Question

For each of these services, give an example of a retailer for which providing the service is critical to its success, then give an example of a retailer for which providing the service is not critical: (a) personal shoppers, (b) home delivery, (c) money-back guarantees, and (d) credit.

Answer 1

a) Personal shoppers are critical in clothing retail stores such as Zara , Marks & Spencer to advise and help customers for what they are looking for. On the other hand personal shoppers are not required in grocery stores as people in general have a shopping list and are well versed with the store layout.

b) Home delivery is important for online retailers. This is how their system works, people place orders online and it is delivered to their doorstep. It is not required in most of the physical retail outlets such as a bookstore or clothing outlet.

c) Money back guarantees are good to have in most of the retail stores such as clothing or online retailers. It promotes customer loyalty and repeat business by building trust. Money back guarantees are critical in almost all stores and probably less critical in grocery chains as customers will more or less buy from the same shop if it is convenient for them. Further groceries are a necessity.

d) Credit is important in retail stores selling expensive items such as Cars and Jewellery. Most of the customers cannot afford to make a one-shot payment. Credit is not critical in a grocery chain, the items are relatively inexpensive and presence of credit option is not a major differentiator.