Theory question 107
Retail TradeCommerce 2 (essay, answer five questions only)
Explain the following and give three benefits of each:
(a) branding;
(b) after sales service;
(c) self-service;
(d) vending machine.
Show the model answer
(a) Branding – giving a product a distinctive name or mark. Benefits: identifies the product; builds customer loyalty; helps advertising; protects against imitation; allows higher prices.
(b) After-sales service – services given after a sale, e.g. delivery, installation, repairs, warranty. Benefits: wins customer confidence; increases sales; helps customers use goods properly; gives the firm a good image.
(c) Self-service – customers pick goods themselves from open shelves and pay at a check-out. Benefits: saves time; fewer staff needed; free choice; prices clearly marked; encourages impulse buying.
(d) Vending machine – a coin/card-operated machine that releases goods. Benefits: sells 24 hours; saves labour; quick and convenient; can be placed in many locations.
Define each term, then give three benefits.