1. How do customers judge the quality of a supermarket?

* The customers judge the quality of a supermarket in a highly subjective manner and in different ways, and this depends on their wants and needs. One way of judging the quality of a supermarket is the availability of goods and its wide range. It means that the supermarket should keep a wide range of products so that customers can pick and choose from them. Another is the quality of the customer service that they receive in the store. The behaviour of the customer care executives and to what extent they were eager to not only satisfy but delight the customers. Customers judge through the competitive price. A supermarket that can provide cheaper price with same product will attract more customers. Various products and services should be made available to the customers in one stop so that he gets a complete shopping experience in the supermarket. Another way they judge a supermarket is the customer friendly layout so that they can easily locate things in the store. From the point of view of customers location accessibility is very important. For example, if the supermarket is near their home or office they would find it more convenient to shop in the place. The quality of a supermarket is also judge through the additional services that they offer to its customers. Most of the customers are willing to buy products with high quality and with competitive price, so the quality of the merchandise also plays an important role in judging the quality of a supermarket. Also a customer friendly refund policy will get a high appreciation from the customers.

2. Indicate how and why each of these factors is important to the successful operation of a supermarket: a. Customer Satisfaction * Customer is the king and he should not only be satisfied but delighted by offering the products and services that he desires. Also, Customer loyalty is crucial for the very survival of the supermarket as profitability is a function of customer satisfaction. A single happy and satisfied customers for a supermarket by the sheer word of mouth marketing. b. Forecasting * Sales forecast would help a supermarket plan its finances well. The store should forecast correctly what are going to be the fast moving items for the coming month and shall plan for the merchandize availability accordingly. Forecasting helps a supermarket maintain optimum inventory levels. It reduces company’s inventory holding costs and also saves it from the situation of a stock out, which may annoy the customer. Sound forecasting with respect to the festivals, new trends, and changing taste and preferences of customers would help a supermarket plan its merchandise accordingly and will also provide it with a competitive edge over its competitors. c. Capacity Planning d. Location: * Location of the store is very important. The location should be accessible to the customer. Before finalising the location of a supermarket it must be seen what the level of competition in the local area is. A supermarket must analyse how much rent it would require to pay and whether the business would be generated in the same proportion. The location should see to it that the stocks cans be easily transferred from the warehouse to the store. Cultural and local sentiments of the customers need to be taken note of by the management of a superstore and therefore location of the superstore becomes very important. e. Inventory Management * It makes sure that the store carrying out the optimum level of inventory and so there would be a minimal inventory holding cost. At the same time, there won’t be issues like a stock out. It enables a supermarket to plan its sales operation well. Also, the supermarket can source the merchandise at the least possible price and at good quality levels. f. Layout of the store * Layout should be customer friendly so that they can easily locate different departments or sections within a supermarket. Many customers are attracted with the visual merchandising aspects of the over-all layout of the store so it must be taken seriously. Fire and emergency exit gates can be assigned properly for these shows the safeness of the customer. g. Scheduling *