What consumers value; Discounts or shopping experience?

Manu joins the chorus of buyers who find Big Bazaar disorganised and slow. Yet for the moment the chain powers on.


Obviously buyers at Big Bazaar seem to think that the cost savings they effect at the store is worth the trouble. Its always a cost-benefit analysis. The costs of having to trudge through a shabbily merchandised store versus the cost savings due to discounted prices. The balance at the moment seems to be tipped in the favour of 'discounted prices'. Remember this is more relevant to consumers who 'value' these cost savings, as they fall into an income category where every paise saved is worth it, never mind the 'shopping nightmare'.

Now Big Bazaar needs to be careful. The day competing chains match Big Bazaar's prices with a better shopping ambience, buyers in droves are gonna move into competing stores. The cost effeciencies with which Big Bazaar operates needs to be bettered, if not consistently maintained over rival chains' cost structures. As long as that is sustained, its going to cheaper to shop at Big Bazaar and the footfalls will keep coming.


Jagannath said…
Sure sir, As long as the other retailers dont match the prices, the likes of Big Bazaar can have a hay day.
But my point is why should they wait for some one to out do them in customer service AND the price? Does it not show that they take the customer for granted until there is a better choice?
Another disturbing factor is, as you know being a six sigma specialist, improved performance actually costs less in many cases. In the case of Big bazaar, it is not great investment they need to make, other than getting their act together on simple house keeping training to their staff. Even in the most peak time, i see the staff not engaged with anything to do with either the customer or the merchandise. Also, the basic design of the storage, even if it is on floor can be more userfriendly. Just because customers are tolerating the shabby service, there is no reason to continue in that way..

IT is not only the in-store experience that is shabby with bigbazaar, their post sale treatment if you ever have to get some service like a furniture being assembled at home from the kit is horrendous. Nowadays, we get better service and interaction even from public servants...

In my half a dozen or so experiences with Big bazaar, I have been constantly reminded of the definition of "customer" in the olden days of India...it used to mean "Cusht se mar"!!.

In summary, i feel, gone are the days, when we can say "either price or service" now we have to provide atleast an average of one of the two and excel in the other.

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