Kelly Nelson

Value Driven Consumers
March 12, 2008

Consumers want the most for their money.  Even as retailers in one market, we are consumers in other markets and can understand this drive for value.  So what, then, makes a product or service valuable?  As I stated in Savannah during my presentation, product quality and customer service are two major components of value.  

Product quality was divided into eight dimensions by David Garvin in the 1987 Harvard Business Review.  These dimensions are 1. Performance - how well the product fulfills the consumer's need, 2. Features - both standard and extra, 3. Reliability - how well the product will continue to perform, 4. Conformance - meeting set industry and safety standards, 5. Durability - how long the product will last, 6. Serviceability - how easily problems with the product can be handled, 7. Aesthetics - how appealing the product is to the senses, 8. Perceived Quality - how confident the consumer is in the overall value of the product.  These are all areas where specialty stores typically have the advantage over larger stores.  

The factor of price comes in when we are competing with mass merchants, though.  Quality is not always enough to convince a consumer to buy from a specialty retailer.  Small stores are often perceived as being over-priced or out of reach for the average consumer.  This is where added value comes into play.

Aside from offering products of higher quality, we specialty stores can offer services that will add value to our products.  We offer customers assistance in product selection to insure that they purchase the best product for their needs the first time.  We also offer a gift registry with which we are happy to help.  We have delivery and set up available on furniture.  And the list goes on.  There is so much you can do to insure that your customer receives the most value for their dollar without it counting against you, the retailer.

We can also go out of our way to insure that every customer receives the same top notch service.  I, personally, am just as enthusiastic when I help a customer making a $3 purchase as I am when I'm helping a customer with a $3,000 purchase.  That is added value.  The customer who made the $3 purchase could possibly have bought the same product down the street for $2.50.  This customer came to my store because she knows that we are going to help her select just the right product for her needs and that she will always receive service with a smile.  These are valuable concepts to this customer.

Product quality and customer service... these are the concepts that make a specialty store, well, special!

Posted by Kelly Nelson on March 12, 2008 | Comments (0)