The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customer. These activities increase the value customers receive from the merchandise and services they purchase. It costs 5 to 15 times more to acquire a new customer as it does to retain an existing customer. Two important differences between the service and merchandise aspects of the retail offering are intangibility and inconsistency . Clothing can be held and examined, but the assistance provided by a salesperson can't.
Intangibility makes it hard for both retailers and customers to evaluate services.
When evaluating merchandise, customers use tangible cues such as color, fit, style, size, etc. Intangibility also makes it hard to provide and maintain high-qualtity customer service. Retailers can't count, measure, or check service before it's delivered to the customers. Automated manufacturing makes the quality of most merchandise consistent from item to item. But the quality of retail service can vary dramatically from store to store and customer to customer.