Ustomer Satisfaction Importance, Strategies, Service Improvement and Suggestions on Weak Points in Retail Business

EUROPEAN CAROLUS MAGNUS UNIVERSITY

FACULTY OF ACTION LEARNING

Business Research and Consumer Behavior

Essay: Customer Satisfaction Importance, Strategies, Service Improvement and Suggestions on Weak Points in Retail Business

Supervisor: A. Eritsyan

Student: A. Galstyan

2007

Contents

IntroductionвЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦3

Customer’s Satisfaction Importance in Retail BusinessвЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦.5

Strategies in Retail Business...вЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦.вЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦..6

Service Improvement and Suggestions on Weak PointsвЂ¦Ð²Ð‚¦7

ConclusionвЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦..10

BibliographyвЂ¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦Ð²Ð‚¦11

Introduction

Retail is big business. In fact it is one of the largest in the world. This fact alone makes it extremely competitive. Every retailer should be aiming to make their store a retail destination-a place where people want to go. This can be supported by a good visual merchandising presentation. Badly merchandised stores won’t be inviting and will make it hard for customers to find the right products.

A good standard of merchandising you will influence the way customers perceive the store. Well- planned stores promote link sales, whilst also encouraging the customer to stay longer in the store and therefore increasing the likelihood of more purchase.

Everything from the latest technology, fashions, groceries and home wares use merchandising techniques so that customer will shop in one store as opposed to its competitors. It is therefore essential that every retailer is projecting the best image possible to become the most popular in its sector and generating the most sales and brand recognition.

On the high street all retailers are essentially doing the same thing вЂ" selling similar products. What differentiates one from another is the style in which they present their goods. Much of this is due to brand image and brand value.

Spending budgets for visuals/display will have a significant impact on the stores to ability to produce eye catching displays however small shops can often find a unique way to display products without big spending. For example a small business selling arts and crafts will often try to cram as many products in their window space as possible, using little or no props or graphics. Their lighting may also be poor and they may have a lack of inspiration to give that WOW factor. A large chain or “high end” business will have money to spend on props, graphics and fantastic lighting technology.

Quite often larger stores employ a specialist to design and oversee the whole display. Retail store design can have a positive effect on all business performance indicators, from turnover and profit to brand recognition and competitiveness.

So the retail environment is highly competitive and large and small shops battle for a share of the market. Positioning is very important, not just the location of the store but also the unique advantage, differentiator, that a shop can use as its main marketing massage. Understanding the customers is a key for creating the right elements of competitive advantage.

And finally, the world of retail is changing and customer’s expectations are getting more demanding, such as in the sector of grocery shopping customer demands are changing with current food trends, there is a much greater emphasis on healthy eating .

“Star” Supermarket Chain is the leading Armenian retailer, selling a wide range of both own brand and branded food and non-food products in its supermarkets. The chain is growing rapidly. Company has strengthened its efforts in all directions to achieve “best-in-class” operations and superb customer service. Category management, margin improvement, better communications and improved customer service are the major areas to work in. Pricing strategy will remain in mid-market level to be price competitive with lower service providers and be cheaper compared to high-enders. Star will continue its employment of proactive than reactive strategy to maintain its competitive advantage in the market.

Customer’s Satisfaction Importance in Retail Business

“Customer is king”

“Customer is always right”

“It is no longer enough to satisfy customers. You must delight them”.

Nowadays, the retail business uses many methods to gain customer’s satisfaction.

The main functions that the retail business needs are:

• Sustainable competitive advantage, that’s rival businesses might easily match