Chapter 2
Chapter 2
Objectives Explain"Value"in Retailing Describe Relationship Nurturing Examine Relationship Building Goods Retailers Services Retailers Discuss Impact of Technology on Retailing Consider Interplay Between Ethical Performance and Relationships
• Explain “Value” in Retailing • Describe Relationship Nurturing • Examine Relationship Building – Goods Retailers – Services Retailers • Discuss Impact of Technology on Retailing • Consider Interplay Between Ethical Performance and Relationships
Value coals Customers Believe Good value for Money Customer Like Doing Business with retailer Channel Members Like Doing Business with retailer
• Customers Believe Good Value for Money • Customer Like Doing Business with Retailer • Channel Members Like Doing Business with Retailer
Value chain Involves: Manufacturer Wholesaler Retailer Series of Activities and Processes Provides a Given Level of value for Consumers Closely Related to: Desire to Make Profit Type of Strategy Pursued
• Involves: – Manufacturer – Wholesaler – Retailer • Series of Activities and Processes • Provides a Given Level of Value for Consumers • Closely Related to: – Desire to Make Profit – Type of Strategy Pursued
Benefits from Purchase Cost VS Benefit Varies by Shopper Type Concerned with Outcome NOT Process
• Benefits from Purchase • Cost VS Benefit • Varies by Shopper Type • Concerned with Outcome NOT Process
Value-Oriented Strategies Expected Retail Strategy Augmented Retail Strategy Potential Retail Strategy
• Expected Retail Strategy • Augmented Retail Strategy • Potential Retail Strategy
Value-Oriented Strategy Pitfalls Planning value with Only A Price Perspective Providing Value-Enhancing Services Customers Don't Want or Now Willing to Pay Competing in the Wrong Value/Price Segment Believing Augmented Elements Alone Create Value Paying Lip Service to Customer Service
• Planning Value with Only A Price Perspective • Providing Value-Enhancing Services Customers Don’t Want or Now Willing to Pay • Competing in the Wrong Value/Price Segment • Believing Augmented Elements Alone Create Value • Paying Lip Service to Customer Service
Customer Relationships Customer Base Core Customers
• Customer Base • Core Customers
Customer Service Expected Augmented Improvement Employee Empowerment
• Expected • Augmented • Improvement –Employee Empowerment
Customer Service Strategy Range Level Choice Price Measurement Retention
• Range • Level • Choice • Price • Measurement • Retention