Retail Management and E-Tailing

                                                 ASSIGNMENT NO. 2

1. Value is embodied by a series of activities and processes—a value chain. This provides a certain
value to the consumer. What does the value chain comprise, and what features are readily
recognizable as far as consumers are concerned?

Ans: Consumers are concerned with the results of a value chain, not the process. If a
consumer buys food via food delivery he will only care that he received the food at the
promised time and not about the steps needed how the food was delivered nor prepared.

2. How would you differentiate between expected and augmented customer service provisions?
Why does customer service rely on the abilities of employees? What are the unique aspects of
service retailing? Give an example of each.

Ans: Expected retail strategy represents the minimum value chain elements a given customer
segment expects from a type of retailer. While augmented retail strategy includes the extra
elements in a value chain that differentiate one retailer from another.

The customer relies on the ability of the customer service because they think that customer
service has enough knowledge about the product they are selling.

Four unique aspects of service retailing impact relationship building and customer retention: (1)
The intangibility of many services makes a consumer’s choice of competitive offerings more
difficult than with goods, (2) the service provider and his or her services are sometimes
inseparable (thus localizing marketing efforts), (3) the perishability of many services prevents
storage and increases risks, and (4) the human nature involved in many services makes them
more variable. The intangible (and possibly abstract) nature of some services makes it harder
for a firm to develop a clear consumer-oriented strategy, particularly because many retailers
(such as opticians, repair people, and landscapers) start service businesses on the basis of their
product expertise. The inseparability of the service provider and his or her services means the
owner-operator is often indispensable and good customer relations are pivotal. Perishability
presents a risk that in many cases cannot be overcome. Thus, revenues from an unrented hotel
room are forever lost. Variability means service quality may differ for each shopping
experience, store, or service provider.
3. As a retailer, how would you reward social media referrals by customer

Ans: As a retailer, I will reward customers by providing discounts and coupons, and if they are
making frequent purchases, I will provide exclusive gift cards and even cash.

4. Describe three unethical, but legal, acts on the part of retailers that you have recently
encountered. How have you reacted in each case?

Ans: First, Raising prices on scarce products after a natural disaster such as a hurricane. I can
compare this when the pandemic strikes, and the face mask was too pricey. Though the price
was inappropriate I don’t have any option but still to buy them since it is needed. Second,
Selling alcohol and tobacco products to children. This scares me specifically I have a child. This
should be prohibited for children so that they won’t have any access to buy it. Third, Selling
refurbished merchandise as new. I think this would be a disrespectful way of selling knowing
that the money if the buyer doesn’t meet the quality of the item bought.

5. Differentiate between social responsibility and consumerism from the perspective of a retailer.

Ans: Social responsibility is an act of working for the community. This may be in a form of
volunteering, making donations, donating blood, or giving away goods. Some forms of social
responsibility may come in two forms which are cost-free or more costly. While consumerism is
an act of infringing the rights of consumers. Right to safety, right to be informed, right to
choose, and right to be heard.

6. How would you deal with consumer concerns about privacy in their relationships with retailers?

Ans: We should let the consumer be clearly informed about the way each company handles
data. Assure consumers that their personal data are kept secured by the company. Also,
consumers should be able to correct any personal data restored if believed it’s incorrect. Lastly,
consumer feedback on their personal private information should be promptly and properly
addressed right away by the company.

Ceres Thea B. Albacite

BSBAMM 1-1