electronics

Big Boxes Have Advantage In Customer Service

shopping cart with lcdConsumers are more likely to get specific television brand recommendations from salespeople at big-box electronics retailers than from those at the mass merchandisers, according to a recent study from J.D. Power and Associates and Market Force Information. 

According to the report, which compiled the findings of more than 8,000 mystery shoppers last year, an average of 86% of salespeople at electronics retailers (such as Best Buy or HH Gregg) were willing to provide a specific brand recommendation for an LCD-type television set. At mass merchandisers, meanwhile, only 22% were willing to do so, even when shoppers specifically asked for a brand recommendation.

"There is an opportunity for more education, whether it's highlighting a specific technology or a brand," Lawrence Wu, senior director of the technology practice at J.D. Power and Associates, tells Marketing Daily. "The fact that many salespeople fail to provide any brand recommendations to big-screen TV shoppers represents an opportunity for manufacturers to increase their brand recognition."

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The disparity is understandable. Electronics retailers are more specialized than mass merchandisers, and their salespeople get more specific training about electronics products. But the disparity does present an opportunity for retailers and mass merchandisers alike, Wu says. While most consumers are conducting their own research on the type of TVs or brands before entering the store, "the last three feet of the sale is done by the salesperson," he says.

Among those willing to provide brand recommendations for LCD televisions, 37% recommended Samsung, while 30% recommended Sony. For Plasma screen TVs, 36% recommended Panasonic. Salespeople were also more likely to recommend plasma screen televisions as the year wore on. During the first quarter of 2008, only 17% were recommending plasma big-screen televisions. That number increased to 26% by the fourth quarter of the year, Wu says.

Salespeople at electronics retailers are also more likely to inform shoppers of related services--such as delivery and installation--as well as other competitive advantages. According to the study, 60% of the big-box salespeople mentioned that their store had installation services. Only 45% of television salespeople at mass merchandisers mentioned any extra services or advantages for making a purchase at their store.

"Although low prices are important to shoppers, the importance of good customer service cannot be overlooked, particularly in the current economic environment," said Karl Maier, CEO of Market Force, in a statement. "While mass merchant chains often have reputation for having the lowest prices, shoppers who are looking to receive the greatest value for their money may turn to big box retailers."

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