Nikitha Reddy Student ID #22838132 Management 189 Homework #1 1. How do customers judge the quality of a supermarket?

There are many factors that customers will take into consideration when deciding the quality of a supermarket. Firstly, it is important for the supermarket to have a wide range and variety of products so the customers have the ability to pick and choose from their selection. The supermarket should be a one-stop store and contain a huge assortment of products so consumers can receive a complete shopping experience under one roof. It is also essential for customers to receive high quality of customer service when they are shopping in the store. The attitude of customer service employees will create the ultimate shopping difference for customers. These customer service specialists should be eager to help and be willing to go out of their way to assist any customer. Price is also a factor that customers take into account when judging the quality of a supermarket. The prices should be at competitive prices compared to rivaling supermarkets. The quality of products should also be high-ranking because customers want to make sure they are getting the best merchandise for their money. A few more important factors that buyers take into account when judging the standard of a supermarket is the layout, location and hours of store operation. The layout of the supermarket is important because customers must be able to easily locate their products within the big supermarket. Clearly labeled aisles and clean and organized supermarkets will help customers find their necessary merchandise faster. The location of the supermarket is also important because it needs to be conveniently located in the city. If the supermarket is a far distance away from the suburbs or the customers residence it will prove to be a hassle to go there and in turn lead to poor customer turnout. The store functioning hours of the superstore are also important and the supermarket should stay open late to be more convenient for its customers. Lastly, it is important for the supermarket to have an accepting manner towards refunds and returns. A friendly return and refund policy will be highly beneficial for customers and will make them more likely to return to the supermarket for there shopping needs. 2. Indicate how and why each of these factors is important to the successful operation of a supermarket: a. Customer satisfaction: Customer satisfaction is necessary for the success and survival of any supermarket. If the supermarket wants to have a competitive edge over its rivals, they should take

customer satisfaction extremely seriously because this will be a huge asset to their marketing tool. It is also important for supermarkets to tend to the needs of their customers at all times. Within the stores, salespersons should assist their customers while their shopping by helping them find their necessary products and being helpful resources. Customers should always be dealt with utmost respect and should always be satisfied with their supermarket shopping experience. b. Forecasting: The supermarket should be able to forecast correctly and distinguish which products are in high and low demand and plan their inventory levels accordingly. Forecasting would allow supermarkets to maintain their inventory levels and plan its finances. Supermarkets should also forecast for conditions during different seasons and holidays. They should also be changing their products based on the times and technology to maintain an edge over its adversaries. c. Capacity planning: Capacity planning is important to the successful operation of a supermarket because it allows the company to know how much stock can be placed in the supermarket. It is also important for the supermarket to make sure that there is a good ratio of salespersons to customers throughout the store. d. Location: Location is an extremely important factor for the successful operation of a supermarket. The supermarket should be accessible to customers and should also be placed at a far enough distance from the supermarkets main competitors. If the store is located near its rivals, then there will not be enough of an incentive for customers to choose one supermarket over the other. Rent should also be taken into consideration when choosing a location for a supermarket. If the rent is high for the allotted space, the supermarkets management should make sure that their business would generate enough income to pay for the rental fees and still make a profit. e. Inventory management: Inventory management goes hand-inhand with forecasting. Supermarkets should make detailed inventory accounts so they know much of each product they should hold in their stores. This would allow for low inventory costs. f. Layout of the store: The layout of the store should be customer-friendly and allow for customers to easily locate their products. There should be multiple visual aids throughout the store to make it easy to find their products in a quick manner. Aisles and walkways should not be cluttered to make it faster for customers to locate their merchandise. There should also be sufficient lighting within the supermarket. g. Scheduling: The supermarkets management should make sure that there always enough salespersons in the store to tend to the

needs of customers. They should take into account their peak hour times to schedule more workers during those times. 3. What are some of the ways Wegmans uses technology to gain an edge over its competition? Wegmans has attained a competitive edge over its competitors by utilizing technology in several areas of operation. Firstly, this supermarket uses technology to manage their supply chain. This allows for a more foolproof method of overseeing the supply chain. Wegmans Supermarket also utilizes technology to manage the quality of their products (e.g., meat processing facility). Lastly, Wegmans also uses technology to track their inventory so their systems can instantly note which products are in high and low demand.