Questions & Answers HS (11th & 12th) : Retail Trade book of Class HS 1st year Assam Higher Secondary Education Council Syllabus

RETAIL Class XI

Retail Sales

Associate

(Job Role)

Qualification Pack: Ref. Id. RAS/Q0104 Sector: Retail

Textbook for Class XI

Retail Sales Associate

First Edition

October 2018 Ashwina 1940 PD 5T BS

__.00

Printed on 80 GSM paper with NCERT watermark

Published at the Publication Division by the Secretary, National Council of Educational Research and Training, Sri Aurobindo Marg, New Delhi 110 016 and printed at ______________________

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Retail Sales Associate

Foreword

The National Curriculum Framework–2005 (NCF–2005) recommends bringing work and education into the domain of the curricular, infusing it in all areas of learning while giving it an identity of its own at relevant stages. It explains that work transforms knowledge into experience and generates important personal and social values such as self-reliance, creativity and cooperation. Through work one learns to find one’s place in the society. It is an educational activity with an inherent potential for inclusion. Therefore, an experience of involvement in productive work in an educational setting will make one appreciate the worth of social life and what is valued and appreciated in society. Work involves interaction with material or other people (mostly both), thus creating a deeper comprehension and increased practical knowledge of natural substances and social relationships.

Through work and education, school knowledge can be easily linked to learners’ life outside the school. This also makes a departure from the legacy of bookish learning and bridges the gap between the school, home, community and the workplace. The NCF – 2005 also emphasises on Vocational Education and Training (VET) for all those children who wish to acquire additional skills and/or seek livelihood through vocational education after either discontinuing or completing their school education. VET is expected to provide a ‘preferred and dignified’ choice rather than a terminal or ‘last-resort’ option.

As a follow-up of this, NCERT has attempted to infuse work across the subject areas and also contributed in the development of the National Skill Qualification Framework (NSQF) for the country, which was notified on 27 December 2013. It is a quality assurance framework that organises all qualifications according to levels of knowledge, skills and attitude. These levels, graded from one to ten, are defined in terms of learning outcomes, which the learner must possess regardless of whether they are obtained through formal, non-formal or informal learning. The NSQF sets common principles and guidelines for a nationally recognised qualification system covering Schools, Vocational Education and Training Institutions, Technical Education Institutions, Colleges and Universities.

It is under this backdrop that Pandit Sunderlal Sharma Central Institute of Vocational Education (PSSCIVE), Bhopal, a constituent of NCERT has developed learning outcomes based modular curricula for the vocational subjects from Classes IX to XII. This has been developed under the

Retail Sales Associate

Centrally Sponsored Scheme of Vocationalisation of Secondary and Higher Secondary Education of the Ministry of Human Resource Development. This textbook has been developed as per the learning outcomes based curriculum, keeping in view the National Occupational Standards (NOS) for the job role and to promote experiential learning related to the vocation. This will enable the students to acquire necessary skills, knowledge and attitude.

I acknowledge the contribution of the development team, reviewers and all the institutions and organisations, which have supported in the development of this textbook.

NCERT would welcome suggestions from students, teachers and parents, which would help us to further improve the quality of the material in subsequent editions.

Hrushikesh Senapaty

Director

New Delhi National Council of Educational June 2018 Research and Training

(iv)

Retail Sales Associate

About the Textbook

Retailing is leading business activities register a remarkable transformation. Till a few years ago, we bought most of daily use products from small shops in our neighborhood or a close by market. Generally the shop keeps sit in the shop and sell goods either individual as a sole proprietor with help of few assistants. In last few years, however, the concept of large departmental stores and malls has been introduced, which also provide the same products.

The retail industry is divided into organised and unorganized sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, like, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

A retailer is one who stocks the manufactured goods and is involved in the act of selling to the final customer or consumer, at a margin of profit. Retailing is the last link that connecting the individual consumer with the manufacturing and distribution chain. It adds value in terms of bulk breaking and providing a wide variety of goods and services to customers as per their needs.

The learner would be able to work as sales associate in organized retailing and may look after overall sales operations like process credit applications for purchases, help to keep the store secure, help to maintain healthy and safety aspects, demonstrate products to customers, help the customers in choosing right products, provide specialist support to customers facilitating purchases, maximize sales of goods & services, provide personalized sales & post-sales service support to the customers, resolve customer concerns in retail stores. The major task of a sales associate is to sell a company’s products by demonstrating and specifying product quality. He/she is also responsible for ensuring that customers are aware of all the promotions that are in demand as per needs of the customers are led to their choice of product.

The student textbook has been developed with the contribution of the expertise from the subject and industry experts and academicians for making it a useful and inspiring teaching-learning resource material for the vocational students. Adequate care has been taken to align the content of the textbook with the National Occupational Standards (NOSs)

Retail Sales Associate

for the job role so that the students acquire necessary knowledge and skills as per the performance criteria mentioned in the respective NOSs of the Qualification Pack (QP). The textbook has been reviewed by experts so as to make sure that the content is not only aligned with the NOSs, but is also of high quality. The NOSs for the job role of Sales Associate covered through this textbook are as follows:

1. RAS/N0114-To process credit application for purchase. 2. RAS/N0120-To helps keep the store secure.

3. RAS/N0122-To help maintain health and safety

4. RAS/N0125-To demonstrate products to customers

5. RAS/N0126-To help customers choose right products 6. RAS/N0127-To provides specialist support to customers facilitating purchase.

The Unit 1 of the textbook gives fundamental of retailing which details the basics of retailing, sales associate services to customers, skills for handling retailing business and duties and responsibilities of sales associate. The Unit 2 help students to learn the detailed process of credit application which covers the features and conditions for credit sales, credit checks and getting authentication, processing credit requisites and techniques for determining credit worthiness. Unit 3 deals with mechanism for customers to choose right products which includes methods of selling, sales promotional activities, responding to questions and comments and techniques of closing sale. Unit 4 help in understanding specialist support to customers which focuses on providing product information, techniques to encourage customers to buy products, provide personalized service and post sale service support. Unit 5 focuses on health and safety management which explains the health and safety requirements, equipments and material, dealing with accidents and emergencies and reporting accidents and emergencies.

P. Veeraiah

Associate Professor and Head

Department of Business and Commerce

PSSCIVE, Bhopal

(vi)

Retail Sales Associate

Textbook Development Team

Members

Ashish Kumar Pandey, Sales Trainer, 05–Regal Kasturi, Awadhpuri, BHEL, Bhopal (M.P.)

Ch. Satyanarayana, Assistant Professor, Department of Commerce, Nagarjuna Government College, Nalgonda – 508 001 (Telangana State) Dharmendra Varshney, Principal, Dayal Group of Institutions, Lucknow G. Narashimhamurthy (Retd.), Professor and Director, Vagdevi Degree and P.G. College, Hanamkonda, Warangal (Telangana State) Geeta Tomar, Associate Professor, Faculty of Management, Shri Guru Sandipani Institute of Professional Studies, Ujjain (M.P.) Jitendra Sharma, Knowledge Adviser, Impact Educare and Learning Solutions, Bhopal (M.P.)

Kamran Sultan, Reader, Pandit Jawaharlal Nehru Institute of Business Management, Vikram University, Ujjain (M.P.)

L. Suma Bala, HR Manager, Green Connection Pvt. Ltd, Hyderabad P. Sugunakar Reddy, Associate Professor, Vagdevi Degree and P.G. College, Hanamkonda, Warangal (Telangana State)

Pratima Singh Parihar, H.No. 223, Kwality Homes, Bimakunj, Kolar Road, Bhopal (M.P.)

Rajesh Kumar Sharma, Consultant, Department of Business and Commerce, Pandit Sunderlal Saxena Central Institute of Vocational Education (PSSCIVE), Bhopal (M.P.)

Ramakar Raizada, Professor (Retd.), Department of Social Sciences Education, Regional Institute of Education, Bhopal (M.P.) Richa Srimal, Logistics Trainer, DM- 10/4 Dronachal Top, Newri Hills, Lalghati, Bhopal (M.P.)

Rudra Saibaba, Former Principal, Mahatma Gandhi University, Nalgonda, Principal (Retd.), Lal Bahadur College, Warangal (Telangana State) Shivanagasreenu, Assistant Professor, Department of Commerce, Gopal Rao Patel Government Degree College, Pardi B Road, Bhainsa, District: Nirmal (Telangana State)

Shobh Varghese, Research Fellow, NIRD Project, NIRD, Hyderabad Sunil S. Desai, Lecturer (Vocational), Jagruti Jr. College, Godhinglaj, Dist. Kolhapur, Maharashtra

Retail Sales Associate

Sushma Devi, Vocational Trainer–RS &M, GSSS, Chabutra, Hamirpur (H.P.) T. Srinivasa Rao, Professor, Department of Commerce and Business Management, SDLCE, Kakatiya University, Warangal (Telangana State) Talat Siddique, Vocational Teacher (Retail), Nowboicha Higher Secondary School, Doolahat, Nowboicha, District: Lakhimpur, Assam

Member-coordinator

P. Veeraiah, Associate Professor and Head, Department of Business and Commerce, Psscive, Bhopal

(viii)

Retail Sales Associate

Acknowledgement

The National Council of Educational Research and Training (NCERT) expresses its gratitude to all members of the Project Approval Board (PAB) and officials of the Ministry of Human Resource Development (MHRD), Government of India, for their cooperation in the development of this textbook. The Council acknowledges the contribution of Saroj Yadav, Professor & Dean (A) and Ranjana Arora, Professor & Head, Department of Curriculum Studies, for their efforts in coordinating the workshops for the review and finalisation of this textbook.

The Council also acknowledges the Review Committee members— Shipra Vaidya, Professor, Department of Commerce, NCERT, New Delhi, Nitin Tantal, Associate Professor, Symbiosis University of Applied Science, Indore, Madhya Pradesh and Vishal Khasgiwala, Associate Professor, Symbiosis University of Applied Science, Indore, Madhya Pradesh for carefully evaluating and giving suggestions for the improvement of this book. The Council would also like to thank Rajesh Khambayat, Joint Director, PSS Central Institute of Vocational Education (PSSCIVE), Bhopal, for providing support and guidance in the development of this textbook.

Special thanks are due to A. Shankaraiah, Professor (Retd.), Department of Commerce and Business Management, Kakatiya University, Warangal, for constant encouragement and support during preparation of the textbook.

The course coordinator P. Veeraiah is acknowledged for his untiring efforts and contribution in the development of this textbook and for providing photographs (Figs. 1.1,1.2, 1.3, 1.4, 1.5 (a&b), 1.6-1.16, 3.1, 3.3, 3.4, 4.2 – 4.5, 4.7, 5.2, the images other than these have been sourced from the Creative Commons License, and we are also thankful to Geeta Tomar, Consultant, Department of Business and Commerce, PSSCIVE, Bhopal, for helping in developing this textbook.

The Council also acknowledges the copy editing and valuable contribution of Shilpa Mohan, Assistant Editor (Contractual) and Sanjeev Kumar, Copy Holder, Publication Division, NCERT, in shaping this book. The sincere efforts of Pawan Kumar Barriar, DTP Operator, Sadiq Saeed and Naresh Kumar, DTP Operators (Contractual), Publication Division, NCERT are also duly acknowledged.

Retail Sales Associate

Contents

Foreword iii About the Textbook v Unit 1: Fundamentals of Retailing 1

Session 1: Basics of Retailing 2 Session 2: Sales Associate Services to Customers 19 Session 3: Skills for Handling Retail Business 27 Session 4:Duties and Responsibilities of a Sales Associate 34

Unit 2: Process of Credit Application 39 Session 1: Features and Conditions for Credit Sales 40 Session 2: Credit Checks and Getting Authorisation 47 Session 3: Processing Credit Requisitions 52 Session 4: Techniques for Determining Credit Worthiness 57

Unit 3: Mechanism for Customers to Choose Right Products 62 Session 1: Methods of Selling 63 Session 2: Sales Promotional Activities 69 Session 3: Responding to Questions and Comments 78 Session 4: Techniques of Closing a Sale 84

Unit 4: Specialist Support to Customers 91 Session 1: Providing Product Information 92

Session 2: Techniques to Encourage Customers to Buy

Products

Session 3: Provide Personalised Service 103 Session 4: Post-sales Service Support 110 Unit 5: Health and Safety Management 120 Session 1: Health and Safety Requirements 120 Session 2: Equipments and Materials 125 Session 3: Dealing with Accidents and Emergencies 131 Session 4: Reporting Accidents and Emergencies 138 Answer Key 142 Glossary 148 Further Readings 151

Retail Sales Associate

Fundamentals of

Retailing

The retail industry secures the fifth position as an industry and is the second largest employer after agriculture, providing bright and exciting job opportunities in India.

Retail business is undergoing rapid transformation in its marketing practices. Till a few years ago, we bought most of the daily use products from small shops in our neighbourhood or a nearby market. Generally, the shopkeepers sit in the shop and sell goods — either individually as a sole proprietor or with the help of a few assistants. In the last few years, however, the concept of large departmental stores and malls have come up, which also provide the same products.

Today, the supermarket, departmental stores, hypermarkets, malls and non-store retailing like multilevel marketing and telemarketing, have replaced or co-exist, transacting with the traditional retail businesspersons, such as hawkers, grocers and vendors, etc. There are various levels at which retail businesses operate — ranging from small, owner

operated and independent shops to those in the national and international market.

An increase in income levels and the need for new products and services, a rise in standard of living, competition in the market and increasing consumption patterns of customers have contributed to the demand

Retail Sales Associate

for creation of these type stores. The present unit on

fundamentals of retailing has been divided into four

sessions. First session discusses the basics of retailing,

the second session covers sales associate services to

customers, the third session deals with the skills for

handling retailing business and the last session explains

duties and responsibilities of sales associates.

Session 1: Basics of Retailing

Meaning and significance of retail business

A retailer is a merchant or occasionally an agent or a

business enterprise, whose main business is selling

directly to ultimate consumers.

A retailer or business enterprise performs many

marketing activities, such as buying, selling, grading,

and developing information about customer’s wants.

The retailer is an intermediary in the marketing

channel because he or she is both marketer and

customer, who sells to the last person to consume. He

or she is a specialist who maintains contact with the

consumer and the producer. Though producers may

sell directly to consumers, such method of distributing

goods to ultimate users is inconvenient, expensive and

time consuming as compared to the job performed

by a specialist in the line. Therefore, frequently the

manufacturers depend on the retailers to sell their

products to the ultimate consumers.

Here, it is also essential to understand the term

‘wholesaler’, as both wholesaler and retailers are

intermediaries in distribution channel. Wholesaler

sells to individuals or retailer for the business or

re-sale purpose. The wholesalers buy larger quantities

of goods from manufacturers and sell in small

quantities to retailers. Thus, in the distribution channel

the wholesalers operate between manufacturers and

retailers and retailers operate between wholesalers and

consumers (Figure 1.1).

Manufacturer Wholesaler Retailer Consumer

Fig. 1.1 Distribution channel

Retail Sales Associate – Class XI

Retail Sales Associate

The corner grocer or the Kirana Store is a key element in the retail in India due to the unwillingness of people to go long distances for purchasing goods for daily needs. Convenience was indicated by consumers as the most important reason in the choice of groceries and fruit outlets, chemists and life style items while merchandise was indicated as the most important in durables, books and apparel. In recent years, there has been a slow spread of retail chains in some formats like super markets, departmental stores, malls and discount stores. Factors facilitating the spread of chains are the availability of quality products at lower prices, improved shopping standards, convenient shopping and display and blending of shopping with entertainment.

With the advancement in Information Communication and Technology (ICT), electronic retailing or e-tailing has become a reality. It is the sale of goods and services through the Internet. E-tailing, can include business

to-business (B2B) and business-to-consumer (B2C) sales of products and services, through subscriptions to website content, or through advertising, and selling products through TV channels for which payments can be made online through credit or debit cards.

The boom in retail industry has created many employment opportunities; people with varied skills and talent are required in the industry.

Organised and unorganised retail business

The retail sector is undergoing rapid growth in India. Formerly, customers used to purchase goods from kirana shops, from the mobile vendors or the mandis. Now, it has shifted to bigger shops run by individuals with few employees. Gradually, with a development in standard of living there has been a rise in the retail sector with more departmental stores coming into existence. This reform in the retail sector has led to the beginning of an organised sector. Therefore, the retail sector can be seen as unorganised and organised retailing. The retail industry is made up of two parts— organised and unorganised retailing.

Fundamentals of Retailing

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Notes

3Retail Sales Associate

Notes

Unorganised retailing: It refers to the traditional

formats of low-cost retailing, for example, the

local kirana shops, owner-manned general stores,

paan shops, convenience stores, hand cart and

pavement vendors, etc. It is featured by poor and old

infrastructure, insufficient funds, lack of technology,

insufficient upstream processes and absence of skilled

manpower (Figure 1.2). It is not registered under any

legal provision and does not maintain regular accounts.

They are small and scattered units which sell products

at a fixed or mobile location. Traditional units include

Mandis, Haats, Melas, the local Baniya, Kirana shops,

Paanwala and others like cobbler, fruit and vegetable

vendor, etc.

Fig. 1.2 Unorganised retailing

Organised retailing: It refers to trading activities

undertaken by licensed retailers, that is, those who are

registered for sales tax, income tax, etc. These include

the corporate-backed hypermarkets and retail chains,

and also the privately-owned large retail businesses.

(Figure 1.3). It offers the customers more convenience,

Retail Sales Associate – Class XI

Retail Sales Associate

choice and control with an experience of comfort and speed. The examples of organised retailing may be supermarkets, departmental stores, hypermarkets, shopping malls, multilevel marketing, teleshopping, etc.

Organised retailing is capable of generating employment opportunities. It offers huge potential for growth in the coming years.

Fig. 1.3 Organised retailing

Difference between organised retail and

unorganised retail business

The difference between organised and unorganised

retailing has been given below in Table 1.1.

Table 1.1: Difference between Organised and Unorganised Retail Business

S. No.	Base of Difference	Organised Retail Business	Unorganised Retail Business
1.	Concept	A modern retail business where segregated items are brought under one roof. It refers to running the business in a systematic, advanced and scientific manner	Family-run small traditional retail stores with poor infrastructure, inefficient processes with lack of technology, inadequate funding and absence of skilled manpower
2.	Registration and maintenance of accounts	Compulsory by law	Not compulsory by law
3.	Number of items	These type of retail units offer large number of items and their varied varieties	These type of retail units offer very few items and limited or no varieties
4.	Size and layout	The size of a retail outlet is very large and the stores and their layout is very attractive	The size is very small and usually the layout and design of the shop is not proper
5.	Size and type of employees	The size of employees is very large and there are varied categories with different specialisations	The number of employees is less and an employee is required to perform varied functions

Fundamentals of Retailing

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6.	Capital requirement	The capital requirement is very high and ownership may not enjoy perpetual succession	The capital requirement is less and the business is owned by successors
7.	Terms of employment	The terms of employment are regular and job security exists in the organised sector, as the rules are regulated by the government	There is no job security in the unorganised sector as the units are small and scattered which are largely outside the control of the government.
8.	Business style	Business units are run on corporate style	Business units run on sole trading or partnership style.
9.	Business network	The network of retailers is vast—operates number of branches at different places	The business network is narrow—confined to a particular locality and carries business in a single unit
10.	Some examples	Supermarkets, departmental stores, hypermarkets, shopping malls, multilevel marketing, Internet and teleshopping, etc.	Cobbler, vegetable and fruit vendors, Kirana shops, the local Baniya, Paanwala, shops in Mandis, Haats, Melas, etc.

Different types of retail business establishments

Store retailing is classified in two categories.

1. Based on merchandise offered

2. Based on ownership

Based on merchandise offered

(a) Convenience stores (Fig. 1.4): These are small

sized stores located in residential areas. They are open

for long hours and offer a limited line of convenience

products like eggs, bread, milk, vegetables, etc.

Fig. 1.4 Convenience store Fig. 1.5 Supermarket

(b) Supermarkets: A supermarket is a self-service shop

offering a wide variety of food and household products,

organised into aisles (Fig. 1.5).

Retail Sales Associate – Class XI

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a retail store that combines a departmental store

and a grocery supermarket. Often a very large

establishment, hypermarkets offer a wide variety of

products, such as appliances, clothing and groceries.

Fig. 1.6 Hypermarket Fig. 1.7 Specialty store

(d) Specialty stores: Consumer outlets, such as

furniture, electronics, sports, appliances, jewellery

stores, that offer unique, often individualised products or

a large amount of products within a particular grouping

of consumer goods are considered to be specialty stores.

(Figure 1.7).

(e) Departmental stores: A

departmental store is a retail

establishment offering a wide

range of consumer goods in

different product categories

known as ‘departments’

(Figure 1.8). Departments are

made as per different types of

goods to be sold. It requires

a lot of capital to maintain

different departments and

a huge stock of goods. The

Fig. 1.8 Departmental stores

profit or loss is calculated on the entire stock. It is a

combination of decentralised buying and centralised

selling. They also establish restaurants inside these

stores. They provide home delivery services.

Fundamentals of Retailing

Retail Sales Associate

Fig. 1.9 Catalogue showrooms

(f) Catalogue showrooms: Catalogue retailers (Figure 1.9) usually specialise in hard goods (houseware, jewellery, consumer electronics, etc).

In a catalogue showroom (store), the customers view products from printed or online catalogues in the store and fill out an order form. This order is then brought to the sales counter, where an associate arranges to retrieve the items from the warehouse. Thus, the catalogue serves to act as an interface between the product and the customer.

(g) Discount store: In this store products sell at a

discounted price, which is less than the actual price of

the products.

(h) Shopping mall: A shopping mall is a modern

term for a form of shopping center, in which one or

more buildings form a complex of shops representing

merchandisers with interconnecting walkways that

enable customers to walk from unit to unit.

(i) General store: General store is a retail store in

a small town or rural community that carries a wide

variety of goods, including groceries. These stores often

sell staple food items, such as milk and bread, and

various household goods, such as hardware and

electrical supplies.

( j) Warehouse store: A warehouse store is a food and

grocery retailer that operates stores geared towards

offering deeper discounted prices than a traditional

supermarket. Warehouse clubs sometimes charge a

membership fee also.

(k) Variety store: A variety store is a retail store that

sells a wide range of inexpensive household goods.

Based on Ownership

(a) Independent retailer: An independent retailer

(Fig. 1.10) is a small business, owned and operated by

an individual versus a corporation. An independent

retailer has direct contact with customers. For example,

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Retail Sales Associate

local Baniya or Kirana store, and Paanwala. He or she

decides the retail strategy based on store location and

product mix.

Figure 1.10: Independent retailer Fig. 1.11 Chain retailer or corporate retail chain

(b) Corporate retail chain: A retail chain is one of a

group of stores engaged in the same kind of business

in different locations and under the same ownership

and management. Chain stores in malls or shopping

centers are always looking to improve their position

and strengthen their brand identity in the marketplace

(Figure 1.11). For example, Reliance, Bata, Arrow, Louis

Philippe, Food World, etc.

where one party (the franchiser) grants another party

(the franchisee) the right to use its trademark or trade name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. For example, Mc Donald’s, Pizza Hut, Van Heusen, etc.

(d) Consumer cooperatives: Consumers’

cooperatives are enterprises owned and

managed by consumers which aim at

fulfilling the needs and aspirations of

their members. Consumers’ cooperatives

often take the form of retail outlets owned

and operated by their consumers. The

customers or consumers of the goods

and/or services the cooperative provides

Fig. 1.12 Franchise Operations

are often also the individuals who have Fundamentals of Retailing

Figure 1.13: Consumer cooperative store 9

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Notes

provided the capital required to launch or purchase that enterprise. For example, Apna Bazaars in Mumbai, etc.

Other modern retailers

(a) E-retailers: E-retailing is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Consumers find a product of interest by visiting the website of the e-retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product’s availability and pricing at different e-retailers. E-retailers, for example, Amazon, Flipkart, etc., accept the payment through online or at the time of delivery but the customer receives product directly from manufacturer or wholesaler. It is ideal for the customers who do not want to visit the retail stores. However, the customers should be careful of defective products and non-secure credit card transactions.

(b) Vending machines: A vending machine is a machine from which products are sold. The customer inserts money in a slot, selects a product from the menu and the product is dispensed from the machine.

(c) Automated retail stores: Automated retail is the category of self-service, standalone kiosks in heavily trafficked locations, such as airports, malls and convenience stores. They accept credit cards and are usually open 24 hours throughout the week. For example, Zoom shops, Red-box.

Functions of retailer

Retailers buy varieties of goods from various manufacturers or wholesalers after estimating customer demand. Thus, a retailer provides a wide range of choice enabling the consumers to select the products of their choice. There are four main functions of retailer.

• Breaking bulk into small quantities: To reduce cost of long distance transportation, producers ship the goods in large quantities; middlemen

Retail Sales Associate – Class XI

Retail Sales Associate

including the retailers open these large packages and make product available in much smaller quantities to the consumers as per their needs.

• Providing products information to customers: For retailers, product knowledge can mean more sales. To effectively sell to a customer the retailer shows how a particular product will address his or her needs.

• Providing customer services: Good customer service means helping customers efficiently, in a friendly manner. It is essential to be able to handle issues for customers and do your best to ensure they are satisfied. Nowadays, services may include free home delivery, gift wrapping credit facility and after sales services.

• Creating a convenient, comfortable and pleasant shopping experience for consumers:

The aim of retailer is to make the products required by the consumer conveniently available. Convenience is about speed, about being in the right place at the right time and delivering everything that a customer needs there and then. The sales increase when the environment inside the retail store is friendly and pleasant. A warm welcome from the owner, offering the right products at relevant times with exceptional customer service, playing soft music, proper lighting, space for easy movement, courteous and well-dressed employees, etc., create a positive environment for customers.

• Providing feedback to producers about customer needs: To keep the product in demand and make it available to buyers at a competitive price, manufacturers have to constantly maintain feedback from users and improve the product. As due to their first-hand interaction with the customers, retailers have a good understanding of the customer needs, they share this information in the form of feedback with the producers.

Fundamentals of Retailing

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Notes

Essential requirements of retailers

Listed below are the essential requirements of retailers. The retailer should

• establish the shop where customers are attracted. • stock the goods which are needed by the customers.

• sell quality goods at a competitive price.

• be up-to-date about the latest trends in the market. • ensure window and counter display to promote sales.

• always be accessible to customers.

Retailer’s services to the customers

Retailers provide a wide variety of services which boosts the business. Some of them are

• selling of goods in little quantities as per their need at reasonable prices,

• meeting the consumer demand and making available the required stock,

• providing the consumer necessary information for buying goods,

• guiding on replacement conditions for the damages, • displaying and demonstrating goods to attract the customers, and

• offering credit facility to regular and reliable customers.

Activity 1

A field visit to learn fundamentals of retailing

Material required

Checklist, notebook and pen or pencils

Procedure

1. Visit a nearby retail/Kirana/General store in your locality. 2. Interact with the shopkeeper and customers.

3. Record the responses of following questions in 50 words.

Retail Sales Associate – Class XI

Retail Sales Associate

Notes A. Questions for shopkeeper or his or her representative on counter

a. What are the different items and their varieties available

for sale in your shop?

S. No.	Item	Variety
S. No.	Item	1	2	3	4	5	6
1.	Bathing Soap						Lux Hamam Rexona Breeze Pears Medimix
2.
3.
4.
5.
6.
7.
8.
9.
10.

b. The customers coming to the shop are from which areas?

______________________________________________________

c. Which modern methods of the retail business have you

adopted in your shop?

____________________________________________________

d. What steps have you taken to satisfy your customers?

____________________________________________________

e. On an average how many customers visit your shop

every day?

____________________________________________________

B. Questions for Customers— (Interact with at least 5

customers and write consolidated remarks)

a. How often do you visit the shop?

______________________________________________________

Fundamentals of Retailing

Retail Sales Associate

Notes b. What types of services are offered by the retailer in the store?

______________________________________________________

c. Do you wish to see new improvements in the shop

services?

______________________________________________________

d. List the names of retailers of your locality — town/city

which come under the following categories:

Franchise

______________________________________________________

Chain retailer

______________________________________________________

Consumer cooperatives

______________________________________________________

Independent retailer

______________________________________________________

Convenience store

______________________________________________________

General store

______________________________________________________

Mall (if available)

______________________________________________________

Retail Sales Associate – Class XI

Retail Sales Associate

Departmental store Notes

______________________________________________________

Discount store

______________________________________________________

e. Visit a retail outlet of an organised sector in your locality

and note down the following:

Name: ___________________________________

Which commodities are sold in the shop?

______________________________________________________

What facilities are available for customers?

______________________________________________________

How does a consumer feel about retail stores? (Write

after asking at least five customers.)

______________________________________________________

What suggestions are offered by the customers? (Write

after asking at least five customers)

______________________________________________________

What are the developmental plans of the businessman?

______________________________________________________

f. Visit a retail outlet of an unorganised sector in your

locality and note down the following:

Name: ___________________________________

Which commodities are sold in the shop?

Fundamentals of Retailing

Retail Sales Associate

Notes

______________________________________________________ ______________________________________________________ ______________________________________________________

What facilities are available to the customers?

______________________________________________________ ______________________________________________________ ______________________________________________________

How do consumers feel about the store? (Write after asking at least five customers.)

______________________________________________________ ______________________________________________________ ______________________________________________________

What are the suggestions of the customers? (Write after asking at least five customers.)

______________________________________________________ ______________________________________________________ ______________________________________________________

What are the developmental plans of the businessman?

______________________________________________________ ______________________________________________________ ______________________________________________________

g. Collect the details, discuss with friends, teachers, officials of retail store and then finalise your report and submit to your subject teacher.

Check Your Progress

A. Fill in the blanks

1. The goods sold in a retail store are for _________________ use. 2. Wholesalers operate between ____________ and retailer.

3. Unorganised retail is featured by __________ and ___________ units.

4. Local Baniya/Kirana shop comes under ______________ retailing.

5. All items are provided under one roof in ______________ retailing.

6. Retail is sale of _______________and ________________ from individuals to end-user.

7. _____________________combine the features of supermarkets and general merchandise stores.

Retail Sales Associate – Class XI

Retail Sales Associate

B. Multiple choice questions

1. The purpose of retail business is to__________________________. (a) go for partnership

(b) make maximum promotion

(d) offer products and services

2. Place utility is making the products available at _____________. (a) showrooms

(b) convenient location

(d) regional stores

3. The retail store changes format to suit the requirements of ___________.

(a) wholesalers

(b) producers

(d) tax payers

4. Under organised retailing, the most common feature is that ________________.

(a) number of brands and products are large

(b) purchases are on credit basis

(d) All of the above

5. Unorganised retail is confined to __________________.

(a) particular locality

(b) different branches

(d) All of the above

6. The unorganised retail units operate based on _____________. (a) partnership

(b) sole-trader

(d) All of the above

7. Retail store sale of goods and services from individuals to ________________.

(a) end-user

(b) consumers

(d) All of the above

8. Retail has changed our lives and changed the ______________. (a) way we speak

(b) way we eat

(d) None of the above

Fundamentals of Retailing

Retail Sales Associate

Notes

C. State whether the following statements are True or False 1. Retailing is the final step in the distribution of goods.

2. Wholesalers are not intermediaries in the distribution channel.

3. Kirana store is a form of unorganised retailing. 4. Size of employees is more in unorganised retail business. 5. Providing customer services is not a function of retailer.

D. Match the Column

Column A Column B

Wholesaler	A
Kirana shops are the best examples of	B
Provides different types of products under one roof	C
Small stores located near residential areas is called as	D
Hypermarket refers to	E
Departmental stores refers to	F
Vending machines	G

1.Convenience stores

2. Centralised buying and decentralised selling

3. Automated retail stores 4. Organised retail sector

5. Customers drop money and acquire product from

automated equipment

6. Operates between manufacturer and

retailer

7. Unorganised retail sector

8. Red–box is an

example of

E. Short answer questions 1. What is retailing?

H Supermarket and general merchandise store

2. Who are the intermediaries in the distribution channel?

3. What is unorganised retailing?

4. What is organised retailing?

5. What is modern retailing?

6. List some essential requirements of retailers.

F. Long answer questions

1. Differentiate between organised and unorganised retail with

examples.

2. Explain the types of retail business establishments.

Retail Sales Associate – Class XI

Retail Sales Associate

3. Narrate the functions of a retailer.

F. Check your performance

1. Demonstrate the functions of retailers.

2. Differentiate between organised and unorganised retail business.

Session 2: Sales Associate Services to Customers

Concept of Customer

In business and commerce, a customer is an individual or business that purchases the goods or services produced by a business. Customers may belong to two broad segments.

1. An entrepreneur, who purchases goods for resale. 2. An end-user, who does not sell but is the actual consumer of the goods.

Difference between a customer and consumer

There is a difference between

customers and consumers. A

customer buys products from

businesses, while a consumer

uses the business products. You

can actually be both a customer

and a consumer in a business

transaction.

One who buys goods is a

customer but who consumes

goods is consumer (Figure 1.14).

Customers play the most

significant part in business.

Customer is the one who uses

Fig. 1.14 Customers in retail

the products and services and judges the quality of

those products and services. Hence it is important

for an organisation to retain customers or make new

customers and flourish business. To manage customers,

organisations should divide their customers into groups

because each customer has to be considered valuable

and profitable. Customers can be of the following types:

Fundamentals of Retailing

Retail Sales Associate

Notes

(a) Loyal customers: These types of customers are less in numbers but promote more sales and profit as compared to other customers. These customers revisit the organisation over time, hence, it is crucial to interact and keep in touch with them on a regular basis and invest much time and effort with them.

(b) Discount customers: Discount customers are also frequent visitors but they are only a part of business when offered with discounts on regular products and brands or they buy only low-cost products.

(c) Impulsive customers: These customers do not have any specific item into their product list but an urge to buy what they find good and productive at that point of time. Handling these customers is a challenge as they are not particularly looking for a product and want the supplier to display all the useful products they have so that they can buy what they like from that display.

(d) Need-based customers: These customers are product specific and only tend to buy items to which they are habitual or have a specific need for them. These are frequent customers but do not indulge in buying most of the times so it is difficult to satisfy them.

(e) Wandering customers: These customers are normally new in the industry and most of the times visit suppliers only for confirming their needs on products. They investigate features of most prominent products in the market but do not buy any of those or show least interest in buying.

Concept of customer service

Customer service is always going to be one of the top factors that impact how shoppers perceive a brand. It is the task of identifying and fulfilling a customer’s needs in a friendly and helpful manner. Retail customer service is the act of providing customers with assistance, answering their queries and helping them solve problems. Customer services include providing and delivering goods to customer and assistance before, during, and after sales (Figure 1.15).

Retail Sales Associate – Class XI

Retail Sales Associate

The 4Ps of customer service

How a customer is treated has a direct impact on the bottom line of a business. Happy customers come back for more and also promote the brand, and that’s how a business grows. Customer service means meeting the needs and desires of the customers. The features of good customer service or the 4Ps of customer service include:

(a) Promptness: A retailer should fulfill his

Fig. 1.15 Customer service in retail

promises by delivering products on time. There

should be no delay in delivering the products or in

the case of cancellation.

(b) Politeness: Politeness here means putting the

customers’ needs before your own. It means

consistently being welcoming, using their name,

being respectful and interested in the customer.

It means listening to them and watching language

around customers.

be professional. A retailer should demonstrate

competence, knowledge and expertise in the field,

and should avoid demonstrating anxiety, frustration,

fear, or weakness.

(d) Personalisation: A retailer should personalise a

customer’s experience. Clients appreciate when

a business owner remembers their name, their

preferences and their unique needs. Personalisation

should be incorporated wherever possible in the

service delivery. It makes clients feel valued and

increases their loyalty and engagement towards

the business.

Customer service functions

A sales associate deals with customers and also solves

their problems quickly. They engage in providing

different types of services to customers. Customer

service functions include:

(a) Customer support: Interacting with potential

customers, answering their questions related to

Fundamentals of Retailing

Retail Sales Associate

products and services; suggesting information about other products and services.

(b) Pre-sales: Providing necessary information to customers regarding the products.

(c) Marketing: Marketing is done by responding to the customer effectively, replying to mails, telemarketing, proper management of marketing campaigns, conducting surveys and polling.

(d) Sales: Sales include physical as well as e-selling.

(e) Technical support: Customers require and want different technical support services, such as data verification, address updates application support and problem resolution.

(f) Social media customer services: It is a strategy of providing customer service through social media channels like Facebook and Twitter. Due to the potential for high engagement between brands and customers, social media and customer service, when handled properly, work very well together.

Customer satisfaction

Customer

grievances

Customer

feedback

Customer

satisfaction

Customer

focus

Special

requirements

of customer

Customer property

Timely supply

Customer satisfaction occurs when the value and customer service provided through a retailing experience meet or exceed consumer expectations (Fig. 1.16).

‘Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation’.

Importance of customer satisfaction

Customer satisfaction plays a significant role within the business. It is not only a leading indicator to measure customer loyalty, identify

Fig. 1.16 Customer satisfaction circle

unhappy customers and increase Retail Sales Associate – Class XI

Retail Sales Associate

revenue; but it also helps to attract new customers Notes in a competitive business environment. The value of

customer satisfaction is as follows:

• It indicates consumer repurchase intentions and

loyalty.

• It shows point of discrimination.

• It reduces customer retrenchment.

• It increases the lifetime value of customer.

• It reduces the negative word of mouth.

• It helps in retaining customers.

(a) Customer retention strategies: The business may

incur loss if a retail store fails to attend customer

relationships. Some customer retention strategies

are

• writing blogs for educating customers,

• sending email for special promotions,

• conducting customer satisfaction surveys for

promotion,

• offering personalised experience to customers,

• setting customer expectations early,

• using social media to build group of engaged

customers,

• increasing customer retention by learning from

the best, and

• developing questionnaires and conducting

surveys.

There may be several other techniques which can

be utilised in the business as per the product, type of

customers, resources available with the firm, etc.

Activity 1

A field visit to learn the services to customers

Material required

Checklist, notebook, list of retail stores and pen or pencils

Fundamentals of Retailing

Retail Sales Associate

Notes

Procedure

1. Visit a nearby unorganised retail, interact with the shopkeeper and customers (about 5) and write responses to following questions in 50 words.

A. Interaction with shopkeeper/customer

a. What steps have been taken for customer support or satisfaction?

______________________________________________________

b. How are pre-sale enquires dealt with?

______________________________________________________

c. What type of after-sale services are provided?

______________________________________________________

d. Is any technical support provided to the customer?

______________________________________________________

e. Do you maintain any records of customer service? If so, how?

______________________________________________________

f. What strategies have you adopted for customer retention?

______________________________________________________

g. Do you take any feedback on customer satisfaction with the product?

______________________________________________________

B. Interaction with customers — (at least 5)

a. Usually how many questions do you ask before purchasing a commodity?

______________________________________________________

Retail Sales Associate – Class XI

Retail Sales Associate

b. What percentage of the customers are satisfied with the

products and services of the shop?

Product: _________________________ (Name)

Service of the shop: ______________________

c. Any suggestions for better service by the retailer and/or

improvement of the product

Suggestions for product improvement

______________________________________________________

Suggestions for better service by the retailer

______________________________________________________

2. Based on the views expressed by the shopkeepers and customers make your assessment of services provided in retail stores.

3. Collect the details, discuss with friends, teachers, officials of retail store and then finalise and submit your field visit report to your subject teacher.

Check Your Progress

A. Fill in the blanks

1. A customer becomes consumer of the commodity when the goods are purchased for _______________________.

2. _________________ is a measure of how products and services supplied by a company meet or surpass customer expectation.

3. _________________ customers don’t have any specific item into their product list but urge to buy what they find good and productive at that point of time.

B. Multiple choice questions

1. Which of these is a feature of good customer service?

(a) Politeness

(b) Personalisation

(d) All of the above

2. A dealer who purchases goods for re-sale is called _________________.

(a) retailer

(b) intermediary

(d) None of the above

Fundamentals of Retailing

Retail Sales Associate

Notes

3. A person who regularly buys milk from the supermarket is a ______________.

(a) loyal customer

(b) wandering customer

(d) All of the above

4. Which type of customers are normally new in the industry and most of the times visit suppliers only for confirming their needs on products?

(a) loyal customer

(b) wandering customer

(d) None of the above

5. Which of the following is a customer service feature?

(a) Technical support

(b) Pre-sales education

(d) All of the above

6. Which of the following comes under customer retention strategy?

(a) Conducting customer surveys

(b) Sending postcards on new products

(d) All of the above

C. State whether the following statements are True or False

1. In customer service, emails are used to send special promotions.

2. Customer satisfaction surveys are not important in retailing. 3. Customer satisfaction increases customer churn.

4. Social media, such as Facebook, is used to build a community of engaged customers.

5. Technical support is not required by customers.

6. Answering customer questions comes under pre-sales. 7. There is no need to treat customers professionally.

D. Match the columns

Column A Column B

Customer	A
Not Customers	B
Non Customers	C
External customers	D
Promptness	E
Technical support	F
Blogs	G

1.Delivery on the committed time

2. Educate customers

3. Past Customers

4. Active in different market segment 5. Recipient of good, service or an idea 6. Not directly connected

7. Personalised services

8. Customer delight H Data verification

Retail Sales Associate – Class XI

Retail Sales Associate

E. Short answer questions

1. Who is a customer?

2. Differentiate between loyal and impulsive customers.

3. What is meant by ‘customer services’?

4. Define the term ‘customer satisfaction’.

5. What is the importance of customer satisfaction?

F. Long answer questions

1. How do you classify a customer? Explain.

2. Explain the 4Ps of Customer Service.

3. Discuss the various customer service functions of a sales associate.

4. Explain the strategies followed by the retailer to retain customers.

G. Check your performance

1. Demonstrate the functions of a sales associate.

2. Spell out the various customer services for convincing and satisfying the customer.

Session 3: Skills for Handling Retail Business Meaning of skill

‘Skill’ is an ability to do a task with pre-determined results within a given period of time, energy, or both. It is an ability to do work with expertise. Skills may be — general or specific. General skills include time

management, teamwork and leadership, self-motivation for the work and domain-specific skills used in certain jobs. Knowing which skills a person possesses helps determine whether their training and experience has prepared them for a specific type of workplace activity.

For example, requirement of carpentry skills for a carpenter’s job.

Essentials of skill development

Skill development is an important instrument to increase the efficacy and quality of labour for improved productivity and economic growth. Skill building is a powerful tool to empower individuals and improve their social acceptance.

Fundamentals of Retailing

Retail Sales Associate

Notes

In terms of retail, it encompasses:

(a) Taking stock of the retail store: Assessing where the retailer stands and managing development and taking realistic inventory of personal and professional assets.

(b) Creating a plan: Creating a plan for development, it enables the retailer to reach their goals.

(c) Creating environment for development: Creating an environment for self-improvement. Consider the following strategies:

• Practice consistent, self-directed learning

• Make a note of problems or mistakes

• Interact with peers at a professional level

• Pay attention to health

Skills for sales associate: customer services

Sales associates have broad and flexible responsibilities that often include acting as cashier, customer service representative, stocker, and stepping into other roles, sometimes multiple roles, in a single day. Here are some of the most important skills you’ll need to become a sales associate.

(a) Patience: Patience is a necessary and often overlooked virtue for retail employees. Not all customers are exceptionally kind, and good retail associates have the patience to diffuse tough situations with difficult customers.

(b) Attentiveness: A sales associate is bound to spend at least a portion of his or her day operating a point of sale (POS) system or arranging merchandise. Both of these key roles require a high level of accuracy. A sales associate must focus his or her attention to detail to ensure that transactions are processed accurately and the sales floor looks its best.

(c) Communication skills: The required skills include listening effectively and explaining the specific benefits of various products and services to customers. A sales associate must also clearly

Retail Sales Associate – Class XI

Retail Sales Associate

explain the information and processes to the customer needs to complete a transaction. At the same time, they must maintain a pleasant and approachable demeanor.

(d) Product knowledge: One can never answer customer questions or provide accurate information without fully understanding the products that one is selling. A sales associate should read all about the product.

(e) Use “Positive Language”: Language is a part of persuasion. Customers create perceptions about a retailer based on his or her language. Minor changes in conversational patterns go a long way in creating happy customers.

(f) Acting skills: Sometimes retailer comes across people who they will never able to make a happy customer. Sometimes retailer will have to deal with boring angry customers and complaining customers. Every sales associate must have basic action skills necessary to deal and maintain their customer.

(g) Time management skills: Retailer may be busy in much research-backed production activities. However he or she must have the capability to solve customer problems in limited time so that he or she can think some additional improvement in retail business.

(h) Goal oriented: The retailer sets goals and then use strategies to attain them. Goal orientation is the degree to which a person or organisation focuses on tasks and the end results of those tasks.

(i) Resilience: Each day is packed with small and large challenges. It may simple mean running out of time to meet a sales goal or being understaffed on an unexpectedly busy day. To do this, a sales associate should learn to think clearly, make decisions quickly and not take things too personally.

Fundamentals of Retailing

Retail Sales Associate

Notes

Activity 1

A field visit to learn the skills for handling retail business Material required

Checklist, questionnaire, notebook, list of retail stores and pen or pencils

Procedure

1. Visit a nearby retail Kirana or General store of your locality and interact with the shopkeeper or counter person and at least 5–10 customers. Write down the responses to the following questions in 50 words.

A Questions for shopkeeper or his or her representative on counter

a. In what manner does the shopkeeper respond to the customer returning or exchanging goods?

________________________________________________________ ________________________________________________________ ________________________________________________________

b. What skill(s) are involved in it?

________________________________________________________ ________________________________________________________ ________________________________________________________

c. In what manner are the new products introduced to the customers?

________________________________________________________ ________________________________________________________ ________________________________________________________

d. What skill(s) are involved in it?

________________________________________________________ ________________________________________________________ ________________________________________________________

e. Mention a situation where the shopkeeper is seen using ‘patience’ skill.

________________________________________________________ ________________________________________________________ ________________________________________________________

f. Mention a situation which indicates the shopkeeper’s alertness skill.

________________________________________________________ ________________________________________________________ ________________________________________________________

Retail Sales Associate – Class XI

Retail Sales Associate

B Questions related to the customers

a. Mention a situation where clear communication skill was needed on the part of the shopkeeper.

________________________________________________________

b. Observe the customers’ queries and mention the situations where the shopkeeper lacked knowledge about

the product.

________________________________________________________

c. Observe the customers and shopkeeper interaction for about half an hour and identify the skills used:

1. ______________ 5. ______________ 9. ______________

2. ______________ 6. ______________ 10. ______________

3. ______________ 7. ______________ 11. ______________

4. ______________ 8. ______________ 12. ______________

2. List out the different skills you find in sales associates in organised and unorganised retail shops.

S.No.	Name of skills	Organised shop	Unorganised shop
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

3. Collect the details.

4. Discuss with friends, teachers, officials of retail store and then finalise.

5. Submit your field visit report to the subject teacher.

Fundamentals of Retailing

Retail Sales Associate

Notes

Check Your Progress

A. Fill in the blanks

1. _____________________ is the degree to which a person or organisation focuses on tasks and the end results of those tasks.

2. A sales associates must also clearly explain the information and processes the customer needs to complete a __________.

3. ______________ is a necessary and often overlooked virtue for retail employees.

B. Multiple choice questions

1. Why is there a need to have skillful sales associates?

(a) For displaying merchandise

(b) For interacting with customers

(d) All of the above

2. The ability to readily listen to a complaining customer and to understand him or her comes under which skill?

(a) Patience

(b) Attentiveness

(d) Resilience

3. Skill is a(n)___________.

(a) inborn ability

(b) learned ability

(d) None of the above

4. Some customers go on enquiring about a product and you have insufficient time, which of the following skill will you use here?

(a) Skill of patience

(b) Skill of attentiveness

(d) None of the above

5. Which of these is not a skill?

(a) Carpentry

(b) Reading and writing

(d) Rising up

6. Which of these is a specific skill?

(a) Team work

(b) Time management

(d) None of the above

Retail Sales Associate – Class XI

Retail Sales Associate

7. Which of these is an essential step of skills development? (a) Taking stock of yourself

(b) Creating a plan

(d) All of the above

C. State whether the following are True or False

1. It is not important to have goal in handling retail business.

2. Customer service representatives should possess the skill of patience.

3. Attentiveness is the ability to listen to the customers carefully.

4. Communicaton skills are not required for customer service. D. Match the columns

Column A		Column B
1.	Skills	A	Maintaining cool
2.	Attentiveness	B	Solve customer problems in limited time
3.	Calming presence	C	End conversation with satisfaction
4.	Time management skills	D	Listen to customers carefully
5.	Closing ability	E	Ability to carry out a task

E. Short answer questions

1. Define Skills.

2. How are time management skills important for a sales associate?

3. Why are communication skills necessary for a sales associate?

F. Long answer questions

1. Discuss the essentials of skill development for a sales associate.

2. Explain the skills required by a sales associate.

G. Check your performance

1. Demonstrate the skills required by a sales associate.

2. Draw a chart containing the various skills of sales associate.

Fundamentals of Retailing

Retail Sales Associate

Notes

Session 4: Duties and Responsibilities of a Sales Associate

A sales associate is also referred to as a customer services associate. A sales associate is responsible for all sales activities and sales associate job duties, from greeting customers to answering questions, offering assistance, suggesting items, lending opinions and providing product information. Individual responsibilities as a sales associate may include demonstrating outstanding customer service and selling skills, keeping the selling floor stocked with merchandise, assisting in display of merchandise or organising the selling floor and stock areas.

Duties of a sales associate

A sales associate deals with customers to provide for their needs regarding retail products. They also deal with and help in resolving customer complaints. For instance, a sales or customer associate may assist customers to resolve their problem. Usually, a sales or customer service associate gathers information through a telephone call.

The duties of a sales associate are as given below.

(a) Handling problems: Customer inquiries involve complaint handling by sales associate. Sometimes, sales associates solve customer problems or propose some solutions. Sales associates ensure that complaints file by customers are valid and solve within bounds of their authority.

(b) Assisting sales: Sales associates help customers identify and purchase products they desire. Their duties include selling, restocking and merchandising. The goal is to provide high class customer service and to increase company’s growth and revenue through sales maximisation.

(c) Clerical tasks: A sales associate many a times is required to undertake clerical responsibilities, such as obtaining or receiving merchandise, totalling bills, accepting payments, taking orders, etc.

(d) Job specific responsibilities: All duties of a sales associate largely depend on the type of retail store. But the duties which are specific to their job role

Retail Sales Associate – Class XI

Retail Sales Associate

include greeting customers, responding to questions, improving engagement with merchandise and providing outstanding customer service, operating cash registers, managing financial transactions and balancing drawers.

Responsibilities of sales or customer service associate

(a) Interact with customers: Customer service associates may deal with customers face-to-face or they may assist customers over phone or via email or chat programs. Some phone- and Internet-based associates may work remotely from home.

(b) Working directly with customers: A customer service associate deals with customers in retail store.

(c) Resolve the issues of customers: Customers approach sales associates when they face any issues, such as incorrect price listed for a product, returns, etc.

(d) Listen to customers: Every customer service associate must listen to the customer. Effective listening helps in solving customer problems easily and quickly.

(e) Remain friendly and polite: The sales associate should behave politely with customers.

Special activities of sales or customer service associate

• Prepare for customer inquiries

• Respond to customer inquiries

• Document customer inquiries

• Improve quality service

• Identify new products

• Update job knowledge

• Participate in educational opportunities

A sales associate requires skills, such as product knowledge, ability to inform customers, data entry, analysing information, verbal communication, reporting skills, managing processes, general consulting and multitasking skills

Fundamentals of Retailing

Retail Sales Associate

Notes

Activity 1

A field visit to learn the skills for handling retail business Material required

Checklist questionnaire, notebook, list of retail stores and pen or pencils

Procedure

1. Visit a mall or organised store and ask the manager to fill open-ended questionnaire.

A. Questions for employer

a. What qualities do you think a customer service associate should possess?

________________________________________________________ ________________________________________________________ ________________________________________________________

b. What is the nature of job for a customer service associate in the store?

________________________________________________________ ________________________________________________________ ________________________________________________________

B. Questions for employee sales associates

a. What are your responsibilities in this store?

________________________________________________________ ________________________________________________________ ________________________________________________________

b. What are the duties and functions that you need to perform in this store?

________________________________________________________ ________________________________________________________ ________________________________________________________

c. What is your method of operation to deal with customers? ________________________________________________________ ________________________________________________________ ________________________________________________________

2. Collect the details

3. Discuss with friends, teachers, officials of retail store and then finalise.

4. Submit the field visit report to your teacher.

Retail Sales Associate – Class XI

Retail Sales Associate

Check Your Progress Notes

A. Fill in the blanks

1. ___________________________ associate is also referred to as

customer services associate.

2. A sales associate always renders services to

the__________________________.

3. A sales service associate gathers their

__________________________ via a telephone call.

4. Most sales associate work at the ____________________

location.

B. Multiple choice questions

1. Sales or customer service associate who work in retail may

have similar duties to bank tellers which is (are)_____________.

(a) counting money

(b) cashing cheques

(d) All of the above

2. Customer service associates may interact_____________ with

customers in the retail store itself.

(a) face-to-face

(b) over the phone

(d) None of the above

C. State whether the following are True or False

1. When customers have any issues that need to be resolved,

they cannot approach a sales associate.

2. Sales associate deal directly with customers.

3. Selling a company’s product is not a part of the sales

associate’s duties.

4. D. Match the column

Column A Column B

Customer inquiries	A
Clerical tasks	B
Issue	C
Preparation for customer inquiries	D

1.Return an item or refund

2. Studying products, services

and customer processes

3. Complaints

4. Documenting inquiry

5. Recording of customer’s inquiry

Fundamentals of Retailing

E Transferring calls

Retail Sales Associate

Notes

E. Short answer questions

1. What are job specific responsibilities?

2. Handling problems is an important duty of a sales associate. Why?

3. How do sales associates undertake the responsibility of resolving issues of customers?

4. What are the clerical tasks of a sales associate?

F. Long answer questions

1. Explain the duties of a sales associate in a retail store.

2. Discuss the responsibilities of a sales associate in a retail store.

3. What are the special activities undertaken by sales associates in a retail organisation?

G. Check your performance

1. Demonstrate the duties of a sales associate in a retail store.

2. Perform the responsibilities of a sales associate in a retail store.

Retail Sales Associate – Class XI

Retail Sales Associate

Process of Credit

Application 2

Goods and services can be paid for upfront or on

delivery, or are supplied on credit (where payment is

deferred for a period of time after the goods or services

have been supplied).

Offering credit increases the risk of being paid

late, or not at all, so for new customers one should

always consider upfront or on delivery payments, also

in situations where one has outlaid large amounts of

money to supply the goods or service.

The present unit on ‘Process of Credit Application’

covers various aspects like features and conditions

for credit sales, identifying credit checks and

getting authorisation, describing the process of

credit requisitions demonstrate the techniques for

determining credit worthiness. This unit deals with the

features of credit sales, credit sales agreement, retail

credit facility flexibility, terms and conditions. It also

covers the difference between sales and agreement

to sale. Contract of sale, conditions and warranties,

credit checks and getting authorisation have also been

discussed.

While granting customer credit, the sales associate

has to follow certain steps which include creation of

credit policy, obtaining credit application, checking

customer references, getting a personal guarantee, run a

credit check, setting limits of credit and payment terms.

Retail Sales Associate

Notes

The credit requisition contains information on the desired products, details of possible vendors, delivery instructions, accounting details, contact information, etc. The sales associate has to follow the criteria in processing credit sale application. Before credit sales are permitted, the sales associate or the retailer has to obtain credit worthiness of a buyer.

With this background in view the present unit titled ‘Process of Credit Application’ has been divided into four sessions. The first session deals with the features and conditions for credit sales and covers retail credit facility, terms and conditions in credit sales. The second session is on credit checks and getting authorisation. It will focus on the legal and company procedures for carrying out credit checks and getting authorisation. The third session is devoted to processing credit requisitions and deals with documentation requirements. The last, i.e., fourth session deals with techniques determining credit worthiness.

Session 1: Features and Conditions for Credit Sales

Credit sales refer to sales that involve extending credit to the customer. The customer takes the product now and agrees to pay for it later. Credit sales are a type of trade credit. They create receivables, or money owed to the company from customers.

Credit sales terms often require payment within one month of the invoice date, but may also be for longer periods. The due amount may be collected in different forms, such as lump-sum payment, Hire Purchase system and Installment Purchase System. Retail firms sell goods on credit due to the following benefits:

• Meet the competition: When competitors are making sales on credit to customers, any business will need to do the same just to stay competitive.

• Increase in sales: An increase in sales may or may not happen when one starts selling on credit. If your competitors are not offering credit terms, then you will gain sales by offering credit terms,

Retail Sales Associate – Class XI

Retail Sales Associate

because your customers will buy from you instead, of having to pay cash, of your competitors.

• Better customer loyalty: Offering credit to customers indicates that you respect and trust them to pay before their due dates. Customers will reward these gestures of confidence by continuing to buy from you.

Characteristics of credit sales

Credit sale is selling goods to customer by transferring from seller to customer without paying the money immediately. Payment of goods can be done as per the agreement. The characteristics of credit sale are as given below.

• The transferor normally deals in goods and services.

• The title of the goods lies with the seller before it is sold on credit.

• There are fewer formalities especially in case of open account.

• It is usually extended for three months.

• It depends on terms imposed by seller.

• No security is required.

• It can be facilitated with different financial institutions with easy terms and at a continuous rate.

• Almost half of short financial requirement of retail is met by this type of mutual trust and good relation.

Credit sale agreement

A credit sale agreement is an agreement for the sale of goods under which the purchase price, or part of it, is payable by installments.

Definition of ‘retail credit facility’

Retail credit facility is a financing method which provides loan facility to retail consumers for purchasing goods and services. Retail credit facilities lend funds to customers wanting to purchase high-valued items

Process of Credit Application

Retail Sales Associate

Notes

but are short on capital. Thus, retail credit facilities may enable a greater number of consumers access to a retailer’s goods. The risk of default is the main factor behind high rate of interest rate charged by retail credit facilities.

Structure of a credit agreement

Thus, retail credit facilities may enable a greater number of consumers access to a retailer’s goods. A credit agreement details the borrower’s responsibilities. It includes details of loan warranties, lending amounts, interest rates, loan duration, default penalties, and repayment terms and conditions. The contract includes basic information of the customer and also includes the purpose of the loan.

Repayment terms of credit facility

The repayment terms include the interest rates and date for repayment, in the case of a term loan, or the minimum payment amount and recurring payment dates, in the case of a revolving loan. The agreement details whether interest rates may change and specifies the date on which the loan matures, if applicable.

Conditions used for sale of goods on credit

A contract of sale is a legal contract for the exchange of goods, services or property from seller to buyer for an agreed upon value in money paid or the promise to pay the same. It is a specific type of legal contract. There are some provisions in a contract of sale, which have been discussed below.

• The contract of sale, is an agreement in which a seller agrees to transfer goods to a buyer at a price. It is made when there is both an offer as well as agreement to buy or sell goods for a price.

• It can be made in writing or by word of mouth. • A contract of sale is a generic term, which includes: (a) Sale and (b) Agreement to sell.

Agreement to sell

Agreement to sell constitutes the terms and conditions of sale of by the seller to the buyer. These terms and

Retail Sales Associate – Class XI

Retail Sales Associate

conditions include the amount at which it is to be sold and the future date of full payment.

Essential elements of contract of sale

There are various essential elements which must be present in a contract of sale. These are as given below. (a) Essential elements of a contract: All other essentials of a valid contract as per the Indian Contract Act, 1872, must be present. The parties of a contract must be competent, their consent must be free, and the object of contract must be lawful and so on.

(b) Bilateral contract: To make a contract of sale there must be at least two parties. These parties must be distinct, that is, a seller and buyer.

(c) Transfer of property: In a contract of sale the objective is to transfer the general property, from the seller to the buyer, in the case of goods.

(d) Goods: The subject-matter of the contract of sale of goods, must be some goods. The purpose of this contract is to transfer the property in these goods from the seller to the buyer.

(e) Price — the consideration: In a contract of sale the consideration is price. Price or consideration may by partly in money and partly in goods.

Difference between condition and warranty

In a contract of sale, the subject matter is ‘goods’. There are many sale transactions which occur in the normal course, all around the world. There are certain provisions which need to be fulfilled because it is demanded by the contract. These prerequisites can either be a condition and warranty. The condition is the fundamental stipulation of the contract of sale whereas warranty is an additional stipulation.

In other words, condition is the arrangement, which should be present at the time of happening of another event, whereas warranty is a written guarantee, issued to the buyer by the manufacturer or seller, committing to repair or replace the product, if required, within

Process of Credit Application

Retail Sales Associate

Notes

specified time. The difference between condition and

warranty have been listed below.

Basis for comparison	Condition	Warranty
Meaning	A requirement or event that should be performed before the completion of another action, is known as condition	A warranty is an assurance given by the seller to the buyer about the state of the product, that the prescribed facts are genuine
Defined in	Section 12 (2) of Indian Sale of Goods Act, 1930	Section 12 (3) of Indian Sale of Goods Act, 1930
What is it?	It is directly associated with the objective of the contract	It is a subsidiary provision related to the object of the contract
Result of breach	Termination of contract	Claim damages for the breach
Violation	Violation of condition can be regarded as a violation of the warranty	Violation of warranty does not affect the condition

Activity 1

A role-play to learn the process of credit sales in retail business

Material required

Checklist, notebooks and pen or pencils

Procedure

1. Divide the class into groups of 3 and ask them to perform the

following activities in the retail lab.

Role-play situation

A customer enters into the retail store and asks the retailer

to sell the goods on credit to him and CSA decides to sell the

goods on credit to him.

1st student: A customer seeking credit

2nd student: Customer Sales Associate (Retailer)

3rd student: Store Manager

2. Finish the play within the time allotted to you.

3. Discuss the learnings from the activity and the points to

be covered.

4. Share your views before and after the role-play activity.

Activity 2

A field visit to learn terms and condition adopted by retailers for

credit sales

Material required

List of retail stores and notebook, pen or pencils

Retail Sales Associate – Class XI

Retail Sales Associate

Procedure

1. Visit a nearby retail store.

2. Examine the terms and conditions adopted by the retailers for credit sales.

3. Discuss the findings with your teacher.

3. Prepare and submit a report based on your observation.

Activity 3

Field visit to learn features of credit sales

Material required

Questionnaires, list of retail stores, notebook, pen or pencils Procedure

1. Visit retail stores near your home or school.

2. Observe if the following activity or situation exists at the stores. Tick mark the appropriate.

S. No.	Activity or Situation	Yes	No
1.	Whether the retailer is selling goods on credit basis to customers
2.	Does the retail store keep any conditions for credit sales?
3.	Does the retailer sell goods on Installment Purchase System?

3. Identify the need for customer’s credit facility form.

4. Understand how a retail firm is selling goods on credit.

5. Study the terms and conditions stipulated for sale of goods on credit.

6. Collect the details.

7. Discuss with friends, teachers, officials of retail store and then finalise.

8. Submit the field visit report to your teacher.

Check Your Progress

A. Fill in the blanks

1. When goods are sold without receiving immediate ____________, it is called a credit sale.

2. Credit sales are made between a _____________ and a ____________________ with buyer agreeing to pay in

installments.

Process of Credit Application

Retail Sales Associate

Notes

B. Multiple choice questions

1. A requirement or event that should be performed before the______________, is known as Condition.

(a) completion of another action

(b) agreement

(d) None of the above

2. Which of these is an essential element of a contract of sale?

(a) Transfer of property

(b) Money consideration

(d) All of the above

C. State whether the following are True or False

1. There must be at least three parties for contract of sale. 2. In a contract of sale the consideration is price.

3. Agreement to sell means a contract of sale.

D. Match the columns

Column A Column B

Condition	A
Warranty	B
Transfer of property	C

1.Assurance

2. Consideration of contract of sale

3. Section 12(2) of Indian Sale of Goods Act, 1930

4. Price D Transfer of ownership

E. Short answer questions

1. Define credit sales.

2. What are the benefits of credit sales?

3. What is a credit sale agreement?

4. What is retail credit facility?

5. Explain agreement to sell.

F. Long answer questions

1. Explain the features of credit sales.

2. What conditions are used for sale of goods on credit?

3. Write the differences between condition and warranty.

5. What are the essential elements of a contract of sale?

G. Check your performance

1. Demonstrate the essentials of a contract of sale.

2. Demonstrate the features of credit sales.

Retail Sales Associate – Class XI

Retail Sales Associate

Session 2: Credit Checks and Getting Authorisation

Any retail store’s primary objective is to enhance profits. Therefore, there is a need to identify the potential customers for making credit sales. Keeping this in mind, creditors must conduct credit check in order to understand whether customers have repaying capacity or not. This can reduce the risk of bad debts for the retailing firm.

Meaning of credit check

Credit check is a sort of search performed by the retailer to evaluate a customers’ creditworthiness. After a credit check a retailer is able to assess whether a customer can handle his or her money matters and fulfill the requirements for credit.

Need for credit checking

There is a need for credit check as it helps the retailer to assess if a customer is creditworthy. Given below are some of the reasons for conducting a credit check.

• Credit check protects the interests of parties. It also ensures that each party has the capacity to enter into a transaction.

• Retail firms should run a credit check on customers any time whenever the customers apply for a loan, hire purchase, credit card, store card or line of credit.

• A credit check provides information about the customer’s mortgage, credit cards, arranged overdrafts, personal loans, car finance, hire purchases, and repayment history of customer’s phone accounts, etc.

• A credit record is basically an account of any type of credit of the customer given for the last six years. It reveals how much money is being accessed by the customer and if the customer has failed to make any obligations, etc.

• When applying for credit, a customer is asked by the lender for his consent to check the customer’s credit file. This allows them to see a number of

Process of Credit Application

Retail Sales Associate

Notes

things, such as address of the customer, current commitments and reliability of the customer.

The criteria vary from customer to customer. It is based on the financial profile and credit history.

Positive credit reporting

In the past, credit check included ‘negative’ behaviour, which took place when customers failed to meet his obligations in financial dealings. The credit score is now calculated on the basis of this information, together with other credit activity in the customer’s file, such as previous enquiries from credit providers. This provides a clear picture of the customer’s finances, and shows if the customer’s have recovered from any credit difficulties in the past.

Procedure for credit check on a prospective customer

Checking credit is an important step before issuing credit, and allows you to make an informed decision about the level of risk associated with extending credit to the customer. Before retail firms extend credit to a customer, it is an important step to check a customer’s credit history.

Before offering credit, the retailers gets a credit application form filled and sign by the customer. The information to be collected from the customers for credit check is as follows:

• Release of information: In order for the retailer to do a complete credit check on a customer, they will need the customer’s permission.

• Signature: A signature on the credit application form means that the customer has read and understood all the terms and conditions listed and also agrees with them.

• Address: Having the correct address will assure that a credit check pulls up the right information. • Employment: Accurate employment information of the customer allows retailers to take a look into the customer’s employment history to see how long he or she were at each job.

Retail Sales Associate – Class XI

Retail Sales Associate

Legal and company procedures for getting authorisation

A person’s credit history is private. Therefore, a retail firm needs to seek permission from the customer before accessing any information legally.

How to get credit report

Customers provide the necessary information for credit purchase. A retailer accesses the information and makes a report. The retailer can directly ask the customers for their credit worthiness and write it in their credit report.

Steps to follow before granting a credit

If a business firm decides to offer credit terms to the customers, it should try to ensure that these customers will be both willing and able to pay in accordance with the agreed-upon terms. It is recommended that the firms follow a structured process for this. Therefore, a firm may consider the following steps.

• Create credit policy: Every retail store must create their credit policy. It will help them in running the retail business. It includes payment policies and expectations.

• Customers must complete the credit application: The application should provide key information about the customers.

• Check the customer’s references: Asking customers to list references also helps.

• Run credit check: It will help in revealing any outstanding payments against the customer.

• Request personal guarantee from customer: It is not necessary in the case of a retail store, however, it is a personal guarantee from the customer.

• Take security interest in products: As customers can refuse to pay according to agreed upon terms, a retailer should ideally charge security interests.

Process of Credit Application

Retail Sales Associate

Notes

• Set credit limits and payment terms: Set limits for the customer who seem to be creditworthy. Also decide how many days after the delivery of the products the full payment will be made.

Activity 1

A role-play to learn the process of credit sales in retail business Material required

Checklist, notebook and pen or pencils

Procedure

1. Divide the class into groups of 3 and ask them to perform the following activities in the retail lab.

Role-play situation

A customer enters into the retail store and requests to sell the goods on credit. Now, understand how the retailer makes a credit check before selling the goods on credit.

Role of students

1st student: A customer

2nd student: Customer Sales Associate (Retailer)

3rd student: Store Manager

2. Finish the play within the time allotted to you.

3. Discuss the learnings from the activity and points to be covered. 4. Share your views before and after the role-play activity.

Activity 2

A field visit to learn the practices adopted for making credit check

Material required

Checklist, list of retail stores, notebook and pen or pencils Procedure

1. Visit a nearby retail store.

2. Examine the practices adopted by the retailers for making credit check.

3. Prepare a report based on your observation.

Activity 3

A field visit to learn credit check and getting authorisation in a retail business

Material required

Checklist, list of retail stores and notebook and pen or pencils

Retail Sales Associate – Class XI

Retail Sales Associate

Procedure

1. Visit a retail store near your home or school.

2. Observe the following activity or situation that exists in the stores.

3. Tick mark the appropriate option.

S. No	Activity or Situation	Yes	No
1.	Whether the retailer is following a credit check for sale of goods on credit to the customers
2.	Is the retail store approaching any Credit Reference Agency for seeking credit check
3.	Whether the retailer is following the legal procedures for carrying out credit check
4.	Is the retail store following suitable steps to provide credit to the customers?
5.	(a) Whether the retailer is refusing to offer credit sales (b) Is the retail firm is providing enough time and opportunities for the customers to seek clarifications for credit sales facility?

3. Study what are legal and company procedures for getting authorisation for credit check.

4. Collect all the details.

5. Discuss the details with your teacher and authorities of the retail store.

6. Prepare a report on the basis of your observations and submit to your teacher.

Check Your Progress

A. Fill in the blanks

1. Credit check strategy is adopted by retailers to check the customer’s _________________.

2. Retail firms must have _________________________________ from customer.

B. Multiple choice questions

1. The main objective of a credit check is to manage the risk of ______________.

(a) bad debts

(b) credit Sales

(d) None of the above

Process of Credit Application

Retail Sales Associate

Notes

2. Before retail firms extend credit to customer, it is the best practice to check the prospective customer’s ________________.

(a) Profile of the customer

(b) History

(d) None of the above

3. ______________is the risk involved in offering credit.

(a) Financial risk

(b) Reduced cash flow

(d) None of the above

C. State whether the following are True or False

1. Credit check is a type of search.

2. Credit checking is not needed to protect the interest of parties.

3. A credit record is basically an account of any type of credit. 4. Approval from customer is not required while credit check of his/her account.

D. Short answer questions

1. What is the meaning of credit check?

2. What is positive credit reporting?

E. Long answer questions

1. What is the legal and company procedures for carrying out credit checks?

2. Explain the need for credit checking.

3. Elaborate the steps to be followed before granting customer credit.

4. How is the credit report of a customer obtained?

G. Check your performance

1. Demonstrate legal and company procedure for carrying out credit checks.

2. Draw a chart on the steps to be followed before granting customer credit.

Session 3: Processing Credit Requisitions

Requisition is a formal request by a buyer to the seller to sell the desired goods on conditions agreed upon. It generally includes the brand and model name, quantity and the required delivery date, etc. When a requisition is made by a buyer to the seller to provide credit facility for the purchase of goods it is known as credit requisition.

Retail Sales Associate – Class XI

Retail Sales Associate

The rules for availing credit facilities are normally provided by the organisation.

Credit requisition

A credit requisition is a request for credit. A valid credit requisition includes the amount and type of credit requested. It also includes the applicant’s credit score, report and means of security for the loan. Normally, credit limits are prescribed by the vendor.

The credit limit means maximum amount of money extended through a line of credit and maximum amount of credit allowed to a customer to purchase in a retail store.

The credit requisition document requires information about the following:

• The desired items or services: Customers who are seeking credit facility must mention the details of desired items or services to be purchased on credit from the retail store.

• Possible vendors to fulfill order: It must contain the details of the possible vendors who can supply the required goods to the customer or buyer.

• Any budget quotations or proposals received: It should contain the information about the vendor’s name and other details of quotations or proposals received.

• Delivery instructions: The credit requisition should contain the information about delivery instructions of the goods.

• Capture initial capital details: The detailed information about initial capital must be provided in the credit requisition.

• Contact information: The buyers who want to purchase the goods on credit must mention their contact information in this requisition.

• Related accounting detail: It should also provide information about related details of accounting.

Process of Credit Application

Retail Sales Associate

Notes

Process of applications

The following performance criteria must be followed for processing applications from retail customers for credit facilities.

1. Identify the customer’s needs and provide credit facilities.

2. Clearly explain about features and conditions of credit facilities to the customer.

3. The customer should submit the application, and the requisition must be approved by the retailer. 4. Promptly refer to difficulties in processing applications.

5. Once approved, the requisitions go to the Sales Manager for authorisation procedures.

Activity 1

A role-play to learn the processing of credit requisition

Material required

Checklist, notebook, pen or pencils

Procedure

1. Divide the class into groups of 3.

Role-play situation

A customer enters a retail store and asks the retailer how to process credit requisition for purchasing the goods on credit. Now, the retailer has to explain about the documents required for the credit requisition and ask the customer to perform the following activities in retail lab.

Role of students

1st student: A customer asking about credit requisition

2nd student: Customer Sales Associate

3rd student: Store Manager

2. Other students of the class can ask questions to the performing group.

3. Finish the play within the time allotted to you.

4. Discuss the learnings from the activity and points to be covered. 5. Share your views before and after the role-play activity.

Activity 2

A field visit to learn the documents for processing credit requisition of customer

Material required

Checklist, list of retail stores, notebook, pen or pencils

Retail Sales Associate – Class XI

Retail Sales Associate

Notes Procedure 1. Visit a nearby retail store.

2. Identify how a retail firm is keeping the various documents

required for processing credit requisition of the customers for

providing credit facilities.

3. Prepare a report based on the observation and submit to

your teacher.

Activity 3

A field visit to learn processing credit requisitions

Material required

Checklist, list of retail stores, notebook, pen or pencils

Procedure

1. Visit a nearby store and examine how a retail firm processes

the applications from the retail customers for credit facilities.

2. Observe the following activity or situation that exists at

the stores.

3. Tick mark the appropriate option.

S. No.	Activity or Situation	Yes	No
1.	Whether the retailer is keeping the documents required for credit requisition?
2.	Whether the retail store is following any criteria for determining the creditworthiness of the customers
3.	Can is any performance criterion followed for processing applications from retail customers for extending credit facilities?

3. Collect the detailed information.

4. Discuss the observations with teacher and the authorities at

the retail store.

5. Prepare and submit a report based on the observations made

during the field visit.

Check Your Progress

A. Fill in the blanks

1. ________________ is the formal request by a customer to a

seller to sell the desired goods on conditions agreed upon.

2. A _____________________ is a request for credit.

3. __________________________ refers to the maximum amount

of money extended to a customer through line of credit.

4. Normally credit limits are prescribed by the

___________________.

Process of Credit Application

Retail Sales Associate

Notes

B. Multiple choice questions

1. When a requisition is made by a buyer to the seller to provide credit facility for the purchase of goods, it is known as ________________.

(a) purchase requisition

(b) requisition

(d) None of the above

2. Vendors usually set ____________________ based on information in the application of the person seeking credit.

(a) credit limits

(b) debit limits

(d) None of the above

3. The credit requisition document requires information about the ___________________.

(a) items which are not desired

(b) desired items or services

(d) None of the above

4. __________________ is the performance criteria to be followed for processing applications from retail customers for credit facilities.

(a) Identifying the customer’s needs for credit facilities

(b) Not identifying the customer’s needs for credit facilities (c) Both (a) and (b)

(d) None of the above

C. State whether the following are True or False

1. Requisition is an informal request by a customer to seller. 2. Credit requisition should contain information about the delivery instruction of the goods.

3. Credit processing application does not provide time to customers for clarification.

4. Once approved the application goes to the sales manager.

D. Match the columns

	Column A		Column B
1.	Requisition	A	Prescribed by vendor
2.	Credit limits	B	Vendor’s name and detail of quotation
3.	Accounting details	C	Customer account
4.	Budget quotation	D	Formal request by customer

Retail Sales Associate – Class XI

Retail Sales Associate

E. Short answer questions

1. What is credit requisition?

2. What is requisition?

F. Long answer questions

1. Explain the information required in credit requisition.

2. Discuss the process of credit application.

G. Check your performance

1. Draw a chart on credit requisition.

2. Demonstrate the steps involved in credit requisition.

Session 4: Techniques for Determining Credit Worthiness

Several businesses have an established credit rating system to determine the creditworthiness of customers.

Meaning of ‘creditworthiness’

Creditworthiness is a valuation performed by the retailer that determines the possibility of a customer to default based on his or her earlier debt obligations. It considers factors like repayment history and credit score. The credit reporting agencies measure the creditworthiness of customer.

How can customers improve their credit score

Individuals should pay on time, pay more than the minimum monthly payment, pay their debt faster and reduce the assessment of late fees to improve their credit score.

How to check a customer’s credit worthiness?

A retailer before extending credit should verify a customer’s ability to repay, among other things. To keep an eye on the customers and their ability to pay what they owe, the retailers should keep the following in mind:

(a) Require a credit application: Every customer should be made to fill the credit application.

Process of Credit Application

Retail Sales Associate

Notes

(b) Check publicly available information: Every retailer must check the customer’s information before issue credit.

(c) Use credit evaluation tools: A retailer must use credit evaluation tools to calculate the customer credit worthiness.

Techniques used for determining credit worthiness of customers

When retailers want to expand the credit to their customers, they are essentially willing to provide customers credit equal to the amount of their purchases. The guidelines to be followed by the retailer is inclusive of ‘The Five Cs of Credit’, which are as follows:

• Character: This refers to the customer’s integrity and willingness to repay the financial obligation.

• Capacity: This addresses the customer’s cash inflow and ability to repay the debt.

• Capital: This is the customers’ financial net worth.

• Collateral: This refers to the security against credit.

• Conditions: These refer to the economic, family and personal conditions of customers.

Activity 1

A role-play to learn assessment of credit worthiness of customer Material required

Checklist, notebook and pen or pencils

Procedure

1. Divide the class into groups of 3.

Role-play Situation

A customer enters a retail store and asks the retailer to sell goods on credit. Now, the retailer has to assess the creditworthiness of the customer seeking credit.

Retail Sales Associate – Class XI

Retail Sales Associate

Role of Students

1st student: A customer seeking credit

2nd student: Customer Sales Associate

3rd student: Store Manager

2. Other students of the class can ask questions to the performing group.

3. Finish play within the time allotted to you.

4. Discuss the learnings from the activity and points to be covered.

5. Share your views before and after the role-play activity.

Activity 2

A field visit to identify the assessment of credit worthiness of customers.

Material required

Checklist, list of retail stores, notebooks and pen or pencils Procedure

1. Visit a nearby retail store.

2. Identify how a retail firm is assessing credit worthiness of customers for providing credit facilities.

3. Prepare and submit a report based on observation.

Activity 3

A field visit to learn processing credit requisitions Material required

Checklist, list of retail stores, notebook and pen or pencils Procedure

1. Visit a nearby retail store.

2. Examine the techniques adopted by the retailers for determining creditworthiness of customers.

3. Examine how a retail firm is analysing the financial statements of the customer seeking credit for determining the creditworthiness of the customers.

4. Observe the following activity or situation that exists at the stores. Tick mark the appropriate option.

S. No. Activity or Situation Yes No

Notes

Whether the retailer is assessing

creditworthiness of the customers

Whether the retail store is following any criteria for determining creditworthiness of the customers

3. Are any techniques used for determining

the creditworthiness of the customers?

Process of Credit Application

Retail Sales Associate

Notes

6. Collect the details.

7. Discuss with teachers and authorities of retail store.

8. Prepare and submit a report based on your observation.

Check Your Progress

A. Fill in the blanks

1. ________________ is a valuation performed by the retailer that determines the possibility of a customer to default on their debt obligations.

2. When retailers extend credit to their customers, they are essentially providing customers loan equal to the amount of their ________________.

3. ______________________ measures creditworthiness of the customers.

4. ___________ is the customer’s financial net worth.

B. Multiple choice questions

1. Payment or credit history depicts how a person meets debt obligations, which establishes __________________ of a person.

(a) personal history

(b) creditworthiness or the financial character

(d) None of the above

2. A high credit score provides ______________________.

(a) low credit worthiness

(b) high creditworthiness

(d) None of the above

3. __________________ is the borrower’s net worth.

(a) Drawings

(b) Capital

(d) None of the above

4. Creditworthiness of customers can also be determined by studying and analysing _______________of business.

(a) income statement and balance sheet

(b) income statement only

(d) None of the above

5. ___________________ measure creditworthiness of the customers.

(a) Credit reporting agencies

(b) Agencies

Retail Sales Associate – Class XI

Retail Sales Associate

(d) None of the above

C. State whether the following are True or False

1. Payment or credit history depicts how a person meets debt obligations.

2. Creditworthiness is valuation performed by borrowers.

3. Creditworthiness can be increased by paying bills on time. D. Match the columns

Column A		Column B
1.	Character	A	Borrower’s cash flow
2.	Capacity	B	Borrower’s property
3.	Capital	C	Economic or industrial Events
4.	Collateral	D	Borrower’s net worth
5.	Conditions	E	Borrower’s integrity

E. Short answer questions

1. Define credit worthiness.

2. How can credit score be improved?

3. Which are the five Cs of credit?

F. Long answer questions

1. How do you check the credit worthiness of a customer?

2. Explain techniques used for determining credit worthiness of a customer.

G. Check your performance

1. Make a presentation on checking the creditworthiness of a borrower.

2. Demonstrate the knowledge of techniques used for determining credit worthiness of customers.

Process of Credit Application

Retail Sales Associate

Notes

Mechanism for

Customers to Choose

Right Products

In retail business, products are highlighted in demand

as per the customer needs. Products are kept in display

after analysing the demand of the products and to help

customers select a product required by them. This can

be done by identifying products and developing an

effective product list. Further to specify, customisation

of products depends upon the skills to sort and how to

narrow down choices using categories varying upon the

demands and necessity of the products.

Educating the customers is another way to help

them select the product that best fits their needs, the

more customers know about a product; the better it

suits them to make a purchase decision.

There is a focus on demonstrating ability of a retail

team, to assist in choosing the right products as per

needs. In a retail business, the product with maximum

demand must be made available instantly, to deal

flexibly with customer choices.

The sales associate has to take up the duties and

responsibilities in segmenting the sales to attain

maximum profits and turnover in a business. The

sales segment in a retail business plays a vital role in

delivering a smooth flow of products.

Retail Sales Associate

A perfect display of the product will have a wider

range of customers, in need of specific products. The

sale associates have to take up the demonstrative

procedures in a logical manner to cater the right choice

of customers. Customers always have the tendency to

get maximum through minimum investments. In such

a situation, a smart and efficient sales associate will

perform to deliver the best output as per the customer

needs by adopting various logical steps to demonstrate

his or her skills and also in getting the maximum sale

turnover in business.

A sales associate has to provide the perfect service

delivery for customer and the techniques required for

the closing of sale. Assessment activities given after

each session can give an insight to train the student in

developing skills and knowledge to get themselves fully

aware of the roles carried out by sales associate in retail

business. Also the student will grasp the techniques of

demonstration, so that the retailer can adopt the skills,

whenever needed in their job prospective.

Smoothly channeled process and techniques

adopted in business during handling of the sales will

give maximum customer satisfaction and also deliver

chance for better profits in retail business.

With this in view, the present unit titled ‘Mechanism

for Customer to Choose Right Products’ has been

divided into four sessions. The first session discusses

the method of selling, the second session deals

with sales promotion activities, the third session

highlights the methods for responding to question and

comments and the last session explains the techniques

for closing a sale.

Session 1: Methods of Selling

Sale is an act of selling a product in return for money.

It is the beginning of a relation between customer

and vendor or extension of that relationship. There

are various options available with which sales can

take place. Fig. 3.1 Sales target

Mechanism for Customers to Choose Right Products

Retail Sales Associate

Notes

Retail selling methods

The various retail selling methods are as follows:

(a) Direct sales: It refers to the direct personal demonstration and sale of products and services to the consumer. It consists of two business models, that is, single-level marketing and multilevel marketing. A direct sale makes money by selling products directly to consumers.

(b) Proforma sales: The term proforma is used to describe a document that provides as a courtesy or satisfies minimum requirement, conforms to a norm or decisive, tends to be performed as a formality. The proforma sale refers to sales quote which is prepared in form of proforma invoice.

(c) Agency-based: It is a contractual arrangement, in which the agent has the right to negotiate on the sale of principle’s goods and services. In exchange the agent gets a commission or fee. The various types of agents who are involved in agency-based sales are:

• Sales agents

• Sales outsourcing through direct branded representation

• Transaction sales

• Consultative sales

• Consignment sales

• Telemarketing or telesales

• Retail sales

(d) Travelling salesman: They are a representative of a firm who visit shops and other businesses to show samples and gain orders. They are also called a commercial traveller, door-to-door salesman or a hawker.

(e) Auction sale: It is a public sale. Customers who are willing can participate in an auction. Goods are sold to the highest bidder, that is, one who has quoted the highest price.

Retail Sales Associate – Class XI

Retail Sales Associate

(f) Business-to-business (B2B) sale: It refers to Notes sales made by other businessman rather than an

individual customer. An industrial or professional

sale involves selling from one business to another.

(g) Electronic-based sales: It is a web-based

sale. It includes both business-to-business and

business-to-consumer sales. For electronic-based

sale Electronic Data Interchange (EDI) is used.

(h) Indirect sales: Indirect sales are the sale of a

good or service by a third-party, such as a partner

or affiliate, rather than a company’s personnel.

Meaning of arrangement of products for sale

in store

The products from different manufactures are displayed

in retail stores. These products are arranged in a

systematic manner in shelves based on the space

provided in the store. The display of goods is prioritised

on the basis of the manufacturer’s competitiveness as

some of them buy the display window section and the

floor space to promote their product.

Need for arranging products

Product arrangement in the retail stores is a critical

element for the success of a retail store. The products

are divided section wise, giving a clear view of all the

products available in store and make it easy for the

customer to pick up the products as they move in the

store. The arrangment of the products in this manner

also improves the profit of the retail store. Rearrangement

of products is done the following reasons:

• Repeat customers: The basic reason for companies

to rearrange products is to give their stores a fresh

look. This keeps current customers come back

to the store. Rearrangement of products displays

more products to the customer, so they visit again

and simultaneously sales volume increases.

• Sales promotions: Retailers rearrange products

for sales promotion. Rearrangement of stock

increases customers.

Mechanism for Customers to Choose Right Products

Retail Sales Associate

Notes

• Brand image: Some retailers rearrange products routinely to maintain their brand image. Monthly rearranging of products and changing of colour schemes is essential in building new and fresh style of product arrangements.

• Seasonal: Retailers display products in one area. The retailers rearrange to display seasonal products.

Procedure for arranging the products

The process of arranging products in a retail store compels activity. The arrangement of product is very much affected by the store plan choice, including the size of the store, the type of product to be sold and the extent of customer focus required on a product. There are certain ways to be focused upon for arranging a product in the store, which are based on the following.

• Straight floor plan: In this floor plan a retailer arranges products in a straight line. It is the most commonly used floor plan in Indian retail industry and is economical as well.

• Diagonal floor plan: This type of floor plan has more visibility for the store staff and customers. It requires a small space for arranging the products.

• Angular floor plan: It gives a spacious look with a lot of space. This type of floor plan is used by high-value and high-end retailers. This reduces the display area and focuses only on few popular products.

• Geometric floor plan: In this floor plan a retailer uses racks and other fixtures to create a different style of floor plan. This layout is used for trendy products like cosmetics, watches, etc.

Identifying the products responsible for sale

Customer service associates (CSA) in a retail store are responsible for identifying the products that are to be sold. Here are few steps that help the CSA in identifying the products for sale.

Retail Sales Associate – Class XI

Retail Sales Associate

1. He or she must have the full information about the retail store and the products that are being sold.

2. The CSA must follow the instructions given by the store manager or supervisor regarding the stock that is to be received from different manufacturers.

3. The store manager or supervisor allocates the product sections to the CSA. The product sections in a retail store will be like vegetable section, house keeping material section, stationery section, clothes section, etc.

4. The CSA is responsible for the section allotted to him or her and must hold full record regarding the stock received from the manufacturers till the product is sold.

5. The CSA must have complete knowledge about the product being allotted to him or her and must possess the skills to sell it to the customers.

Activity 1

Field visit to learn the methods of selling

Materials required

Notebook, pen or pencils, checklist

Procedure

1. Visit two malls/retail organised stores near your place.

2. Observe their selling methods.

3. Speak to a sales person and management regarding their selling methods.

4. Write a comparative report on both the malls or stores selling methods with your suggestions.

5. Submit the report to your teacher.

Check Your Progress

A. Fill in the blanks

1. ________________ is the act of selling a product or service in return for money.

2. _____________________ refers to a sales quote which is prepared in the form of proforma invoice.

Mechanism for Customers to Choose Right Products

Retail Sales Associate

Notes

Questions & Answers HS (11th & 12th)

Tuesday, July 11, 2023

Retail Trade book of Class HS 1st year Assam Higher Secondary Education Council Syllabus

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