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Seeing the cut-throat competition in the market, the 
customer should be treated like a king in the present day. 
A retailer or shopkeeper should know the importance 
and value of customers. Retailing is said to be complete 
and successful only when a customer comes and visits 
a retail store and buys goods from the retail store and is 
satisfied with the product and services provided by the 
retailer. The retailer will also benefit in the form of profit 
and high margin. 
Customers expect almost all retailers to provide 
certain services like: 
• Good appearance and behaviour  
• Identify customer expectations
• Be able to recognise customer needs 
Customer Service acts as a pipe through which the 
customer fulfil their needs. Retail has emerged as 
an important sector and provider of employment 
opportunities too.
The present unit ‘Customer Service’ has been divided 
into four sessions — The first session which deals with 
differences between customer and consumer, and 
identifying customer needs and behaviour. The second 
session explains the identification of effective customer 
service. The third session describes the organisation 
standards of appearance and behaviour and the 
Customer Service
4
Page 2


Seeing the cut-throat competition in the market, the 
customer should be treated like a king in the present day. 
A retailer or shopkeeper should know the importance 
and value of customers. Retailing is said to be complete 
and successful only when a customer comes and visits 
a retail store and buys goods from the retail store and is 
satisfied with the product and services provided by the 
retailer. The retailer will also benefit in the form of profit 
and high margin. 
Customers expect almost all retailers to provide 
certain services like: 
• Good appearance and behaviour  
• Identify customer expectations
• Be able to recognise customer needs 
Customer Service acts as a pipe through which the 
customer fulfil their needs. Retail has emerged as 
an important sector and provider of employment 
opportunities too.
The present unit ‘Customer Service’ has been divided 
into four sessions — The first session which deals with 
differences between customer and consumer, and 
identifying customer needs and behaviour. The second 
session explains the identification of effective customer 
service. The third session describes the organisation 
standards of appearance and behaviour and the 
Customer Service
4
Store o perationS a SSiStant – ClaSS iX
74
fourth session discusses how to identify and confirm 
customer’s expectation.
SeSSion 1: CuStomer n eedS and ServiCe Distinction between customer and consumer
We can understand the difference between the two 
terminologies customer and consumer through 
a situation in our day-to-day life. For example, a 
housewife buys some household goods from a store. She 
is a customer for the retail outlet. When she reaches 
home, other members of the family also use those 
goods, though they haven’t purchased it. All the family 
members including the housewife who have utilised the 
products for their personal use are consumers. 
Marketing helps convert customers into consumers. 
Satisfied consumers will not only become customers 
but also promote the marketer and their products and 
services. 
Identifying customers’ needs and behaviour
The buying level of any customer depends on their 
needs. Customers’ needs can be objective (e.g., physical 
needs like food, shelter, clothing, etc.) or subjective (e.g., 
emotional, moral, intellectual, and spiritual needs like 
good behaviour, self-esteem, fairness, etc.). Customers’ 
needs vary with place and age group. 
Customers’ needs are the stepping stone to all modern 
marketing concepts. The manufacturer has to give due 
attention, importance and care in understanding and 
assessing or identifying the needs of consumers to gain 
competitive advantage. The marketer should use all 
their efforts and strategies to identify, emphasise, and 
satisfy customer needs.
Based on the type of products
The customers’ needs can be divided into two types: 
demand for tangible and non-tangible products.
(a) Tangible products: These products are those which 
can be touched and felt (see Fig. 5.1). 
(b) Intangible products: These products are those 
which cannot be touched or felt. 
n oteS
Page 3


Seeing the cut-throat competition in the market, the 
customer should be treated like a king in the present day. 
A retailer or shopkeeper should know the importance 
and value of customers. Retailing is said to be complete 
and successful only when a customer comes and visits 
a retail store and buys goods from the retail store and is 
satisfied with the product and services provided by the 
retailer. The retailer will also benefit in the form of profit 
and high margin. 
Customers expect almost all retailers to provide 
certain services like: 
• Good appearance and behaviour  
• Identify customer expectations
• Be able to recognise customer needs 
Customer Service acts as a pipe through which the 
customer fulfil their needs. Retail has emerged as 
an important sector and provider of employment 
opportunities too.
The present unit ‘Customer Service’ has been divided 
into four sessions — The first session which deals with 
differences between customer and consumer, and 
identifying customer needs and behaviour. The second 
session explains the identification of effective customer 
service. The third session describes the organisation 
standards of appearance and behaviour and the 
Customer Service
4
Store o perationS a SSiStant – ClaSS iX
74
fourth session discusses how to identify and confirm 
customer’s expectation.
SeSSion 1: CuStomer n eedS and ServiCe Distinction between customer and consumer
We can understand the difference between the two 
terminologies customer and consumer through 
a situation in our day-to-day life. For example, a 
housewife buys some household goods from a store. She 
is a customer for the retail outlet. When she reaches 
home, other members of the family also use those 
goods, though they haven’t purchased it. All the family 
members including the housewife who have utilised the 
products for their personal use are consumers. 
Marketing helps convert customers into consumers. 
Satisfied consumers will not only become customers 
but also promote the marketer and their products and 
services. 
Identifying customers’ needs and behaviour
The buying level of any customer depends on their 
needs. Customers’ needs can be objective (e.g., physical 
needs like food, shelter, clothing, etc.) or subjective (e.g., 
emotional, moral, intellectual, and spiritual needs like 
good behaviour, self-esteem, fairness, etc.). Customers’ 
needs vary with place and age group. 
Customers’ needs are the stepping stone to all modern 
marketing concepts. The manufacturer has to give due 
attention, importance and care in understanding and 
assessing or identifying the needs of consumers to gain 
competitive advantage. The marketer should use all 
their efforts and strategies to identify, emphasise, and 
satisfy customer needs.
Based on the type of products
The customers’ needs can be divided into two types: 
demand for tangible and non-tangible products.
(a) Tangible products: These products are those which 
can be touched and felt (see Fig. 5.1). 
(b) Intangible products: These products are those 
which cannot be touched or felt. 
n oteS
Customer s erviCe 75
Basic needs of customer 
Following are the basic needs of the 
customer:
(a) Warm welcome: The sales person 
has to welcome the customer warmly 
and greet him/her graciously. The 
customer shouldn’t feel neglected 
when he/she approaches the retailer 
or sales associate. 
(b) Understanding: Marketer needs to 
understand and appreciate views, 
expressions, and circumstances, 
feelings without any criticism or judgment for the 
satisfaction of the customer.  
 (c) Fairness: Every customer wants to be treated fairly. 
Customers get very annoyed and dissatisfied when 
they feel they are not given due attention in the 
retail store.
 (d) Control: Control means the customer’s perception 
to meet his demand at the earliest with a positive 
outcome.
 (e) Options and alternatives: There should be 
options and alternatives available for the customer. 
The customers must be educated about the variety 
of products available. They will then choose to 
purchase the desired products and services available 
in store. 
To identify the customer needs, the retailer must do 
these three things: 
• Communicate effectively with the customers and 
satisfy their needs. 
• Look for different ways to record customer feedback.
• Effective, use of feedback and other information to 
take effective decision regarding marketing, buying, 
merchandising and selling. 
There are many employees in the retail organisation, 
who mainly work for customer satisfaction, called 
customer service representative. In every stage of the 
Fig. 5.1 Tangible Products
Page 4


Seeing the cut-throat competition in the market, the 
customer should be treated like a king in the present day. 
A retailer or shopkeeper should know the importance 
and value of customers. Retailing is said to be complete 
and successful only when a customer comes and visits 
a retail store and buys goods from the retail store and is 
satisfied with the product and services provided by the 
retailer. The retailer will also benefit in the form of profit 
and high margin. 
Customers expect almost all retailers to provide 
certain services like: 
• Good appearance and behaviour  
• Identify customer expectations
• Be able to recognise customer needs 
Customer Service acts as a pipe through which the 
customer fulfil their needs. Retail has emerged as 
an important sector and provider of employment 
opportunities too.
The present unit ‘Customer Service’ has been divided 
into four sessions — The first session which deals with 
differences between customer and consumer, and 
identifying customer needs and behaviour. The second 
session explains the identification of effective customer 
service. The third session describes the organisation 
standards of appearance and behaviour and the 
Customer Service
4
Store o perationS a SSiStant – ClaSS iX
74
fourth session discusses how to identify and confirm 
customer’s expectation.
SeSSion 1: CuStomer n eedS and ServiCe Distinction between customer and consumer
We can understand the difference between the two 
terminologies customer and consumer through 
a situation in our day-to-day life. For example, a 
housewife buys some household goods from a store. She 
is a customer for the retail outlet. When she reaches 
home, other members of the family also use those 
goods, though they haven’t purchased it. All the family 
members including the housewife who have utilised the 
products for their personal use are consumers. 
Marketing helps convert customers into consumers. 
Satisfied consumers will not only become customers 
but also promote the marketer and their products and 
services. 
Identifying customers’ needs and behaviour
The buying level of any customer depends on their 
needs. Customers’ needs can be objective (e.g., physical 
needs like food, shelter, clothing, etc.) or subjective (e.g., 
emotional, moral, intellectual, and spiritual needs like 
good behaviour, self-esteem, fairness, etc.). Customers’ 
needs vary with place and age group. 
Customers’ needs are the stepping stone to all modern 
marketing concepts. The manufacturer has to give due 
attention, importance and care in understanding and 
assessing or identifying the needs of consumers to gain 
competitive advantage. The marketer should use all 
their efforts and strategies to identify, emphasise, and 
satisfy customer needs.
Based on the type of products
The customers’ needs can be divided into two types: 
demand for tangible and non-tangible products.
(a) Tangible products: These products are those which 
can be touched and felt (see Fig. 5.1). 
(b) Intangible products: These products are those 
which cannot be touched or felt. 
n oteS
Customer s erviCe 75
Basic needs of customer 
Following are the basic needs of the 
customer:
(a) Warm welcome: The sales person 
has to welcome the customer warmly 
and greet him/her graciously. The 
customer shouldn’t feel neglected 
when he/she approaches the retailer 
or sales associate. 
(b) Understanding: Marketer needs to 
understand and appreciate views, 
expressions, and circumstances, 
feelings without any criticism or judgment for the 
satisfaction of the customer.  
 (c) Fairness: Every customer wants to be treated fairly. 
Customers get very annoyed and dissatisfied when 
they feel they are not given due attention in the 
retail store.
 (d) Control: Control means the customer’s perception 
to meet his demand at the earliest with a positive 
outcome.
 (e) Options and alternatives: There should be 
options and alternatives available for the customer. 
The customers must be educated about the variety 
of products available. They will then choose to 
purchase the desired products and services available 
in store. 
To identify the customer needs, the retailer must do 
these three things: 
• Communicate effectively with the customers and 
satisfy their needs. 
• Look for different ways to record customer feedback.
• Effective, use of feedback and other information to 
take effective decision regarding marketing, buying, 
merchandising and selling. 
There are many employees in the retail organisation, 
who mainly work for customer satisfaction, called 
customer service representative. In every stage of the 
Fig. 5.1 Tangible Products
Store o perationS a SSiStant – ClaSS iX
76
buying process in a retail organisation they provide the 
customer service before, during and after the purchase. 
Role of customer services in retail
In today’s scenario each and every retailer is trying 
to convert the casual customer into a loyal customer 
through development of a bond between the retailer 
and customer. The customer service marketer is able to 
understand the customers’ feelings and emotions with 
particular products and is also able to understand the 
buying habits of customer. 
A successful and effective customer service results 
in increase of customer’s value for the store. 
A good customer service should focus on:
• Building a dynamic relationship with the customer.
• Making customer service a key element to build 
customer loyalty.
• Building competitive advantage.
Through effective customer service a retailer can 
maintain a strong relationship with the customer 
and convert a casual customer into a loyal customer. 
Loyal customers play an important role in continuous 
generation of revenue. This is the basic reason why 
many retailers work hard to increase the level of 
customer satisfaction.
Elements of customer services 
The basic elements of customer services which 
make it good are as follows:
 (a)  Communications skills: The salesman 
initially greets the customer. Throughout the 
interaction, the customer forms an opinion and 
attitude towards the retail store as far as the 
customer service is concerned (Fig. 5.2).
 (b) Effective ‘face-to-face’ interactions 
with customers: In many retail stores, of course, 
the employees deal with the customers ‘face-to-
face’ on a daily basis (Fig. 5.3). Unlike telephone 
communication, in which customers use only one 
sense organ (sound) to evaluate the retailer and 
their apparent attitude towards the customers, 
Fig. 5.2 Communication 
with Customers
Fig. 5.3 Effective Face-to-Face 
Interaction with Customer
Page 5


Seeing the cut-throat competition in the market, the 
customer should be treated like a king in the present day. 
A retailer or shopkeeper should know the importance 
and value of customers. Retailing is said to be complete 
and successful only when a customer comes and visits 
a retail store and buys goods from the retail store and is 
satisfied with the product and services provided by the 
retailer. The retailer will also benefit in the form of profit 
and high margin. 
Customers expect almost all retailers to provide 
certain services like: 
• Good appearance and behaviour  
• Identify customer expectations
• Be able to recognise customer needs 
Customer Service acts as a pipe through which the 
customer fulfil their needs. Retail has emerged as 
an important sector and provider of employment 
opportunities too.
The present unit ‘Customer Service’ has been divided 
into four sessions — The first session which deals with 
differences between customer and consumer, and 
identifying customer needs and behaviour. The second 
session explains the identification of effective customer 
service. The third session describes the organisation 
standards of appearance and behaviour and the 
Customer Service
4
Store o perationS a SSiStant – ClaSS iX
74
fourth session discusses how to identify and confirm 
customer’s expectation.
SeSSion 1: CuStomer n eedS and ServiCe Distinction between customer and consumer
We can understand the difference between the two 
terminologies customer and consumer through 
a situation in our day-to-day life. For example, a 
housewife buys some household goods from a store. She 
is a customer for the retail outlet. When she reaches 
home, other members of the family also use those 
goods, though they haven’t purchased it. All the family 
members including the housewife who have utilised the 
products for their personal use are consumers. 
Marketing helps convert customers into consumers. 
Satisfied consumers will not only become customers 
but also promote the marketer and their products and 
services. 
Identifying customers’ needs and behaviour
The buying level of any customer depends on their 
needs. Customers’ needs can be objective (e.g., physical 
needs like food, shelter, clothing, etc.) or subjective (e.g., 
emotional, moral, intellectual, and spiritual needs like 
good behaviour, self-esteem, fairness, etc.). Customers’ 
needs vary with place and age group. 
Customers’ needs are the stepping stone to all modern 
marketing concepts. The manufacturer has to give due 
attention, importance and care in understanding and 
assessing or identifying the needs of consumers to gain 
competitive advantage. The marketer should use all 
their efforts and strategies to identify, emphasise, and 
satisfy customer needs.
Based on the type of products
The customers’ needs can be divided into two types: 
demand for tangible and non-tangible products.
(a) Tangible products: These products are those which 
can be touched and felt (see Fig. 5.1). 
(b) Intangible products: These products are those 
which cannot be touched or felt. 
n oteS
Customer s erviCe 75
Basic needs of customer 
Following are the basic needs of the 
customer:
(a) Warm welcome: The sales person 
has to welcome the customer warmly 
and greet him/her graciously. The 
customer shouldn’t feel neglected 
when he/she approaches the retailer 
or sales associate. 
(b) Understanding: Marketer needs to 
understand and appreciate views, 
expressions, and circumstances, 
feelings without any criticism or judgment for the 
satisfaction of the customer.  
 (c) Fairness: Every customer wants to be treated fairly. 
Customers get very annoyed and dissatisfied when 
they feel they are not given due attention in the 
retail store.
 (d) Control: Control means the customer’s perception 
to meet his demand at the earliest with a positive 
outcome.
 (e) Options and alternatives: There should be 
options and alternatives available for the customer. 
The customers must be educated about the variety 
of products available. They will then choose to 
purchase the desired products and services available 
in store. 
To identify the customer needs, the retailer must do 
these three things: 
• Communicate effectively with the customers and 
satisfy their needs. 
• Look for different ways to record customer feedback.
• Effective, use of feedback and other information to 
take effective decision regarding marketing, buying, 
merchandising and selling. 
There are many employees in the retail organisation, 
who mainly work for customer satisfaction, called 
customer service representative. In every stage of the 
Fig. 5.1 Tangible Products
Store o perationS a SSiStant – ClaSS iX
76
buying process in a retail organisation they provide the 
customer service before, during and after the purchase. 
Role of customer services in retail
In today’s scenario each and every retailer is trying 
to convert the casual customer into a loyal customer 
through development of a bond between the retailer 
and customer. The customer service marketer is able to 
understand the customers’ feelings and emotions with 
particular products and is also able to understand the 
buying habits of customer. 
A successful and effective customer service results 
in increase of customer’s value for the store. 
A good customer service should focus on:
• Building a dynamic relationship with the customer.
• Making customer service a key element to build 
customer loyalty.
• Building competitive advantage.
Through effective customer service a retailer can 
maintain a strong relationship with the customer 
and convert a casual customer into a loyal customer. 
Loyal customers play an important role in continuous 
generation of revenue. This is the basic reason why 
many retailers work hard to increase the level of 
customer satisfaction.
Elements of customer services 
The basic elements of customer services which 
make it good are as follows:
 (a)  Communications skills: The salesman 
initially greets the customer. Throughout the 
interaction, the customer forms an opinion and 
attitude towards the retail store as far as the 
customer service is concerned (Fig. 5.2).
 (b) Effective ‘face-to-face’ interactions 
with customers: In many retail stores, of course, 
the employees deal with the customers ‘face-to-
face’ on a daily basis (Fig. 5.3). Unlike telephone 
communication, in which customers use only one 
sense organ (sound) to evaluate the retailer and 
their apparent attitude towards the customers, 
Fig. 5.2 Communication 
with Customers
Fig. 5.3 Effective Face-to-Face 
Interaction with Customer
Customer s erviCe 77
these personal encounters offer customers 
the use of at least two or more of all the five 
senses, upon which to form their opinions.
(c) The art of listening to customers: 
Effective communication isn’t simply a one-
way proposition. Communication directed 
towards the customer is important, but 
communication from the customer is 
probably even more important (Fig. 5.4). 
The salesman should know what a customer 
really wants. It is as easy as listening to 
what the customer says (or doesn’t say). 
Obviously, to accomplish this one must 
develop good listening skills.
(d)  Handling customer’s grievances 
smoothly: Inevitably, the sales person in a 
retail  store is bound to encounter a customer 
who is angry, upset, and unreasonable, 
unusually demanding, or all of the above 
(Fig. 5.5). Any effective customer service 
programme will include methods of dealing 
with this type of customer.
 (e) Adopting a new, different perspective: 
Customer service is a ‘team’ effort. In a 
company dedicated to good customer service, 
an attitude of ‘that’s not my job’ doesn’t exist 
(Fig. 5.6).
Fig. 5.4 Listening to the 
Customer Views
Fig. 5.5 Handling Customer 
Grievances
Fig. 5.6 New Perspectives in term of Shop Layout
 (f) Monitoring and measuring 
effectiveness: There are several 
informal ways to conduct 
monitoring and measurement for 
effective customer service. Asking 
customers themselves how well they 
think the retail store is doing. This 
can be accomplished by using basic 
tools, such as customer satisfaction 
survey cards, exit interviews with 
customers, etc. 
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