1.Write a well presented report for the above outlining the Business Operation. Provide three recommendations that are well substantiated with journal literature and referenced correctly.
2.Provide an additional option to the above suggestion to Improve Customer Service.
1.Oz supermarket has opened its stores in different parts of the globe with a view to providing instant service to its customers as well as risk-free experience in purchasing household and other necessary things. Chairperson and directors of Oz supermarkets have decided to provide a cashless and peaceful experience in terms of reducing the rush from exit queues (Zielke, Toporowski & Kniza, 2011). Oz supermarkets are offering only households items such as grosser items, stationary things, and non-perishable goods. For purchasing these types of goods, customers’ needs to spend a lot of time in stores and supermarkets but Oz store have invented the idea of providing cashless and quick service. Oz supermarket has adopted the PayWave technology under which cash is not accepted from its customers. As per this technology, a PayWave card is issued to the customer and while entering the store, customer needs to swipe his card and took a trolley with a RFID chip installed in the trolley. All those items selected by a customer and put it into the basket will automatically be counted as purchases. In the scenario, when the customer wants to delete the item from his purchases, that item is automatically being reduced from his purchases. After completing the purchases, customer needs to move towards the exit gate and while exiting the store, he needs to swipe his PayWave card again for making payment and for exiting the store as well. If in case, customer’s PayWave card does not have sufficient balance in his card, an alarm will ring (Kurnia & Peng, 2010).
As per this technology, only one person is allowed to enter on a card and if children or any other person wants to enter the store, he can get a card from the store counter through submitting a certain amount of money and that money will be recorded in his PayWave card. While exiting the store, the customer who has taken the instant PayWave card can withdraw their money or they can move forward with the card for their future purchases (Yada, 2011).
This technology will help the customer to save their time as well as to choose cashless transactions. As this technology is bit high cost consuming but customers who are in hurry and do not want to stand in queues will be ready for bearing the extra cost for their purchases. Thus, customers do not need to stand in queues for making payments and the usage of this kind of technology takes the shopping towards a next level i.e. smart and less time consuming (Hou & Chen, 2011).
Trolleys, as well as the items kept in the store, have a specialized chip called RFID through which customers’ cart is automatically updated while taking or removing the item from the cart. RFID chips increase the prices of the products but this extra cost will be absorbed from those customers who are in rush. In Oz supermarket, many shopping summary stations are fitted through which customers can gather information regarding their picked products in the trolley. This will help the customer to get an estimate in relevance with the payment for their shopping as well as these stations also provide the facility to customers to check the balance available in their PayWave card (Shi, Zhang & Qu, 2010).
Oz supermarket has also planned for the parking customers’ vehicles. Those customers who want to park their vehicles and shop from inside the store, car parking facility will also be provided and the parking will be on the basis of time consumption. In peak period, a store will charge parking on the minute’s basis. Parking will be free for disabled customers and no extra charge will be charged from them for providing wheel chairs or any other facilities.
The idea opted by Oz supermarket is unique as well as result oriented especially in those places where people are running short of time. The directors of this store should concentrate on opening the store with this kind of technologies and in busy places such as New York, USA, UK, etc. People over there will be able to afford these kinds of services, as well as the success of these stores, could only be analyzed in those places only (Fiedler, Keppler & Öztüren, 2012).
Apart from opening the store in busy places, this kind of store requires a big place and in the countries like USA and UK, land cost is very high which is will impact on the prices of the products sold in the store. Hence, Oz supermarket needs to analyze all the internal as well as external factors before setting up the stores because, in the poor countries or states, this kind of store will not be able to achieve adequate success.
So, if organization’s budget is capable enough to afford expenses of big and developed countries then it should be commenced from there only. Because setting up the advanced technology stores in under developed countries will not achieve success as people over there will first try to fulfil their basic needs apart from saving time and waiting in long queues and as per a survey report, supermarkets are successful in developed countries only because people over there try to save on each and every item through bargaining or through compromising with product’s quality.
Apart from these, it is recommended that as Oz supermarket is being created with a view to providing advanced and quick service to those people who are in rush. Hence, their perception should be asked with a view to making the business as per their requirements. Adequate steps should be taken to solve the customers’ issues as well as to build the trust in the customers’ mind towards the organization.
2.In addition to this plan, Oz supermarket could also adopt the method of providing the same facility to customers under which they do not need to park their vehicles. They can move forward in their cars only and stop at the stations as per their requirements in the store. Under this procedure in an open ground, various stations will be developed as per the items available in the store. For instance, one section for packed eatables, one for grocery, etc. and then entry and exit procedure will remain same as per the above idea. The basic difference will be customer need to swipe their card while entering the premises of the store and in the above idea, customers’ need to swipe their cards at the time of entering into the store (Polasik, et. al., 2011).
This option of providing products to customers without leaving their cars will reduce the efforts of customers but it will require a big place where the separate section will be maintained for unique products. Apart from this, this option will increase the customer experience as they do not need to move here and there in the store, they just need to stop their car at the station of goods which they require. An organization may face some problems in the scenarios where customer’s car will stop in between the stations, other customers will also get stuck due to this situation and traffic jam, as well as a failure of the idea, could be assumed. Hence, before implementing this plan, appropriate resources should be planned so that if any kind of intolerable situation arises, that could be resolved as soon as possible (Yang, Zhuang & Wong, 2012).
Customers’ feedback should also be taken time to time so that appropriate changes could be made because these kinds of stores are setup to provide the facilities to customers. Hence, if customers want some changes in the procedure of Oz supermarket then it should be implemented so that customer’s requirements could be matched up. This option will result in the implementation of extra cost in terms of above idea.
Under this option, where customers do not need to leave their vehicles and all products will be provided to them in their cars only, other persons sitting in the car does not require to register for PayWave card. If any product is being picked up by a customer without having PayWave card, an alarm will ring at the exit gate. As all cars will be scanned before entering the premises and while exiting the premises and if anything unethical found then strict legal actions will be taken to reduce the chances of fraud (Polasik, et. al., 2011).
In this option, customers’ need to swipe their PayWave card while entering the store and a bag will be provided to them in their vehicles only and selected products by the customers will be put in that bag only. If a customer will keep any product in their vehicle by mistake or willingly then at the check-out point, an alarm will be ringed because each and every product kept in the store will be covered through RFID technology chip and while billing that chip will be removed with an advanced equipment and it will not be able to remove without that equipment. Hence, that product which is kept without bag will not be included in the bill amount and that chip is also not being removed from that product’s packaging. So, its alarm will be ringed while scanning the car and then customers’ perceptions will be asked. For this reason, the shopping bag is being provided to all those customers who will enter the Oz supermarket’s premises so that customers do not face any kind of issue (Jung & Kwon, 2011).
For improving business services and improving customer’s experiences, parking charges would be removed so that number of consumers could get attracted towards Oz supermarket. Taking customers’ feedback into account and working on an implementation of customers’ suggestions to realize them that they are crucial elements of the organization. This will help them to build trust level towards the organization.
Apart from this, only fresh and adequate qualitative products should be kept in the store because after paying high prices than a market, customers will expect adequate quality and appropriate service from the store. If these things would not be implemented in the store then the organization may need to suffer losses or customers will also move towards the normal supermarkets and other local shops. Basic idea of setting up this kind of store is to save the customers’ time as well as their efforts, hence; in peak seasons, appropriate actions needs to take to control the public such as fixing certain number of people for entering the store at a time or opening extra number of stations for certain period of time to provide adequate services to the customers who are paying extra for saving their time (Dean, 2013).
Time to time reviews should be taken from the customers so that certain necessary amendments could be implemented in relevance with the quality of the product, quality of services, etc. apart from the reviews, customers should be treated with attractive offers time to time and sale should also be conducted with a view to clear the dead stock as well as to enhance the sales of the organization (Trebar, et. al., 2011).
References
Dean, D. H. (2013). Anticipating consumer reaction to RFID-enabled grocery checkout. Services Marketing Quarterly, 34(1), 86-101.
Fiedler, M., Keppler, T., & Öztüren, A. (2012). Contactless Payment, A Rfid Domain And Its Acceptance By Card Holders. Viii. ?nterdisciplinary Management Research (Imr) Conference.
Hou, J. L., & Chen, T. G. (2011). An RFID-based shopping service system for retailers. Advanced Engineering Informatics, 25(1), 103-115.
Jung, I. C., & Kwon, Y. S. (2011). Grocery customer behavior analysis using RFID-based shopping paths data. World Academy of Science, Engineering and Technology, 59, 2011.
Kurnia, S., & Peng, F. (2010). Electronic commerce readiness in developing countries: the case of the Chinese grocery industry. In E-commerce. InTech.
Polasik, M., Górka, J., Wilczewski, G., Kunkowski, J., Przenajkowska, K., & Tetkowska, N. (2011). Time Efficiency of Point-Of-Sale Payment Methods: Empirical Results for Cash, Cards, and Mobile Payments. Social Science Research Network Working Paper, February, at https://ssrn. com/abstract, 1769922.
Polasik, M., Przenajkowska, K., Starogarska, E., & Maciejewski, K. (2011). Usage of Mobile Payments in Point-Of-Sale Transactions. Prace Naukowe Uniwersytetu Ekonomicznego we Wroc?awiu”, Advanced Information Technologies for Management–AITM, 227-239.
Shi, J., Zhang, J., & Qu, X. (2010). Optimizing distribution strategy for perishable foods using RFID and sensor technologies. Journal of Business & Industrial Marketing, 25(8), 596-606.
Trebar, M., Grah, A., Melcon, A. A., & Parreno, A. (2011). Towards RFID traceability systems of farmed fish supply chain. In Software, Telecommunications and Computer Networks (SoftCOM), 2011 19th International Conference on (pp. 1-6). IEEE.
Yada, K. (2011). String analysis technique for shopping path in a supermarket. Journal of Intelligent Information Systems, 36(3), 385-402.
Yang, A., Zhuang, Y., & Wong, D. S. (2012, October). An Efficient Single-Slow-Phase Mutually Authenticated RFID Distance Bounding Protocol with Tag Privacy. In ICICS (Vol. 7618, pp. 285-292).
Zielke, S., Toporowski, W., & Kniza, B. (2011). Customer acceptance of a new interactive information terminal in grocery retailing: antecedents and moderators. In Advanced technologies management for retailing: Frameworks and cases (pp. 289-305). IGI Global.
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