Retail Mgmt Ch 18

  1. Customer service
    • The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers
    • Increases the value customers receive from the merchandise and service they purchase
  2. Strategic advantage through customer service
    • Good service keeps customers returning
    • Generates positive word-of-mouth, attracting new customers
    • Consistent good service = opportunity to develop sustainable competitive advantage
  3. Personalized customer service approach
    • Encourages service providers to tailor their service to meet each customer's personal needs
    • Greater benefits to customers
    • Greater inconsistency
    • Higher cost
    • "Go that extra mile"
  4. Standardized customer service approach
    • Based on establishing a set of rules and procedures for providing high-quality service and ensuring that they get implemented consistently by service providers
    • Lower cost
    • High consistency
    • Meets but does not exceed expectations
    • "Just supply the basics"
  5. Cost of customer service
    • High levels of customer service can be costly
    • Good customer service is worth an investment
    • Costs more to acquire customers than to generate repeat business
  6. Customer assessment of service characteristics
    • Reliability
    • Assurance (trust)
    • Tangibility (appearance)
    • Empathy (personalization)
    • Responsiveness
  7. Service gaps
    Occur where customer service doesn't reach consumer expectations
  8. GAP model for improving retail customer service
    • Knowledge Gap: knowing what the customer wants
    • Standards Gap: setting service goals
    • Delivery Gap: meeting and exceeding service goals
    • Communications Gap: communicating the service promise
  9. Knowledge gap
    • Solution: knowing what the customer wants
    • Comprehensive studies
    • Gauging satisfaction with individual transactions
    • Customer panels and interviews
    • Interacting with customers
    • Customer complaints
    • Feedback from store employees
  10. Standards Gap
    • Solution: setting service goals
    • High quality service commitment
    • Define the role of service providers
    • Set service goals
    • Measure service performance
    • Give information and training
  11. Management's role in service quality
    • Top management's leadership and commitment sets service quality standards
    • Store managers are the key to achieving those standards
  12. Delivery gap
    • Solution: meeting and exceeding service goals
    • Provide instrument and emotional support
    • Improve internal communications
    • Empower store employees
    • Provide incentives
    • Develop solutions to service problems
    • Develop new systems
    • Use technology
  13. Instrumental support for service providers
    Associates need to have the appropriate systems and the right equipment to deliver the services
  14. Emotional support for service providers
    Associates need emotional support from their coworkers or a concern for the well-being of others
  15. Empowerment
    • Allowing employees at the firm's lowest levels to make important decisions regarding how service is provided to customers
    • Stimulates initiative
    • Promotes learning
    • Teaches responsibilities
  16. Communications gap
    • Solution: communicating the service promise
    • Can be reduced by realistic commitments to corporate ideas and managing customer expectations
  17. Service recovery
    • Enable the retailer to demonstrate its commitment to providing high-quality customer service
    • 1) Listen to the customer
    • 2) Provide a fair solution
    • 3) Resolve problem quickly
  18. Distributive fairness
    Customers want to get what they paid for
  19. Procedural fairness
    Perceived fairness of the process used to resolve complaints
Card Set
Retail Mgmt Ch 18
FIT Retail Management Final