Some retailers use customer service to develop a sustainable competitive advantage, while other retailers provide limited service and have lower costs and prices to gain market share over competition. For example, departmental store, typically engage and train store employees and salespersons to provide excellent customer service to differentiate their retail offering from their competitors’ to build customer loyalty to increase their revenue in order to create a sustainable competitive advantage in the longer term. While, supermarket such as, Wal-Mart, is practicing the every-day low price strategy with low service expectations to their customers’. Excellent customer service keeps customers returning to a retailer and generates positive word-of-mouth communication, which will attract new customers.
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The standardization approach is referring to service providers to follow a set of rules and procedures when providing the service to the customers in order to minimize the Inconsistencies of the service provided. While, a customization approach is the service providers on how to provide superior service through customization of their service to meet each customer’s personal needs in order to create s sustainable customer service advantage over competitors. Nevertheless, this type of customization of service is inconsistent because service delivery will depend on the judgment and capabilities of the store employees and there are no fix rules and procedures provided by the service