arrangement, which
should be present at the time of happening of another
event, whereas warranty is a written guarantee, issued
to the buyer by the manufacturer or seller, committing
to repair or replace the product, if required, within
43

Unit 2.indd 43 29-10-2018 16:55:57
specified time. The difference between condition and
warranty have been listed below.
Basis for Condition Warranty

comparison
Meaning A requirement or event that should A warranty is an assurance given
be performed before the completion by the seller to the buyer about
of another action, is known as the state of the product, that the
condition prescribed facts are genuine
Defined in Section 12 (2) of Indian Sale of Goods Section 12 (3) of Indian Sale of
Act, 1930 Goods Act, 1930
What is it? It is directly associated with the It is a subsidiary provision related
objective of the contract to the object of the contract
Result of breach Termination of contract Claim damages for the breach
Violation Violation of condition can be regarded Violation of warranty does not
as a violation of the warranty affect the condition
Activity 1
A role-play to learn the process of credit sales in retail business
Material required
Checklist, notebooks and pen or pencils
Procedure
1. Divide the class into groups of 3 and ask them to perform the
following activities in the retail lab.
Role-play situation
A customer enters into the retail store and asks the retailer
to sell the goods on credit to him and CSA decides to sell the
goods on credit to him.
1st student: A customer seeking credit
2nd student: Customer Sales Associate (Retailer)
3rd student: Store Manager
2. Finish the play within the time allotted to you.
3. Discuss the learnings from the activity and the points to
be covered.
4. Share your views before and after the role-play activity.
Activity 2
A field visit to learn terms and condition adopted by retailers for
credit sales
Material required
List of retail stores and notebook, pen or pencils
44

Unit 2.indd 44 29-10-2018 16:55:57
Procedure
Notes
1. Visit a nearby retail store.
2. Examine the terms and conditions adopted by the retailers
for credit sales.
3. Discuss the findings with your teacher.
3. Prepare and submit a report based on your observation.
Activity 3
Field visit to learn features of credit sales
Material required
Questionnaires, list of retail stores, notebook, pen or pencils
Procedure
1. Visit retail stores near your home or school.
2. Observe if the following activity or situation exists at the
stores. Tick mark the appropriate.
S. Activity or Situation Yes No
No.
1. Whether the retailer is selling goods on
credit basis to customers
2. Does the retail store keep any conditions
for credit sales?
3. Does the retailer sell goods on Installment
Purchase System?
3. Identify the need for customer’s credit facility form.

4. Understand how a retail firm is selling goods on credit.
5. Study the terms and conditions stipulated for sale of goods
on credit.
then finalise.
8. Submit the field visit report to your teacher.
Check Your Progress

1. When goods are sold without receiving immediate
____________, it is called a credit sale.
2. Credit sales are made between a _____________ and
a ____________________ with buyer agreeing to pay in
installments.
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Unit 2.indd 45 29-10-2018 16:55:57
Notes B. Multiple choice questions
1. A requirement or event that should be performed before
the______________, is known as Condition.
(a) completion of another action
(b) agreement
(c) treatment
2. Which of these is an essential element of a contract of
sale?
(a) Transfer of property
(b) Money consideration
(c) Goods

1. There must be at least three parties for contract of sale.
2. In a contract of sale the consideration is price.
3. Agreement to sell means a contract of sale.
Column A Column B
1. Condition A Assurance
2. Warranty B Consideration of contract of sale
3. Transfer of property C Section 12(2) of Indian Sale of
Goods Act, 1930
4. Price D Transfer of ownership

1. Define credit sales.
2. What are the benefits of credit sales?
3. What is a credit sale agreement?
4. What is retail credit facility?
5. Explain agreement to sell.

1. Explain the features of credit sales.
2. What conditions are used for sale of goods on credit?
3. Write the differences between condition and warranty.
5. What are the essential elements of a contract of sale?

1. Demonstrate the essentials of a contract of sale.
2. Demonstrate the features of credit sales.
46

Unit 2.indd 46 29-10-2018 16:55:57
Session 2: Credit Checks and Getting Notes
Authorisation
Any retail store’s primary objective is to enhance profits.
Therefore, there is a need to identify the potential customers
for making credit sales. Keeping this in mind, creditors
must conduct credit check in order to understand whether
customers have repaying capacity or not. This can reduce
the risk of bad debts for the retailing firm.
Meaning of credit check

Credit check is a sort of search performed by the retailer
to evaluate a customers’ creditworthiness. After a credit
check a retailer is able to assess whether a customer
can handle his or her money matters and fulfill the
requirements for credit.
Need for credit checking

There is a need for credit check as it helps the retailer
to assess if a customer is creditworthy. Given below are
some of the reasons for conducting a credit check.
• Credit check protects the interests of parties. It
also ensures that each party has the capacity to
enter into a transaction.
• Retail firms should run a credit check on
customers any time whenever the customers
apply for a loan, hire purchase, credit card, store
card or line of credit.
• A credit check provides information about the
customer’s mortgage, credit cards, arranged
overdrafts, personal loans, car finance, hire
purchases, and repayment history of customer’s
phone accounts, etc.
• A credit record is basically an account of any
type of credit of the customer given for the last
six years. It reveals how much money is being
accessed by the customer and if the customer
has failed to make any obligations, etc.
• When applying for credit, a customer is asked by
the lender for his consent to check the customer’s
credit file. This allows them to see a number of
47

Unit 2.indd 47 29-10-2018 16:55:57
Notes things, such as address of the customer, current
commitments and reliability of the customer.
The criteria vary from customer to customer. It is
based on the financial profile and credit history.
Positive credit reporting

In the past, credit check included ‘negative’ behaviour,
which took place when customers failed to meet his
obligations in financial dealings. The credit score is now
calculated on the basis of this information, together
with other credit activity in the customer’s file, such as
previous enquiries from credit providers. This provides
a clear picture of the customer’s finances, and shows if
the customer’s have recovered from any credit difficulties
in the past.
Procedure for credit check on a prospective

customer
Checking credit is an important step before issuing
credit, and allows you to make an informed decision
about the level of risk associated with extending credit
to the customer. Before retail firms extend credit to a
customer, it is an important step to check a customer’s
credit history.
Before offering credit, the retailers gets a credit
application form filled and sign by the customer.
The information to be collected from the customers
for credit check is as follows:
• Release of information: In order for the retailer
to do a complete credit check on a customer, they
will need the customer’s permission.
• Signature: A signature on the credit application
form means that the customer has read and
understood all the terms and conditions listed
and also agrees with them.
• Address: Having the correct address will assure
that a credit check pulls up the right information.
• Employment: Accurate employment information
of the customer allows retailers to take a look into
the customer’s employment history to see how
long he or she were at each job.
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Unit 2.indd 48 29-10-2018 16:55:57
Legal and company procedures for getting Notes
authorisation
A person’s credit history is private. Therefore, a retail
firm needs to seek permission from the customer before
accessing any information legally.
How to get credit report

Customers provide the necessary information for credit
purchase. A retailer accesses the information and makes
a report. The retailer can directly ask the customers for
their credit worthiness and write it in their credit report.
Steps to follow before granting a credit

If a business firm decides to offer credit terms to the
customers, it should try to ensure that these customers
will be both willing and able to pay in accordance with
the agreed-upon terms. It is recommended that the
firms follow a structured process for this. Therefore, a
firm may consider the following steps.
• Create credit policy: Every retail store must
create their credit policy. It will help them in
running the retail business. It includes payment
policies and expectations.
• Customers must complete the credit
application: The application should provide key
information about the customers.
• Check the customer’s references: Asking
customers to list references also helps.
• Run credit check: It will help in revealing any
outstanding payments against the customer.
• Request personal guarantee from customer:
It is not necessary in the case of a retail
store, however, it is a personal guarantee from
the customer.
• Take security interest in products: As
customers can refuse to pay according to agreed
upon terms, a retailer should ideally charge
security interests.
49

Unit 2.indd 49 29-10-2018 16:55:57
Notes • Set credit limits and payment terms: Set limits
for the customer who seem to be creditworthy.
Also decide how many days after the delivery of
the products the full payment will be made.
Activity 1
A role-play to learn the process of credit sales in retail business
Material required
Procedure
1. Divide the class into groups of 3 and ask them to perform the
following activities in the retail lab.
Role-play situation
A customer enters into the retail store and requests to sell the
goods on credit. Now, understand how the retailer makes a
credit check before selling the goods on credit.
Role of students
1st student: A customer
2nd student: Customer Sales Associate (Retailer)
3. Discuss the learnings from the activity and points to be covered.
Activity 2
A field visit to learn the practices adopted for making credit
check
Material required
Checklist, list of retail stores, notebook and pen or pencils
Procedure
2. Examine the practices adopted by the retailers for making
credit check.
3. Prepare a report based on your observation.
Activity 3
A field visit to learn credit check and getting authorisation in a
retail business
Material required
Checklist, list of retail stores and notebook and pen or pencils
50

Unit 2.indd 50 29-10-2018 16:55:57
Procedure Notes
1. Visit a retail store near your home or school.
2. Observe the following activity or situation that exists in
the stores.
3. Tick mark the appropriate option.
S. No Activity or Situation Yes No
1. Whether the retailer is following a credit
check for sale of goods on credit to the
customers
2. Is the retail store approaching any Credit
Reference Agency for seeking credit check
3. Whether the retailer is following the legal
procedures for carrying out credit check
4. Is the retail store following suitable steps to
provide credit to the customers?
5. (a) Whether the retailer is refusing to offer
credit sales
(b) Is the retail firm is providing enough time
and opportunities for the customers to
seek clarifications for credit sales facility?
3. Study what are legal and company procedures for getting

authorisation for credit check.
4. Collect all the details.
5. Discuss the details with your teacher and authorities of the
retail store.
6. Prepare a report on the basis of your observations and submit
to your teacher.
Check Your Progress

1. Credit check strategy is adopted by retailers to check the
customer’s _________________.
2. Retail firms must have _________________________________
from customer.

1. The main objective of a credit check is to manage the risk
of ______________.
(a) bad debts
(b) credit Sales
(c) cash Sales
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Unit 2.indd 51 29-10-2018 16:55:57
Notes 2. Before retail firms extend credit to customer, it is
the best practice to check the prospective customer’s
________________.
(a) Profile of the customer
(b) History
(c) Background
3. ______________is the risk involved in offering credit.
(a) Financial risk
(b) Reduced cash flow
(c) Increased cash flow

1. Credit check is a type of search.
2. Credit checking is not needed to protect the interest of
parties.
3. A credit record is basically an account of any type of credit.
4. Approval from customer is not required while credit check
of his/her account.
D. Short answer questions

1. What is the meaning of credit check?
2. What is positive credit reporting?
E. Long answer questions

1. What is the legal and company procedures for carrying
out credit checks?
2. Explain the need for credit checking.
3. Elaborate the steps to be followed before granting customer
credit.
4. How is the credit report of a customer obtained?

1. Demonstrate legal and company procedure for carrying
out credit checks.
2. Draw a chart on the steps to be followed before granting
customer credit.
Session 3: Processing Credit Requisitions

Requisition is a formal request by a buyer to the seller
to sell the desired goods on conditions agreed upon. It
generally includes the brand and model name, quantity
and the required delivery date, etc. When a requisition is
made by a buyer to the seller to provide credit facility for
the purchase of goods it is known as credit requisition.
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The rules for availing credit facilities are normally Notes
provided by the organisation.
Credit requisition
A credit requisition is a request for credit. A valid credit
requisition includes the amount and type of credit
requested. It also includes the applicant’s credit score,
report and means of security for the loan. Normally,
credit limits are prescribed by the vendor.
The credit limit means maximum amount of
money extended through a line of credit and maximum
amount of credit allowed to a customer to purchase in
a retail store.
The credit requisition document requires information
about the following:
• The desired items or services: Customers who
are seeking credit facility must mention the details
of desired items or services to be purchased on
credit from the retail store.
• Possible vendors to fulfill order: It must contain
the details of the possible vendors who can supply
the required goods to the customer or buyer.
• Any budget quotations or proposals received:
It should contain the information about the
vendor’s name and other details of quotations or
proposals received.
• Delivery instructions: The credit requisition
should contain the information about delivery
instructions of the goods.
• Capture initial capital details: The detailed
information about initial capital must be provided
in the credit requisition.
• Contact information: The buyers who want to
purchase the goods on credit must mention their
contact information in this requisition.
• Related accounting detail: It should also provide
information about related details of accounting.
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Notes Process of applications
The following performance criteria must be followed
for processing applications from retail customers for
credit facilities.
1. Identify the customer’s needs and provide credit
facilities.
2. Clearly explain about features and conditions of
credit facilities to the customer.
3. The customer should submit the application, and
the requisition must be approved by the retailer.
4. Promptly refer to difficulties in processing
applications.
5. Once approved, the requisitions go to the Sales
Manager for authorisation procedures.
Activity 1
A role-play to learn the processing of credit requisition
Material required
Checklist, notebook, pen or pencils
Procedure
1. Divide the class into groups of 3.
Role-play situation
A customer enters a retail store and asks the retailer how
to process credit requisition for purchasing the goods on
credit. Now, the retailer has to explain about the documents
required for the credit requisition and ask the customer to
perform the following activities in retail lab.
Role of students
1st student: A customer asking about credit requisition
2nd student: Customer Sales Associate
2. Other students of the class can ask questions to the
performing group.
Activity 2
A field visit to learn the documents for processing credit
requisition of customer
Material required
Checklist, list of retail stores, notebook, pen or pencils
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Procedure Notes
2. Identify how a retail firm is keeping the various documents
required for processing credit requisition of the customers for
providing credit facilities.
3. Prepare a report based on the observation and submit to
your teacher.
Activity 3
A field visit to learn processing credit requisitions
Material required
Checklist, list of retail stores, notebook, pen or pencils
Procedure
1. Visit a nearby store and examine how a retail firm processes
the applications from the retail customers for credit facilities.
2. Observe the following activity or situation that exists at
the stores.
3. Tick mark the appropriate option.
S. No. Activity or Situation Yes No

1. Whether the retailer is keeping the
documents required for credit requisition?
2. Whether the retail store is following any
criteria for determining the creditworthiness
of the customers
3. Can is any performance criterion followed for
processing applications from retail customers
for extending credit facilities?
3. Collect the detailed information.

4. Discuss the observations with teacher and the authorities at
the retail store.
5. Prepare and submit a report based on the observations made
during the field visit.
Check Your Progress

1. ________________ is the formal request by a customer to a
seller to sell the desired goods on conditions agreed upon.
2. A _____________________ is a request for credit.
3. __________________________ refers to the maximum amount
of money extended to a customer through line of credit.
4. Normally credit limits are prescribed by the
___________________.
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Notes B. Multiple choice questions
1. When a requisition is made by a buyer to the seller to
provide credit facility for the purchase of goods, it is
known as ________________.
(a) purchase requisition
(b) requisition
(c) credit requisition
2. Vendors usually set ____________________ based on
information in the application of the person seeking credit.
(a) credit limits
(b) debit limits
(c) standard limits
3. The credit requisition document requires information
about the ___________________.
(a) items which are not desired
(b) desired items or services
(c) general information
4. __________________ is the performance criteria to be
followed for processing applications from retail customers
for credit facilities.
(a) Identifying the customer’s needs for credit facilities
(b) Not identifying the customer’s needs for credit facilities
(c) Both (a) and (b)

1. Requisition is an informal request by a customer to seller.
2. Credit requisition should contain information about the
delivery instruction of the goods.
3. Credit processing application does not provide time to
customers for clarification.
4. Once approved the application goes to the sales
manager.
Column A Column B
1. Requisition A Prescribed by vendor
2. Credit limits B Vendor’s name and detail of
quotation
3. Accounting details C Customer account
4. Budget quotation D Formal request by customer
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E. Short answer questions Notes
1. What is credit requisition?
2. What is requisition?

1. Explain the information required in credit requisition.
2. Discuss the process of credit application.

1. Draw a chart on credit requisition.
2. Demonstrate the steps involved in credit requisition.
Session 4: Techniques for Determining Credit

Worthiness
Several businesses have an established credit
rating system to determine the creditworthiness
of customers.
Meaning of ‘creditworthiness’
Creditworthiness is a valuation performed by the
retailer that determines the possibility of a customer
to default based on his or her earlier debt obligations.
It considers factors like repayment history and credit
score. The credit reporting agencies measure the
creditworthiness of customer.
How can customers improve their credit score

Individuals should pay on time, pay more than
the minimum monthly payment, pay their debt faster
and reduce the assessment of late fees to improve their
credit score.
How to check a customer’s credit worthiness?

A retailer before extending credit should verify a
customer’s ability to repay, among other things. To
keep an eye on the customers and their ability to pay
what they owe, the retailers should keep the following
in mind:
(a) Require a credit application: Every customer
should be made to fill the credit application.
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Notes (b) Check publicly available information: Every
retailer must check the customer’s information
before issue credit.
(c) Use credit evaluation tools: A retailer must use
credit evaluation tools to calculate the customer
credit worthiness.
Techniques used for determining credit

worthiness of customers
When retailers want to expand the credit to their
customers, they are essentially willing to provide
customers credit equal to the amount of their
purchases. The guidelines to be followed by the retailer
is inclusive of ‘The Five Cs of Credit’, which are as follows:
• Character: This refers to the customer’s integrity
and willingness to repay the financial obligation.
• Capacity: This addresses the customer’s cash
inflow and ability to repay the debt.
• Capital: This is the customers’ financial net
worth.
• Collateral: This refers to the security against
credit.
• Conditions: These refer to the economic, family
and personal conditions of customers.
Activity 1
A role-play to learn assessment of credit worthiness of customer
Material required
Procedure
1. Divide the class into groups of 3.
Role-play Situation
A customer enters a retail store and asks the retailer to
sell goods on credit. Now, the retailer has to assess the
creditworthiness of the customer seeking credit.
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Role of Students
Notes
1st student: A customer seeking credit
2nd student: Customer Sales Associate
performing group.
3. Finish play within the time allotted to you.
4. Discuss the learnings from the activity and points to
be covered.
Activity 2
A field visit to identify the assessment of credit worthiness
of customers.
Material required
Checklist, list of retail stores, notebooks and pen or pencils
Procedure
2. Identify how a retail firm is assessing credit worthiness of
customers for providing credit facilities.
3. Prepare and submit a report based on observation.
Activity 3
A field visit to learn processing credit requisitions
Material required
Checklist, list of retail stores, notebook and pen or pencils
Procedure
2. Examine the techniques adopted by the retailers for
determining creditworthiness of customers.
3. Examine how a retail firm is analysing the financial
statements of the customer seeking credit for determining
the creditworthiness of the customers.
4. Observe the following activity or situation that exists at the
stores. Tick mark the appropriate option.
S. No. Activity or Situation Yes No
1. Whether the retailer is assessing
creditworthiness of the customers
2. Whether the retail store is following any
criteria for determining creditworthiness of
the customers
3. Are any techniques used for determining
the creditworthiness of the customers?
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Notes 6. Collect the details.
7. Discuss with teachers and authorities of retail store.
Check Your Progress

1. ________________ is a valuation performed by the retailer
that determines the possibility of a customer to default on
their debt obligations.
2. When retailers extend credit to their customers, they are
essentially providing customers loan equal to the amount
of their ________________.
3. ______________________ measures creditworthiness of the
customers.
4. ___________ is the customer’s financial net worth.

1. Payment or credit history depicts how a person meets
debt obligations, which establishes __________________ of
a person.
(a) personal history
(b) creditworthiness or the financial character
(c) Non-financial character
2. A high credit score provides ______________________.
(a) low credit worthiness
(b) high creditworthiness
(c) moderate creditworthiness
3. __________________ is the borrower’s net worth.
(a) Drawings
(b) Capital
(c) Risk
4. Creditworthiness of customers can also be determined by
studying and analysing _______________of business.
(a) income statement and balance sheet
(b) income statement only
(c) balance sheet only
5. ___________________ measure creditworthiness of the
customers.
(a) Credit reporting agencies
(b) Agencies
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(c) Marketers Notes

1. Payment or credit history depicts how a person meets
debt obligations.
2. Creditworthiness is valuation performed by borrowers.
3. Creditworthiness can be increased by paying bills on time.
Column A Column B
1. Character A Borrower’s cash flow
2. Capacity B Borrower’s property
3. Capital C Economic or industrial Events
4. Collateral D Borrower’s net worth
5. Conditions E Borrower’s integrity

1. Define credit worthiness.
2. How can credit score be improved?
3. Which are the five Cs of credit?

1. How do you check the credit worthiness of a customer?
2. Explain techniques used for determining credit
worthiness of a customer.

1. Make a presentation on checking the creditworthiness of
a borrower.
2. Demonstrate the knowledge of techniques used for
determining credit worthiness of customers.
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Mechanism for
3 Customers to Choose
Right Products
In retail business, products are highlighted in demand

as per the customer needs. Products are kept in display
after analysing the demand of the products and to help
customers select a product required by them. This can
be done by identifying products and developing an
effective product list. Further to specify, customisation
of products depends upon the skills to sort and how to
narrow down choices using categories varying upon the
demands and necessity of the products.
Educating the customers is another way to help
them select the product that best fits their needs, the
more customers know about a product; the better it
suits them to make a purchase decision.
There is a focus on demonstrating ability of a retail
team, to assist in choosing the right products as per
needs. In a retail business, the product with maximum
demand must be made available instantly, to deal
flexibly with customer choices.
The sales associate has to take up the duties and
responsibilities in segmenting the sales to attain
maximum profits and turnover in a business. The
sales segment in a retail business plays a vital role in
delivering a smooth flow of products.

Unit 3.indd 62 29-10-2018 16:56:30
A perfect display of the product will have a wider
range of customers, in need of specific products. The
sale associates have to take up the demonstrative
procedures in a logical manner to cater the right choice
of customers. Customers always have the tendency to
get maximum through minimum investments. In such
a situation, a smart and efficient sales associate will
perform to deliver the best output as per the customer
needs by adopting various logical steps to demonstrate
his or her skills and also in getting the maximum sale
turnover in business.
A sales associate has to provide the perfect service
delivery for customer and the techniques required for
the closing of sale. Assessment activities given after
each session can give an insight to train the student in
developing skills and knowledge to get themselves fully
aware of the roles carried out by sales associate in retail
business. Also the student will grasp the techniques of
demonstration, so that the retailer can adopt the skills,
whenever needed in their job prospective.
Smoothly channeled process and techniques
adopted in business during handling of the sales will
give maximum customer satisfaction and also deliver
chance for better profits in retail business.
With this in view, the present unit titled ‘Mechanism
for Customer to Choose Right Products’ has been
divided into four sessions. The first session discusses
the method of selling, the second session deals
with sales promotion activities, the third session
highlights the methods for responding to question and
comments and the last session explains the techniques
for closing a sale.
Session 1: Methods of Selling

Sale is an act of selling a product in return for money.
It is the beginning of a relation between customer
and vendor or extension of that relationship. There
are various options available with which sales can
take place. Fig. 3.1 Sales target
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Notes Retail selling methods
The various retail selling methods are as follows:
(a) Direct sales: It refers to the direct personal
demonstration and sale of products and services
to the consumer. It consists of two business
models, that is, single-level marketing and
multilevel marketing. A direct sale makes money
by selling products directly to consumers.
(b) Proforma sales: The term proforma is used to
describe a document that provides as a courtesy
or satisfies minimum requirement, conforms
to a norm or decisive, tends to be performed
as a formality. The proforma sale refers to
sales quote which is prepared in form of
proforma invoice.
(c) Agency-based: It is a contractual arrangement, in
which the agent has the right to negotiate on the
sale of principle’s goods and services. In exchange
the agent gets a commission or fee. The various
types of agents who are involved in agency-based
sales are:
• Sales agents
• Sales outsourcing through direct branded
representation
• Transaction sales
• Consultative sales
• Consignment sales
• Telemarketing or telesales
• Retail sales
(d) Travelling salesman: They are a representative
of a firm who visit shops and other businesses
to show samples and gain orders. They are
also called a commercial traveller, door-to-door
salesman or a hawker.
(e) Auction sale: It is a public sale. Customers who
are willing can participate in an auction. Goods
are sold to the highest bidder, that is, one who
has quoted the highest price.
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(f) Business-to-business (B2B) sale: It refers to Notes
sales made by other businessman rather than an
individual customer. An industrial or professional
sale involves selling from one business to another.
(g) Electronic-based sales: It is a web-based
sale. It includes both business-to-business and
business-to-consumer sales. For electronic-based
sale Electronic Data Interchange (EDI) is used.
(h) Indirect sales: Indirect sales are the sale of a
good or service by a third-party, such as a partner
or affiliate, rather than a company’s personnel.
Meaning of arrangement of products for sale

in store
The products from different manufactures are displayed
in retail stores. These products are arranged in a
systematic manner in shelves based on the space
provided in the store. The display of goods is prioritised
on the basis of the manufacturer’s competitiveness as
some of them buy the display window section and the
floor space to promote their product.
Need for arranging products

Product arrangement in the retail stores is a critical
element for the success of a retail store. The products
are divided section wise, giving a clear view of all the
products available in store and make it easy for the
customer to pick up the products as they move in the
store. The arrangment of the products in this manner
also improves the profit of the retail store. Rearrangement
of products is done the following reasons:
• Repeat customers: The basic reason for companies
to rearrange products is to give their stores a fresh
look. This keeps current customers come back
to the store. Rearrangement of products displays
more products to the customer, so they visit again
and simultaneously sales volume increases.
• Sales promotions: Retailers rearrange products
for sales promotion. Rearrangement of stock
increases customers.
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Notes • Brand image: Some retailers rearrange products
routinely to maintain their brand image. Monthly
rearranging of products and changing of colour
schemes is essential in building new and fresh
style of product arrangements.
• Seasonal: Retailers display products in
one area. The retailers rearrange to display
seasonal products.
Procedure for arranging the products

The process of arranging products in a retail store
compels activity. The arrangement of product is very
much affected by the store plan choice, including
the size of the store, the type of product to be sold
and the extent of customer focus required on a
product. There are certain ways to be focused upon
for arranging a product in the store, which are based
on the following.
• Straight floor plan: In this floor plan a retailer
arranges products in a straight line. It is the
most commonly used floor plan in Indian retail
industry and is economical as well.
• Diagonal floor plan: This type of floor plan has
more visibility for the store staff and customers. It
requires a small space for arranging the products.
• Angular floor plan: It gives a spacious look with
a lot of space. This type of floor plan is used by
high-value and high-end retailers. This reduces
the display area and focuses only on few popular
products.
• Geometric floor plan: In this floor plan a retailer
uses racks and other fixtures to create a different
style of floor plan. This layout is used for trendy
products like cosmetics, watches, etc.
Identifying the products responsible for sale

Customer service associates (CSA) in a retail store are
responsible for identifying the products that are to be
sold. Here are few steps that help the CSA in identifying
the products for sale.
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Unit 3.indd 66 29-10-2018 16:56:31
1. He or she must have the full information about the Notes
retail store and the products that are being sold.
2. The CSA must follow the instructions given
by the store manager or supervisor regarding
the stock that is to be received from different
manufacturers.
3. The store manager or supervisor allocates the
product sections to the CSA. The product sections
in a retail store will be like vegetable section, house
keeping material section, stationery section,
clothes section, etc.
4. The CSA is responsible for the section allotted to
him or her and must hold full record regarding
the stock received from the manufacturers till the
product is sold.
5. The CSA must have complete knowledge about
the product being allotted to him or her and must
possess the skills to sell it to the customers.
Activity 1
Field visit to learn the methods of selling
Materials required
Notebook, pen or pencils, checklist
Procedure
1. Visit two malls/retail organised stores near your place.
2. Observe their selling methods.
3. Speak to a sales person and management regarding their
selling methods.
4. Write a comparative report on both the malls or stores selling
methods with your suggestions.
5. Submit the report to your teacher.
Check Your Progress

1. ________________ is the act of selling a product or service
in return for money.
2. _____________________ refers to a sales quote which is
prepared in the form of proforma invoice.
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Notes 3. _______________ sale is public sale.
4. Some retailers ______________ products routinely to
maintain their brand image.

1. The display of goods is prioritised on the basis of the
manufacturer’s__________________.
(a) competitiveness
(b) sale
(c) demand
2. _________________ sale refers to sales made to other
businesses rather than individual consumers.
(a) B2B
(b) B2C
(c) B2D
3. In electronic-based sale_________________ is used.
(a) EMI
(b) EDI
(c) EMC
4. Indirect sales are the sales of a good or service
by a___________________.
(a) manufacturer
(b) seller
(c) third-party

1. B2B is means business-to-business.
2. The products are divided section-wise in a retail outlet.
3. The retailers need not rearrange to display
seasonal products.

Column A Column B
1. Straight floor plan A Earn profit and commission
2. Diagonal floor plan B Telemarketing sales
3. Angular floor plan C Unique store feel
4. Geometric floor plan D Self-service shop
5. EDI E Racks are straight live
6. Agency-based sales F Curves and angles
7. Multilevel marketing G Standard for structuring
information
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E. Short answer question
1. What are direct sales?
2. Define proforma sales.
3. What is meant by agency-based sales?
4. What is auction sale?
5. Who is a repeat customer?
F. Long answer question

1. Explain various method of selling.
2. Discuss the need for arranging the products in a retail
store.
3. Explain the procedure for arranging the product in the
store.
4. Elaborate the steps adopted in identifying the product
responsible for sale.
G. Write short notes on

1. Promotion activities
2. Point-of-sale display
3. Trade incanting
4. In-store activity
H. Check your performance

1. Classify the methods of selling in retail.
2. Prepare a chart on different methods of selling in different
retail formats.
3. Demonstrate the proper checking of the product
packaging.
Consumer
promotion
Session 2: Sales Promotional Activities (Final
buyers)
Sale promotion is the fastest growing area of the
marketing activities. It is a major
component of promotion which helps
the retailer in improving the sales and Sales force Sales Business
promotion promotion
generate higher profits. Promotion is like (Sales force Promotion (Business
members) Activities customers)
communicating with an audience through
a variety of non-personal and non-media
channels. In sales promotion, the firm provides special
Trade
offers to the customers, such as providing discounts, promotion
etc. Offers are direct proposition which form a part of (Wholesalers
and
the deal. Thus, sales promotion stands for all those Retailers)
activities which supplement, coordinate and make
Fig. 3.1 Sales
an effective effort of personal selling and advertising. promotion activities
69

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It increases sales and also stimulates the consumers to
buy more.
Objective of sales promotion

Sales promotion is designed to be used as a short-term
tactic to boost sales. The objective of sales promotions
are as follows:
1. Stimulate inquiries from consumers asking for
detailed information about a product
2. Increase the product trials in expectation that the
trial would lead to customer satisfaction
3. Encourage repurchase of goods, develop loyalty
in a customer’s mind
4. Initiate inventory building by retailers to help
consumers with a ready supply
5. Get dealers’ promotional assistance by co-
coordinating with personal selling.
Sales promotion techniques

The promotional techniques are originated by retailers.
These techniques provide necessary support for sales
promotion and can be studied under two heads as
detailed below in Figure 3.1.
Promotion
technique
Vendor or producer Retailer originated

originated sales promotion sales personal
Point- Direct
Instore Trade promotion Pack a. Window b. Instore
of-sale to
activities incentives design display display
display customers
Fig. 3.2 Sales promotion techniques
(a) Vendor originated: The vendor-originated sales

promotion techniques are classified as in-store
activities, point of display, trade incentives, direct
promotion to customers and pack design. These
have been briefly discussed below.
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(i) In-store activities: These activities of sales Notes
promotion are targeted to give cash or kind
advantage to customers. The various type of
in-store activities of sales promotion are prose
off pack, premiums, small gifts, cooperative
promotion, sampling, coupons, buy one get
one free, multipacks, etc.
(ii) Point-of-sale display material: These are the
materials provided by vendors for placing
near products the customers often buy.
It include special fixtures, such as paperback
publishers racks, dry battery stand and
cold drink racks, etc. The other point-of-
sale display include display sign, leaflets
demonstration, and more.
(iii) Trade incentives: These are tradeoffs or cash
incentives directly provided by the vendors
to the retailers. The benefit sometimes may
be not extended to the customers. There can
be various types of trade incentives and cash
discounts, special credit terms, goods in lieu
of cash, staff incentives, etc.
(iv) Direct promotion to the customers: The
vendor manufacture may make use of direct
promotion at the consumer’s door steps.
This includes distribution of coupons and
free samples.
(v) Pack design: It is one of the most important
techniques of promotion for the retailer. The
retailer may decide to accept a package design
over its contents. Normally, the retailers
support those packs which have a better
package design.
(b) Retailer originated: All those measures which
normally motivate the customers to buy more,
and thus increase sales of the product are retailer
originated promotion techniques. These include
the following:
(i) Window display: A window display in a shop
is for displaying items for sale or otherwise
designed to attract customers to the store.
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Notes (ii) In-store display: In-store display includes
many promotion techniques, such as
mass display, multiple product promotion,
demonstrations, store loyalty cards, free gifts,
point-of-sale display, celebrity promotion,
joint promotion with other retailers, incentives
to staff, etc.
Thus, we find different types of promotion techniques
originated by vendor or manufactures and retailers,
which are highly useful for influencing the customers
buying decision.
Ways to influence customer buying

Consumer behaviour can be broadly classified as the
decisions and actions that influence the purchasing
behaviour of a consumer. What drives consumers
to choose a particular product with respect to others
is a question which is often analysed and studied by
marketers. Most of the selection process involved in
purchasing is based on emotions and reasoning. A
sales associate is expected to handle the prospective
customers in a different way to convert them to users
of the firm’s product. The different ways which he can
follow to convince the customer are as explained below.
1. Identify the prospective customer and take
initiative for a dialogue in a friendly and humorous
manner.
2. Collect as much as relevant information as
possible about the product’s sale presentation.
3. Enlighten the products’ features and advantages
in comparison with the competitor’s product.
4. Present or demonstrate the product with
patience in an interesting manner to the
prospective customer.
5. Objection raised, if any, should be attended to
immediately and the issues should be clarified.
6. Enlighten on the product’s warranty period and
assure other sales services, if needed.
7. Maintain continuous relations with the customers
to get their feedback on product satisfaction.
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8. Improve selling skills like patience, good
communication, reliability, politeness, caring for
the customers, etc.
9. Do not lose temper when dealing with aggressive
behaviour of potential consumer, etc.
10. If required use sales promotion techniques to
convince customers for buying decision.
Thus, the sales associate will be successful if he
identifies the ways to convince prospective customers
to take a buying decision.
Acquire knowledge of the nature of product

A sales associate will be successful in their efforts if Product
they acquire the knowledge of products offered for characteristics
sale by the retail firm. Before taking steps to sell the
products of vendors, a sales associate needs to have
detailed knowledge of the product (see Fig. 3.2). To Explicit Explicit
attend to grievances or complaints or clarification characteristics characteristics
sought by the customer, the knowledge of the nature
of product is important. Fig. 3.2 Product characteristics
Explicit characteristics
The explicit characteristics of a product refers to those
characteristics over which there is a common agreement,
in both, the existence and attributes of the product.
There are five attributes which require the attention of
a sales associate. They are as follows:
(a) Physical configuration: A product is a bundle of
physical stuff. Every product has its own shape,
size, density, odour, taste, texture, colour, weight
and host of other physical attributes. Hence, the
sales associate has to acquire knowledge about
these areas of a product to influence a customer’s
buying behaviour.
(b) Associated service: A sales associate should
have knowledge of before and after-sales
service. Before-sales services include product
demonstration, informing about credit facilities,
if available, and after-sales services include
delivery, installation, provision of spare parts,
repair service, warranties, etc.
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Notes (c) Package and brand name: The sales associate
has to gain knowledge of packaging or brand name
to differentiate with competitors brand or product.
This enables to highlight the product features
in comparison with other products available in
the market.
(d) Product size: A sales associate must have
the knowledge of a product’s width, depth and
consistency. The width refers to a product lines
depth stood for a number of items in every product
line and consistency indicates the similarity
among the product lines.
(e) Product life cycle: A product’s life cycle includes
introduction, growth, maturity and decline.
A product can be located at any stage of its
existence and hence, the sales associate has to
know at which stage of existence the product is.
This enables him or her to formulate different
strategies for selling goods and services.
Implicit characteristics
It is evident that every person sees a product in a
different way and uniformity lacks in their view point.
The perception of a person may not match with the
perception of another. These points of disagreements
are called implicit characteristics. The implicit
characteristics of product are as follows:
(a) Product symbolism: A product is a symbol by
virtues of its form, size, colour and function.
The significance attributed by individuals vary
according to the needs and social interaction.
Hence, the sales associate has to study the product
in terms of status symbol, economy, performance,
etc., in relation to customers’ needs.
(b) Communication media: The sales associate has to
determine the consumer’s personal interpretation
of the symbols, medicated by his culture groups
and group influence and personality. He or she
has to study whether the product information is
given or hidden. The sales associate also needs
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to understand and communicate as to what the Notes
product is used for, at what rate, made by whom
and where it is available.
(c) Product perception: Perception is the physio-
psychological process. The sales associate has
to understand as to how products are perceived
by consumers. These perceptions influence the
marketability of a product. Hence, the sales
associate has to gather information about the
perception of consumers on a product sold by
the retailers. This helps to reformulate product
policies to suit the product needs of consumers.
(d) Product evaluation: Product evaluation helps
the retailer to know the consumer satisfaction over
the product used by him or her. Evaluation refers
to comparing the efforts involved and rewards
received by the consumer thus, every product has
both explicit and implicit characteristics which
are to be understood by the retailers acquiring
knowledge of these characteristics of a product.
It helps the retailers to formulate successful
product policies.
Activity 1
A field visit to identify the characteristics of product
Material required
Checklist, list of retail stores and notebook and pen or pencils
Procedure
2. Interact with the sales associate or store manager.
3. Identify and list the implicit and explicit characteristics of
the product.
Activity 2
A field visit to learn techniques of sales promotion.
Material required
List of retail stores, notebook and pen or pencils
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Notes Procedure
2. Observe the techniques adopted by the retailers for promoting
sales.
3. Interact with the sales associate or store manager.
4. Examine and list the techniques used for sales promotion.
5. Prepare and submit a report to your teacher.
Check Your Progress

1. Growing is the fastest ______________area of the marketing
activities.
2. ________________activities of sales promotion are targeted
to give cash or kind advantage to customers.

1. Coupons are the best example of__________________ for
the customer.
(a) trade incentive
(b) direct promotion
(c) in-store activities
2. Package design is the sales promotion technique initiated
by the __________________.
(a) dealer/producer
(b) consumer
(c) retailer
3. Window display is the __________________ originated sales
promotion.
(a) producer
(b) dealer
(c) retailer
4. Explicit characteristics of a product refers
to______________________.
(a) the existence and attributes of the product
(b) nature and attributes the product
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5. Physical configuration of a product refers Notes
to_______________________.
(a) shape
(b) size
(c) weight

1. Sales promotion refers to communicating with the
audience through personal and non-media vehicles.
2. Cash incentives are directly provided by the vendors to
the retailers.
3. The retailers support the packs which have better design.
4. Window display includes many promotion techniques,
such as mass display, store loyalty cards, etc.
Column A Column B
1. The disagreeing point in a A. Physio-psychological
product process
2. Common agreement for B. Sales promotion
product attributes
3. Perception of the product C. Public relations
4. The direct and immediate D. Dealer promotion
5. Comparing efforts involved E. Explicit product
and reward received
6. Indirect activity of sale F. Product evaluation
promotion
7. Direct activity of sales G. Implicit product
promotion

1. Define sales promotion.
2. List out vendor-originated sales promotion techniques.
3. What is a point-of-sale display?
4. What is trade incentive?
5. Why is package design an important sales promotion
technique?
6. What is trade incentive?
7. Differentiate between explicit and implicit characteristics
of a product.
8. What is meant by physical configuration?
9. What is product symbolism?
10. What is product perception?
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Notes F. Long answer questions
1. Define the objectives of sales promotion.
2. Explain the nature of products in detail.

1. Draw a chart on sales promotion techniques adapted by
different retail formats.
2. Identify the techniques that are very much suitable for
various retail formats.
Session 3: Responding to Questions and

Comments
A sales associate has a key role to play with the customer.
He or she is the only person directly approached by the
customer. However, even though the sales associates
are called more for interacting with the customers
but still it is important to train the sales associates to
handle tough questions and situations arising from the
customers. Training not only allows the sales associate
to have some idea of what to say to a customer in a
tough situation, but also gives them the flexibility to
adapt and add to their own personality.
Logical questions with customers

The sales associate must analyse the situation and
answer accordingly. This will satisfy the customer
and he or she will have a positive attitude towards the
person as well as the service provider. Some of the
logical questions to be kept in mind by sales associate
before starting a conversation with a customer can be
as follows:
When the sales associate is unable to answer a

customer’s query
A sales associate should not panic for not knowing an
answer because his or her responsibility is to show
firmness to make things right.
Never should the sales associate say, “I don’t know”,
as such a response will not help the customer. Instead
of giving such a response, a sales associate should say
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Unit 3.indd 78 29-10-2018 16:56:31
that “It is a valid question, let me find out the right Notes
thing for you”.
Place the need of the customer as important over a
situation of not knowing the answer. The question must
be taken to the concerned staff or superior to find out
the answer and respond to the customer.
When an item is not available to the customer

Any sales associate will not prefer to tell the customer
about the unavailability of a product. The main skills
while dealing with the customers is the use of positive
language. It helps avoid nasty or rash reactions. For
example, when a customer shows interest in a product,
but it is presently unavailable or will only be available
after sometime, in such a situation, the sales associate
might respond to the customer in two ways.
• With positive language: The sales associate may
say that the product will be available next month
and I will place an order for you, if needed.
• Without positive language: The sales associate
may tell the customer that the product required
is unavailable.
• Positive language replaces negative phrases (“I
can’t…”).
When transferring a call of the customer

Sometimes the call of a customer needs to be transferred
to the concerned department to help them. Customers
feel happy if their concerns are properly addressed.
Comments made on the product and how to

respond to it
Customers can often have some valuable comments and
suggestions on the usage and improvement in products,
but holding the product’s vision is the responsibility of
a sales associate. If any customer gives suggestions or
comments on the features of a product, then the sales
associate should not respond “We will take a look.” This
response gives false hope to customers and if they check
after a few weeks, this may disappoint them.
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Notes Favours that cannot be granted
Most requests from the customers are very reasonable
and every effort should make them happy. It is easy
to say ‘Yes’ to some of the requests being made by
the customers, but there will be some requests of
the customers which are difficult to say ‘Yes’ to. The
responses to such requests are to be made using positive
language and very politely. Showing them the possible
alternatives is one of the best ways to say ‘No’.
When a product is defective

Receiving a defective product is very discouraging
from a customer’s perspective. In such a situation,
showing empathy to the customer is very important.
Consider the examples given below to know the
responses to be made and how a problem can be fixed.
“I am so sorry to disappoint you. There was a mistake
in the manufacturing process or shipping. Can I send
a new one to you?” Such a response completes the
important objectives given below.
(a) Understanding a customer’s frustrating
experience — it explains what the problem is and
how clearly an immediate solution can be given.
(b) Depending on the type of product sold and how
a business is conducted, the sales associate can
respond to the customer saying “Should I send
you a full refund?”
Closing with a customer

A sales associate should always aim to ‘close’ a
conversation. This does not refer to closing the sale.
Instead closing a conversation means that a customer
is happy about the product.
A sales associate has to ensure that the customer
is leaving perfectly happy. This can be seen with three
important things:
(a) Care about getting what customer requires
(b) If they need any information or their query to
be answered, a sales associate must provide the
right information
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Unit 3.indd 80 29-10-2018 16:56:32
(c) A customer determines what is needed and that Notes
the need is met in a right way.
A sales associate must try ending a conversation with
phrases like “I am happy to help you, Sir or Ma’am”, “We
are happy to serve you”, etc., as they make a big impact.
Dealing with angry customers

A sales associate is required to be very polite to take
burden of an emotional and angry customer. The sales
associate may keep the following in mind:
(i) Apologise sincerely: “I am sorry” is a mandatory
response in such situations. Make a personal
apology to the customer who has faced an
ugly experience.
(ii) Sympathise: Many a times angry customers need
to be empathised with. Even small phrases spoken
by the sales associate, like, “I understand how
upsetting that must have been,” can help the
customer realise that the sales team is in this
pursuit to make things right.
(iii) Accept responsibility: The sales associate should
accept responsibility for a customer’s unhappiness.
It does not make the sales associate ‘at fault’.
(iv) Prepare to help: Fixing a problem by setting the
things right is important. A sales associate places
a replacement order for customers. Even if things
are handled perfectly, some customer simply
cannot calm down. In such a situation, the sales
associate should try making the best effort.
Activity 1
A role-play to learn responding questions and comments
Material required
Notebook and pen or pencils
Procedure
1. Divide the class into pairs.
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Notes 2. Ask them to perform the following retail store activities in the
retail business.
1st student: Sales associate
2nd student: Customer
3. At the end of the assignment, ask the 2nd student to share
his or her views on the sales associate’s ability of providing
customer satisfaction.
4. Observe how the queries were resolved during the role play.
5. Finish the play within the allotted time.
Check Your Progress

1. A sales associate should always aim to ______________a
conversation.
2. __________________ language replaces negative phrases.
3. Receiving a defective product is very discouraging from a
_________________ perspective
4. Sales associate gives the customer satisfaction by providing
the right ________________ about the product which the
customer has decided to buy.
5. A sales associate should show to the customer,
when any product is defective or needs any replacement.

1. How is a sales associate supposed to respond to an angry
customer?
(a) Angrily
(b) Must apologise
(c) Complain to the superior
2. Many a times, angry customers like to be _______________.
(a) empathised with
(b) argued with
(c) fought with
3. While dealing with customers it is important to always
close the sale by making _____________________.
(a) customer doubtful
(b) customer happy
(c) customer move away
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4. When a sales associate is unable to answer a customer’s Notes
query he or she must ___________________.
(a) panic
(b) not panic
(c) leave the place

1. A sales associate should not panic for not knowing
an answer.
2. Training allows the sales associate to have some idea of
what to say to customers in a tough situation.
3. Receiving a defective product is not very discouraging
from the customer’s perspective.
4. Sales associates are not required to be very polite to the
angry customer.

Column A Column B
1. Sales associate have to use positive A Sales
2. Holding the products vision is the B Phrase
responsibility of
3. In case of defective product C Language
4. Closing conversation is not closing D Sales Associate
5. End conversation with a E Empathise with
the customer

1. How should a sales associate respond to a customer’s
query when he or she has no answer?
2. How should a sales associate reply to the customer when
a particular item is not available in the store?
3. How should a sales associate react to the comments made
by customers on the product?

1. Explain how a sales associate should respond to questions
regarding transferring a call of the customer, product
quality and defective product.
2. How should a sales associate handle the severely angry
customers?
1. Identify the situations where a sales associate is unable to
answer or items are not available.
2. Demonstrate the customer handling skills.
3. Perform role-play on closing a conversation with
a customer.
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Notes Session 4: Techniques of Closing a Sale
Closing a sale, an important part of personal selling
process, refers to completing a sales transaction – it is
the final step while making a sales call to the customer.
It effectively refers to the customer signing on the dotted
line of the agreement completing the sale. The sales
process is adaptive, which means that each situation
may be different and the sales associates have to adapt
and understand what is important to each customer
and where each is in the buying process. But in order
for a sales associate to use adaptive selling, he or she
must thoroughly understand the steps in the selling
process and how each works to use them effectively.
Factors influencing the successful closing of

sales
Sales associates are generally evaluated by their ability
to close the sales. He or she has to acquire and practice
some special qualities which may help in successful
closing of sales, as discussed below.
• Salesman’s personality: The personality of the
sale associate influences the closing of a sale. It
refers to the sum total of everything about a sales
person that influences the prospects favourably.
The personality of a sales associate is divided
into physical, mental, social and character.
The physical attributes are sound health, neat
appearance and voice. The mental qualities are
alertness, confidence, enthusiasm, observation,
etc. The social qualities include friendly
appearance, condensability, courtesy cooperation,
well-mannered, etc. These characteristics help
the sales associate in closing a sale favourably.
• Awareness of company policies: The sales
associate should have the basic knowledge of the
company when he or she intends to close the sale
with the prospective customers. He or she must
be aware of the history of the company, its origin
and later changes, current affairs reputation
of personal, philosophy and policies, etc.
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This enables the sales associate to clarify all the Notes
queries of prospective customers and to induce
them to purchase goods.
• Product information: Product knowledge is
necessary for the sales associate. He or she gives
every possible information to the customer about
the product to get orders. It includes different
models, size, weight, ingredients, packaging,
equality, price, discount offered, benefits
replacement, after-sales service, etc., this help
the sales associate to close the sale favourably
with prospective customers.
• Need of customer: In order to close the sale,
sales associate should have the knowledge of
prospective customers. He or she has to study
in detail their buying behaviour, likes, dislikes,
nature and type of customers, etc., this study will
enable him or her to adopt suitable strategies to
close the sales.
• Information on competing products: The
knowledge of the availability of the product
and competitors in the market helps the sales
associate to highlight relative merits of the
product and closing a sale becomes an easy task.
Thus, these five factors are very crucial for the sales
associate in closing a sale with prospective customers.
Techniques of closing a sale

It is evident that the retailer gets the revenue only when
a sale takes place. Any sales is considered to be complete
and closed when the sales associate gets an order from
the prospective customer. The retailer adopts different
types of techniques to close sales. They are as follows:
• Natural close: It is also called as ‘ask for it’
close. The sales associate has to be sure that the
customer should not sense that he or she is using
a special formula to close a sale. The closing
technique should appear as a natural development
from the sales conversation. It has to be like a
natural resolution of the sale interview without
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Unit 3.indd 85 29-10-2018 16:56:32
Notes the customer’s knowing the special tactics of the
sales associate.
• The order form close: It is different from the
natural close technique, that is, the questions
asked are not in direct reference to the purchase.
Here, the sales associate has to sound natural
and avoid any rejection. For example, Sir, shall I
make the invoice or bill?
• The alternative close: In this technique the sales
associate assumes that the customer visiting
stores will definitely buy the product. The only
thing that is not decided is the design, colour,
style, shape, etc. Hence, product presentation
is very important in this technique of closing
the sale. The sales associate has to present an
alternative option which suits the needs of the
customer. It should provoke the customer to make
the final choice between the product options that
were presented.
• The summary close: Here, the sales associate
summarises the list of benefits that the
customer receives if a product is purchased
from the store. The sales associate may say
that “we have reached the end of sale, so may
I highlight the main points so that we could
close a deal. This technique is one of the most
natural methods of closing a sale and is used
by the sales associate for those customers who
are unpredictable.
• The cautionary tale close: The techniques of
closing a sale are usually adopted by the retailer
to motivate the customers to decide in favour of
the purchase of product. It has proved to be a
useful technique for closing the sale. It is possible
to motivate undecided customers to take a
purchase decision. It helps the customer to know
the implication of falling to decide to purchase a
product at that very moment. Hence, the sales
associate tries not to make up stories to motivate
the customers to buy.
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• The final objection close: Inspite of all the Notes
efforts of a sales associate, the customer
sometimes may have some objection right at the
end of a sale process. The customers may feel
hesitant to mention the objection point. The sales
associate has to try and persuade the customer
to communicate the objection point, as the final
objection may affect his buying decision in the
process of buying the product.
• The conditional close: This technique can be
used by the sales associate for that customer
who is very slow in making a decision. These
customers may have the intention to buy a
product but usually find an excuse that they
can delay their decision of buying the product.
At this point the sales associate should assure
and develop confidence in the customer that if
any help is required they will be at their service.
Hence, the sales associate has to forth the
conditional close in as subtle way, assuring the
customer of the best service.
• The lost sales approach: Different types of
customers visit the stores. Some come with
a definite decision to purchase, some may be
inductive, some may develop some objection to
purchase in the end. A sales associate should not
feel that he or she has lost sales with such type
of customers. The lost sales can be realised with
further conversation with the customers. He or
she has to deal with them in maintaining a sense
of balance. Therefore, lost sales can be converted
as actual sale with the additional selling efforts of
sale person.
• The assumption close: A customer’s manners,
body language or comment may indicate the
decision that he or she made to buy a product.
The expression and communication of a
customer with the sales associates gives an
opportunity to make an assumption close which
means not having the purchase. It gives the
customer a chance to make a painless decision.
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Notes • The balance sheet close: It is closing technique
in which a sales associate assists an indecisive
prospect to list on paper the ‘arguments for’ and
‘arguments against’ a particular product choice.
Activity 1
Visit a nearby organised retail store and observe the closing
techniques adopted by the retailer
Material required
Pen, pencil, notebook
Procedure
1. Visit a nearby organised retail store along with your teacher.
2. Observe the closing techniques adopted by a sales person.
3. Present your views on the following:
• Final objection close ____________________________________
_________________________________________________________
_________________________________________________________
• Summary close _________________________________________
_________________________________________________________
_________________________________________________________
4. Draw up your side of balance sheet close
Sales associate reason for Buyer’s reason against
Activity 2
Visit a nearby retail store and observe a technique adopted by
the retailer or sales person to close a sale with the customer.
Present your observations in the form of a report in 1000 words.
Check Your Progress

A. Fill in blanks
1. The last step in the selling process is_____________________.
2. _______________means the act of actually getting prospect’s
assets to sales proposal.
3. Natural close is also called as_________________.
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Unit 3.indd 88 29-10-2018 16:56:32
4. The technique in which the question asked are not in direct Notes
reference to the purchase is called ___________________.
B. Multiple choice question

1. The technique in which a sales associate assumes that the
customer visiting the store will definitely buy the product
is called __________________.
(a) natural close
(b) summary close
(c) alternative close
2. The process of summarising the list of benefits the
customer gets is known as__________________.
(a) final objective close
(b) summary close
(c) cautionary tale close
3. The closing technique which is intended to motivate the
customer to buy a product is known as__________________.
(a) conditional table close
(b) conditional close
(c) balance sheet close
(d) lost sales approach
4. The closing technique which is intended for those
customers who are very slow in making decisions is
called___________________.
(a) conditional close
(b) assumption close
(c) balance sheet close
(d) lost sale approach
5. In which selling technique does a sales associate reasons
for and the buyer’s reasons against a product?
(a) Lost sales approach
(b) Summary close
(c) Balance sheet close

1. Having a friendly appearance is a social quality of a sales
associate.
2. In an alternative close, the sales associate has to provoke
the customer to make a final choice between different
products.
3. For unpredictable customers the sale close techniques are
called as alternative close.
4. The implication of failing to decide to purchase the product
at the very moment is called as final objective close.
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Notes D. Match the columns
Column A Column B
1. Conditional close A Motivating the customer
2. Final objection close B Reason for the against
3. Lost sales approach C Objective right at the end
4. Assumption close D show in making decision
5. Balance sheet close E Loss of customer
6. The cautionary tale F Expression & Communication
close of customer

1. Define closing of sale.
2. What is natural close?
3. What do you understand by the term ‘summary close’?
4. What is meant by balance sheet close?

1. What is closing a sale? Explain the factors influencing
successful closing of sales.
2. Discuss the techniques of closing sales.

1. Demonstrate the various techniques for closing a sale.
2. Identify the types and techniques of closing sales.
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Specialist Support
4
to Customers
When customers have questions, complaints

or suggestions about a company’s products or
services, they turn to customer support specialists
representatives for answers. Customer support
specialists provide specific information regarding the
services, products or materials solutions offered by
the company, and relevant details to customers. They
are sociable individuals with a knack for providing
professional and clear answers to customer’s requests.
They answer phones, provide troubleshooting
information, report and analyse customers’ information
and needs, issue billing details and open and close
customer accounts. In short, they are the direct link
between a company and its existing and potential
customers. A product is the item offered for sale. A
product can be a service or an item. Every product is
made at a cost and each is sold at a price. The price
that can be charged depends on the market, the quality,
the marketing and the segment that is targeted. The
features of a product refer to its size, colour, shape,
weight, price, brand name, reliability and durability.
Product information is essential for the customers to
determine the type of product to be used, whether it will
satisfy their needs or not, for its proper handling and
usage, modes of payment and delivery, terms of sale, etc.

Unit 4.indd 91 29-10-2018 16:56:54
The various methods of providing product information
to customers are one-to-one, product videos, web pages,
audio–tapes, CDs, newsletter, email, banners, posters,
pamphlets, etc.
Every retailer has to formulate a customer service
policy which highlights the policies of the retailer
towards the customer. A retailer has to develop a
machinery for handling customer complaints. The
various techniques of encouraging customers to use
the retailer products include keeping the customers
informed, speaking to customers, greeting them on
important occasions, etc.
In this unit we will study about the special support
services provided to customer. The Unit has been divided
into four sessions. The first session explains providing
product information to the customers, the second session
deals with the techniques to encourage customers
to purchase products, the third session discusses
personalised services and the fourth session fourth covers
about post-sales service support to the customers.
Session 1: Providing Product Information

Meaning and features of a product
In marketing, a product is anything that can be offered to
a market that might satisfy a want or need. In retailing,
products are called merchandise. In manufacturing,
products are bought as raw materials and sold as
finished goods. A service is another common product type.
A product can be classified as tangible or intangible.
A tangible product is a physical object that can be
perceived by touch, such as a building, vehicle, gadget,
or clothing. An intangible product is a product that
er Desig can only be perceived indirectly, such as an
n umb natio insurance policy. Services can be broadly
Item n
classified under intangible products which
can be durable or non-durable.
Price
Size
Product In business, a product feature (Fig. 4.1) is

one of the distinguishing characteristics of a
product or service that helps boost its appeal to
t Colo
igh ur
We
potential buyers, and might be used to formulate
Fig. 4.1 Product features a product marketing strategy that highlights
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Unit 4.indd 92 29-10-2018 16:56:55
the usefulness of the product to targeted potential Notes
consumers. Product features are characteristics of
a product that describe its colour, branding, packing,
labeling, varieties and capabilities. A product feature is a
slice of business functionality that has a corresponding
benefit or set of benefits for that product’s end user.
Need for product information

Product information can persuade consumers to
purchase the product. The product must fulfill a need or
solve a problem that the customer may be experiencing.
For example, if a customer needs a digital camera for
a night time event, he or she will look for a camera
that successfully works at night. Therefore, product
developers must make it a priority to present accurate
product information customers can depend on.
Customers need to know exactly what they are
getting before they purchase a product. The customer
needs to be excited about the possibilities of the product
they wish to purchase. This can be done only by providing
the right product information. They want to know
what makes the product better than the competition
or whether or not it is faster, more efficient or more
user-friendly.
Thus, product information helps the customers to
1. identify the kind of product they are going to buy,
2. identify if the product meets their needs and
interest,
3. understand the size, shape, colour, price, style,
brand, availability, etc., of a particular product,
4. understand how to use a product in
proper manner,
5. compare the products with other products
regarding the quality, price, quantity, availability,
and substitute product they should prefer,
6. understand the packaging, modes of payment,
modes of delivery, any other specification of the
particular products,
7. describe the terms and conditions related to
returning of the product, insurance, damage,
etc., and
8. understand any other information related to the
product.
93
Specialist Support to Customers

Unit 4.indd 93 29-10-2018 16:56:55
Ways of providing product information
Normally, a sales associate provides product information
to the customers to enable them to make the right buying
decision. Following are the methods through which
information is provided to the customers (Fig. 4.2).
(i) One-to-one: In this method a customer and sales
associate come face-to-face, where information
regarding a product is given to the customer.
(ii) Product videos: Video proves to be a great way to
communicate how a product works, display its
features and appearance.
(iii) Product webpage: A product webpage highlights
various product offerings along with their brief
description.
(iv) Audio–tapes, CDs, and Podcast: Product
information can also be given through tapes, CDs,
Podcast, etc.
(v) Newsletters: The information about a particular
product can be provided as advertisements in
newsletters.
(vi) Email: Information may be distributed by electronic
means in bulk through a mailer.
(vii) Banners and posters: Banners and posters also
help in spreading product information.
(viii) Pamphlets or leaflets or brochures: These media
of providing information includes the name, price,
brand, specifications,
More effective Richer mediums
terms and conditions,
Face-to-Face etc., of the product.
Effectiveness of communication
In all, product
Video conferencing information provides
Telephone many benefits, from
helping the sales associate
2-way radio achieve their targets to
Letters
Written, addressed documents
help a company’s systems
E-mail function properly.
Unaddressed documents Bulk mail With proper product
information, the company
Less effective Leaner mediums Posters
speeds up the time it
Fig. 4.2 Information media takes to bring a product to
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market, decreases the time it takes to get new products Notes
placed in catalogues and websites, and increases revenue
through high quality product information. Customers
need access to this information, so it is critical to place
a high priority on developing better product information
for your business.
Activity 1
A field visit to learn about product information
Material required
Notebook and pen or pencils
Procedure
1. Visit a retail outlet or a mall located in your area.
2. Interact with the owner or management and the employees.
3. Ask the following questions and write their responses in 50
words.
A. Questions to the retailer
a. What kind of information do you provide to the customers?
b. How do you help your customer to decide what to buy?
c. What are the ways you adopt to compare the products to
meet customers needs and interests?
d. Why do you think it is necessary to provide information to
the customers?
5. Discuss with friends, teachers and authorities at the retail
store.
6. Prepare and submit the report to your teacher.
Activity 2
A role-play to learn providing information to customers by
sales associate.
Material required
Notebook, pen or pencils
Procedure
1. Divide the class into groups.
2. Perform the following activities in the retail lab or classroom.
Role-play situation
A customer enters into the retail store and asks the retailer
for information on the products.
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Notes Role of students
1st Group: Customers
2nd Group: Sales Associate (Retailer)
Decide the product you would like to give information about.
4. Write down detailed information about the product.
6. Discuss the learnings from the activity.
Check Your Progress

1. A ___________________ provides product information
to the customers to enable them to make the right
buying decision.
2. ____________________ persuade consumers to purchase
the product.
B. Multiple Choice Questions

1. A _________ needs to know a product’s features, benefits
and whether it solves their problems before purchasing it.
(a) customer
(b) supplier
(c) cashier
(d) debtor
2. In order to help a customer what to buy, a sales associates
must have essential and up-to-date _______________.
(a) techniques
(b) product knowledge
3. The information about a particular product can be
provided as advertisements in ____________________.
(a) newsletters
(b) CDs
(c) audio-tapes

1. Product is an article that is manufactured for sale.
2. Product information is useful to compare with.
3. Videos are not very useful for visual explanation.
4. Information cannot be distributed through electronic
mode via email.
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D. Short answer questions Notes
1. Define product.
2. What is product information?
3. What is one-to-one information?
4. How is product information conveyed through web pages?
5. How are product videos useful in giving product
information?

1. Explain the features of a product.
2. Why do customers need product information? What are
the different types of product information media?
3. How do sales associates help customers in deciding what
to buy?

1. Draw a chart on types of product information media.
2. Demonstrate how to help a customer decide what to buy.
Session 2: Techniques to Encourage

Customers to Buy Products
Meaning of customer motivation
Consumer motivation is an internal state that drives
people to identify and buy products or services that
fulfill conscious and unconscious needs or desires.
Customer motivation is driven by his or her thoughts,
feelings and beliefs. If a product fulfils customer needs,
it will motivate the customer for repeat purchase. Hence,
the retailer has to understand the customers and
control their motivations. Depending on how important
a purchase is to an individual, his or her motivational
levels may vary from low to high. Influences include
familiarity with the purchase, status factors and overall
expense and value. Where fulfillment rewards are low,
as with groceries, motivation levels are also relatively
low and involve little decision-making behaviour.
Ways to motivate customers to buy

We all have needs and wants, and it is the desire to fulfill
these needs that motivates our choices. This applies to
all aspects of life, from health and fitness to personal
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Notes development — business is no exception. Listed below
are some tips on how to motivate your consumers to buy.
(a) Promote positivity: Positivity is a powerful
weapon to motivate the customers. Positivity has
the ability to persuade, inspire and motivate. For
example, an engaging retail experience with strong
customer service will generate positive emotions,
and promoting positivity will only encourage sales
— it can act as a hook, building customer loyalty.
(b) Inform the customer: When you are attempting
to influence a customer’s thinking, it is important
that the sales associate focuses on the benefits of
the product or service and what it can do for them.
Consumers look for trustworthy, knowledgeable
individuals to educate them on a purchase. Trust
is the most important factor leading to long-term
relationships and repeat sales.
(c) Offer testers: There comes a point in the buying
process when a decision has to be made. Based
on a number of factors, your customer will either
commit to a sale or they will turn away. Testers
enable uncertain customers to try out your
product or service before having to commit, giving
you the opportunity to build a relationship and
convert them.
(d) Encourage brand loyalty: Brand loyalty is one
of the best ways to secure reliable business, and
building brand loyalty is the key. Rewarding
consumers for their custom with stronger offers
or incentives is an excellent way to motivate
repeat custom.
(e) To communicate a consistent message: Every
business needs a consistent voice. It is important
to develop a clear and compelling message that
can be delivered consistently across all touch
points. If an offer is clear, then it is a much
easier sell.
(f) To improve the brand image: Consumer’s
decisions are hugely influenced by their awareness
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and relationship with your brand. Not only should Notes
the brand image reflect the company’s values
and message, but it should also engage with the
target audience.
Customer service policy

A customer service policy is a written document that
employees follow when dealing with customers who are
not satisfied with the company’s products or services.
It also lists that how employees should behave so as to
improve the overall experience for customers.
Most companies today provide a wide range of
products and services and employ a sizeable number
of employees. A customer service policy ensures that
each person within the organisation understands the
importance of serving the customers consistently with
the same high quality of service — irrespective of which
department the employee may work in or at what rank.
Such a policy ensures that the employees know that they
must put the needs of the customers before their own
and that providing empathetic, caring and responsive
service is everyone’s responsibility.
Policies for giving information to customers

A well-expressed and written down customer service
policy is like a set of rules and a path, which when
followed will lead to empowerment of the employees as
well as ensuring that customers are satisfied with the
services of the company most of the time. While giving
information to the customers, a sales associate must
• be polite and friendly with the customer.
• respect customer differences like values, cultures
and beliefs.
• respect dignity of all customers.
• listen carefully and respond in an attentive way
to customer inquiries.
• protect confidentiality of information.
• acknowledge customers by name.
• introduce himself or herself by name and role.
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Notes Policies for customer complaints
A complaint handling policy, or a complaints policy, lays
down the clear process and measures on how to resolve,
handle, and manage customer-related complaints on
the products and services offered by the business. The
steps of the complaint handling and resolving process
are as follows:
Step 1: When a customer complains, the sales associate
needs to take the matter seriously and ensure that the
details being given by the customer are correct.
Step 2: A sales associate must take up the matter to
the store manager in case of employee complaints. The
complaint must be documented in all aspects.
Step 3: According to the complaint type, sufficient
action must be taken by the sales associate or
store manager.
Step 4: If the complaint is not solved at the store level
by sales associate or store manager then the retailers
head office must inform and take order from them to
solve customer problems.
Step 5: If the same type of complaint occurs on a regular
basis, then prepare an action plan for the same.
Step 6: Lastly, an evaluation should be undertaken
at a pre-determined date to ensure improvement
has occurred.
Techniques to encourage customers loyalty
Following are the ways to generate strong customer
loyalty.
(a) Keep customers informed: Let the customers
know about the business and how the product
and service offerings can help them. The retailer
should produce a newsletter or greeting card
series that can be mailed or e-mailed to customers
regularly and ensure that the website contains
plenty of information on customer care service.
(b) Send handwritten notes: There is a lot of power
in a handwritten, personal note. It is the cheapest
and most effective loyalty building and customer
retention tool in existence. Handwritten notes
leave a positive impact on the customer.
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(c) Talk to the customers: The retailer should give Notes
the customers a call to inform them about offers.
He or she should make the time to chat with them
briefly and ask if there is anything that can be
done for them.
(d) Remember important occasions: Wish and
greet the customers on their birthdays,
anniversaries, and other important days. Send
personalised cards or letters in conjunction with
these occasions.
Activity 1
A role-play to learn the techniques to encourage customers
Material required
Checklist, notepads and pen or pencils
Procedure
1. Form a group of 8–10 students.
2. Undertake a role-play on techniques to encourage customer
loyalty.
Role of students
a) Sales associates: 1–2
b) Customers: 5–6
3. Incorporate the following questions in the role-play:
• What are the techniques used to encourage customer
loyalty?
• In what ways can we motivate the customers?
• What are the policies for providing information to the
customers?
performing group.
6. Discuss learnings from the activity.
Activity 2
A field visit to learn techniques for encouraging customers to
buy new products.
Material required
Checklist, list of retail stores and notepads and pen or pencils
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Notes Procedure
2. Interact with the owner and employees and ask the following
questions.
3. Write their replies in 50 words.
A Questions to the retailer
• What techniques do you use to encourage customers to
buy products?
• What are the ways to motivate customers?
• What are your policies for providing information to
the customers?
5. Discuss with your friends, teachers and owners of the
retail store.
6. Prepare a report on observation and submit your report to
the subject teacher.
Check Your Progress

1. If the same type of complaint occurs on a regular basis,
then prepare an _______________ for the same.
2. A ____________ note leaves a positive impact on customer.
1. When _________ customers are in the store or facility,
make the time to chat with them briefly and ask if there’s
anything you can do for them.
(a) retail
(b) valued
(c) demonstration
(d) debtor
2. While giving information to the customers, a sales
associate must be ______________ with the customer.
(a) polite and friendly
(b) angry
(c) rude
1. Customer motivation is driven by his or her thoughts,
feelings and beliefs.
2. Testers enable customers to try new products.
3. Customers can be motivated with good offers or incentives.
4. Customer service policy is an oral document that outlines
what an employee has to follow.
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D. Short answer questions Notes
1. Define customer motivation.
2. What do you mean by promoting positivity?
3. What is meant by offering testers?
4. What is brand loyalty?
5. What is brand image?

1. What do you mean by customer motivation? Why is
it needed?
2. Why do you mean by customer service policy? What are
the policies for giving information to the customers?
3. What are the policies for customer complaints?
4. What are the techniques for encouraging customers?

1. Perform the role-play on need for motivating customers to
buy products in a given condition.
2. Classify the policies for providing information to
the customers.
3. Demonstrate the steps involved in handling
customer complaints and techniques to encourage
customers loyalty.
Session 3: Personalised Customer Service

Personalised customer service
Personalisation is a means of meeting the customer’s
needs more effectively and efficiently, making
interactions faster and easier and, consequently,
increasing customer satisfaction and the likelihood
of repeat visits. Consumers have a lot of choices, and
personalised service can set the business apart from
the competition. For many consumers, a superior level
of customer service is enough to sway their decision to
shop with a particular store.
Customer service standards

Customer service standards are a company’s rules
or guidelines that inform and shape the customer’s
relationship with the business at every step throughout
the customer experience. Companies adopt these
standards to empower customer service employees
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to resolve complaints, problems
and questions as quickly and
Listen Understand satisfactorily as possible, for both
the customer and the company.
Prevent
Strong customer service standards
Customer Service Mitigate can help a company retain more
Standards loyal customers and increase profits
significantly. Customer service
Remedy
Communicate standards are a set of policies and
expectations that have been created
Act
and adopted by a company. These
Fig. 4.3 Customer service standards standards cover all the points of
contact the business may have with the customer.
The standards set by a retailer towards Personalized
Customer Services are as shown in Figure 4.3.
Best Practices for Providing Personalised

Customer Service
People today not only want the personal touch from
customer service representatives — they expect it.
Fortunately for entrepreneurs, personalised customer
service is one area where small businesses can really
shine. Following are the ways in which personalised
services can be offered:
• Greet the customers
• Listen effectively to the customers’ requests
• Promptly take necessary action
• Inform customer of unexpected delays
• Touch base with customers to update
• Respond immediately
Customised sales support

Today, tailoring interactions to individuals is crucial to
make the sale. Customers have too many choices when
it comes to making buying decisions, but retailers who
do not meet the new shopping experience standard
may see a serious decline in sales as a result. These
ever-changing expectations have led the retailers to
create an individualised experience just for them — i.e.,
personalised offers and tailored suggestions based on
the specific consumers’ wants and needs. The customer
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needs support from the Customer Sales Associate in the Notes
following areas:
(a) Respond as quickly as possible: One of the
biggest factors in good customer service is speed,
especially when a client is requesting something
that is time sensitive.
(b) Know your customers: Great interactions begin
with knowing the customers’ wants and needs.
Customers love personalisation. It is important
to know the customers, remember their names
and previous conversations. The sales associate
can even make a note of what was discussed
previously to refer to it the next time they meet
the same customer.
(c) Create and maintain a rapport with customers:
Trust builds rapport. Customers learn to trust the
retailer if they keep their commitments. A retailer
should build trust by demonstrating that he or
she is interested in the customer’s well-being —
beyond their own profit potential. Little things like
finding information for the customers or putting
them in touch with other suppliers tend to make
a big difference.
(d) Identify customer needs, preferences and
priorities: Identifying customer needs involves
researching the industry and asking the
customers lots of specific questions. To identify
the needs, a customer sales associate must
both listen and ask the right questions. After
identifying the needs, he or she should always
check for additional or related needs. Following
this, the sales associate must use his or her
knowledge and experience to identify and present
the right products, services, and solutions to meet
their customers’ needs.
(e) Ask the customer to know amount of their
disposable: People and businesses want to use
their financial resources as efficiently as possible.
Many products previously considered unique
offerings are now considered commodities. This
makes price even more important to the customer.
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Notes Therefore, a customer sales associate must ask
the customer how much he or she would like to
spend on the purchase.
(f) Provide information on sale of additional
or related products: In order to sell additional
products available in the store, a sales associate
should provide information to the customer
regarding the same, irrespective of the need of
the customer.
(g) Encourage customers to advice on purchase
decisions: Purchase decision is a process of
thinking that leads the consumer to identify the
need, generate choices and choose a definite
product. A sales associate must encourage the
customers to advice on purchase decisions.
(h) Maintain good relations with customers: The
act of maintaining a relationship with customers is
an essential part of a business strategy. Listening
and providing support to the customers is an
easy way to maintain customer relationships. For
example, if the customers are having issues
with any product, a sales associate must always
provide an honest answer and not make fake
promises. Building customer relationships is one
of the customer retention strategies.
Steps involved in personalised sales support

A ‘personalised service’ is a service which is made-to-
measure for the customer. Personalisation positively
drives key returns, such as revenue, conversion and
average transaction value. Personalised sales support is
a method, whereby a sales associate tries to customise
as per the unique needs of a specific customer or specific
subset of customers. Following are the steps involved in
a personalised sales support:
(a) Track consumers actions: Behavioural tracking
and price targeting have grown rapidly in
popularity among marketers and are very likely to
continue to gain acceptance. It is done to identify
the items the customers have enquired about.
There are potential increases in sales revenue
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Unit 4.indd 106 29-10-2018 16:56:55
and profits inherent in tailoring offers and prices Notes
to the buyer’s behaviour.
(b) Analyse customers by context: Customer
analysis is a process by which data from
customer behaviour is used to help make key
business decisions via market segmentation and
predictive analytics. This information is used by
businesses for direct marketing, site selection,
and customer relationship management to provide
a highly personalised shopping experience.
(c) Use individual targeting rules: Individual
targeting is a technique used by sellers to increase
the effectiveness of their sales and marketing.
Through information collected on an individual’s
behaviour, such as the products they express
interest in and/or the searches they have made,
sales associates select which products to display
to that particular customer.
(d) Create rules-based ‘cross-selling’ recommendations:
Cross-selling is the action or practice
of selling an additional product or service to an
existing customer. Cross-selling is profitable for
sellers as it allows them to sell more, closely tie
customers to their products, and make them
purchase again. However, it is also advantageous
for customers since they can buy required
supplementary products in one place and
save time.
(e) Mobile commerce personalisation: Many top retail
marketers are revising their digital marketing
strategies to focus on engaging the mobile
shopper and strengthen their mobile commerce
(m-commerce) personalisation plans. Consumers
have shifted from primarily researching products
via mobile and then switching to desktop or tablet
to make the purchase to now completing the
entire shopping journey on their smart device.
Nowadays, retailers are taking advantage of
this market surge and connect with consumers
through an enhanced, personalised mobile site.
Leveraging m-commerce personalisation allows
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Notes retailers and brands to deliver tailored content and
recommendations based on browsing behaviour
and contextual data, such as location, weather,
and time of day.
(f) Generate loyalty through personalised
services: Following loyalty strategies are used in
a personalised way to strengthen a customer’s
devotion to the retail business:
• Offering rewards for new customers
• Starting to offer discounts for store members
• Sending special and seasonal offerings
• Inviting customers to keep in touch
(g) Generate repeat sales: It refers to using every
opportunity to communicate the upcoming sales
offers to existing customer. Repeat sales can be
generated by
• telling customers about promotions
• selling gift cards
• promoting sales by sending periodical updates
and latest offers
• offering product demonstrations
• drawing customers’ attention with additional
benefits
In recent times, personalisation through emerging
technologies has enabled retailers to create loyal
customers and boost revenues.
Activity 1
A role-play to offer personalised services to customers
Material required
Checklist, notepads and pen or pencils
Procedure
1. Form a group of 5–6 students.
2. Undertake a role-play on providing personalised service to
customers by sales associates.
Role of students
(a) Sales associates: 1–2
(b) Customers: 3–4
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Notes
performing group.
Activity 2
A field visit to identify the personalisation of services to customers
Material required
Checklist, list of retail stores, notepads and pen or pencils
Procedure
2. Interact with the owner and employees.
3. Ask the following questions and write their replies in 100
words.
Questions to the retailer
• What kind of service do you provide to the customers?
• What are the steps you follow in providing personalised
services?
• What customer service standards do you maintain?
5. Discuss with your friends, teachers and retail authorities.
6. Prepare a report and submit to your subject teacher.
Check Your Progress

1. Tailoring interactions to individuals is crucial to make
the_____________.
2. For many consumers, a _____________ level of customer
service is enough to sway their decision to shop with a
particular store.
3. ______________ through emerging technologies enables
retailers to create loyal customers and boost revenues.
B. State whether the following are True or False

1. The increase in sales depends on the personalised sales
support provided to the customers.
2. Repeat sales can be generated by telling customers about
promotions.
3. Maintaining good relations with customers will help in
gaining long-term profit.
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Notes C. Match the columns
Column A Column B
1. Personalisation A Personalised sales
2. Customer service B Built with trust
standards
3. One-to-one sales C Adds value to a customer’s choice
4. Rapport D Customer retention strategy
5. Building customer E Set a target to meet customer
relationship needs

1. Define personalised service.
2. What are customer service standards?
3. What is meant by maintaining a good relationship
with customers?

1. What are the standards set by the company towards
personalised customer services? Explain in detail.
2. Why do you mean by personalised sales support?
3. What are the steps involved in personalised sales service?

1. Perform a role-play to explain the customer
service standards and standards for personalised
customer service.
2. Demonstrate the steps involved in personalised
sales support.
Session 4: Post-sales Service Support

Post-sales service support, sometimes called
after-sales service, is any service provided after
a customer has purchased a product. After-sales
support may be provided by a retailer, manufacturer
or a third-party customer service or training provider
and may include warranty service, training, repair
or upgrade, or various other services. After-sales
support may be considered to be part of a company’s
overall marketing strategy. Some customers
might seek out a company’s products based on its
after-sales service.
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Types of post-sales service support Notes
After-sales service refers to all the things a retailer
does for the care of their valued customers after they
buy their product. This type of customer aftercare is
important for any business. The various types of after-
sales support may consist of the following:
(a) Online support/technical support/help desk: It
includes assistance with technology merchandise,
such as PCs, software products, mobile phones,
televisions and most electrical or mechanical
products.
(b) Onsite support/customer support: Onsite
Support/Customer Support includes services
that help customer with products in the store,
mall, etc., at the time of sale. It is a range
of customer services to assist customers in
making cost-effective use of products.
(c) Customer training: It refers to providing
information to the customer regarding the
knowledge, skills and competencies required
to use the product. Customer trainings help
the customers to know the actual utility of
the products.
Today, post-sales service support continues to be an
important tool for both consumers and manufacturers.
A customer expects a cost-effective and reliable after-
sales support service. Manufacturers also rely on
consumer satisfaction to maintain business and sales.
Without a good after-sales support service, a product
can be difficult to sell.
Customer data
Customer data is information held on file about
customers by a store or other business, usually
including names, contact details and buying habits.
Customer data are the firsthand responses that are
obtained from customers through investigation or by
asking direct questions.
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Notes Collecting and storing customer information
Collecting and storing information about customers is
essential for retailers to tailor customer service programs
and grow the business. When collecting information
about customers, the sales associate should try to find
out what customers are buying, why they are buying,
and how often they are buying. Any potential customers
who have made enquiries about goods or services can
also be included.
There are many ways to collect information on the
customers, including:
(a) Order forms: Order forms let customers order
a specific product or service that the business
is unable to supply immediately, and are a
good way to collect customer information. If the
business stocks products with specific ‘release
dates’, the sales associate must consider using
pre-order forms to collect customer information.
By filling out a pre-order form, a customer makes
a commitment to buy a product and will often
pre-pay for it.
(b) Enquiries: It is a good business practice to
record the details of any customer enquiries to
follow-up with them. Enquiries also give an
opportunity to collect customer information and
mention the company’s website, mailing list or
social media pages.
(c) Recording complaints: Customer complaints can
be used as a way to collect customer information.
Not only does the complaint get recorded, but
also who made it, why, which staff member heard
the complaint and what was done to resolve
the problem.
(d) Warranty cards: If the business has products
or services that come with a warranty, warranty
cards can be used to collect and store the
customers’ information.
(e) Customer satisfaction surveys: To collect the
information on customer satisfaction, survey cards
can be used where customers rate, for example,
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Unit 4.indd 112 29-10-2018 16:56:56
aspects of your service out of 5. The back of the Notes
card can ask for the customer’s personal details.
(f) Feedback: Feedback cards can also be used
to collect information. Feedback can be asked
on specific aspects of your business or leave it
open-ended, like a suggestion box. Again, the
back of the card can request personal details.
(g) Company website: A business website can be
used to collect customer information through
a ‘contact us’ form for general enquiries, or by
allowing customers to sign up to a mailing list (if
you have regular news or updates).
Storing customer information

Customer information is confidential and must be stored
securely. A simple way to store customer information
is to use an electronic spreadsheet. If there is detailed
information, a customer relationship manager (CRM)
database might be more suitable. A CRM can help the
sales associate analyse customer information to find
purchasing trends and identify their best customers.
Maintaining customer information

Customer information is only useful if it is up-to-date.
It is important to regularly check the accuracy of the
customers’ information, and update it where necessary.
Using stored customer information

It is important to ask the customers if they would like to
receive information or updates, and give them the option
to opt-out. If a business spams customers without their
consent they may react negatively to the business.
Benefits of maintaining records of customer

information
Maintaining a good quality database with accurate
customer information pays dividends in the end. The
benefits of maintaining records of customer information
can be explained through the following points:
• helps to work more efficiently
• protects interests of government and of agency
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Notes • protects employee and citizen rights
• displays cost and impact on the business
• enables re-examination of processes and decisions
• helps in research and development activities
• enable steadiness and stability in the business
Customer data protection

Customer data protection needs to be right up there
with product quality, safety, environmental protection,
and anti-corruption processes. The information that
is entrusted to the business by its customers must be
protected not only for the sake of the brand, but also
any breaches could result in heavy fines. Businesses
must take all possible action to protect the data they
collect from customers. Data in your business can be
compromised in a number of ways, such as exposure of
sensitive data by employees, virus and malware attacks,
data is lost or stolen, data is lost in transit, etc. The
following steps can ensure that customer’s information
is always safe and secure:
• All of the IT systems’ anti-virus and firewall
protection should be up-to-date.
• The staff should be educated about a good data
security policy, which means locking computers
when not in use.
• Removal of sensitive customer data on removable
media, such as USB drives, should be prevented.
• Mobile devices, such as smartphones and tablet
PCs should use secure connections — such as
a VPN (Virtual Private Network) — when they
connect with the company’s servers to access
customer data.
• Backups of customer data are vital to carry out
on a regular basis. Using an off-site data backup
service can provide a level of redundancy to allow
the business to protect customer data.
Company laws and policies on data protection

The data collected by retailers include customer
information that makes a person identifiable, such
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Unit 4.indd 114 29-10-2018 16:56:56
as details of name, address, contact number, etc. Notes
It is important to understand what level of detail a
business can hold on its customers. The business
must have legitimate reasons for collecting and using
the personal data. The business should not use the
data in ways that have unjustified adverse effects
on the individuals concerned, and should be open
and honest about how it intends to use the data
and ensure that nothing unlawful is done with the
data. Upon receiving data the following policies must
be followed:
The collected data should be
• accurate and up-to-date.
• gathered for lawful purposes only.
• processed within legal and moral boundaries.
The collected data should not be
• communicated informally to the customers.
• stored for more than a specified amount of time.
• transferred to other retailers that do not have
adequate data protection policies.
• distributed to other than the parties that have
been agreed upon by data’s owner.
Some additional policies to be followed
• Allow customer to know the data which is collected
• Update the customer on how the company will
process their data
• Update the customer about others who will access
their information
• Have terms in cases of lost or corrupted data
• Allow customers to modify, erase, or correct
data contained in database
Promise to customers
Keeping promises to customers is a business necessity
today, in order to achieve customer loyalty. In today’s
competitive business scenario, customers have a huge
number of choices and they are unlikely to stay with a
company that is unable to inspire confidence and trust.
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When beginning an association with a new customer,
it is imperative for a company to set clear expectations.
It is vital that customers are kept informed in case of
inadvertent delays, such that customers are not kept
waiting and guessing. Customers do not like to wait,
especially if a company may have promised certain
deadlines and service level standards. In order to
remain consistently successful in keeping promises to
customers, companies must promise only as much as
they can deliver.
Types of promises to customers

There are four types of promises made to customers as
You get You get discussed below (Fig. 4.4).
great offer reliable quality
Type 1 – Offer-related promises: Here, a sales
associate can promise different offers that are to be
offered by the company to the customer. Offers may
include trade discount, cash discount, free shipping,
You get You get free gift, weekly discount, discounts on special
easy competent goods, etc.
shopping service
Fig. 4.4 Promises to customers Type 2 – Quality-related promises: Here, a sales

associate can promise about the different qualities of
the product, such as usability, appearance, reliability,
operability, stability, durability, etc.
Type 3 – Promises related to easy shopping:
Customers should be promised an easy shopping
experience, in terms of flexibility, availability,
transportation, durability, delivery, efficiency,
reputability, etc. These qualities of a product make
its shopping process easy.
Type 4 – Promises related to competent service:
Lastly, the promises related to after-sale service,
such as delivery of products, support by phone calls,
follow-up with the customer and any technical support,
are made.
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Notes
Activity 1
A role-play to learn the assessment of credit worthiness of
a customer
Material Required
Checklist, note pads and pen or pencils
Procedure
1. Divide the class into groups.
2. Undertake a role-play on providing post-sales service support
to customers by sales associates.
3. Make two groups among the class, one group will do the role-
play and the other group will judge them based on objectives
of the session.
performing group.
5. Finish the play within the stipulated time allotted to you.
Activity 2
A field visit to identify the methods used to store customer data
Material required
Checklist, list of retail stores, notepads and pen or pencils
Procedure
2. Ask the following questions to the owner and employees and
write down their replies in 100 words.
• What records do they maintain for storing customer
information?
• What are their policies for protecting customer
information?
• What are the promises they made to customers?
3. Identify the post-sales services support offered by them to the
customers.
4. Observe the data protection techniques adopted by them to
collect the details.
5. Discuss the findings with your friends, teachers and
retail authorities.
6. Prepare a report and submit to your teacher.
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Notes Check Your Progress
A. Fill n the blanks
1. ________________________ refers to teaching customer the
knowledge, skills, and competencies required to know the
use of a product.
2. ______________________ let the customers order a specific
product or service that the business is unable to supply
immediately.
3. Customer information is recorded and maintained by
__________________ in different ways.

1. Today, ___________________________continues to be an
important tool for both consumers and manufacturers.
(a) post-sales service support
(b) phone call
(c) customer data
(d) trust
2. A ____________ to customers is a business necessity today,
in order to attain customer loyalty.
(a) support
(b) sale
(c) promise
(d) retail

1. Post-sales service support includes guarantee.
2. Online support includes assistance with technology.
3. Customer training refers to providing customers with the
knowledge, skills and competencies required to know the
use of the product.
4. Maintaining records of customer information enables
re-examination of processes and decisions.

1. What is post-sales service?
2. What is online support?
3. What is customer information?
4. What is protection of data?
5. What are the promises related to easy shopping?

1. What is post-sales service support? What are the types of
post-sales service support?
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Unit 4.indd 118 29-10-2018 16:56:56
2. What do you mean by customer information? What are Notes
ways of maintaining customer information? What are the
benefits for maintaining records of customer information?
3. What are the company’s laws and policies on
data protection?
4. Why is promise to customer important? What are the
various types of promises made to a customer?

1. Demonstrate the customer service standards and
standards for personalised customer service.
2. Draw a figure on steps involved in personalised
sales support.
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Health and Safety
5 Management
Human safety mainly focuses on the safety of health,

hygiene and environment of all the people including the
customers, employees and the management. Everyone
at the workplace including employer, supervisor,
workers, supervisor, employees and customers have the
responsibility to promote hygiene and safety.
At home too, you must have experienced injury
due to hazardous tools, equipment and materials. For
instance, while working in the kitchen, your mother or
father might have at times hurt their finger with a knife.
Most of the units in an unorganised sector of retailing
do not follow basic hygiene or safety practices.
A retail outlet must not be harmful for customers.
Hazards associated with a retail environment are often
thought to be low risk, but accidents remain common
and can inflict significant extra costs on a business.
Session 1: Health and Safety Requirements

Meaning of health and safety
In terms of a retail store, it is the retailer’s responsibility
to ensure, as far as is reasonably practicable, the health
and safety of workers and any others who could be who
could be put at risk by the work of the business, such
as customers, visitors, children and young people, or
the general public.

Unit 5.indd 120 29-10-2018 16:57:18
Definition of health Notes
As defined by the World Health Organization (WHO),
health is a “state of complete physical, mental, and
social well-being, and not merely the absence of disease
or infirmity.
Definition of safety
Safety is the state of being “safe”, the condition of being
protected from harm or other non-desirable outcomes.
Regular risk assessments should be conducted at
retail stores to identify health and safety problems and
initiate the necessary measures to eliminate or mitigate
them as far as possible.
Health and safety requirements laid by the
retailer and the law
As a retail store owner, it is imperative to ensure that
retail space is safe for both customers and employees.
It is always expected from every sales associate to
identify and follow health and safety needs laid down
by the retailer and the law which are in place to act as
a monitor to avoid any kind of health or safety hazards.
Following are the factors to keep in mind while
undertaking health and safety measures at a retail
store:
(a) Abiding the law: A retailer has to show that he
or she is following all the safety practices in his
retail store.
(b) Risk assessments: A risk assessment examines
the hazardous conditions at a workplace to
identify risks and implement measures to prevent
or reduce the risk.
(c) Safety readiness from expected perils: As per
the Health and Safety legislation, it is required to
follow health and safety rules.
(d) Ergonomics: It is the science of matching a retail
store’s requirements to the retailer’s capabilities.
For example, if a retailer hires a weak person to
lift very heavy boxes for hours on end, there are
more chances of risk injury to the employee due
to poor ergonomics.
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Health and Safety Management

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(e) Air quality: Without proper ventilation air starts
to collect mold, fungus, bacteria or odours in a
retail store. Law recommends installing machines
that cycle fresh outdoor air and circulates it
throughout the store.
(f) Visual inspection of premise: As per the law it
is important to visually inspect the store premises
to ensure no hazards are visible which include
uneven flooring, spills and misplaced boxes.
(g) Crime: The retailer should install a surveillance
camera in different parts of the store for
safety purposes. Hiring a guard may also help
monitor the store.
(h) Training: Employees of the retail store should be
trained to tackle any situation inviting danger.
(i) Insurance: A retailer must get the retail
store insured.
Ways to encourage colleagues to follow health
and safety norms
Health and safety program is a process for managing
the prevention of work-related injuries and diseases at
the workplace. Retailers have the responsibility towards
employees to ensure their health and safety at the
workplace (Fig. 5.1).
Worker
Employer’s Responsibilities
Superviser
• Follow the health and • Provide a safe and healthy • Instruct workers for safe work
safety requirements as per workplace procedures
job • Ensure employees’ training, • Ensure that only authorised,
of
• Ask for training before you and keep records of that adequately trained workers
of
Responsibilities
begin work • Provide a comprehensive operate tools and equipment

• Immediately report any occupational health and safety or hazardous chemicals
Responsibilities
injury to a first-aid program, including a written • Ensure that equipment

attendant or supervisor health and safety policy and and materials are properly
• Take the initiative and procedure handled, stored, and
correct any unsafe • Initiate an immediate maintained
conditions immediately investigation into incidents • Enforce health and safety
• Make suggestions to • Provide adequate first-aid requirements
improve health and safety facilities and services • Train and check that your
• Provide personal protective work is being done safely
equipment (PPE), where • Inspect the workplace for
required hazards
Fig. 5.1 Health and safety responsibilities of co-worker

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Following are the ways to encourage colleagues to Notes
follow the health and safety norms:
(a) Create a plan: An employer should identify
hazards at the workplace and take steps to
minimise them, develop a safety plan and tell all
the colleagues to ensure their safety and what is
expected from them.
(b) Workplace inspection: Colleagues get
encouraged if equipment and tools are checked
and workplace is inspected on a regular basis.
They take safety practices seriously.
(c) Training: All employees should be trained
properly and encouraged to follow proper health
and safety practices.
(d) Supervision: Proper supervision is required
to ensure that all colleagues perform their job
properly and safely. They should understand
that if they do not follow instructions they will
not only endanger their safety but also be
held liable for the incident which could have
serious consequences.
(e) Informal communication: Meet the staff and
colleagues regularly and encourage them to share
health and safety ideas for improving safety at
the workplace.
(f) Discharge health and safety responsibilities
at workplace: The retailer should try to integrate
health and safety with all work process at the
workplace and provide guidelines which define
the health, safety and security measures as well
as required action and responsibility for execution
with the vision of an injury free organisation.
Activity 1
A field visit to observe health and safety practices at a
retail store
Material required
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Notes Procedure
1. Form a group of five students.
2. Ask them to visit a retail store or a mall located in your area.
3. Greet and interact with the store manager.
4. Tell him the purpose of the visit and take permission for
visiting the store.
5. Interact with the employees and ask the following questions
and write their replies in 100 words.
Questions
(a) How do you maintain the health and safety in your
retail store?
(b) What are the safety measures for the security of a
retail store?
(c) What are the ways to encourage your employees to adopt
health and safety measures?
6. Identify the areas which require health measures.
7. Observe the safety equipments and collect the details.
8. Discuss the findings with your friends, teachers and retail
authorities.
9. Prepare a report and submit to your teacher.
Check Your Progress

1. _______________________ is a process for managing the
prevention of work-related injuries and diseases at
the workplace.
2. ______________ is a “state of complete physical, mental,
and social well-being, and not merely the absence of
disease or infirmity.

1. Without proper ventilation, air in retail store starts to
collect ___________________.
(a) mold
(b) fungus
(c) bacteria or odour
(d) All a), b) and c)
2. A risk assessment examines the _____________ conditions
at a workplace
(a) uneven flooring
(b) spills
(c) misplaced boxes
(d) hazardous
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C. State whether the following are True or False Notes
1. Employees at the retail store need not be trained to tackle
any situation inviting danger.
2. Ergonomics is the science of matching the retail store’s
requirements to the retailer’s capabilities.

1. What is health?
2. Define safety.
3. State the requirements by retailer for health and safety.
4. Discuss ways to encourage colleagues to follow health and
safety norms.
E. Check your performance

1. Demonstrate good practices for maintaining good health
and safety conditions at retail store.
2. List the steps of health and safety requirements laid by
the retailer and law.
3. List down the ways to encourage colleagues to follow
health and safety norms.
Session 2: Equipments and Materials

Risk for retail stores
There can be a number of unforeseen situations which
may pose as potential threats for the workplace and the
workers at a retail store. These are called risks, which,
if not handled properly, can turn into emergencies.
Emergencies can be natural or manmade. They include
events, such as climbing accidents, electrocution, road
and fire accidents, machine injuries, etc. An emergency
can cause physical or environmental damage. It can
also disrupt retail business operations.
Types of potential risk at a retail store

Slips, trips and falls, lifting and carrying heavy loads
and standing for long periods of time are just some of
the ways that retail workers can be injured at work.
(a) Risk of musculoskeletal injuries (sprains and
strains): Lifting, carrying, pushing or pulling
heavy loads can put workers at risk of serious
injury. Workers are at risk from lifting and
carrying injuries particularly when a load is too
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Notes heavy, it’s difficult to grasp, or it is too large, the
physical effort is too strenuous, they are required
to bend and twist when handling heavy loads.
Injuries and conditions can include muscle sprains
and strains, injuries to muscles, ligaments,
intervertebral discs and other structures in the
back, and injuries to soft tissues, such as nerves,
ligaments and tendons in the wrists, arms,
shoulders, neck or legs.
(b) Risk while using power tools and equipment:
The employee may be required to use power
tools if he or she works in a hardware store
or a business, such as a bicycle or furniture
shop where his or her job involves assembling
products. Power tools can be extremely
dangerous if they are used improperly. Common
accidents associated with power tools include
abrasions, cuts, lacerations, amputations,
burns, electrocution and broken bones.
Some other risks which turn into emergencies

at retail store include
• Gas leaks
• Explosions
• Snake bite or poisoning
• Electrocution
• Equipment failure
• Emergencies requiring evacuation
• Hazardous substances and chemical spills
• Internal emergencies
• Serious injury events or medical emergencies
• Bomb threats
• Hostage situations or terrorism
Risk assessment is the keystone to effective
management of health and safety.
Types of equipment and materials used in

the stores for health and safety
Following are the types of equipment and materials
used in stores for health and safety:
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(a) First-aid kit: It is the basic thing required when Notes
an injury occurs with employees at a retail store.
(b) Equipments for preventing and extinguishing
small fires: Many things, including heating
system, discarded cigarettes, electric appliances,
poor housekeeping or the improper storage of
chemicals can start fires. Quick action can prevent
a small fire from becoming uncontrollable. Fire
extinguishers are commonly used at retail stores.
It must be available and retail staff should be
trained how to use it. They must be of the correct
type for the hazard:
Type A – for combustibles
Type B – for flammable or combustible liquids
Type C – for electrical equipment
Type ABC – for general fires
(c) Smoke detector: A smoke detector is a device
that senses smoke, typically as an indicator
of fire. Commercial security devices issue a signal
to a fire alarm control panel as part of a fire
alarm system.
(d) Floor markers: Floor marking is the process
of using visual cues, such as lines, shapes,
and signs on floors to make a space easier for
people to navigate. These cues divide spaces,
highlight hazards, outline workstations and
storage locations, and convey important safety or
instructional information. Floor markers are often
part of a larger visual communication system
that includes wall signs and labels like ‘Caution
Wet Floor’.
(e) Personal protective equipments: Employers
have duties concerning the provision and use of
personal protective equipment (PPE) at work. PPE
is equipment that will protect the user against
health or safety risks at work. It can include items,
such as safety helmets, gloves, eye protection,
high-visibility clothing, safety footwear and safety
harnesses. It also includes respiratory protective
equipment (RPE).
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Notes Dealing with risks at retail outlets
Occupational Health and Safety (OHS) is an area
concerned with protecting the safety, health and welfare
of people engaged in work or employment.
Following are the actions to deal with health and
safety risks at retail stores:
(a) Training: Retailer must train employees on how
to use personal protective equipments.
(b) Written certification: It is given to employees as
a proof upon acquiring the formal training required
to deal with risks. The certificate contains:
• Name of employee trained
• Date(s) of training
• Subject of the certification
(c) First-aid: In case of health emergency at the
workplace the injured person should be given
immediate attention and first-aid before medical
help arrives.
(d) Avoiding electrical hazards: To deal with
electrical hazards, the retail workers should
inspect the wiring. All electric boxes should be
covered. All switch boxes and circuits should
be labelled.
(e) Avoiding musculoskeletal injuries: To deal
with musculoskeletal injuries (sprains and
strains) it is advised that employees should avoid
long periods of repetitive movement, take micro-
breaks and change positions. They should avoid
awkward positions and use an adjustable chair.
(f) Avoiding risks related to lifting: For preventing
injury due to lifting, it is suggested that retail
workers lift smaller loads, by planning and
adjusting weight distribution ahead of time.
(g) Avoiding the risk of slipping: To avoid slips
it is advised to wear well-fitting, non-slippery
footwear. The walkways and work areas should
be clear of boxes, and other material. Any spill
should be reported to the person responsible
for getting the spill cleaned and placing a floor
marker till it is cleaned.
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(h) Avoiding the risk of falling: To avoid the risks Notes
related to falling from a height it is recommended
to use a stepladder rather than crate to reach
high items.
(i) Avoiding risk related to power tools: To avoid
risks related to any tool or equipment, if it is
operating, it is recommended not to walk until it
comes to a complete stop.
(j) Avoiding risk of shoplifting and robbery: It is
always advised to put all the equipment related to
security and surveillance in place and make sure
that notices are placed. The store must be well
lit, and a check must be kept on anyone who may
be watching the store or loitering in or around it.
Keeping a security guard will help avoid risk of
robbery and shoplifting.
(k) Safety data sheets: To avoid all the other risks
retailers must hand out safety data sheets to their
staff or put on the notice board.
Use of equipment with manufacturer’s

instruction
It is mandatory that the equipment at the retail store
are always used as per the manufacturer’s instructions
to understand the operations of the piece of equipment.
In a retail store following are the reasons to follow the
manufacturer’s instructions.
• Manufacturer’s instructions provide information
about the controls and wearing protective
equipment to protect against hazards associated
to a machine or equipment.
• By reading the instructions and information
provided by the manufacturer, retailers can
potentially save their amount.
Hence, we can say health and safety of workers
in a retail business are important aspects for an
organisation’s smooth and effective functioning. Good
health and safe performance ensures an accident-free
environment.
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Notes
Activity 1
A field visit to observe the equipment or material for health and
safety practices at a retail store
Material required
Procedure
2. Ask them to visit a retail store or a mall.
3. Meet the store manager and greet him or her.
4. Tell him the purpose of the visit and take permission for
visiting the store.
5. Interact with the employees and ask the following questions.
Questions
• What are the types of risk faced by a retail outlet?
• What type of equipment and material are used for health
and safety of a retail store?
• How do you deal with risks in a retail organisation?
• How do you use safety equipment in a retail organisation?
7. Identify the equipment which require health and safety
instructions before use.
8. Observe the safety equipment and collect the details about
the equipment.
authorities.
10.Prepare a report and submit to your subject teacher.
Check Your Progress

1. ___________________ may disrupt retail business
operations.
2. A __________________ is a device that senses smoke,
typically as an indicator of fire.

1. Risks which turn into emergencies at a retail store include
___________________________.
(a) uneven flooring
(b) spills
(c) misplaced boxes
(d) All a), b) and c)
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2. Contact with electrical equipment can cause Notes
_________________________.
(a) shock
(b) trip
(c) slip
3. _______________ is a type of equipment and material used
in the stores for health and safety.
(a) Knife
(b) First-aid kit
(c) Hammer
(d) Bat
1. There can be a number of unforeseen situations that
never are potential threats.
2. Quick action cannot prevent a small fire from becoming
uncontrollable.
Column A Column B
1. Smoke Detector A Used for small injuries
2. Fire extinguishers B Kept as a word of caution
3. First-aid kit C Use for preventing and
extinguishing small fires
4. Markers D Used for protecting from harm
5. Personal protective E Detects smoke or fire
equipments

1. Discuss the various types of risk in a retail organisation.
2. Explain the various types of equipment and material used
to deal with risks.
3. How should a retailer deal with risk?
1. Demonstrate the usefulness of various safety accessories
used in a store.
2. How to select equipment for common safety and health
concerns and problems in given situation.
S ession 3: D ealing with A ccidents

and Emergencies
Most retail stores are well-run and provide a safe haven
for shoppers. Storeowners do everything they can to
make their stores hazard-free and as safe as possible
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Notes for their customers. Unfortunately, with thousands of
customers coming and going in retail stores every day,
there are bound to be accidents and injured customers
or workers.
Reasons for accidents in retail stores

There are many reasons for accidents inside a retail
store that can be hazardous to the customers. The
reasons are as follows:
• Leaky ceilings may cause wet spots on floor
• Narrow walkways
• Uneven floor conditions
• Unexpected fire, accidents may take place owing
to power short-circuits
Thus, we find that retail stores are prone to
accidents and the retailers have to take precautions to
avoid such accidents.
Meaning of emergencies
Emergencies refer to a dangerous or serious
situation, like an accident, that happens and needs
immediate action. An accident may lead to
emergencies. A retailer is expected to take remedial
steps in emergency conditions.
Emergency conditions
There are a number of emergency conditions occuring
in a retail store which may cause threats to the stores,
employees and customers. These emergency conditions
may emerge owing to manmade mistakes or sometimes
they are natural. The various emergency conditions
occurring in a retail store are as follows:
• Explosion
• Insect bite
• Rat menace
• Electrocution
• Slip down
• Equipment failure
• Extreme environmental conditions — summers,
winters, rainy, windy, lighting, etc.
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• Hazardous substances and chemical spills/acid Notes
spills
• Loss of power, water supply, structural collapse
• Bomb threats
• Robberies and shootings
These emergencies shall lead to immediate attention
and actions by the retailer. He or she must always be
alert to undertake remedial measures to tackle these
emergency situations.
Dealing with accidents
Injuries can be the result of several different types of
dangerous situations in retail stores. However, if an
accident occurs at the retail store, the incident must
be recorded in the ‘accident book’, if required as per the
rules of the store. The management may need to check
such records to grant sick or accident pay.
Accidents can be dealt with by
• developing an initial plan,
• calling for help,
• contacting the doctor,
• changing the layout of facility/store, or
• updating emergency procedures.
Emergency
There are many types of emergencies that can occur
during what started out as a ‘normal day’ in retail.
A retailer is responsible for ensuring that when an
emergency occurs, the proper procedures are in place
to deal with the situation. Not planning for these events
now could result in someone being injured later. An
emergency is an unplanned critical event that could
cause serious injury, illness, death and property damage.
A retailer or employees of a retail store must not panic
during emergencies but remain calm, check for any
other danger, protect themselves first and the injured
person from fire, explosions or other hazards, treat the
most life-threatening problems like bleeding or shock
first, check for broken bones and if someone has injured
their spine do not move the person, and do call emergency
services like fire brigade or hospital, if required.
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Notes Emergency action plan
Due to the speed with which emergencies occur, it is
important that the retailer responds appropriately.
To do this every retail store should have emergency
response procedures based on their occupational health
and safety (OHS) policies. The retailer must ensure that
every staff member is aware of the action plan. While
developing an emergency action plan a retailer must
conduct a hazard assessment.
An emergency action plan must communicate
the following:
• Procedures for emergency evacuation, including
type of evacuation and exit route assignments
• Procedures to be followed by employees who
remain to operate critical operations before they
evacuate
• Procedures to account for all employees after
evacuation
• Procedures to be followed by employees performing
rescue or medical duties
• Means of reporting fires or other emergencies
• The name or job title of every employee who
may be contacted by employees who need more
information about the plan or an explanation of
their duties under the plan
Recognise when evacuation procedure starts

Retailer wishes no emergency or disaster take place in
retail store. Accidents and emergencies occur anyone,
anytime and anywhere. A disorganised mass departure
or evacuation results injury and property damage. That
is why when developing and following emergency action
plan, keep following points in mind:
• Conditions in mass departure
• A clear chain of command in the store
• At many places an ‘evacuation warden’ are there
to assist others in an evacuation and to account
for personnel
• Specific evacuation procedures includes routes
and exits are posted where easily accessible to all
employees
134

Unit 5.indd 134 29-10-2018 16:57:19
• Procedures for assisting staff with disabilities Notes
• Retail staff must be capable enough to recognise
when evacuate themselves
Follow retailer procedures for evacuation

Follow retailer procedure for evacuation which covered
in following points:
• During emergency, local officials order to
evacuate the premises. In some cases they may
instruct all the employees like shut off water, gas
and electricity.
• If there is an alarm listen attentively and follow
whatever official orders are received.
• In other cases a specially designated person
within the store should responsible for making
the decision to evacuate or shut down operations.
• Protecting health and safety of retail staff and
customers.
• In case of fire, an immediate evacuation to
predetermined area.
• Assessing situation to determine whether an
emergency exists.
• Supervising all efforts including evacuating
personnel.
• Coordinating with emergency services like
medical and fire departments and informed
when necessary.
• Shutdown of plant operations directly.
Activity 1
A field visit to know how to deal with irate customers
Material Required
Checklist, notebook and pen or pencils.
Procedure
135

Unit 5.indd 135 29-10-2018 16:57:19
Notes 4. Tell him or her the purpose of visit and take permission for
visiting the store.
5. Interact with the employees and ask the following questions.
Write their replies in 100 words.
• Have your customer irate with your working style?
• When they irate?
• What are the reasons behind their irritation?
• How you deal with irate customers in retail organization?
authorities.
7. Prepare a report and submit to subject teacher.
Activity 2
Prepare a chart on company procedure for evacuation
Material Required
Notebook, pen/pencils, drawing sheet.
Procedure
1. Form a group of group of five students.
4. Tell them the purpose of the visit and take permission for
visiting the store.
5. Interact with the employees and ask questions about the
company procedure for evacuation.
authorities.
8. Prepare a chart on the findings and present it in the class.
Check Your Progress

1. An unplanned event is called as an_____________________.
2. Unexpected fire, accidents may take place owing to power
_______________.
3. ________________ refer to a dangerous situation, such as
an accident.
4. The accidents may lead to emergencies and needs
immediate ___________________ of the retailer.
136

Unit 5.indd 136 29-10-2018 16:57:19
5. He expected to take _____________________ steps in Notes
emergency conditions.
6. Emergency situations are ______________________________.

1. Extreme environmental conditions include ______________.
(a) summer heat
(b) cold
(c) wet
(d) All (a), (b) and (c)
2. Which of the following is an emergency condition in retail
outlets?
(a) Electrocution
(b) Slip down
(c) Equipment failure
3. To deal with an accident it is important to instantly
_____________.
(a) develop an initial plan
(b) declare holiday
(c) send letters
4. Emergency conditions in retail include _________________.
(a) explosion
(b) insect bite
(c) rat menace

1. The accident which takes place in retail stores, may lead
to emergencies.
2. Sales Associate should protect himself or herself and the
injured person from fire, explosions or other hazards.
3. During an emergency, local officials order to evacuate
premises.

1. What are accidents?
2. How are accidents in retail dealt with?
3. How to recognise when evacuation procedure starts?
4. Discuss the company procedure for evacuation.

1. Demonstrate how to deal with irate customers carefully.
2. Prepare a chart on company procedures for evacuation.
137

Unit 5.indd 137 29-10-2018 16:57:19
Notes Session 4: Reporting Accidents and
Emergencies
Meaning of reporting
Reporting and recording of accidents and emergencies
are legal requirements for a retail store.
A retail store must notify the relevant local authority
of work-related deaths or certain work-related injuries.
Reporting involves
1. instructing employees to call police, fire or medical
emergencies,
2. listing emergency phone numbers and asking
the employees to report all the non-emergency
issues also,
3. posting emergency phone numbers on the notice
board at retail stores,
4. information about accidents and ill health and
5. developing solutions for potential risks.
Legal policies and procedures for retailers:

accidents and emergencies
The retail stores need to plan for emergencies and
special procedure need to be formulated by retailers in
addition to the adoption of provision of relevant laws.
The emergencies should be attended immediately.
Quick and effective action by retailers may help ease
the situation and reduce or avoid the consequence
and loss of property and life. Therefore, the retail store
staff should be well trained and competent to tackle
the emergencies.
Procedure and legal requirements

Normally, the retailers have to follow the following
procedures when emergency and accidents situations
arise:
• First-aid should be made available to reduce
seriousness of injury.
• Notify the accidents or emergencies to the store
supervisor.
• Restrict entry in the danger zone to avoid risk of
harming others.
138

Unit 5.indd 138 29-10-2018 16:57:19
• Warming alarms should be activated to alert the Notes
staff and customers in the store.
• Fire extinguishers should be used as per their
operating procedures.
• Concerned officials like ambulance, fire brigade
and police should be informed about emergencies
and accidents.
• Call the emergency services and guide them
properly to reach retailer’s premises.
• Make use of emergency lighting and exist doors to
reach place of safety.
• Alert competent people who are trained to meet
the emergencies.
System of reporting accidents and

emergencies to right persons
It is important to report to the relevant enforcing
authority — employers, or in certain circumstances
others who control or manage the premises and keep
records — of injuries, accidents and emergencies about:
• work-related deaths,
• work-related accidents which cause injuries to
the retail staff, and
• injuries to customers in a retail store.
In this way the accidents and emergencies are
reported in a retail store.
Activity 1
A field visit to know the retailers procedure of reporting accidents
and emergencies
Material required
Checklist, notebooks and pen or pencils
Procedure
2. Ask them to visit a retail store or a mall located in your area.
3. Meet the store manager and greet him.
139

Unit 5.indd 139 29-10-2018 16:57:19
Notes 4. Tell him the purpose of the visit and take permission for
visiting the store.
5. Interact with the employees and ask questions about the
retail procedure of reporting accidents and emergencies.
7. Discuss the findings with your friends, teachers and
retail authorities.
8. Prepare a report and submit to the subject teacher.
Activity 2
Role-play on reporting accidents and emergencies to the
right persons.
Material required
Notebook, pen or pencils and drawing sheet
Procedure
1. Divide the class into groups of three each.
2. Ask them to perform following activities in the retail lab.
Role-play situation
A customer enters a retail store to buy some goods, but
suddenly slips on the floor and gets injured on the head.
Now, try to explain how a Trainee Associate will deal with the
accident and report to the higher management.
Role of students
1st student: A customer
2nd student: Customer Trainee Associate
4. Discuss the learnings from the activity and points to be
covered.
Check Your Progress

A. Fill n the blanks
1. ____________________ and recording of accidents and
emergencies are legal requirements for a retail store..
2. ____________________ is made used to reduce seriousness
of injury.
3. ____________________ danger area to avoid risk of harming
others and then attend emergency cases.

1. Fire extinguishers should be used as per their operating
procedures.
140

Unit 5.indd 140 29-10-2018 16:57:19
2. Competent people who are trained to meet the emergencies Notes
need not be alerted.
C. Match the columns
Column A Column B
1. First-aid A cause serious injuries to
workers
2. Emergency equipment B reduce the seriousness of
the injury
3. Work-related accidents C trained to meet the
emergencies
4. Warming alarms D fire extinguishers
5. Competent people E activated to alert the staff
and customers in the store

1. What is the meaning of reporting?
2. Discuss the retailer procedure for dealing with accidents
and emergencies.
3. What is the system of reporting accidents and emergencies
to the right person?

1. Demonstrate the procedure to deal with accidents and
emergencies.
2. Perform a role-play on reporting accidents and emergencies
to the right persons.
141

Unit 5.indd 141 29-10-2018 16:57:19
Answer Key
Unit 1: Fundamentals of Retailing
Session 1: Basics of Retailing
1. Consumer 2. Manufacturer 3. Small, scattered
4. Unorganised 5. Organised 6. Goods, services
7. Hypermarkets
1. (d) 2. (c) 3. (c) 4. (a)
5. (a) 6. (b) 7. (a) 8. (c)
1. True 2. False 3. True 4. False
5. False
D. Match the column
1. (F) 2. (G) 3. (D) 4. (A) 5. (H)
6. (B) 7. (E) 8. (C)
Session 2: Sales Associate Services to Customers

1. Consumption 2. Customer satisfaction 3. Impulsive
1. (d) 2. (b) 3. (a) 4. (b)
5. (b) 6. (d)
1. True 2. False 3. False 4. True
5. False 6. True 7. False
1. (E) 2. (C) 3. (D) 4. (F)
5. (A) 6. (H) 7. (B) 8. (G)
Session 3: Skills for Handling Retail Business

1. Goal orientation 2. Transaction 3. Patience
1. (d) 2. (b) 3. (b) 4. (c) 5. (d)
6. (b) 7. (d)
1. False 2. True 3. True
4. False
1. (E) 2. (D) 3. (A) 4. (B) 5. (C)

Answer Key.indd 142 29-10-2018 16:57:40
Session 4: Duties and Responsibilities of Trainee Associates Notes
1. Sales 2. customers 3. information
4. selling
1. (d) 2. (a)
1. False 2. True 3. False
1. (C) 2. (E) 3. (A) 4. (B) 5. (D)
Unit 2: Process of Credit Application

Session 1: Features and Conditions for Credit Sales
1. payment 2. seller, customer
1. (b) 2. (d)
1. False 2. True 3. True
1. (D) 2. (A) 3. (D) 4. (B)
Session 2: Credit Checks and Getting Authorisation

1. bad debts 2. authorisation
1. (a) 2. (b) 3. (a)
Session 3: Processing Credit Requisitions

1. Requisition 2. credit requisition 3. Credit limit
4. vendors
1. (c) 2. (a) 3. (b) 4. (a)
1. False 2. True 3. False 4. True
1. (D) 2. (A) 3. (C) 4. (B)
143
Answer Key

Answer Key.indd 143 29-10-2018 16:57:41
Notes Session 4: Techniques for Determining Credit Worthiness
1. Creditworthiness 2. purchases 3. Credit Reporting
4. Capital Agencies
1. (b) 2. (b) 3. (b) 4. (a) 5. (a)
1. True 2. False 3. True
D. Match the column
1. (E) 2. (A) 3. (D) 4. (B) 5. (C)
Unit 3: Mechanism for Customer to Choose Right Products

Session 1: Methods of Selling
1. Sale 2. Proforma Sale 3. Auction
4. rearrange
1. (a) 2. (a) 3. (b) 4. (c)
1. True 2. True 3. False
1. (E) 2. (D) 3. (F) 4. (C) 5. (G)
6. (B) 7. (A)
Session 2: Sales Promotional Activities

1. sales promotion 2. In-store
1. (b) 2. (c) 3. (c) 4. (a) 5. (d)
D. Match the column

1. (G) 2. (E) 3. (A) 4. (F) 5. (B)
6. (C) 7. (D)
Session 3: Responding to Questions and Comments

1. close 2. positive 3. customer’s
4. information 5. empathy
144

Answer Key.indd 144 29-10-2018 16:57:41
B. Multiple choice questions Notes
1. (b) 2. (a) 3. (b) 4. (b)
1. True 2. True 3.False 4. False
D. Match the column
1. (C) 2. (D) 3. (E) 4. (A) 5. (B)
Session 4: Techniques of Closing a Sale

1. Closing a sale 2. Close 3. Ask for it close
4. Order form close
1. (c) 2. (b) 3. (a) 4. (a) 5. (c)
1. True 2. True 3. True 4. False
D. Match the column
1. (D) 2. (C) 3. (E) 4. (F) 5. (B)
6. (A)
Unit 4: Specialty Support to Customers

Session 1: Providing Product Information
1. Sales associate 2. Product information
B. Multiple Choice Questions
1. (a) 2. (b) 3. (a)
1. True 2. True 3. False 4. False
Session 2: Techniques to Encourage the Customers to Buy the

Products
1. action plan 2. handwritten
1. (b) 2. (a)
1. True 2. True 3. True 4. False
1. (D) 2. (E) 3. (A) 4. (B) 5. (C)
145
Answer Key

Answer Key.indd 145 29-10-2018 16:57:41
Notes Session 3: Personalised Service
1. sale 2. superior 3. personalisation
1. True 2. True 3. True
C. Match the column
1. (C) 2. (E) 3. (A) 4. (B) 5. (D)
Session 4: Post-sales Service Support

1. customer training 2. order forms
3. companies
1. (a) 2. (c)
1. True 2. True 3. True 4. True
Unit 5: Health and Safety Management

Session 1: Health and Safety Requirements
1. Health and safety program 2. Health
1. (d) 2. (d)
1. False 2. True
Session 2: Equipment and Materials

1. Emergencies 2. smoke detector
1. (d) 2. (a) 3. (b)
1. True 2. False
1. (E) 2. (C) 3. (A) 4. (B) 5. (D)
146

Answer Key.indd 146 29-10-2018 16:57:41
Session 3: Dealing with Accidents and Emergencies Notes
1. accident 2. short-circuit 3. Emergencies
4. attention 5. remedial 6. unavoidable
1. (d) 2. (d) 3. (a) 4. (d)
1. True 2. True 3. False
Session 4: Reporting Accidents and Emergencies

1. Reporting 2. First-aid 3. danger
1. True 2. False
C. Match the columns
1. (B) 2. (D) 3. (A) 4. (E) 5. (C)
147
Answer Key

Answer Key.indd 147 29-10-2018 16:57:41
Glossary
Abusive: extremely offensive and insulting
Access: approach or enter (a place)
Accomplish: achieve or complete successfully
Adequate: satisfactory or acceptable in quality or quantity
Analyse: examine (something) methodically and in detail, typically
in order to explain and interpret it
Annoy: make (someone) a little angry; irritate
Anticipate: guess or be aware of (what will happen) and take
action in order to be prepared
Apology: a regretful acknowledgement of an offence or failure
Assemble: (of people) gather together in one place for a common
purpose
Automated: convert (a process or facility) to be operated by largely
automatic equipment
Breach: an act of breaking or failing to observe a law, agreement,
or code of conduct
Calm: not showing or feeling nervousness, anger, or other strong
emotions
Cautious: (of a person) careful to avoid potential problems or
dangers
Collateral: something pledged as security for repayment of a loan,
to be forfeited in the event of a default
Competent: having the necessary ability, knowledge, or skill to do
something successfully
Consistent: acting or done in the same way over time, especially so
as to be fair or accurate
Consumption: the action of using up a resource
Contingency: a provision for a possible event or circumstance
Courteous: polite, respectful, or considerate in manner
Credit: the ability of a customer to obtain goods or services before
payment, based on the trust that payment will be made in the future
Criteria: a principle or standard by which something may be judged
or decided
Curiosity: a strong desire to know or learn something
Debt: a sum of money that is owed or due
Default: failure to fulfil an obligation, especially to repay a loan or
appear in a law court
Deferred: put off (an action or event) to a later time; postpone
Distinct: recognisably different in nature from something else of a
similar type

Glossary.indd 148 29-10-2018 16:58:16
Domain: a specified sphere of activity or knowledge Notes
Elaborate: Involving many carefully arranged parts or details;
detailed and complicated in design and planning
Embarrassing: causing (someone) to feel awkward, self-conscious,
or ashamed
Essential: absolutely necessary; extremely important
Expenditure: the action of spending funds
Flexible: able to be easily modified to respond to altered
circumstances
Formal: done in accordance with convention or etiquette; suitable
for or constituting an official or important occasion
Frequent: occurring or done many times at short intervals
Gauge: a tool for checking whether something conforms to a desired
dimension , a means of estimating something
Generic: characteristic of, or relating to a class or group of things;
not specific
Hire: obtain the temporary use of (something) for an agreed payment
Intermediate: coming between two things in time, place, character, etc
Lend: allow (a person or organization) the use of (a sum of money)
under an agreement to pay it back later, typically with interest
Merchandise: promote the sale of (goods), especially by their
presentation in retail outlets
Obligation: an act or course of action to which a person is morally
or legally bound; a duty or commitment
Perceive: become aware or conscious of (something); come to realize
or understand
Perception: the way in which something is regarded, understood,
or interpreted
Persuade: cause (someone) to believe something, especially after a
sustained effort; convince
Pledge: a solemn promise or undertaking
Prescribe: recommend (a substance or action) as something
beneficial
Prompt: done without delay; immediate
Prompt: (of an event or fact) cause or bring about (an action or
feeling)
Relevant: closely connected or appropriate to what is being done
or considered
Reliable: consistently good in quality or performance; able to be
trusted
Remote: (of a place) situated far from the main centres of population;
distant
149
Glossary

Glossary.indd 149 29-10-2018 16:58:16
Notes Retention: continued possession, use, or control of something
Requisition: a formal written demand that something should be
performed or put into operation.
Reveal: make (previously unknown or secret information) known to
others
Review: acritical appraisal of a book, play, film, etc., published in a
newspaper or magazine
Risk: a situation involving exposure to danger
Segment: each of the parts into which something is or may be
divided
Sole: belonging or restricted to one person or group of people
Strategy: a plan of action designed to achieve a long-term or overall
aim
Trick: a skilful act performed for entertainment or amusement
Unique: being the only one of its kind; unlike anything else
150
Store Operations Assistant – Class XI

Glossary.indd 150 29-10-2018 16:58:16
Further Readings
A ndrew J. N ewman and P eter C ulten . 2002. Retail ing: Envir onment
and Operations. Cengage Learning India Pvt. Ltd., New Delhi.
Charles Lamb, Joe Hair, Carl McDaniel. 2008. Essential s of Marketing.
Cengage Learning. p. 363.
David Gilbert. 2000. Retail Marketing Management. Prentice Hall
Publications an impact of Pearson Education, New Delhi.
Deloitte. 2014. “Global Powers of Retailing 2014 ”. Retrieved March
2014.
D.P. Sharma. 2009. E-Retailing-Principles and Practice. Himalaya
Publishing House, Mumbai.
Ferrara, J. Susan. 2014. “The Worl d of Retail : Hardl ines vs.
Softlines”. Value Line.
Gibson G. Vedamani. 2007. Retail Management, Functional Principles
and Practices. Jaico Publishing House, Mumbai.
Harper, Douglas. 2008. “Retail ”. Online Etymology Dictionary.
J.K. Sachdeva and Abhishek Sachdeva. 2011. Mathematics for Indian
Retail Business. Himalaya Publishing House, Mumbai.
Jones Lang LaSalle. 2014. Retail Realty in India: Evolution and
Potential. p. 6.
Juneja, Mohan, R.C. Chawla and K.K. Saxena. 1999. Elements of Book
Keeping. Kalyani Publishers, Ludhiyana.
Kati Sumit. 2010. “Retail Selling Skills”. Himalaya Publishing House,
Mumbai
Madhukant Jha. 2009. Retail Management. Gennext Publiction,
New Delhi
M.N. Rudrabasvaraj. 2010. Dynamic Global Retailing Management.
Himalaya Publishing House, Mumbai.
Mohammad Amin. 2007. Competition and Labor Productivity in India’s
Retail Stores. p.1. World Bank. p. 57.
Patrick M. Dunne, Robert F. Lusch and David A. Gni Hith. 2007.
Retailing. Fourth Edition, Akash Press, New Delhi.
Philip H. Mitchell. 2008. Discovery-Based Retail. Bascom Hill
Publishing Group. ISBN 978-0-9798467-9-3
Phillip Kotler. 1988. Marketing Management — Analysis, Planning,
Implementation & Control. Sixth Edition. Prentice Hall of India,
Pvt. Ltd. New Delhi
R.S. Tiwari. 2009. Himalaya Publishing House, Mumbai.
Sheikh Arif and Kaneez Fatima. 2012. Himal aya Publ ishing House,
Mumbai.
Sontakki C.N. 1999. “Marketing Management”. Kalyani Publishers,
Ludhiana.
Steven Greenhouse. 2012. “A Part-Time Life, as Hours Shrink and
Shift”. The New York Times.

Glossary.indd 151 29-10-2018 16:58:16
Notes Suja Nair. 2011. Retail Management. Himalaya Publishing House,
Mumbai.
Sumit Kati. 2010. Himalaya Publishing House, Mumbai.
Time, Forest. 2014. “What is Soft Merchandising?”. Houston
Chronicle.
William M. Pride, Robert James Hughes and Jack R. Kapoor. 2011.
Business. Cengage Learning. ISBN 978-0538478083.
152
Store Operations Assistant – Class IX

Glossary.indd 152 29-10-2018 16:58:16

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RETAIL

Qualification Pack: Ref. Id. RAS/Q0104

Textbook for Class XI

Retail Sales Associate

First Edition ALL RIGHTS RESERVED

OFFICES OF THE PUBLICATION

Retail Sales Associate

The National Curriculum Framework–2005 (NCF–2005) recommends

Retail Sales Associate

Retail Sales Associate

Retailing is leading business activities register a remarkable transformation.

Retail Sales Associate

Retail Sales Associate

Retail Sales Associate

Retail Sales Associate

The National Council of Educational Research and Training (NCERT)

Retail Sales Associate

Retail Sales Associate

The retail industry secures the fifth position as an

Retail Sales Associate

Session 1: Basics of Retailing

Manufacturer Wholesaler Retailer Consumer

Fig. 1.1 Distribution channel

Retail Sales Associate

Organised and unorganised retail business

Retail Sales Associate

Fig. 1.2 Unorganised retailing

Organised retailing: It refers to trading activities

Retail Sales Associate

Difference between organised retail and

Table 1.1: Difference between Organised and Unorganised Retail Business

S. Base of Difference Organised Retail Business Unorganised Retail Business

Retail Sales Associate

Different types of retail business establishments

Based on merchandise offered

Fig. 1.4 Convenience store Fig. 1.5 Supermarket

(b) Supermarkets: A supermarket is a self-service shop

Retail Sales Associate

Fig. 1.6 Hypermarket Fig. 1.7 Specialty store

(d) Specialty stores: Consumer outlets, such as

Retail Sales Associate

Retail Sales Associate

(b) Corporate retail chain: A retail chain is one of a

Retail Sales Associate

Other modern retailers

Retail Sales Associate

Retail Sales Associate

Retailer’s services to the customers

Retail Sales Associate

b. The customers coming to the shop are from which areas?

c. Which modern methods of the retail business have you

d. What steps have you taken to satisfy your customers?

e. On an average how many customers visit your shop

Retail Sales Associate

d. List the names of retailers of your locality — town/city

Retail Sales Associate

e. Visit a retail outlet of an organised sector in your locality

Which commodities are sold in the shop?

What facilities are available for customers?

How does a consumer feel about retail stores? (Write

3. Unorganised retail is featured by and _

6. Retail is sale of _and __ from

1. 5. 9. __

2. 6. 10. __

3. 7. 11. __

4. 8. 12. __