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Retail Management: A Strategic ApproachThirteenth EditionChapter 2Building And Sustaining Relationships In RetailingCopyright @ 2018, 2014, 2012 Pearson Education, Inc. All Rights Reserved
Learning Objectives2.1 To explain what “value” really means and to highlight its pivotal role in retailers’ building and sustaining relationships2.2 To describe how both customer relationships and channel relationships may be nurtured in today’s highly competitive marketplace2.3 To examine the differences in relationship building between goods and services retailers2.4 To discuss the impact of technology on relationships in retailing2.5 To consider the interplay between retailers’ ethical performance and relationships in retailing
Definition of ValueValue = Results + Process QualityPrice + Customer Access CostsResults = Overall quality, instructions, ease of assembly, taste/quality/health, warranty, product testing by retailerProcess Quality = Wide aisles, ease of finding, high in-stock position, fun experience, short waiting timesPrice = Costs + delivery + assembly + creditCustomer access costs = Warehouse club membership fees, inconvenient location, poor store hours, inadequate parking.
What is Value?Channel PerspectiveValue is a series of activities and processes (the “value chain”) that provide a certain value for the consumer. Customer PerspectiveValue is a perception that the shopper has of the value chain.It is the view of all the benefits from a purchase versus the price paid.
Retail Value ChainRepresents the total bundle of benefits offered to consumers through a channel of distributionStore location and parking, retailer ambience, customer service, brands/products carried, product quality, retailer’s in-stock position, shipping, prices, image, and other elements
Potential Pitfalls to Avoid in Planning a Value-Oriented Retail StrategyPlanning value solely from a price perspectiveProviding value-enhanced services that customers do not wa
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