Buy an essay: Customer satisfaction

Today, companies pay a lot of attention to the development of positive company-customer relationship because the high level of the customer satisfaction is one of the major conditions of the successful marketing performance of companies. To maximize the customer satisfaction, retailers of different formats attempt to introduce customer-loyal adjustment, refund and return policies. However, adjustments, returns, and refunds being applied by retailers of different formats are not always efficient.
In this respect, it is important to place emphasis on the fact that customer-friendly adjustment, refund, and return policies are particularly beneficial for e-retailers because such policies accelerate their sales (Tedeschi, 2006). To put it more precisely, e-retailers suffer from the lack of confidence of customers in the products they purchase via internet. As a result, if e-retailers provide customers with the possibility to return products free of charge, customers grow more confident in the reliability of the online retailers because they understand that they can return the product, if it does not fit them. Moreover, if e-retailers offer free shipping, this policy attracts customers even more because they can purchase products at lower price compared to conventional stores due to the free shipping and the possibility of return. At the same time, e-retailers can offer the opportunity of refund, which is an essential option to attract customers and to gain their confidence. In such a way, e-retailers can increase their sale rates and attract more customers due to customer-friendly adjustment, refund, and return policies.
In this regard, conventional retailers are in a disadvantageous position because they cannot compete with online retailers in regard to the return and refunds as well as adjustment policies. In fact, conventional retailers have to spend more costs on the maintenance of their facilities and personnel compared to online retailers. In such a situation, conventional retailers suffer from more substantial losses in case of returns and refunds compared to online retailers. For instance, many cosmetic retailers suffer from losses but still conduct customer-friendly policies (Singer, 2006). As a rule, they have quite strict return and refund policies but often they provide customers with the possibility to return products that does not fit them just to maintain positive company-customer relationships and to increase the customer loyalty to the brand. However, such policies lead to significant financial losses for conventional cosmetic retailers.
However, such retailers as Costco are particularly vulnerable to negative effects of customer-friendly adjustment, return and refund policies. For instance, the recent failure of the company with flat-panel TVs proves the full extent to which customer-friendly adjustment, return, and refund policies may be negative for the company’s development (Hudson, 2007). The large volume of sales and returns and high costs of processing the returns make such policies an unbearable burden for the company. In addition, some customers attempt to benefit from such liberal and customer-loyal adjustment, return, and refund policies returning products to get their money back and to buy the same product at the lower price again.
Obviously, adjustment, return, and refund policies affect retailers in a different way. In case of online retailers, customer-friendly adjustment, return, and refund policies are beneficial and provide them with a strategic advantage over their conventional rivals. In contrast, in case of conventional retailers, customer-friendly adjustment, return, and refund policies may have a destructive impact on their business development.

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