Purchase Failures at a Retail Store Term Paper

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market economy, consumer purchasing behavior is critical for the overall survival of business. Business exists for its customers. If a busy cannot successfully cater to its business constituents, it will ultimately fail. Society has seen numerous examples of businesses who failed to adapt to the changing needs of their customers. Kodak, RadioShack, Barnes and Noble, and Borders are just a few businesses that could not alter their product offerings in a timely and efficient manner. Retail is currently undergoing a similar transformation. The internet has created a paradigm shift as it relates to customer interaction and overall demand. Through the internet, consumers now have the power of choice and information. Information asymmetry was prevalent during the pioneering days of retail where consumers did not have access to all of the competitor's prices. Now, through the internet consumers are on an even playing field, with access to pricing and product information at their fingertips. Through these fundamental changes within the industry, the key elements of product purchasing have changed. In many instances, retailers must now command a strong internet and store presence. Both brick and mortar, and the online presence must be able to interact seamlessly with one another. Customer service reps must be knowledgeable about applicable methods in which to encourage both online and physical store sales. Finally, stores must be able to a quickly alter product assortment to better cater to changing consumer needs.

Below is the service delivery process involving a frontline employee at a typical retail establishment.

Steps Before The Purchase (Detailed Explanation below)

Description

Step -- Patron is looking for customers

Customer shops within the Polo Shop looking for a particular shirt

Step 2- Front Line employee approaches

The front line employee asks the patron if they need help with their search

Step 3- Front Line employee searches for new customers to address

The patron declines the request and continues shopping

Step 4- Front Line employee waits at the counter

The patron looks around further looking for items that are appealing

Step 5- Front Line employee proceeds to ring out the customer

The patron locates a shirt on sales and brings it to the counter

Step 3

Step 2

Step 1

Step 5

Step 4

Customer Contact before the Purchase

This frontline employee works at a prominent department store, anchored within a highly visible mall location. The frontline employee is in charge of a particular section of the store, in this case, the Polo shop. The employee must greet and encage with customers who shop within his section being mindful to upsell customers when given the opportunity. When not engaging with customers, the employee is charges with merchandising the floor to make it appealing to customers. This activity includes sizing sales racks, cleaning the counter, and checking the fitting rooms.

Contact Point Failures before the Purchase

Through my observations of retail chains, I have noticed the customer nearly always declines help initially from the customer service patron.

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I believe this a direct result of the fundamental changes within the retail landscape, mentioned in the intro. Consumers now have the power to choose for themselves with complete information. The customer service rep now has a more diminished role as the consumer can now dictate and locate product with a phone or tablet. I believe this a failure within the purchasing process. The retailing may have a diminished role, but it can still guide the overall conversation within the store. Technology such as digital mannequins that can be dressed by the customer, and in-store tablets that show videos of how a product is made, all guide the customer conversation. They direct customers to the overall purchase decision by showing them the value proposition of the product. In essence, the retail clerk can supplement here knowledge with the digital interfaces mentioned above, to guide the consumer purchasing behavior. By using a digital means to showcase the value proposition of a particular product, the customer is better prepared to eventually make a more informed purchasing decision.

Steps During The Purchase (Detailed Explanation below)

Description

Step 1

Patron places her goods on the counter

Step 2

The front line employee begins to ring up the customer

Step 3

The front line employee asks if the patron would like to open up a department store credit card

Step 4

The patron declines and leaves with her bags in hand

Step 5

The front line employee begins to helps the next patron

Step 3

Step 2

Step 1

Step 5

Step 4

Customer Contact during the Purchase

The customer contact point during the purchase is relatively straight forward within the tradition retail framework. The clerk or front line employee simply scans the merchandise, being careful to place delicate items in the customer's bag. The front line employee then asks if the customer would like a department store rewards card. If declined the patron simply takes her belongings and leaves the store.

Contact Point Failures during the Purchase

This is arguable where the largest failure occurs. The purchase transaction should be relatively quick. However, this transaction provides the retail chain to differentiate itself relative to its peers using technology. Instead of waiting in very lengthy lines that ultimately discourage shopping, check out should be quick to encourage more shopping. Many retailers still do not have self-checkout lines. This is a great opportunity to allow individuals with small, inexpensive items to simply check out of the store using technology. The technology could also display potential rewards points to further command the overall purchasing conversation. The reason for this improvement is simple. Consumers do not want to wait in long lines. Many consumers are now conditioned to the quick purchasing of online transactions. The retail store has the distinct benefit of allowing customers to have a particular product the moment they purchase it.….....

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