I am very interested in the retail industry, particularly high fashion retailers. I have always been up to date with fashion trends and find the industry very exciting. I also feel that the fashion industry is a very interesting to study when it comes to customer insights and experience.
I feel that the overall image of a retail store is a very important aspect for the retailer to emphasize. The retailer must pay close attention to every element of the store. This is where my research will begin. My paper will be focusing on customer insights into the elements of a retail store. I will write the paper as a case analysis focusing on a specific fashion retailer and touch on every element of their store.
I am currently questioning some issues. First, I am unsure whether I will find a retailer that successfully creates an image for the customer, or a retailer that has failed at accomplishing this task. I may also address one of each. In addition, I do not know at this point if I will also mention the online retail store and the message that it sends. I also have thought about addressing a retailer that is not exclusively a fashion retailer.
The paper will relate back to class by concentrating on the importance of customer experience in the retail store and the insights into the elements of the store. For example, customer experience is obviously important because retailers research every element of the store to create an experience that is equal to the image of the store in the customer’s mind. Customer insights are what leads the store to determine specific elements and what their overall image is.
To better explain what I mean, take Wal-Mart for example. Wal-Mart is a retailer that focuses on everyday low prices and wants the customer to see them as a no frills store. This is communicated through specific elements of the retail store. The shelving, the racks, and the flooring are elements of the store that scream, “I’m not expensive!” The image that the store exudes is consistent with the image in the customer’s mind. However, this is not just by chance, it is considered with deep thought and research on creating an experience and customer insight.
I have not, yet, found an article that completely addresses what my paper is focusing on; however, I have found an article that stresses the importance of store image. The article is called “On the relationship between store image, store satisfaction and store loyalty,” by Josée Bloemer from Limburg University Centre in Belgium and Ko de Ruyter of Maastricht University in The Netherlands. The article is from the website emeraldinsight.com that I found through Google scholar. The title explicitly states what the article addresses. It points out the positive relationship between store image and loyalty. Therefore, it is extremely important for a store to convey a store image in line with the image of the customer. This can lead to increased satisfaction and store loyalty. I plan to find more articles that are a closer match to my specific paper topic. I do worry; however, that I will not find enough outside research that coincides with my paper.
I think that this paper topic will be interesting and I hope that I can really delve into the research and find good stores to analyze.
Sunday, February 22, 2009
Sunday, February 15, 2009
The Importance of Customer Experience
It has been my observation that offering a unique customer experience is the special secret to keeping a company afloat. Since there has been a trend towards experience oriented shopping, it is crucial for companies, especially retailers, to center their business around more than just the products or services, but on the entire shopping experience. Companies are trying anything to gain share of wallet in the state of a poor economy, and most customers agree that the key feature that urges them to spend is the experience.
The article Super Market by Ron Lieber gives a precise description of Central Market as an experience oriented grocery store. Lieber states that Central Market offers a family, educational, foodie, laboratory, and orienteering experience. I would definitely agree with Lieber. I find that Central Market is a fun place to just look around, and I hate going grocery shopping. In my opinion, Central Market has really done their research and learned that many customers dread going grocery shopping because it can be such a long, draining process. They have completely turned this “chore” into a fun experience for all types of customers. Central Market offers its customers a seating area, a café, and a much more open, less crowded feel. I have even had business school group meetings at Central Market because it offers an area to work that does not have to be so quiet. It pleased the group members because it offered an escape from the monotony of the library. We could grab a snack if we got hungry; we could people watch if we needed a quick break from working. I felt that the group was much more productive when we met at Central Market. Obviously, this reiterates the fact that Central Market’s idea of offering a unique grocery experience has definitely worked in their favor.
A few other stores that I believe offer a unique shopping experience are The Apple Store, Bass Pro Shops, and IKEA; however there are many other retailers that also provide a great customer experience. First of all, simply the look of The Apple Store is very appealing to customers. The clean lines and sleek color palette make the store attractive to the eye. It is also great to be able to try out every Apple product right there in the store. Customers are able to get online, check their email, and listen to music in the midst of their shopping trip. The Apple Store also has extremely knowledgeable employees onsite to help with any troubleshooting or customer service problems their customers may have. The Apple Store even has a section for the kids, so they can get on the computer and play a game while Mom and Dad get what they need. Bass Pro Shops is another retailer that truly understands the importance of customer experience. The large displays and scenery of the stores makes it an experience in itself. Then there is the huge array of products. Finally, the ability to cast a lure into an actual tank before purchasing puts the icing on the cake, if you are a fisherman anyway. Finally, IKEA is a destination store that works to make sure the customers have a fun experience while shopping for furniture. IKEA has a complete dining area in all of its stores serving anything from coffee and donuts to meatballs. This is perfect for the mom who wants to shop and the dad who wants to eat with the kids, or vice versa. The actual process of shopping at IKEA is also very unique. The customer simply walks around the store with a brochure of all the products and check what he or she wants to purchase. There are also many types of help in the form of maps, telephones, and people, so that the customers can find exactly what they are looking for or get any other questions answered.
As you can see, many stores are currently transitioning their services to accommodate for the trend towards a total shopping experience. However, there are many retailers who have fallen short on satisfying this need and I believe that these will be the companies that collapse in the midst of a tight economy.
The article Super Market by Ron Lieber gives a precise description of Central Market as an experience oriented grocery store. Lieber states that Central Market offers a family, educational, foodie, laboratory, and orienteering experience. I would definitely agree with Lieber. I find that Central Market is a fun place to just look around, and I hate going grocery shopping. In my opinion, Central Market has really done their research and learned that many customers dread going grocery shopping because it can be such a long, draining process. They have completely turned this “chore” into a fun experience for all types of customers. Central Market offers its customers a seating area, a café, and a much more open, less crowded feel. I have even had business school group meetings at Central Market because it offers an area to work that does not have to be so quiet. It pleased the group members because it offered an escape from the monotony of the library. We could grab a snack if we got hungry; we could people watch if we needed a quick break from working. I felt that the group was much more productive when we met at Central Market. Obviously, this reiterates the fact that Central Market’s idea of offering a unique grocery experience has definitely worked in their favor.
A few other stores that I believe offer a unique shopping experience are The Apple Store, Bass Pro Shops, and IKEA; however there are many other retailers that also provide a great customer experience. First of all, simply the look of The Apple Store is very appealing to customers. The clean lines and sleek color palette make the store attractive to the eye. It is also great to be able to try out every Apple product right there in the store. Customers are able to get online, check their email, and listen to music in the midst of their shopping trip. The Apple Store also has extremely knowledgeable employees onsite to help with any troubleshooting or customer service problems their customers may have. The Apple Store even has a section for the kids, so they can get on the computer and play a game while Mom and Dad get what they need. Bass Pro Shops is another retailer that truly understands the importance of customer experience. The large displays and scenery of the stores makes it an experience in itself. Then there is the huge array of products. Finally, the ability to cast a lure into an actual tank before purchasing puts the icing on the cake, if you are a fisherman anyway. Finally, IKEA is a destination store that works to make sure the customers have a fun experience while shopping for furniture. IKEA has a complete dining area in all of its stores serving anything from coffee and donuts to meatballs. This is perfect for the mom who wants to shop and the dad who wants to eat with the kids, or vice versa. The actual process of shopping at IKEA is also very unique. The customer simply walks around the store with a brochure of all the products and check what he or she wants to purchase. There are also many types of help in the form of maps, telephones, and people, so that the customers can find exactly what they are looking for or get any other questions answered.
As you can see, many stores are currently transitioning their services to accommodate for the trend towards a total shopping experience. However, there are many retailers who have fallen short on satisfying this need and I believe that these will be the companies that collapse in the midst of a tight economy.
Wednesday, February 4, 2009
The Paradox of Choice
Barry Schwartz expresses some very interesting points in his presentation on “The Paradox of Choice”. Schwartz reveals his feelings on the amount of choices consumers have to make in today’s society. The overall theme of the address is that because of the large amount of choices consumers make, consumers are not happier, but actually more dissatisfied.
I believe this message presents a very valid argument. However, I do not agree that this paradox happens in all instances. In my opinion, there are certain times when people like to have choices and there are times when people dislike multiple options. I also believe that in some situations, whether a consumer enjoys the many choices or dislikes them relates to the generation in which that consumer is a part of. I will give an example that, of course, relates to food. Since, I love to eat, I am hungry, and I am constantly thinking about food, this example comes to mind. One day while I was at home for the Winter break, I decided to go pick up sandwiches for lunch for my family and I. The options were Subway, Which Wich, and a hometown Deli called Daviss Deli. My mom and dad quickly expressed that they wanted Daviss Deli. They both said that they like Daviss better because they make the sandwiches with certain things on each sandwich and you have no decisions to make. The turkey sandwich comes with mayo and pepper jack cheese, the Poboy comes with three meats, and a special relish sauce. All sandwiches are predetermined; there are no decisions to be made and that was why they chose to eat there.
However, I, a member of Generation Y, happen to enjoy the many choices in food outlets. In fact, one of my favorite places to eat at, Freebirds, is the ultimate in choices. You must decide if you want a flour, wheat, cayenne, or spinach tortilla; and that is just the first choice! Then there is the meat, the veggies, the beans, and the sauces. In terms of the food industry, it seems to me that places with so many choices have just in the last decade began to really flourish. This may possibly be indicative of the age of the people who are now eating at those places. This would prove that age might be a factor in determining the level of appreciation one receives when he or she has many choices.
Now to change from food to the rest of consumer products, I do not think that having many options is always a good idea, no matter your age. Sometimes we as consumers just want to buy a product and be done with it. Schwartz states that because there are so many alternatives, consumers feel disappointed when they are not 100% satisfied, but that if there were just one or two options then they would understand if they are not completely satisfied. Schwartz again makes a very good point. I have actually been a victim of this paradox when purchasing a pair of jeans.
Like Schwartz mentioned, gone is the day when we can purchase just a pair of jeans. Although I usually like having many choices, this day was different. I rushed to the mall because I was in dire need of new jeans. Well, maybe not dire need, but I wanted some. I was in a rush because I really did not want to end up in traffic, and I had things that I needed to get done. I went into the store hoping to get my size and go, but this was not the case. I had to decide on wash, rise, straight leg, flare leg, long, short, regular, etc. It took up all my time, and I ended up in traffic on the way back. To this day, I have only worn that pair of jeans a couple of times. Why? Because I left being not totally satisfied. If I would have ran in, bought a pair in my size in five minutes, and then been dissatisfied that would have been different. There is more margin for error when you do not have so many choices. But, I spent time and was still not totally happy, which makes it even more worse. Schwartz was right.
Overall, I would have to say that the paradox of choice is rampant in today’s society and becoming all the more prevalent in any product from detergent to computers. Some people enjoy these choices, others dislike them, and still others change from day to day depending on the circumstance. I am one of those—a floater.
I believe this message presents a very valid argument. However, I do not agree that this paradox happens in all instances. In my opinion, there are certain times when people like to have choices and there are times when people dislike multiple options. I also believe that in some situations, whether a consumer enjoys the many choices or dislikes them relates to the generation in which that consumer is a part of. I will give an example that, of course, relates to food. Since, I love to eat, I am hungry, and I am constantly thinking about food, this example comes to mind. One day while I was at home for the Winter break, I decided to go pick up sandwiches for lunch for my family and I. The options were Subway, Which Wich, and a hometown Deli called Daviss Deli. My mom and dad quickly expressed that they wanted Daviss Deli. They both said that they like Daviss better because they make the sandwiches with certain things on each sandwich and you have no decisions to make. The turkey sandwich comes with mayo and pepper jack cheese, the Poboy comes with three meats, and a special relish sauce. All sandwiches are predetermined; there are no decisions to be made and that was why they chose to eat there.
However, I, a member of Generation Y, happen to enjoy the many choices in food outlets. In fact, one of my favorite places to eat at, Freebirds, is the ultimate in choices. You must decide if you want a flour, wheat, cayenne, or spinach tortilla; and that is just the first choice! Then there is the meat, the veggies, the beans, and the sauces. In terms of the food industry, it seems to me that places with so many choices have just in the last decade began to really flourish. This may possibly be indicative of the age of the people who are now eating at those places. This would prove that age might be a factor in determining the level of appreciation one receives when he or she has many choices.
Now to change from food to the rest of consumer products, I do not think that having many options is always a good idea, no matter your age. Sometimes we as consumers just want to buy a product and be done with it. Schwartz states that because there are so many alternatives, consumers feel disappointed when they are not 100% satisfied, but that if there were just one or two options then they would understand if they are not completely satisfied. Schwartz again makes a very good point. I have actually been a victim of this paradox when purchasing a pair of jeans.
Like Schwartz mentioned, gone is the day when we can purchase just a pair of jeans. Although I usually like having many choices, this day was different. I rushed to the mall because I was in dire need of new jeans. Well, maybe not dire need, but I wanted some. I was in a rush because I really did not want to end up in traffic, and I had things that I needed to get done. I went into the store hoping to get my size and go, but this was not the case. I had to decide on wash, rise, straight leg, flare leg, long, short, regular, etc. It took up all my time, and I ended up in traffic on the way back. To this day, I have only worn that pair of jeans a couple of times. Why? Because I left being not totally satisfied. If I would have ran in, bought a pair in my size in five minutes, and then been dissatisfied that would have been different. There is more margin for error when you do not have so many choices. But, I spent time and was still not totally happy, which makes it even more worse. Schwartz was right.
Overall, I would have to say that the paradox of choice is rampant in today’s society and becoming all the more prevalent in any product from detergent to computers. Some people enjoy these choices, others dislike them, and still others change from day to day depending on the circumstance. I am one of those—a floater.
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