Essays

Question 1

Essay 1 - Customer Service

Discuss the Normal expectations and some actions which might be taken if their expectations are not met

Discuss the Customer Service Approaches

The various types of services which Mr Smith can offer her customers

Answer 1

Customers are of vital performance to any business. Without them the business could not operate. Businesses have evolved to become more personalized when it comes to customer service.

In today’s increasingly competitive global market consumers have been accustomed to high standards of customer service that retailers strive to attain.

Fast, efficient and customized service is has become the norm among competitive industries, thus an normal expectation for consumers.

However sometimes things go wrong and a service failure occurs. Retailers can recoup after a service failure using technology and handling complaints effectively and efficiently.

Using technology in customer service includes the use of technologies such as self check out systems, digital surveys, and applications that help standardize services and reduce variability in the quantity of service. Retailer must ensure the technology is easily accessible and ready to use by their customers, and Incase the technology fails, retailers need to seamlessly switch to traditional employee based services accompanied by a process to rectify the problem and apologize for inconvenience caused.

Retailers often approach handling complaints in a standardized manner but this isn’t always applicable. The retailer must handle complaints by realizing that its he customers perception is of vital importance even if it’s right or wrong. When a customer lodged a complaint in any manner the retailer must firstly listen attentively to the customers problem to determine a mutually fair solution to the problem. Secondly the

Question 2

Essay 1 Customer complaints summary

Answer 2

Part 1
(Normal customer expectations, recovery actions)

Customers expect fast and efficient service

Recovering from service failure

• Technology
• Handling complaints

Listening to customer
Providing a solution
Resolving the problem quickly

Part 2

Customer service approaches

Two types

Customized service & Standardized Service

Customized service

• make customers feel special and results in higher levels of customer satisfaction. Service levels can vary as service employees’ service can be affected by personal reasons .
• technology can assist through collection of personal information to make recommendations

Standardized service

• this helps improve consistency of driver quality and quantity. Also helps reduce costs of hiring specialists to perform customized services.

Retailers design a standardized process which is followed by personnel where each step is clearly explained. Customers can also be informed on how to participate in the service to revive good quality service.

Process flow of standardized services is influenced by the design and layout of the store or website. Signs help retailers guide customers through the process

Part 3 - Types of services she can incorporate

• Assortment
• Financial services
• Returns and repairs
• Convenience
• Delivery
• Complimentary Services ( atms, restrooms, gift wrapping)

Question 3

Essay 2 - Assets and Risk Management

Answer 3

John has spotted the indecent of shoplifting in the store. Shoplifting is when a person takes property that belongs to another person without paying for it.

It is illegal to steal property and punishable by law. The property must be in possession of the owner and the thief must take the item with the intention of making it their own. A person does not have to leave the store or pass the payment point for them to be shoplifting. Legally the retailer must prove that the thief tried to hide the merchandise.

The various types of shoplifting that can occur include removing or replacing price tags, hiding merchandise in bags or clothing, false wrapping tue item in the packaging of a cheaper item, wearing the merchandise and pretending its your own, grabbing a handful of merchandise and making a run for it.

The risk management process for the managers of Zara would include

Identifying the risks

Evaluating techniques available to manage risks

Selecting a risk management technique (CCTV)

Implementing the risk management technique

Monitoring effectiveness of risk management technique

Various types of customer service

• financial services
• complimentary services
• replacement and repair services
• Delivery
• Convenience
• Assortment ( selection of related products, trying products before buying)

Question 4

Essay 3 - Merchandise Management

Answer 4

Merchandise management consists of various components that help the manager structure their merchandising needs. Below we will cover some of these aspects.

Analysis: analyzing the target market so that customers are identified and understood. Buying the right merchandise to satisfy the customers needs.

Planning: Buying merchandise well in advance of the intended season so retailers can decide what will sell in the future.

Acquisition: Purchasing the merchandise sometimes requires lots of research, traveling and negotiating

Handling: making sure the logistics is in place to get the merchandise where it is required in good condition

Control: Many buyers and planner are responsible for a lot of money therefore they need to evaluate how well money is spent and whether acceptable profits are made.

Aspects to consider when planning for merchandise

• VARIETY ~ the number of different types of product line offered to the customer
• a product line is a group of products that have similar functions can be substituted for each other and or complement the each other. Eg. Game offers a wide variety of products.
• ASSORTMENT ~ the number of choices offered in a specific product category which can be shallow or deep. It’s expensive for a store to offer both a vide variety and deep assortment. Eg Stuttafords used to be a large department with many different types of products and deep assortment.
• STOCK KEEPING UNITS
• a single item of merchandise which is described in detail to differentiate it from other SKU. A Vertigo T Shirt, Green, Size M. This allows merchandise team to see exactly what is selling and what is not.
• Category
• word used to describe a group of products that either substitute each other or complement each other. A consumer buying pasta might be interested in buying pasta sauce.
• assortment ~

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