Quiz 2: Building and Sustaining Relationships in Retailing


Factors that determine customers' perception about the value while shopping at upscale apperals store are as mentioned below: • Privileges given to the customers • Ambience of the store • Quality of the products • Availability of branded products • Staff behavior • Getting promotional offers for purchase • Parking facility • Acceptance of all types of cards for payments Factors necessary for making consumers feel happy while shopping in low-apparel stores are as mentioned below: • Good quality products with less price • Bargaining facility • Large discounts in their purchases Perception of customers differ in both cases as when customer visit an upscale store his expectations are different as compared to his visit at a low scale store. While visiting an upscale store customer wishes to be treated in a friendly manner. In addition, he also believe that many different brands and products will be available as compared to low end store.

Expected service is the basic type of service that the customers desire from their service provider. An example of it is the basic employee courtesy i.e. code of conduct an employee should adhere to at his/her workplace. Augmented service is the add-on features to the expected service that the service provider offers to the customers to enhance their shopping experience. Augmented service also provides a competitive advantage to the business units. The expected and augmented values elements for the mentioned retailers are as follows: a. HD Company: Expected value chain elements include good customer service while augmented elements include high end designer products (smart home products) available at the store which are not easily available anywhere else. b. I Company: Expected value chain element for the company is efficient delivery service offered. Augmented value chain element for the company is high quality furniture transported in cartons which are assembled by the customer. c. Local vegetable and fruits store: Expected value chain element is the availability of fresh fruits and vegetable at the store. Augmented value chain element would be taking orders on phone and delivering them to customers.

Retailer should give special attention to is core customers because of following reasons: • They generate huge revenues for the business. • They are important mode for word of mouth publicity for the company. • They give valuable feedback to make changes which are essential for success of the business. • These customers help the company to achieve desired objectives and goals. The company can address core customers by giving good shopping experience to them. They should be treated well, so that they revisit the store and make more purchases. In addition, company should study their buying pattern and behavior in order to make desired changes in business style. This will help them to operate business profitably.