Question

Categorizing Retailers by Service Level

This activity is important because marketers should understand differences in service levels between retailers of various types.

Dina is interested in opening a clothing store in a trendy, arts-oriented part of town. She is meeting with her friend Katerina who is studying marketing at a local university. Katerina suggests that she consider the level of service she seeks to provide, as that has implications for many other aspects of her business, including merchandise assortment, pricing, staffing, and more. She explains that retailers can generally be broken into three service level groups: (1) full service, (2) limited service, and (3) self-service.

The goal of this exercise is to help Dina understand these differences by sorting each of the specific examples into one of the three categories.

For each example, select the correct service level category.

1. Verifying the price of an item at Target by scanning the barcode with your smartphone

(Click to select)  Self-Service  Limited Service  Full Service

2. Buying a computer online for same-day pickup at the local office supply store

(Click to select)  Self-Service  Limited Service  Full Service

3. Purchasing a washer and dryer set for your new apartment at a department store

(Click to select)  Self-Service  Limited Service  Full Service

4. Upgrading your smartphone at the local cell phone service retail store

(Click to select)  Self-Service  Limited Service  Full Service

5. Asking a store employee to explain the difference in price and features between two 52" flat screen TVs

(Click to select)  Self-Service  Limited Service  Full Service

6. Selecting an engagement ring for your fiancée at the local jeweler

(Click to select)  Self-Service  Limited Service  Full Service

7. Buying an expensive, limited-series handbag at a fashion boutique

(Click to select)  Limited Service  Self-Service  Full Service

Answer 1

S.No.	Example	Service Level Category
1	Verifying the price of an item at Target by scanning the barcode with your smartphone	Self-Service
2	Buying a computer online for same-day pickup at the local office supply store	Self-Service
3	Purchasing a washer and dryer set for your new apartment at a department store	Full Service
4	Upgrading your smartphone at the local cell phone service retail store	Limited Service
5	Asking a store employee to explain the difference in price and features between two 52" flat screen TVs	Limited Service
6	Selecting an engagement ring for your fiancée at the local jeweler.	Limited Service
7	Buying an expensive, limited-series handbag at a fashion boutique.	Full Service