Keyword

Out of stock conditions, Customer Satisfaction, Customer Loyalty, Customer Service and Indian Retail Management

Abstract

In the retail industry, customer experience, satisfaction and service are going to become the limiting differentiators. Increasing competition is creating pressure on retailers to improve both inventory turnover and customer service. Poor logistic management can result in either over stocking (leading to cash flow problems and unnecessary discounts) or lost sales due to stock outs. Stock outs can have serious impact on the business as it affects retailer’s credibility and consumer’s satisfaction. It is important to understand the cost of a retail stock out before the implementation of any retail inventory model.This paper gives valuable insights about customer value, satisfaction and loyalty that can be used by retailers in designing their logistics and inventory models. First, it examines the relationship between customer loyalty, customer value, customer satisfaction, logistics value and out of stock conditions. Second, it explores the role of improved inventory control and the logistics management on customer service. Finally, this study provides valuable insights to retailers on managing consumer’s store attitude by making more informed and rationalized decisions regarding retail product offering and relevant environmental variables


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