Questions & Answers HS (11th & 12th) : Fundamentals of Retailing

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,

a shopkeeper sits in the shop and sells 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 has come up,

which also provide the same products.

Today, supermarkets, departmental stores,

hypermarkets, malls and non-store retailing like

multilevel marketing and telemarketing, have

replaced or co-exist, transacting with traditional retail

businesspersons, such as hawkers, grocers, 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

for creation of these type stores. The present unit on

fundamentals of retailing has been divided into four

sessions. The first session discusses the basics of

retailing, the second session covers sales associate’s

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 a 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 the wholesaler and retailer are

intermediaries in the distribution channel. Wholesaler

sells to individuals or retailers for 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 (Fig.1.1).

Manufacturer Wholesaler Retailer Consumer

Fig. 1.1 Distribution channel

Sales Associate – Class XI

The corner grocer or the kirana store is a key element in the retail sector 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 lifestyle 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 supermarkets, departmental stores, malls and discount stores. Factors facilitating the spread of chains are 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 and Communication Technology (ICT), electronic retailing or e-retailing has become a reality. It is the sale of goods and services through the Internet. E-retailing 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.

A boom in the 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 mobile vendors or the mandis. Now, it has shifted to bigger shops run by individuals with few employees. Gradually, with a development in the 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.

Notes3

Fundamentals of Retailing

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, handcart 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

(Fig.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 mandi, haat,

mela, the local baniya, kirana shops, paanwala and

others like cobbler, fruit and vegetable vendors, 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.

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

Sales Associate – Class XI

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 coming years.

Difference between organised and unorganised retail business

Fig. 1.3 Organised retailing

The difference between organised and unorganised

retailing has been given in Table 1.1.

Table 1.1: Difference between organised and unorganised retail business

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: 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.)

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).

Sales Associate – Class XI

retail store that combines a departmental store

and a grocery supermarket. Often very large

establishments, 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.

(Fig.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’

(Fig.1.8). Departments are

made as per the 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 store

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

Fig. 1.9 Catalogue showroom

(f) Catalogue showrooms: Catalogue retailers (Fig.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 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 are sold 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 centre, 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,

Sales Associate – Class XI

local baniya or kirana store and paanwala. He or she

decides the retail strategy based on the store location

and product mix.

Fig.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 centres

always look to improve their position and strengthen

their brand identity in the marketplace (Fig.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, McDonald’s, Pizza Hut, Van Heusen, etc.

(d) Consumer cooperatives: Consumer cooperatives are enterprises owned and managed by consumers, which aim at fulfilling the needs and aspirations of their members. Consumer 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

Fig.1.13 Consumer cooperative store9

Fundamentals of Retailing

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 an 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 online or at the time of delivery but the customer receives product directly from the 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

Sales Associate – Class XI

including retailers, open these large packages and make the products available in 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 the retailer is to make the products required by the consumer conveniently available. Convenience is about speed, 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 obtain feedback from users and improve the product. 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.

Notes

Fundamentals of Retailing

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 competitive prices.

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

• always be accessible to customers.

Retailers’ services to 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 the following questions in 50 words.

Sales Associate – Class XI

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?

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

______________________________________________________

c. Which modern methods of 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 five

customers and write consolidated remarks)

a. How often do you visit the shop?

______________________________________________________

Fundamentals of Retailing

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)

______________________________________________________

Sales Associate – Class XI

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: ___________________________________

Fundamentals of Retailing

Notes

Which commodities are sold in the shop?

______________________________________________________ ______________________________________________________ ______________________________________________________

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 the 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. The local baniya or kirana shop comes under ______________ retailing.

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

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

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

Sales Associate – Class XI

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 stores offer 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 way we ______________.

(a) speak

(b) eat

(d) None of the above

Notes

Fundamentals of Retailing

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 Columns

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 are called	D
Hypermarket refers to	E
Departmental stores refer 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.

Sales Associate – Class XI

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 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 (Fig.1.14).

Customers play the most

significant part in business.

Customer is the one who uses

Fig. 1.14 Customers in a retail store

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 its 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

Notes

(a) Loyal customers: These types of customers are less in number 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 useful products they have so that they can buy what they like.

(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. These are frequent customers but do not indulge in buying most of the time so it is difficult to satisfy them.

(e) Wandering customers: These customers are normally new in the industry and most of the time visit suppliers only for confirming their needs on products. They investigate features of the 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 customers and assistance before, during and after sales (Fig.1.15).

Sales Associate – Class XI

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

Fig. 1.15 Customer service in retail

his/her promises by delivering products on time.

There should be no delay in delivering the products

or in 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 customers.

It means listening to them and watching the language

being used around the 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, preferences

and unique needs. Personalisation should be

incorporated wherever possible in service delivery.

It makes the 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. The person engages in providing

different types of services to the customers. Customer

service functions include:

(a) Customer support: Interacting with potential

customers, answering their questions related to

Fundamentals of Retailing

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 customers effectively, replying to mails, telemarketing, 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 update, 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 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 meets or exceeds 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 Sales Associate – Class XI

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

customer satisfaction are 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 losses if a retail store fails to attend to customer

relationships. Some customer retention strategies are

as follows:

• 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

• 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 offered to customers

Material required

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

Fundamentals of Retailing

Notes

Procedure

1. Visit a nearby unorganised retail outlet, interact with the shopkeeper and customers (about 5) and write responses to the 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 record 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?

______________________________________________________ ______________________________________________________ ______________________________________________________

Sales Associate – Class XI

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 the consumer of a 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 do not 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

Notes

Fundamentals of Retailing

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

1.Delivery on the committed time 2. Educate customers

3. Past customers

4. Active in different market segments 5. Recipient of good, service or an idea 6. Not directly connected 7. Personalised services

8. Customer delight H Data verification

Sales Associate – Class XI

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 the 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 have 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.

Notes

Fundamentals of Retailing

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 one’s goals.

(c) Creating environment for development: For creating an environment for self-improvement, consider the following strategies:

• practice consistently and 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 will 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 retail associates must 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

Sales Associate – Class XI

explain the information and processes to customer needs to complete a transaction. At the same time, the person 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 he or she will never be able to make a happy customer. Sometimes, retailer will have to deal with boring, angry and complaining customers. Every sales associate must have basic action skills necessary to deal with and maintain one’s customers.

(g) Time management skills: The 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 of some additional improvement in the retail business.

(h) Goal oriented: The retailer sets goals and then uses 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 simply 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 quick decisions and not take things too personally.

Notes

Fundamentals of Retailing

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 the shopkeeper or his or her representative at the 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.

________________________________________________________ ________________________________________________________ ________________________________________________________

Sales Associate – Class XI

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 customer 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.

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.

Notes

Fundamentals of Retailing

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 associate must 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) Patience

(b) 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) Teamwork

(b) Time management

(d) None of the above

Sales Associate – Class XI

7. Which of these is an essential step of skill 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 timeframe
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 highlighting the various skills of sales associate.

Notes

33 Fundamentals of Retailing

Notes

Session 4: Duties and Responsibilities of a Sales Associate

A sales associate is responsible for all sales activities and 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 problems. 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 associates. Sometimes, the sales associates solve customer problems or propose some solutions. They must ensure that the complaints filed by customers are valid and solved within the 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 increase company’s growth and revenue through sales maximisation.

(c) Clerical tasks: A sales associate, many a time, 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

Sales Associate – Class XI

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 associates

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

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

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

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

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

Special activities of sales 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.

Notes

Fundamentals of Retailing

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 the open-ended questionnaire.

A. Questions for the employer

a. What qualities do you think a customer service associate must 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 the retail store and then finalise.

4. Submit the field visit report to your teacher.

Sales Associate – Class XI

Check Your Progress NotesA. Fill in the blanks

1. A sales associate always renders services to the

__________________________.

2. A sales service associate gathers one’s ____________________

via a telephone call.

3. Most sales associates work at the ____________________

location.

B. Multiple choice questions

1. A sales associate who works in retail may have similar duties

to bank tellers which is (are) _____________________.

(a) counting money

(b) cashing cheques

(d) All of the above

2. Sales 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 issues that need to be resolved, they

cannot approach a sales associate.

2. A sales associate deals directly with customers.

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

associate’s duties.

D. Match the columns

1.Return an item or refund

2. Studying products, services

and customer processes

3. Complaints

4. Documenting inquiry

5. Recording of customer’s inquiry

E Transferring calls

Fundamentals of Retailing

Notes

E. Short answer questions

1. What are job specific responsibilities?

2. Handling problems is one of the important duties 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.

Sales Associate – Class XI

Questions & Answers HS (11th & 12th)

Tuesday, December 17, 2024

Fundamentals of Retailing

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