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Service in Retailing : A Double Edge Sword

The Basic Tasks of Retailing

Service Delivery Touch Points : Task 1

Pretransaction services - Provided to the customer prior to entering the store.
Convenient hours Information aids

Service Delivery Touch Points : Task 2

Transaction services - Provided to customers when they are in the store shopping and transacting business.
Credit Layaway Gift wrapping and packaging Check cashing Gift cards Personal shopping Merchandise availability Personal selling Sales transaction

Service Delivery Touch Points : Task 3

Posttransaction services - Provided to customers after they have purchased merchandise or services.
Complaint handling Merchandise returns
Renting, not buying Fraudulent employee actions Shoplift returns Price switching

Servicing, repair, and warranties Delivery Post sale follow-up

Various Customer Types

7 LO 4

Various Customer Types

8 LO 4

Drivers of Retail Service Strategy

7 Ps
1. Product -Providing value for money by adding value to the product or service being offered.

2.Price -A product is only worth what a customer is prepared to pay for it. -Be open to the possibility that the current pricing structure may not be ideal for the current market. 3. Place -The product must be available at the right place (Product category), at the right time (time you sell your product), and in the right quantity (enough stock).
4.Promotion -This is the way in which you communicate to your potential customers about your product. -This can be done in a number of ways, which includes your brand image, advertising, special offers. -Small changes in the way the products are promoted and sold can lead to dramatic changes in results.

5. Physical Evidence This is the intangible part of the business mostly concerned with services as they cannot be seen. This is important because, fundamentally you are selling a product, but in order for you to be able to price your goods at the right the level, you will also be selling the service the buyer will receive. 6. People The reputation of the brand rests in the peoples hands. You must therefore ensure that all your people are appropriately trained, well motivated and have the right attitude. 7. Process -The process that you go through and the behaviour of those who deliver the products are crucial to customer satisfaction. -Issues such as waiting times , the information passed onto customers are vital factors when trying to maintain 100% satisfaction. -Processes must help the customers get what they want.

The changing Indian consumer

Indian consumer

Greater per capita income Increase in disposable income of middle class households 20.9%* growth in real disposable income in 99-03. Growing high and middle income population Growing at a pace of over 10%* per annum over last decade Affordability growth Falling interest rates Easier consumer credit Greater variety and quality at all price points


The changing Indian consumer

The urban consumer Getting exposed to international lifestyles Inclined to acquiring asset More discerning and demanding than ever No longer need-based shopping Shopping is a family experience Changing Mindset Increasing tendency to spend Post Liberalization children coming of age 100 mn 17-21 year olds*. Tend to spend freely. Greater levels of education

Indian consumer


5 Dimensions of Service Quality

TANGIBLES Appearance of physical facilities, equipment, personnel, and communication materials. RELIABILITY Ability to perform the promised service dependably and accurately. RESPONSIVENESS Willingness to help customers and provide prompt service. ASSURANCE Knowledge and courtesy of employees and their ability to convey trust and confidence. EMPATHY Caring, individualized attention the firm provides its customers

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