Tuesday, January 31, 2006
Price and Quality
Soony Seo
Eap2(w/w)
1/23/2006
S/R#2
In the article,"Local families taking sides", the author, Mark Rice, explains that Columbus Council is considering a proposal of the local families for allowing super centered Wal-Mart in Columbia, GA. Each family has various reasons to go or not to go to Wal-Mart. Some families want the supercenter Wal-Mart because of low price and convenience, while some families don't like Wal-Mart because of it's unkindness, traffic problem on weekend, low payment of jobs, and rare American goods. Generally, local families is likely to spend money by their taste; they make the decision to go to where between Wal-Mart and local shops by choosing low price or quality. I insist that there are three disadvantages of Wal-Mart to the small shops, which should differentiate their strategy to the customer through finding out the disadvantage of Wal-Mart.
First, Wal-Mart is just cheap. I agree that Wal-Mart serves goods in a low price, but I don't agree easily that their quality is better. Comparing the price to other shops, there are better prices in Wal-Mart. Clothes are cheap, but it is not nicer than other markets, and vegetables are better priced but they are not various and fresh in quality because of the process of transportation and restricted space. There are many sections but it is not enough to satisfy customer. It seems to choose just low price instead of quality . For example, if you are a wise customer, may you go to another shop for fresh vegetables even though you have to pay more. If you want a good quality of clothes, you maybe go to another shop, because their clothes is just cheap, not satisfying your needs. Small shops have to discover their attractive ways in price and quality.
Second, Wal-Mart has to sell high service as well as low price for business. " low price, low service" is not attractive to the customers. It is not difficult to see a worker's face be indifferent to the customers. The workers of Wal-Mart look tired because of a lot of customers and a lack of experience. Just the low price of goods always says to the customer,"hello". They have to sell not only low price but also their service. In order to make their employees smile happily, they have to educate workers to be nice for the customers through giving appropriate payment. So, the small shop needs to retrain employees to be nice to the customer for business.
Third, the strategy of Wal-Mart does not seem to lock their customer in forever. Unfortunately, customers are too wise to go to one shop. The lowest price is the strongest arm to attract the customer, but it is impossible to keep them forever. It is wise for the cusomer to compare price and quality. Nobody wants the expensive and low quality goods, but everybody wants the cheap and high quality goods. Small shops have to discover what Wal-Mart can not do easily as a professional shop, even though it will not be an easy assignment for small shops to solve for business.
Customers want Wal-Mart as well as small shops, which are essential to the customers who need good quality and good price. Wal-Mart has three disadvantages, even though its price is better. A Small shop's distinguishable strategy such as good quality can attract customers who are likely to go their way because of their financial situation and needs.
Reference
Rice, M. (2005, December 13). Local families taking sides. Columbus Ledger-Enquirer (GA). Retrieved January 25, 2005 from Lexis-Nexis.
Eap2(w/w)
1/23/2006
S/R#2
In the article,"Local families taking sides", the author, Mark Rice, explains that Columbus Council is considering a proposal of the local families for allowing super centered Wal-Mart in Columbia, GA. Each family has various reasons to go or not to go to Wal-Mart. Some families want the supercenter Wal-Mart because of low price and convenience, while some families don't like Wal-Mart because of it's unkindness, traffic problem on weekend, low payment of jobs, and rare American goods. Generally, local families is likely to spend money by their taste; they make the decision to go to where between Wal-Mart and local shops by choosing low price or quality. I insist that there are three disadvantages of Wal-Mart to the small shops, which should differentiate their strategy to the customer through finding out the disadvantage of Wal-Mart.
First, Wal-Mart is just cheap. I agree that Wal-Mart serves goods in a low price, but I don't agree easily that their quality is better. Comparing the price to other shops, there are better prices in Wal-Mart. Clothes are cheap, but it is not nicer than other markets, and vegetables are better priced but they are not various and fresh in quality because of the process of transportation and restricted space. There are many sections but it is not enough to satisfy customer. It seems to choose just low price instead of quality . For example, if you are a wise customer, may you go to another shop for fresh vegetables even though you have to pay more. If you want a good quality of clothes, you maybe go to another shop, because their clothes is just cheap, not satisfying your needs. Small shops have to discover their attractive ways in price and quality.
Second, Wal-Mart has to sell high service as well as low price for business. " low price, low service" is not attractive to the customers. It is not difficult to see a worker's face be indifferent to the customers. The workers of Wal-Mart look tired because of a lot of customers and a lack of experience. Just the low price of goods always says to the customer,"hello". They have to sell not only low price but also their service. In order to make their employees smile happily, they have to educate workers to be nice for the customers through giving appropriate payment. So, the small shop needs to retrain employees to be nice to the customer for business.
Third, the strategy of Wal-Mart does not seem to lock their customer in forever. Unfortunately, customers are too wise to go to one shop. The lowest price is the strongest arm to attract the customer, but it is impossible to keep them forever. It is wise for the cusomer to compare price and quality. Nobody wants the expensive and low quality goods, but everybody wants the cheap and high quality goods. Small shops have to discover what Wal-Mart can not do easily as a professional shop, even though it will not be an easy assignment for small shops to solve for business.
Customers want Wal-Mart as well as small shops, which are essential to the customers who need good quality and good price. Wal-Mart has three disadvantages, even though its price is better. A Small shop's distinguishable strategy such as good quality can attract customers who are likely to go their way because of their financial situation and needs.
Reference
Rice, M. (2005, December 13). Local families taking sides. Columbus Ledger-Enquirer (GA). Retrieved January 25, 2005 from Lexis-Nexis.
# posted by soony @ 9:52 PM 
