This document discusses building and sustaining relationships in retailing. It explains that perceived value and customer service are important for developing relationships with customers. Retailers need to consider their target customer base and implement loyalty programs to engage in relationship building. The document also examines how technology impacts relationships through improved information sharing. Maintaining ethics and social responsibility is important for building trust with customers and communities.

1. Building and Sustaining Relationship in Retailing
Building and Sustaining Relationship in Retailing is in general to explain what value really means and highlight its essential role in
retailers in building and sustaining relationships. It basically describe how both customer relationships and channel relationships
may be nurture in highly competitive marketplace
Objectives of Building and Sustaining Relationship in Retailing:
It explains what value really means and highlights its fundamental role in retailers building and sustaining relationships. Sellers
undertake a series of activities and processes to provide a given level of value for the consumer. Consumers then perceive the
value offered by sellers, based on the perceived benefits received versus the prices paid. Perceived value vary by type of shopper.
A Retail Value Chain represents the total bundle of benefits offered by a channel of distribution. It comprises store location,
ambience, customer service, the products/brands carried, product quality, the in-stock position, shipping, prices, the retailer’s
image, and so forth. Some elements of a retail value chain are visible to shoppers and others are not. An expected retail strategy
represents the minimum value chain elements a given customer segment expects from a given retailer type. An augmented retail
strategy includes the extra elements that differentiate retailers. A potential retail strategy includes value chain elements not yet
perfected in the retailer’s industry category.
To describe how both customer relationships and channel relationships may be nurture in today’s highly competitive marketplace.
For relationship retailing to work, enduring relationships are needed with other channel members, as well as with customers. More
retailers now realize loyal customers are the backbone of their business.
To engage in relationship retailing with consumers, these factors should be considered: the customer base, customer service,
customer satisfaction, and loyalty programs and defection rates. In terms of the customer base, all customers are not equal. Some
shoppers are more worth nurturing than others; they are a retailer’s core customers. Customer service has two components:
expected services and augmented services. The attributes of personnel who interact with customers, as well as the number and
variety of customer services offered, have a big impact on the relationship created. Some firms have improved customer service by
empowering personnel, giving them the authority to bend some rules. In devising a strategy, a retailer must make broad decisions
and then enact specific tactics as to credit, delivery, and so forth.
Customer satisfaction occurs when the value and customer service provided in a retail experience meet or exceed expectations.
Otherwise, the consumer will be dissatisfied. Loyalty programs reward the best customers, those with whom a retailer wants to
develop long-lasting relationships. To succeed, they must complement a sound value-driven retail strategy. By studying defections,
a firm can learn how many customers it is losing and why they no longer patronize it.
Members of a distribution channel jointly represent a value delivery system. Each one depends on the others; and every activity
must be enumerated and responsibility assigned. Small retailers may have to use suppliers outside the normal channel to get the
items they want and gain supplier support. A delivery system is as good as its weakest link. A relationship oriented technique that
some manufacturers and retailers are trying, especially supermarket chains, is category management.
To examine the differences in relationship building between goods and service retailers.
Goods retailing focuses on selling tangible products. Service retailing involves transactions where consumers do not purchase or
acquire ownership of tangible products. There are three kinds of service retailing rented goods services, where consumers lease
goods for a given time; owned-goods services, where goods owned by consumers are repaired, improved, or maintained; and non

2. goods services, where consumers experience personal services rather than possess them. Customer service refers to activities that
are part of the total retail experience. With service retailing, services are sold to the consumer.
The unique features of service retailing that influence relationship building and retention are the intangible nature of many
services, the inseparability of some service providers and their services, the perish ability of many services, and the variability of
many services.
To discuss the impact of technology on relationships in retailing.
Technology is advantageous when it leads to an improved information flow between retailers and suppliers, and between retailers
and customers, and to faster, smoother transactions. Electronic banking involves both the use of ATMs and the instant processing
of retail purchases. It allows centralized records and lets customer’s complete transactions 24 hours a day, 7 days a week at
various sites. Technology is also changing the nature of supplier–retailer–customer interactions via point-of sale equipment, self-
scanning, electronic gift cards, interactive kiosks, and other innovations.
To consider the interplay between retailers’ ethical performance and relationships in retailing.
Retailer challenges fall into three related categories: Ethics relates to a firm’s moral principles and values. Social responsibility has
to do with benefiting society. Consumerism entails the protection of consumer rights. “Good” behavior is based not only on the
firm’s practices but also on the expectations of the community in which it does business.
Ethical retailers act in a trustworthy, fair, honest, and respectful way. Firms are more apt to avoid unethical behavior if they have
written ethics codes, communicate them to employees, monitor and punish poor behavior, and have ethical executives. Retailers
perform in a socially responsible manner when they act in the best interests of society through recycling and conservation
programs and other efforts. Consumerism activities involve government, business, and independent organizations. Four consumer
rights are basic: to safety, to be informed, to choose, and to be heard.
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