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Relationships in Retailing
Chapter Objectives
Expected
Augmented
Potential
Customer Service
• Expected • Augmented
customer service customer service
is the service includes the
level that activities that
customers want enhance the
to receive from shopping
any retailer such experience and
as basic give retailers a
employee competitive
courtesy advantage
Augmented Services: Going
Above and Beyond
Potential Pitfalls to Avoid in
Planning a Value-Oriented Retail
Strategy
• Planning value with just a price perspective
• Providing value-enhanced services that
customers do not want or will not pay extra
for
• Competing in the wrong value/price segment
• Believing augmented elements alone create
value
• Paying lip service to customer service
Value retailing
Classifying Customer
Services
Fundamental Decisions
What customer services are expected
and what customer services are
augmented for a particular retailer?
What level of customer service is proper
to complement a firm’s image?
Should there be a choice of customer
services?
Fundamental Decisions_2
Should customer services be free?
How can a retailer measure the benefits
of providing customer services against
their costs?
How can customer services be
terminated?
Typical Customer Services
Credit Gift certificates
Delivery Trade-ins
Alterations/ Trial purchases
Installations Special sales
Packaging/ gift Extended store
wrapping hours
Complaints/ Return Mail and phone
handling orders
Miscellaneous Customer
Services
Bridal registry Restrooms
Interior designers Restaurants
Personal shoppers Baby-sitting
Ticket outlets Fitting rooms
Parking Beauty salons
Water fountains Fur storage
Pay phones Shopping bags
Baby strollers Information
Turning Around Weak
Customer Service
Focus on Empower Front-Line
Customer Concerns Employees
Intangibility
Inseparability
Perishability
Variability