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Retail Buying

Notes Customers evaluate the quality of a service by comparing the actual service delivered at the
store with the service expected. The gap between the perceived quality of service and the expected
quality of service has led to the identification of four types of gaps in service quality being
delivered: Knowledge gap, Standards gap, Delivery gap and the Communication gap. These
four gaps together form the Service gap. In order to improve the quality of service, retailers
have to minimize, if not close the service gap between the delivered and the expected service.
Retailers can close the gap by finding out customer expectations, establishing standards for
delivering the expected service to customers, providing instrumental and emotional support to
service providers, and communicating the merchandise and the service offerings to customers
in a realistic manner.
The failure to provide services according to the set standards leaves the retailer with little
opportunity to build and strengthen relationships with his customers. Though recovering a
service failure is very difficult, retailers can reestablish and strengthen their bonds with customers
by following a three step procedure; listening to customers, providing a fair solution, and
resolving the problem quickly.

Customer service has become the major determinant of retailing success. Retailers can earn
maximum profits only by developing integrated customer service programs.

7.5.2 Role of the Consumer in Marketing

Following are the role of the consumer in marketing:

 Firms exist to provide value to consumers. When consumers disappear, so does the firm.
 The consumer is a human being. He or she is not a number in a spreadsheet or a point on
a graph. The consumer has feelings and emotions.

 Each consumer is different.
 Customer service is an investment, not a cost.
 Every customer deserves to be treated with respect and dignity.
 Customers are talking to one another at unprecedented rates. If you are offering bad
service to one consumer, it will not be long before others get to know this.
 You must devote resources to listening to the market conversation.
 Marketing must now adopt a collaborative approach with the consumer rather than trying
to dictate how consumers must behave.
 Transparency of marketing operations will enhance consumer trust. If you are collecting
personal information from the consumer, full disclosure is the way to go.
 By adopting win-win marketing. You can enhance your profits by obsessing about serving
your consumers well.

Self Assessment

Fill in the blanks:
13. The Wheel of ............................. can be used to analyze the consumption history, a single
purchase, or some aspect of a purchase for a specific consumer.

14. Customer service is an ............................. not a .............................

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