Explain the following and give three benefits of each:
(a) branding
(b) after-sales service
(c) self-service
(d) vending machine
Explanation
(a) Branding: Branding means that a firm gives a distinctive name to its products. The brand name differentiates the product of the firm from that of other competing firms.
The benefits of Branding in retailing are:
(i) Brand name on the product is an assurance to the buyer that he is buying the same product with the same quality.
(ii) Branded goods are easily recognized.
(iii) Popular brand names become household words and thus help to expand the market for the product.
(iv) Branding of goods makes both self-service and pre-packaging viable.
(v) Branding is used to standardize products and makes retailing easy as customers know the particular brand they want.
(b) After-sales service: After-sales service refers to the service provided to customers in the form of home delivery, installation and maintenance of appliances purchased from the shop.
The benefits of after-sales service in retailing are:
(i) It is used as an extra attraction for customers to patronize the particular retail shop.
(ii) It is associated with giving of guarantee in the form of repair work or routine maintenance which creates goodwill and confidence.
(iii) It is used as a competitive tool by retailers.
(iv) It is used to cope with the greater complexity of goods being manufactured which are sold through retail outlets.
(c) Self-Service: Self-service allows the customer to go round and self-select the products he wants without the help of shop assistants. Self-service as a trend in retailing is enhanced by appropriate packaging and display.
The benefits of self-service in retailing are:
(i) It is used to attract customers who want to shop quickly without waiting for the attention of a sales assistant. (ii) It is used to encourage impulse buying.
(iii) With self-service fewer sales assistants are required and this reduces cost.
(iv) It enables customers to shop with convenience as customers take their time choosing what they want.
(d) Vending Machine: Vending machine is a retail outlet that automatically dispenses pre-packed items such as drinks stored in it whenever the appropriate value coin is inserted.
The benefits of vending machines in retail are:
(i) It is used to sell convenience goods, e.g. sweets, ice cream, etc.
(ii) It provides 24-hour service.
(iii) It is used as a quicker method to purchasing an item than buying in a shop. It saves time.