Friday, 6 January 2017

Chapter 4 Part 2



3 approaches for sustainable competitive advantage
                                I.            Build strong relationship with customers
                              II.            Build strong relationship with suppliers
                            III.            Efficient internal operations

Building strong relationship with customers: Customer Loyalty
  • More than simply liking one retailer over another
  • Customers will be reluctant to patronize competitive retailers
  • Approaches to develop loyalty by:
    • Build strong brand image
    • Creating unique positioning
    • Offering unique merchandise
    • Excellent customer service
    • Customer relationship management
    • Build retail community

  
 Brand Image
       Develop well known attractive image of their brand.
       Strong brand images facilitate customer loyalty because it reduces customers’ risks associated with purchase.
       Assurance to customers of consistent level of quality and satisfaction from the retailers.
       Retailers image can create emotional tie with customers that leads to customer loyalty.


Unique positioning
     Design and implementation of a retail mix to create an image of the retailer in the customer’s mind relative to its competitors.
     A perceptual map is frequently used to represent the customer’s image and preference for retailers.
     Perceptual map developed to indicate how similar the stores appear to customers.

Customer Service
     Consistent customer service is challenging because attitudes and behaviour are not consistent.
     It takes considerable time and effort to build reputations and tradition for customer service.



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