Customer Service Chapter 3: Store Operations

Universal Product Code (UPC)

A barcode that contains specific product information including a description, price, tax status, and relevant discounts or promotions.

purchase order (PO)

A detailed list of vendor items requested by the store.

Installment Financing

A financial model in which the retailer loans a customer money, which comes from an internal lending department or a third party bank, to buy product as part of the sale. Borrowers typically pay the retailer in monthly installments.

Revolving Credit

A financing model in which the retailer offers a credit card to customers, usually connected to loyalty programs, so they can make purchases and pay the card balance over time.

Credit

An agreement between a consumer and financial institution that allows the consumer to obtain the product/services without payment but with the promise of paying back within a certain timeframe.

Add-on Services

Available services for specific product purchases that consumers can opt for

Near Field Communication (NFC)

Contactless payments between two devices lite a terminal and a smartphone. They connection is made when two devices are about 1.6 inches from each other.

Short-change Artist

Dishonest shoppers who try to scheme salespeople by arguing that they paid with a bigger bill to get more change than they are owed.

Loyalty Program

Marketing programs that provide incentives to repeat customers who are loyal company or brand shoppers. They generally use customer personal information, purchase history and preferences to refine product and service assortment, target promotions to consumer groups or individual customers and reward loyal shoppers.

Alterations

Modifications to products that help them best meet the needs of customers. Example: tailoring clothing or installing additional memory on a copmuter.

Store Credit

Money that can only be used at that particular store or retailer. Customers get store credit when they return an item and do not chose or are not eligible for a refund.

Private Label products

Products developed by national or international manufacturers and then sold under another brand name that is available only at that retailer's stores.

Delivery and Installation

Retailers may deliver or install products free or for a charge. Online merchandise is delivered to your home.

Point of Sale (POS)

System to track items sold, process sales, hold cash and generate receipts

Visual Merchandising

The branch of retail in charge of promoting specific products or services through engaging visual displays

Product Return

The process of the customer taking previously purchased merchandise back to the retailer to receive a refund in the original form of payment, an exchange for another item or a store credit.

Worth

The satisfaction that the customer feels after obtaining or experiencing the benefits from the purchased product or service.

Value

The subjective worth that an item or service has for the customer compared to other alternatives

Layaway

a type of add-on service that allows customers to make an initial deposit on merchandise then pay the rest over time.

Transaction

an instance of buying or selling something, in retail this generally refers to a customer buying or returning an item.

Loss Prevention

the branch in retail in charge of implementing action plans to reduce waste, breakage or theft and increase safety.

Satisfied Customer

the customer purchasing experience satisfies wants and needs and they leave feeling appreciated for shopping there.