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Lecture Retailing management (6/e): Chapter 19 - Levy Weitz

Lecture Retailing management (6/e) - Chapter 19: Customer service. The following will be discussed in this chapter: services offered by retailers, customer service strategies, standardization, cost of customer service, gaps model for improving retail customer service,. | Chapter 19 Customer Service Managing the Store Store Management Customer Service Layout, Design and Visual Merchandising 19- Services Offered by Retailers 19- Customer Service Strategies Customized Greater benefits to customers Greater inconsistency Higher cost Standardized Lower cost High consistency Meets but does not exceed expectations Royalty-Free/CORBIS 19- Customization Customization Approach encourages service provider to tailor the service to meet each customer’s personal needs. Store – sales associates offer individual customer service Electronic Channel – instant messaging Drawback: Service might be inconsistent Customized service is costly 19- Standardization Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently. Retailers that use this approach: McDonald’s Wal-Mart IKEA Dollar General Save-A-Lot The McGraw-Hill Companies, Inc./John Flournoy, photographer 19- Cost of Customer Service High levels of customer service can be costly, but good customer service is worth an investment PROFITS COSTS It costs more to acquire customers than to generate repeat business 19- Customers Evaluate Service Quality Role of Expectations: based on knowledge and experience: --Varies with types of retailers – discount vs. department store Perceived Services – evaluations are based on perception Due to its intangibility, services are hard to evaluate accurately Stockbyte/Punchstock Images 19- Assessing Service Characteristics Reliability: accuracy of billing, meeting promised delivery dates Assurance (trust): guarantees and warranties, return policies Tangibility: appearance of store and salespeople Empathy: personalized service, receipts of notes and emails, recognition by name Responsiveness: returning calls and emails, giving prompt service 19- Perceived Service Cues used to assess service Reliability Assurance Tangibility Empathy Responsiveness 19- | Chapter 19 Customer Service Managing the Store Store Management Customer Service Layout, Design and Visual Merchandising 19- Services Offered by Retailers 19- Customer Service Strategies Customized Greater benefits to customers Greater inconsistency Higher cost Standardized Lower cost High consistency Meets but does not exceed expectations Royalty-Free/CORBIS 19- Customization Customization Approach encourages service provider to tailor the service to meet each customer’s personal needs. Store – sales associates offer individual customer service Electronic Channel – instant messaging Drawback: Service might be inconsistent Customized service is costly 19- Standardization Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently. Retailers that use this approach: McDonald’s Wal-Mart IKEA Dollar General Save-A-Lot The McGraw-Hill Companies, Inc./John Flournoy, photographer 19- Cost of