Name : Roshni mankar

Class : MBA 4th sem

Sub . : Assignment of SRM

Q1) what are the distinct characteristics of services? What are the challenges
that are faced by services provider? Give its examples.
 Introduction:-

Everything you need to know about features of services. Services are unique and four major
characteristics separate them from goods, namely intangibility, variability, inseparability, and
perish ability.
The services literature highlights differences in the nature of services versus products which are
believed to create special challenges for service marketers and for consumers buying services.
To help understand these differences a number of characteristics that describe the unique nature
of services have been proposed.

 Features:
. Intangibility:
Intangibility is an important consideration that complicates the functional
responsibility of a marketing manager, especially while influencing and motivating the
prospects/customers. The goods of tangible nature can be displayed, the prospects or buyers
can have a view and they can even test and make a trial before making the buying decisions.
The selling processes are thus found easier. We are aware of the fact that services are of
intangible nature and it is While motivating, they find it difficult to perform and display and
the positive or negative opinions regarding the services come up only after the completion of
the using process. The customer can’t touch the services, they albeit can’t smell them. In a
true sense, it is not a physical object. It has mental connotations. According to Carman and
Uhl, a buyer of products (goods) has an opportunity to see, touch, hear, smell or taste them
before they buy. Intangibility that complicates the task of decision-makers.

As for example, the banking organizations promote the sale of credit cards by visualizing the
conveniences and comforts the holders of the credit cards are likely to get from the same.
Services carry with them a combination of intangible perceptions. As for instance, an airline sells
the seat from one destination to another.
 2. Perishability:
Another point complicating the task of a professional is the nature of
Perishability that we find in the services. The goods if not sold today can be stored, preserved for
further selling. Thus, the risk element is here in a different form. But in the context of services, if
we fail to sell the services, it is lost only not for today but even for the future. If a labor stops to
work, if a seat in the aircraft remains unsold, if a bedroom in a hotel remains uncooked, a chair in
a cinema hall remains vacant; we find the business non-existent and the opportunities are lost
and lost forever. The services can’t be stored or preserved.

3. Inseparability:
This is also a feature that complicates the task of professionals while marketing
the services. The inseparability focuses on the fact that the services are not of separable nature.
Generally, the services are created and supplied simultaneously. Like the dancers, musicians,
dentists and other professionals create and offer services at the same time. In other words, the
services and their providers are the same. Donald Cowell says, “Goods are produced, sold and
then consumed whereas the services are sold and then produced and consumed.”
Goods are produced, sold and then consumed but the services are sold, produced and
then used. The inseparability thus makes it essential that the service-providers are acting and
behaving professionally so that the marketing processes are not to pave the avenues for
degeneration in the quality.

4. Heterogeneity:
Another feature is heterogeneity which makes it difficult to establish standard.
The quality of services can’t be standardized. The prices charged may be too high or too low. In
the case of entertainment and sports, we find the same thing. The same type of services can’t be
sold to all the customers even if they pay the same price.
The consumers rate the services in a different way. Of course, it is due to the
difference in the perception of individuals at the levels of providers and users. The heterogeneity
factor makes it difficult to market efficiently. The professionals by using their excellence bear
the responsibility of minimizing the problem.

5. Ownership:
It is also ownership that makes it significant to market the services in a bit different
way. The goods sold are transferred from one place to another, the ownership is also transferred
and this provides to the buyers an opportunity to resell. In the case of services, we don’t find the
same thing. The users have just an access to the service. As for example, a consumer can use
personal care services or Medicare services or can use a hotel room or swimming pool, however
the ownership rests with the providers.
An expert opines, “A service is any activity or benefit that one party can offer to
another that it is essentially intangible and does not result in the ownership of anything.” Here, it
is clear that ownership is not affected in the process of selling the services. The issue of
ownership has also been clarified by another expert.

6. Simultaneity:
Carman and Uhl say, “Producers of services generally have small-sized operations
than do producers of goods, largely because the producers must travel to get the services or vice
versa. When the producers travel to the buyer, time is taken away from the production of services
and the cost of those services is increased. It also costs time and money from buyers to travel to
producers of services and these economies of time and travel provide incentive to locate more
services centers closer to prospective customers which results in smaller service centre.” This
can be clarified by a suitable example. Hotel rooms can’t be brought to the users; aeroplane can’t
be brought to the customers, etc.

7. Quality Measurement:
The quality of service requires another tool for measurement. We can’t measure it in
terms of service level. It is very difficult to rate or quantify the total purchase. As for example,
we can quantify the food served in a hotel but the way a waiter or a carrier serves it or overall
environment or behavior of other staff can’t be ignored while rating the total process. Hence, we
can determine the level of satisfaction at which the users are found satisfied. A firm sells
atmosphere, conveniences, consistent quality, status, anxiety, moral, etc.

8. Nature of Demand:
While going through the features of services, we can’t underestimate the factor
related to the nature of demand. Generally, the services are found of fluctuating nature.
Particularly during the peak season, we find an abnormal increase in the demand. As for
example, the mobility of passenger is found increased, especially during the marriage season or
during an important festival.
The tourists prefer to go the tourist spots or resorts specially during summer when we find
the weather condition suitable. The cricket stadiums are used in winter. The golf courses remain
unused during the winter. The public transport facilities are used considerably during the
beginning and end of office hours. There are a number of examples to prove the peak hour when
we find an abnormal increase in the demand position.

Q2) Define consumer behavior. What are the factors affecting service consumer
behavior?
 Introduction:-
Consumers consume things of daily use and also consume and buy the
products according to their needs, preferences and buying capacities. Those products may be
consumable goods, specialty goods, durable goods or industrial goods. What the people buying,
how they are buying, where and when they are buying, how much quantity they prefer to buy are
all depend on their self concept, perception, social and cultural background and also on their age,
attitudes, family cycle, motivation, belief values, social class, personality and many other factors.
Those factors may be classifies as internal and external factors according to persons. While
buying, people use to think that they can buy the product or not and they also used to think where
to buy the product. A lot of richness will be there in some societies and people from these types
of societies are able to afford in a large quantities and also in shorter intervals. In the poor
societies, the consumer can barely meet their basic needs. Therefore the marketers’ needs in-
depth study of the internal and external environment and they try to identify the different
customers’ needs and by understanding their different behaviors, they will formulate plans for
marketing their products. Consumer behavior consists of feeling, ideas, actions and experiences
of consumers. In addition to that, the consumer behavior has additional environmental factors
such as Ads, prices and commends.

 Meaning:-
It is clearly understood from the definition that is not just the buying of goods or
services that receives attention in consumer behaviour but, the progression of consumer behaviour
begins much before the acquisition or buying of the goods or services. The process of buying the
goods or services starts first in the minds of the consumer and then this will lead to the finding of
the correct product among the available alternatives and that searched product has been bought
or acquired with their relative and pros and cons. This leads to the internal and external research.
Then the process is followed by the process if decision making for the purchase and using of the
purchased goods. After that, the most important thing is the post purchase behaviour. This post
purchase behaviour is considered to be important by the marketers because this gives a clue that
whether their product has been a success or not. Consumer behaviour is a dynamic, complex and
multidimensional process and all marketing decision are taken based on the assumptions about
the consumer behaviour. While buying a product, the consumers get benefit for the cost paid by
them. The difference between the total benefit and the total cost constitutes the consumer value.

 Definitions:-
 Consumer behaviour is simply defined as “the study of psychological, social and physical
actions when people buy, use and dispose products, ideas, services and practices (Peter
and Olson, 2008).
 In accordance with Solomon (2006) “consumer behaviour is defined as the process of
decision making and physical activity involved in acquiring, evaluating, using, and
disposing of goods and services to satisfy needs and want”.
  Buyer’s black box which includes buyers’ characteristics and buyers’ decision process is
the vital point that companies and marketers have to discover from various researches
(Armstrong and Kotler, 2007). According to Blackwell et al. 

 Factors affecting consumer behaviour:-

1. Cultural Factors

Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture,
and social class.

 Culture

Basically, culture is the part of every society and is the important cause of person wants and
behavior. The influence of culture on buying behavior varies from country to country therefore
marketers have to be very careful in analyzing the culture of different groups, regions or even
countries.

 Subculture

Each culture contains different subcultures such as religions, nationalities, geographic regions,
racial groups etc. Marketers can use these groups by segmenting the market into various small
portions. For example marketers can design products according to the needs of a particular
geographic group.

 Social Class

Every society possesses some form of social class which is important to the marketers because
the buying behavior of people in a given social class is similar. In this way marketing activities
could be tailored according to different social classes. Here we should note that social class is not
only determined by income but there are various other factors as well such as: wealth, education,
occupation etc.

2. Social Factors

Social factors also impact the buying behavior of consumers. The important social factors are:
reference groups, family, role and status.

 Reference Groups

Reference groups have potential in forming a person attitude or behavior. The impact of
reference groups varies across products and brands. For example if the product is visible such as
dress, shoes, car etc then the influence of reference groups will be high. Reference groups also
include opinion leader (a person who influences other because of his special skill, knowledge or
other characteristics).

 Family

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying
to find the roles and influence of the husband, wife and children. If the buying decision of a
particular product is influenced by wife then the marketers will try to target the women in their
advertisement. Here we should note that buying roles change with change in consumer lifestyles.

 Roles and Status

Each person possesses different roles and status in the society depending upon the groups, clubs,
family, organization etc. to which he belongs. For example a woman is working in an
organization as finance manager. Now she is playing two roles, one of finance manager and
other of mother. Therefore her buying decisions will be influenced by her role and status.

3. Personal Factors

Personal factors can also affect the consumer behavior. Some of the important personal factors
that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality
and self concept.

 Age

Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the
consumers change the purchase of goods and services with the passage of time. Family life-cycle
consists of different stages such young singles, married couples, unmarried couples etc which
help marketers to develop appropriate products for each stage.

 Occupation

The occupation of a person has significant impact on his buying behavior. For example a
marketing manager of an organization will try to purchase business suits, whereas a low level
worker in the same organization will purchase rugged work clothes.

 Economic Situation

Consumer economic situation has great influence on his buying behavior. If the income and
savings of a customer is high then he will purchase more expensive products. On the other hand,
a person with low income and savings will purchase inexpensive products.

 Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle
refers to the way a person lives in a society and is expressed by the things in his/her
surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole
pattern of acting and interacting in the world.
  Personality

Personality changes from person to person, time to time and place to place. Therefore it can
greatly influence the buying behavior of customers. Actually, Personality is not what one wears;
rather it is the totality of behavior of a man in different circumstances. It has different
characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service.

4. Psychological Factors

There are four important psychological factors affecting the consumer buying behavior. These
are: perception, motivation, learning, beliefs and attitudes.

 Motivation

The level of motivation also affects the buying behavior of customers. Every person has different
needs such as physiological needs, biological needs, social needs etc. The nature of the needs is
that, some of them are most pressing while others are least pressing. Therefore a need becomes a
motive when it is more pressing to direct the person to seek satisfaction.

 Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience

of the world is called perception. There are three different perceptual processes which are
selective attention, selective distortion and selective retention. In case of selective attention,
marketers try to attract the customer attention. Whereas, in case of selective distortion, customers
try to interpret the information in a way that will support what the customers already believe.
Similarly, in case of selective retention, marketers try to retain information that supports their
beliefs.

 Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since such beliefs and
attitudes make up brand image and affect consumer buying behavior therefore marketers are
interested in them. Marketers can change the beliefs and attitudes of customers by launching
special campaigns in this regard.
Q3). Define the role of Information Technology in the growth of retail operations?

Introduction Five remarkable periods in the recent history of retail (over the past 100 years or so)
Local culture – the Corner Store: 1900s Mass modernization culture – Department store: 1900 –
1940 Consolidation culture – Big Box stores: 1970 – 1990 Digital culture – E-commerce: 1990
and onwards the retail industry business has been around for centuries. It all started with a
community general shop where people of the community would shop for items of necessity. As
societies advanced with population increase leading to expanded cities, and new advanced
technologies gave rise to interconnectivity as well easy communication between distanced cities
or societies, opportunity for specialty stores was formed. Shopping once relied solely on human
interaction in retail stores—with a little catalog shopping on the side. Those days are
approaching an end as companies like Apple allow paying for a purchase and walking out of a
store without talking to anyone. Meanwhile, robots are taking the place of the humans who check
inventory on the shelves. Most of these issues can be solved by the appropriate use of
technology. Retailers need to transform their IT capabilities for a number of reasons. These
include: To respond to rapidly emerging trends and deliver superior quality products and services
to customers with flexibility and speed. To raise brand awareness among customers, increase
sales, retain existing customers and attract new ones. To aggregate and analyze customer data to
enhance differentiation. To operate the business more effectively retailers need to have systems
working across stores to ensure the effective use of products and to support optimized business
process. To integrate different parts of a retail organization.

This paper discusses the different technologies that are implemented in retail stores, and how
retail players are applying these technologies to reduce the operational and technological gap in
order to compete in this globally competing environment. Information Technology Information
technology (IT) is the application of computers to store, retrieve, transmit and manipulate data
often in the context of a business or other enterprise. Information technology, as defined by the
Information Technology Association of America (ITAA), is ―the study, design, development,
implementation, support or management of computer-based information systems, particularly
software applications and computer hardware." Encompassing the computer and information
systems industries, information technology is the capability to electronically input, process,
store, output, transmit, and receive data and information, including text, graphics, sound, and
video, as well as the ability to control machines of all kinds electronically. The use of innovative
technologies in retail has become possible as a result of the specialization of the IT sector in the
area of retail- oriented solutions, involving the latest developments, radio frequency
technologies, computer systems and the Internet. Need for Information Technology in retailing is
to provide the following key information areas: Product information – catalog, availability, new
releases, promotion, supply and demand etc. Customer information – profile, behavior,
activities, preferences, distribution etc. Operations information – logistics, allocation,
procurement, schedule, inventory, shelf space

 Factors Responsible for Need of Information Technology in Retail:-

1. Globalization of business operations:

The increasing globalization has led to growing exposure to foreign markets resulting in
increasing demand for international shopping experience. As the industry become more global in
its procurement, manufacturing and marketing operations it requires a greater use of information
technology to reduce the time and space barriers.

2. Competition:

Competition forces the retailer to become more efficient and effective. To gain the competitive
advantage by the use of information technology is to reduce operating costs through automation
and to improve the product or service quality by providing quality assurance with product
differentiation.

3. To meet the expectations of the Customers:

With globalization, the world is brought closer and the world’s economy is quickly becoming a
single interdependent system. Information can be shared quickly and easily from all over the
globe, and barriers of linguistic and geographic boundaries can be torn down as people share
ideas and information with each other. To meet these requirements in a speedy way has
necessitated the need for information technology.

4. Technological Revolutions:

Information technology can speed up processes and deliver cost saving benefits to the company.
It is possible to transmit, store, process and distribute forms of information on a single integrated
technology and meet the needs of the customers.

5. Inventory management:
To meet the expectations and challenges in the market, information technology is become the
need of the hour. Inventory management software is a computer-based system for tracking
inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to
create a work order, bill of materials and other production-related documents. It helps to avoid
product overstock and outages. An electronic inventory control system is now a basic tool for
retail management. Without this information, you cannot plan and execute a retail strategy.

6. Store Management:

Information technology is beneficial for store management systems that give alerts to stock-out
items. Store systems are types marketing systems that use business process information systems
to elevate and transform the retail shopping experience of a shopper in both store-based and
disinter-mediated retail shopping environment.

7. Forecasting:

Automated statistical forecasting systems create a far more calculated and accurate demand
forecasting as past sales data, forecasts, and future orders are all on one system. As a result, more
accurate forecasts can be made based on the totality of this information. Forecasting systems can
reach the desktop of every line manager, bringing chain wide input (if appropriate) into the
process through interactive Web based applications. Thus forecasts can be further adjusted,
taking every aspect into account. The new approach to demand forecasting in retail will
contribute to the accuracy of future plans, the overall efficiency and profitability and profitability
of retail operations.
Q4). What are elements of store design? Which are the factors that determine store
layout?

 Introduction:-

The retail store’s exterior is responsible for attracting the passers by both actual and
potential customers to induce them to enter the store. The store’s interior is much more important
than the exterior as it welcomes the actual consumer.

The  layout and design of a retail store communicate significant amount of

a information about the retailer to the consumer. The retail store’s interior must contribute to the
retailer’s fundamental objectives of a minimizing the operational expenses and maximize
the sales and consumer satisfaction, therefore, the profits are. To attain these goals, the store’s
interior not only must be inviting, comfortable and convenient for the consumer. It must also
permit the retailer to use the interior space efficiency and effectively.  Let we try to touch up on
the basic elements of the retail store interior design.

1. Fixtures

A major consideration in developing an appropriate store design involves the use of fixtures.

They are used to display merchandise, to help sell it, to guard it, and to provide a storage space
for it. They should be attractive and focus customer’s attention and interest on the merchandise.

One way to bring the cost of fixtures down is standardization; A customization is expensive, and
construction budgets today allow this luxury only where specialty departments can justify the
cost. Some stores are trying to keep a lid on fixture costs with walls that don’t reach the ceiling
but instead begin two feet down. Besides being cheaper and faster to put up, they don’t affect
sprinklers, lighting, heating ventilation and aria conditioning (HVAC), and other ceiling ducts.

Most stores are moving toward smaller and less dense fixtures than what they previously used,
which is another way to control costs. But even more significantly, the trend reflects the
reduction in many stores inventory levels. Glass cubes that once consisted of sixteen inch and
eighteen-inch high bins may now be housed in twelve-inch bins. This way, although there are
fewer items in each unit, it still looks full. Another trend is a renewed demand for wood and
 glass, which in recent years were demand for wood and glass, which in recent years were over
shadowed by the more affordable clear plastic.

2. Displays

Display an important role in a retail store. An attractive and informative display can help sell
gods. Poorly designed displays can ruin the store’s atmosphere and center an uncomfortable
setting. Since displays often take up premium space within the store, A they carry a heavy
burden of productivity in terms of creating sales’ There are several principals of rules of displays
that help ensure their effectiveness:

 Balance. A In building a display, it is important to make sure that it appears balanced to
the viewer. This is achieved by arranging products in a symmetric manner. Displays May have
formal or informal balance. Formal balance is achieved by placing similar items equal distance
from the center. Informal balance is achieved by placing different sized goods or objects away
from the center based on their relative size.
 Dominance. An All displays should have a central point that will attract the viewer’s
eye. The point may be achieved by using prominent piece of merchandise, such as a
diamond pendant, using dramatic colors, such as a bright scarf, or using streamers
arranged toward the center of the display.
 Eye Movement. A Displays should direct the eyes away from the point of dominance in
a systematic fashion, instead of encouraging them to jump from one end to the other. If the
viewer’s eyes move indiscriminately around the display, the shopper will miss some of the
merchandise and will not get the full message intended.
 Gradation. A gradation is the sequence in which items are arranged. For example,
small items are usually placed at the front of the display, medium items father back, and
large items at the rear. The creates harmony and an appealing illusion.
 Height of Merchandise. Merchandise that has the greatest effect should be placed at the
eye level of the customer. Because viewers tend to look straight ahead, merchandise placed at
eyes level is most likely to be seen.
 Grouping Merchandise. A Too many retailers place one item after another in a long
row. Shoe stores, a jewelry stores, and mass merchandisers tend to do this. Stores with large
amounts of one item or with one line of goods are likely to build longer displays. Instead of
creating long displays where the customer has problems picking out merchandise,
retailers should group items so that the customer’s eyes cannot travel from group to group
but stop and focus on particular products.
 Sales appeal. A Displays should always show the best merchandise that the retailer has
to offer.
 Keeping it Simple. A Since displays take up a great deal valuable space, there is a
tendency to get as A much into them as possible. While the idea of more is better may be true for
chocolate, it is not true for displays. Too many items in a display district and confuse the
consumer, A and they tend to create an atmosphere of chaos or congestion.

As discussed above, displays take up some of the most valuable space in the store’s using show-
moving items for display is a waste. One way to generate sales appeal is to choose the most
important feature of the merchandise being displayed and focus on it. A another way is create a
theme that already exists within the customer’s mind, such as Valentine’s Day, Christmas, or
Back to School. Customers relate best when they can grasp the total picture.

3. Color

The psychological effect of color continues to be important to retailers. A Color is also important

in ware house type stores because of the vast open area of the interior’s Bold colors are
frequently used to highlight merchandise sections or departments and to reduce attention to what
is typically an open—girder ceiling. A Clearly, intelligent use of color is important in store
design. Since people are drawn to warm colors, yellow and red can help draw customers into the
store through the entrance. Cool colors such as blues and greens tend to calm people and are
useful in areas where customers need time to deliberate over the purchase decision.

4. Lighting

Proper lighting is one of the most important considerations in retail design. At one point in time
the function of lighting was to provide customers with a means of finding their way through the
store. Today, lighting has become a display medium. It is an integral part of the store’s interior
and exterior design. Lighting should match the mood retailer is attempting to create with the rest
of the store decor and should complement rather than detract from, the merchandise.

General illumination is needed throughout the store. However, most stores need additional
localized lighting to highlight special displays and showcases, help bring out colors and relieve
the monotony of even, overall light. Too much or too little lighting, or even the wrong type of
lighting, can create false impressions about the merchandise on display. Incandescent lighting
used alone, for example, accents yellow and red. A Fluorescent lights frequently build up blues
and purple. Therefore, retailers must use a lighting combination that gives a correct impression
of the merchandise while de-emphasizing the source of the light itself.

5. Ceilings

Ceilings represent a potentially important element interior design. In older stores, ceilings of

twelve to sixteen feet are still common, but most department store ceilings are now in the nine-
to-ten foot range. Remember, the higher the ceiling, the more space to heat and cool at increasing
energy rates. Ceiling heights are becoming much less standardized within stores. Designers are
making use of varied ceiling drops to create distinct for different departments within a store.

6. Flooring

Retailers are taking a sophisticated “return investment” approach to flooring decisions. Firms are
willing to pay higher-up-front installation costs for more expensive materials if they see a return
in greater durability and reduced maintenance expenses. A Flooring choices are important
because the coverings can be used to separate departments, muffle noise in high — traffic areas,
and strengthen the store image. The range of choices for floor coverings is endless: Carpeting,
wood, terrazzo, quarry tile, A and vinyl composition all has applications in different settings.
7. Shelving

The material used for shelving as well as its design must be compatible with the merchandising
strategy and the overall image desired. Stainless steel shelving creates an entirely different effect
than the painted wood cubes in the Country Seat or the typical metal shaving seen in a general
merchandise store, Glass shelving, framed in the woods, creates an element of elegance difficult
to achieve otherwise. General shelving considerations and merchandise display are discussed in
the next selection.

8. Plano Grams and Shelf Layout Design

One of the key tools of modern shelf and layout planning is the Plano gram. A This is a graphical
representation that visually shows the space to be allocated by describing where every stock
keeping unit (SKU) within a space is physically located. Every product has its own SKU. The
Plano gram produces a map for the length, height, and depth of shelves with the number and
location of the SKU.

9. Other considerations

There are other considerations that can round out the image and atmosphere created by the
interior design elements. For example, the type and sound level of music can be focused on a
given market segment. Scents can be used to help identify with a market group or create a feeling
about being in the store. The level of maintenance and cleanliness also sets a tone

 Factors :-

1. The Type of Customers – Will the store cater to a specific age group, race and gender,
or national, international or will it be for general patronage?

2. The Type of Merchandise Sold– What type of merchandise will the store is selling? Dry
goods? Wet goods? Schools Supplies? Office Supplies? Electronics? Services?

3. The Space/ Area Limitation of the Store – Does your store have big space? Small
space? The area or space allotted for the store will affect the arrangement of goods,
pieces of furniture, equipment, etc.

4. The Furniture and Equipment of the Store – Is there a need for the big pieces of
furniture and equipment? These things should be limited only to the essentials. Those that
are not important in the efficient management of the should not be included. It will only
obstruct smooth flow of movement of both the customer and the seller.

5.  Manpower – This refers to the person who will be managing the store. A bigger store
would require more people to attend to the customer’s needs.