Service as the new paradigm in retailing

Abstract

The increasingly competitive global marketplace of the twenty-first century, together with fundamental changes in the lifestyles of many consumers, has compelled retail organizations to transform their perceptions of themselves and the way in which they need to conduct business if they are to meet the changing needs of their customers. In particular, the increasing consumer demand for superior service and rapid developments in information technology, the Internet, and telecommunications have forced retail firms to operate within a new business environment that bears little resemblance to that of only a decade ago. At the same time, profound changes in consumer lifestyles and buying behavior have meant that previously successful retail business models and practices are no longer capable of providing an adequate framework to sustain effective and efficient retail operations. The critical success factors that guaranteed business prosperity in the past are, thus, no longer applicable, as retail managers have realized that they require a new paradigm for the retail industry of the twenty-first century. The two key strategic factors (or pillars) of this new paradigm are (1) service and (2) technology.