Low customers engagement at aeon celadon shopping center

However, at Aeon Celadon Shopping Center face is Customers decreasing 98.8% compare with last year 2018 Vs 2017.. Using different literature reviews and concluding in-depth interviews, s

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-TRAN NGOC ANH

LOW CUSTOMERS ENGAGEMENT

AT AEON CELADON SHOPPING

CENTER

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR LE THI THANH XUAN

Ho Chi Minh City – Year 2019.

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-TRAN NGOC ANH

LOW CUSTOMERS ENGAGEMENT

AT AEON CELADON SHOPPING

CENTER

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR LE THI THANH XUAN

Ho Chi Minh City – Year 2019

LOW CUSTOMERS ENGAGEMENT AT AEON CELADON SHOPPING

CENTER

Table of Contents

Chapter 1: Company overview 6

1.1 AEON group: 6

1.2 AEON Vietnam: 8

1.3 Aeon Celadon Shopping Center: 12

Chapter 2: Symptom: Customers decreasing 98.8% compare with last year (2018 Vs 2017) 13 Chapter 3: Problems identification 18

3.1 Potential problems: 18

3.1.1 Far from home of customers and inconvenient location 18

3.1.2 Unreasonable prices: 19

3.1.3 Worse assortment of products: 19

3.1.4 Cashier check out slowly and staff’s bad attitude of services: 21

3.2 Validating problems: 22

3.2.1 Manager’s perspectives: 23

3.2.2 Customer’s perspectives: 24

3.3 The importance of main problem 25

Chapter 4: Cause validation 26

4.1 Potential causes: 26

4.1.1 Unreasonable prices: 27

4.1.2 Few famous brands: 29

4.1.3 Poor color, sizes and volume displays: 29

4.1.4 Very crowded customers at weekend and holiday: 30

4.1.5 Bad attitudes of services employees: 32

4.1.6 Employees lack of products knowledge: 33

4.2 Validating cause: 34

Chapter 5: Alternative solutions 37

5.1 Solution 1: For worse assortment of products 38

5.2 Solution 2: Worse of customer services 42

Chapter 6: Action plan 46

Chapter 7: Supporting information 48

Table of Figures

Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD) 7

Figure 2: Aeon Vietnam annual report 2018 (Unit: Billion VND) 11

Figure 3: Aeon Vietnam annual report 2018 (Unit: Billion VND) 11

Figure 4: Aeon Vietnam annual report 2018 (Unit: G.rate and Volume sales) 14

Figure 5: Aeon Vietnam annual report 2018 (Unit: No Of competitors - Stores) 15

Figure 6: Aeon Vietnam annual report 2018 (Unit: No of customers) 16

Figure 7: Aeon Vietnam annual report 2018 (Unit: VND) 16

Figure 8: Customer survey report of Dec,2018 (Unit: Ratio%) 18

Figure 9: Customer survey report of Dec,2018 Ele (Unit: No of customers) 20

Figure 10: Customer survey report of Dec,2018 Mul (Unit: No of customers) 20

Figure 11: Customer survey report Cust Purchases in food line (Unit: Ratio%) 27

Figure 12: Customer survey report Cust Purchases in soft line (Unit: Ratio%) 28

Figure 13: Customer survey report Cust Purchases in hard line (Unit: Ratio%) 28

Figure 14: Hard line annual report 2018 sales and GP (Unit: billion VND) 30

Figure 15: Number customers at weekday (No of Customers) 31

Figure 16: Number customers at weekend (No of Customers) 31

Figure 17: Annual report 2018 No of customers complaints (Unit: No cust) 33

Figure 18: Annual report 2018 No of cases (Unit: No cases) 33

Figure 19: Annual report 2018 No of cases (Unit: No cases) 34

Figure 20: Estimated costs first solution and second solution (Unit:VND) 41

Figure 21: Estimated costs first solution (Unit: VND) 44

Figure 22: KPI Revised update (Unit: Weight) 44

List of Diagrams Diagram 1: Aeon group global expansion 8

Diagram 2: Aeon Vietnam organizational structure 9

Diagram 3: Aeon Vietnam philosophy 10

Diagram 4: Aeon Celadon organizational structure 12

Diagram 5: Initial cause effect map of Symptom 26

Diagram 6: Final cause effect map of Aeon Celadon 36

Executive summary:

Customers experience is one of the most significant factors in retail industry and it will enhance customers’ engagement that can be interpreted as customers’ interaction in terms of perception, emotion and behavior toward a store Thus, the high customer engagement is able to improve customer satisfaction, strengthen customer loyalty and encourage oral behavior, which helps to keep a sustainable competitive advantage and allow them to charge higher prices and higher profit margins than competitors

However, at Aeon Celadon Shopping Center face is Customers decreasing 98.8% compare with last year (2018 Vs 2017) Using different literature reviews and concluding in-depth interviews, survey among customers and employees at Aeon Celadon Shopping Center, this research aims to define what the main problem

is, why it is the main problem, how important it is and how it affect to the business performance at Aeon Celadon Thus, the findings show that has some potential problems are listed as: Far from home of customers and inconvenient location; Unreasonable prices; Worse assortment of products; Cashier check out slowly and staff’s bad attitude of services And main problems are Worse assortment of products, Worse of customer services Main causes are Few famous brands and bad attitudes of services employees And solutions for these issues are hire Merchandiser expert from outside to make new strategies for Electrical and Multimedia department and Training for service employees

In conclusion, the thesis points out the central problem at Aeon Celadon Shopping Center, what main causes of the problem and how to make outstanding decision of the solutions to solve the problems, to increase customer engagement as well as business performance at Aeon Celadon Shopping Center

Chapter 1: Company overview

1.1 AEON group:

Aeon group is one of the biggest retailers in the world with over 250 years of establishment and development It’s headquarters is located in Chiba, Japan During the long-term history of operations, Aeon group always keep the solid commitment

to customers that is “Customer First” Towards a prosperous, stable and happy society is the basic principle in the operation of Aeon group Its high accountability

to customers has helped Aeon group have important achievements in gaining customers’ trust and expanding business scale as well in both Japan and other Asian

countries

Below is the milestone of Aeon group

• 1758: first established the Shinoharaya shop at Yokkaichi

• 1887: moved Shinoharaya store to Yokkaichitsuji city and changed its name to Okadaya

• 1926: rebuilt Okadaya into a joint stock company

• 1959: Okadaya kimono fabric store changed its name to Okadaya with

a capital of up to 15 million USD

• 1969: merged three companies including Okadaya, Futagi and Shiro

to establish Jusco company

• 1984: Jusco expanded its business in Malaysia and Thailand

• 1989: Jusco changes its name to Aeon Group And net sales revenue of Aeon group in 2018 archived 68.977 billion U.S dollars

Figure 1: Finacial review of Aeon group 2018 (Unit: Thousand USD)

In recent years, the average age of Japanese population has been increasing and the market tends to be saturated, so one of Aeon's new strategies is to invest

in other developing countries, especially those the country has a high economic growth rate in the ASEAN region Vietnam is the first Southeast Asian country selected by Aeon to invest in development after 30 years of development in Malaysia and Thailand, and Aeon group strategies is making Aeon Vietnam by next second Aeon Japan

Diagram 1: Aeon group global expansion

1.2 AEON Vietnam:

Aeon Hochiminh Representative Office was established in 2009 Since 2011, Aeon Vietnam has operated as trade centers, department stores and supermarkets which are the main business activities of Aeon group Besides, Aeon Vietnam implements other business activities relevant import and export, commerce and market research There are four shopping centers in Vietnam,

three in the South and one in the North They are Aeon Tan Phu Celadon, Aeon Binh Tan in Hochiminh City, Aeon Canary in Binh Duong and Aeon Long Bien

in Hanoi

Diagram 2: Aeon Vietnam organizational structure

AEON Vietnam Vision statement:

Aeon Vietnam wants to become a firm that will reach the soul of five billion people over Asia

AEON Vietnam Mission and Philosophy statement:

AEON Vietnam mission and philosophy is encapsulated in three words, they are “peace”, “humanity” and “community”, following the commitment of Aeon group “Customer First” These values are always maintained at anywhere Aeon do its business, which positions Aeon as a human-to-human enterprise, a member contributing to the development of local communities

Diagram 3: Aeon Vietnam philosophy

AEON Vietnam focus on shopping center and supermarket chain The

chain of shopping centers and supermarkets in AEON is currently being successfully operated in Japan and many other countries in Asia The AEON department store and shopping mall provides customers with comprehensive day-to-day support for a wide range of industries, from clothing to food items and household items These items are carefully selected and inspected, perfectly meeting the taste and tastes of the local people, as well as providing the

necessary services

In Vietnam, when visiting the AEON Shopping Center and Supermarket, customers can easily find their own variety of products and meet of food safety hygiene standards and there are more choices for food with hundreds of dishes suitable for Vietnamese people

And sales revenue and operating profit of Aeon Vietnam was growing significantly until 2018 sales revenue was achieved 5,517 billion VND and operating income achieved 356 billion VND

Figure 2: Aeon Vietnam annual report 2018 (Unit: Billion VND)

Figure 3: Aeon Vietnam annual report 2018 (Unit: Billion VND)

1.3 Aeon Celadon Shopping Center:

Aeon Celadon Tan Phu was opened in January 2014 The outstanding design has a modern and luxurious style Inside the center are main stalls including supermarkets and Aeon department stores Aeon Celadon shopping center spreads over 3 floors with a large scale and creates an attractive shopping paradise enchanting all customers Aeon Celadon offers its customers an

“Integrated Shopping Point”, a place where they can enjoy shopping experiences with relaxed moments together with their loved people with a series of recreational activities and rich cuisine

Sales revenue and gross profit of Aeon Celadon in year 2018 sales revenue was achieved 1,453 billion VND and gross profit was achieved 326 billion VND

Diagram 4: Aeon Celadon organizational structure

Chapter 2: Symptom: Customers decreasing 98.8% compare with last year

(2018 Vs 2017)

Vietnam retail market: Vietnam has become more and more attractive

for international investors in retail industry right after this country joined WTO Foreign investors' participation in Vietnam's retail market not only has created more choices for consumers but also created fierce competition for domestic companies The favorable macroeconomic situation such as stable economic growth and abundant population with 93 million people has created the ideal conditions for the development of the retail industry in Vietnam Young population, increasing annual income, increasing rate of rural urbanization, government support for foreign investment such as reducing trade barriers, reducing taxes, etc has pushed Vietnam to be the destination for international investors

According to Peter Christou (1) today, all foreign investments in Vietnam's retail network are proved by more positive signs of growth Vietnam's GDP has continuously increased by 6.5% in average since the year of 2016 It is estimated that people who live in urban areas will increase from 33.1% in 2014 to around 50% by 2040 More and more in the future, rural shoppers will be more easily accessible to Modern Trade retail At present, nearly one-third of rural households shop at least once in a Modern Trade store and they tend to spend about 2-3 times the amount they usually spend spending when shopping in traditional shop And exciting battle that will take place in the coming years is the battle between domestic and foreign companies in the retail sector

Figure 4: Aeon Vietnam annual report 2018 (Unit: G.rate and Volume sales)

Acoording to Mr Yasuo Nishitohge General Director of AEON Viet

Nam “As you know, in 2018, AEON Vietnam has been in operation for 5 years

Until now, we have been developing year by year and always catching new challenges during the past 5 years As a result, we have achieved great success thanks to your efforts Besides, we have learned from mistakes I think the most important point of the retail industry is to gain experience as an opportunity to learn and improve Nothing is better than lessons learned from business I want

to remind with you that the biggest risk is when we never take risks That is, all businesses must evolve into new markets because the times will change, customers' shopping needs also change and the competition situation changes rapidly each year The key point is that we have been expanding the size of the Company in the last 5 years On this momentum, we are also facing new problems with customers decreasing 98.8% at AEON Celadon so we have to make new plans, new rules, new systems, etc to developing business and always need to focus look to the future and consider the issues more carefully because this has an important role to predict future business strategies On the other

hand, we need to capture and take advantage of great opportunities in the future.”

Competitors of Aeon Celadon: Local chain such as Vinmart and

Co.opmart are one of the biggest competitors of Aeon Vientam They have long history of development and good locations in the country, which has given them

an outstanding advantage and often rated by consumers as providing high quality and services Besides that, there are also foreign retails such as BigC, Lotte Mart, and Emart on the market that are increasingly being challenged of Aeon Celadon And there was a wave of M & A among international giants and local businesses, mixing global thinking with local executions, such as the central group with Big C take over Nguyen Kim and Zalora, Alibaba take over Lazada Vietnam are significantly affect to Aeon Celadon

Figure 5: Aeon Vietnam annual report 2018 (Unit: No Of competitors - Stores)

According to the annual report in 2018, the customers decreasing 98.8%

is one of the main symptoms towards Aeon Celadon since it reaches the massive and significant of number customers purchase this indicator compared to the previous year meanwhile sales increased 108.5% and gross profit increased 108.9% compared with last year

Figure 6: Aeon Vietnam annual report 2018 (Unit: No of customers)

Figure 7: Aeon Vietnam annual report 2018 (Unit: VND)

This symptom is analysis as following:

Aeon Celadon may do not follow consumer expectations: Reducing

customers’ purchase orders is a problem for the company which strongly invests

in enhancing their services Customers are not interested in the service they are getting better than from the bester retailers with the class standard a previous year Meanwhile competitors also focus on their products and services with high standard for customers According to a survey report, it shows that customers are likely to shop in nearby their home rather than big shopping mall

Aeon Celadon do not have loyalty program: Many retailers have seen

loyalty cards as a tool to keep their loyal customers However, a loyalty card somehow reduces the profit margin of existing customers, makes the company lose money rather than maintaining the loyalty According to customer in-dept

interview; Ms Ngoc Thuy: “I always purchase in Nguyen Kim, because my

have good relationship with their very long time and every purchase I choose at Nguyen Kim store and more over I have the silver member card, so they give

special promotion for me” And Ms Ngoc Tuyen: “I always purchase in Dien

May Xanh and The Gioi Di Dong, because there are a lot of products to choose and their very good services like testing, installation software, hardware, delivery … I'm very satisfaction about that”

When there are so many different departments in a company, the communication among departments is certainly not as good as a simpler structure Misunderstanding, lack of information communicated, inconsistency

in working between sales and non-sales department may cause the less engagement or even the dissatisfaction from customers

As are analyzing above obviously customers decreasing 98.8% compare with previous year is a symptom at Aeon Celadon store

Chapter 3: Problems identification

3.1 Potential problems:

According to survey reports and in-depth interviews with members of Aeon Celadon and customers, there are some potential problems listed as follows:

3.1.1 Far from home of customers and inconvenient location

One of the most important factors that impacts consumer visits and additional purchases is the location Choosing the right location can deliver the good business performance but choosing the wrong one can frustrate your business The location important level is different depending on the type of items that retailers offer Some goods require particular areas and some other goods request the easy way that consumers can access

According to survey report 23.97% customer said that Aeon Celadon is far from their home The location of a retail store is an important aspect in the customer's perspective because location is an important factor in choosing a store and whenever open retail stores than there are assumed various elements show their retail store features such as: knowing about potential customers in that area, population, income, traffic statistical area

Figure 7: Customer survey report of Dec,2018 (Unit: Ratio%)

3.1.2 Unreasonable prices:

In retail industries prices have long been organized and will continue to be a core capability for retailers Operators and traders recognize it as one of the key value leverages, and as a result, retailers have been working to improve their pricing, tactics and tools for decades in the past to hope of optimizing their method Retailers are finding that traditional methods do not keep up, Indeed, the new digital era comes from big data, mobile commerce and the boom of omnichannel retail has changed the environment in a meaningful way and requires overhaul of strategies and capabilities

According to survey report 19.63% customers said that price at Aeon Celadon higher than compare with competitors especially Electrical and Multimedia department Retail store must use the multi-selling prices especially of the electrical goods, by using a combination of goods to provide unique benefits to customers through lower price strategy in retail store to attract and satisfaction to the customers The other way to be success of store retail is stores chain (number of stores) for strong power to deal with key suppliers with huge quantity and low-cost price to supply all store chain So, Aeon Vietnam still just have 4 stores that mean not strong power to deal with suppliers with huge quantity for good price as well as Aeon Celadon store

3.1.3 Worse assortment of products:

According to survey report 15.30% customers said that assortment at Aeon Celadon worse compare with competitor especially in Electrical and Multimedia department

The survey shows that it is clearly relevant to address the relationship between the actual types in Electrical and Multimedia category and the types perceived of customers obviously Aeon Celadon is worse compare with the competitor especially The Gioi Di Dong and Dien May Xanh It also raises the question of stocks viability and effective classification range that meets to the customer’s needs, goals and constraints of both consumers and retailers This is also focusing on how visual categorization in store as well as understanding perceptions

of customers classification at Aeon Celadon

Figure 8: Customer survey report of Dec,2018 Ele (Unit: No of customers)

Figure 9: Customer survey report of Dec,2018 Mul (Unit: No of customers)

According to Ms Miyata head of MD: She will focus on famous brand has manufacturing in Vietnam at Electrical and Multimedia department Mr Trieu Hardline Manager: He will make enough ordering to full fill products in his area manage selling floor especially Electrical and multimedia department to meet with Merchandising Department strategies to attract more customers

Product assortment in store is defined as the way of how the product is arranged within a store This is very important to facilitate sales revenue of store The more importance in products placement in a store will achieve tremendous results in sales revenue growth, consumers are attracted to buy more than what they

need when they are offered a good product, especially when they found that a retail store offers better types of favorite brand Product placement and display also an importance role in affecting customers when choosing retail stores To achieve efficient commodity classification, the retailer can re-arrange their product screens

to fit customers need as well as their requirements, often prefer stores with larger types of products and one stops shopping

3.1.4 Cashier check out slowly and staff’s bad attitude of services:

According to survey report that checkout counter 18.95% and staff’s bad attitude 10.96% customers don’t satisfaction at checkout counter and lack up of staff’s skills and systems problems especially for weekend and holiday

According to Ms Ngoc Tuyen said that: She is waiting for more than 20 minutes to get past the cash register at Aeon Tan Phu (Tan Phu district), Ms Ngoc

Tuyen house in District 6 - Ho Chi Minh City breathed a sigh of relief “Guests are

too crowded, I am afraid to squeeze so I only buy a few exotic fruits and vegetables and come back Go to the checkout counter and have trouble because the system is faulty, not receiving payment by card”

According to Ms Ngoc Thuy, She often went to Aeon and was mistaken for the money at cashier counter every time, Ms Thuy always had to check again and was wrong, when she sent the wrong message, the cashier returned her money without checking again and took the bill or products, Ms Thuy is very anxious about calculating the wrong and getting the money back, she ask where Aeon's reputation is, and always make the wrong money, so she have to take precautions and simply refund the money and this is make she dissatisfied

Today, the competition getting fiercer and the customers’ expectation becoming higher are the major challenges for companies operating in retail industry Therefore, business strategies should be consecutively changed to adapt with the market change and to maintain the competitive advantages

There are two key elements that affect the service quality: personal interaction and store reliability The others are store policies and the ways of solving problems of retail store

3.2 Validating problems:

Location: According to Salahuddin (2) and Valayudhan (3), location is very

essential element for every retail store Location often mentions about how accessible and convenient for consumers to go shopping in retail store Before shopping, consumers always trend to choose a retail store that is located near a commute or simply near a public transport station

Prices: Prices are likely to be the main consideration for regular customers

According to Chang, Shu-Hao; Wang, Kai-Yu (4) the perceived price refers to the price of a product or service that customers are willing to pay for it based on the consideration about the value they will get They trends to pay more for a specific reputation brand; even when the prices rise, they are still willing to pay fees to avoid related risks of change According to Gil-Saura et al (5), the retailer's overall rating is recognized by the justice and the product values A retail store with better prices than others will make customers more satisfied

Assortment: The assortment strategy is defined as the number and type of

products that are displayed in store in order to attract customers’ purchase intension

According to Dori Saltzman (6) Assortment planning is the way and means the choses products to meet with the customers demand, often at the store level Both types of plans identify product categories, including a variety of styles, colors and sizes, tailored to customer preferences and seasonal needs, and provide step by step procedures for customized products on shelves suitable in stores and the right quantities

Successful assortment planning can enable retailers to meet their financial goals and foster customer loyalty by creating a satisfying shopping experience Good assortment brings higher sales, reduced brands, less inventory and most importantly is the customers satisfaction

Services: According to Verma, Harsh V; Duggal, Ekta (7) in retail service

quality sector, retail sector mentions about tangible and intangible ones Waiting for payment and handling customer complaints are shortcomings in retail service

The successful of business in understanding and responding promptly to customer needs, whether they are small or large According to Arnold et al (8),

The positive relationship between store and individual interaction with customers is the main factor that significantly affects customer satisfaction Besides, comfortable location, good service and long working time are considered as important advantages for consumers, while unavailable items due to lack of stock and poor customer service are considered big disadvantages

In order to confirm the main problem of customers decresing at Aeon Celadon and additional information collected from the interviews is summarized as following:

3.2.1 Manager’s perspectives:

According to Ms Miyata head of Merchandising Department of Hardline:

“My strategies is focus on imported products to make store difference with the

competitor, but unfortunately after two years I’m finds was is wrongs because almost of famous brand have a manufacturing in Vietnam so assortments and price very competitive compare with imported products”

The reason for failure of assortment management in Hardline at Aeon Celadon is that still not an Aeon’s view Assortment management is a step in the business cycle and used for defining of company strategies and tactics But for this case Head of Merchandising Department at Aeon do not have unified logic for defining strategies and tactics The most effective ways of the assortment management in retail business is to make strategies and tactics Successful assortment planning can allow retailers to meet their financial goals and foster customer loyalty by creating a satisfying shopping experience Good categories bring higher sales, reduced brands, less inventory and most importantly satisfied customers

In addition, Mr Trieu - Hardline Manager at Celadon store said that “almost

of products in hand manage are aging stocks and model is not updated, even store have strong promotion but can not sold out, so that very difficult for me to make Visual Merchandis Display to attrack customers”

The retailers plan their categories according to the sales potential of an item, more importantly, they manage these types to reduce prices and change customers’ needs for products Basically, sales planning is a bottom-up planning method that

combines historical consumer behavior with planned financial goals to develop an optimal mix of goods needed to achieve assortment strategy This planning method

is called user demand planning, consumer-oriented planning, or their combination

3.2.2 Customer’s perspectives:

According to Ms Ngoc Tuyen said that: She is waiting for more than 20 minutes to get past the cash register at Aeon Tan Phu (Tan Phu district), Ms Ngoc

Tuyen, a house in District 6 - Ho Chi Minh City breathed a sigh of relief “Guests

are too crowded, I am afraid to squeeze so I only buy a few exotic fruits and vegetables and come back Go to the checkout counter and have trouble because the system is faulty, not receiving payment by card”

According to Ms Ngoc Thuy said that: “I’m often went to Aeon and was

mistaken for the money at cashier counter every time, Ms I’m always had to check again and was wrong, when I’m sent the wrong message, the cashier returned money without checking again and took the bill or products” She is very anxious

about calculating the wrong and getting the money back, she asks where Aeon's reputation is, and always make the wrong money, so she must take precautions and simply refund the money, and this is made she dissatisfied

Ms Nguyen Thuy Hang customer: “she usually shopping in Aeon Celadon

in general Aeon Celadon quite good and however some need to improve, one-time she has a payment at the counter, the cashier staff has an inappropriate attitude when among the items she pays, there is one product without code should not be able to display the payment amount It is thought that the staff should guide she enthusiastically and warmly, explain to she rather than expressing an uncomfortable attitude and saying, “this product is not paid out” She finds such service unacceptable Attitude should be reviewed and revised”

Finally, according to survey report and in-depth interviews and all variables, worse assortment of products and worse of customer services are can be considered

as central problem influencing operation make customers decreasing at Aeon Celadon Shopping center

3.3 The importance of main problem

According to Gauri et al (9), one stop shopping basically encourages shoppers to visit the whole store then increases more opportunities to purchase as many products or services as possible during their visit time In general, stores with

a wide ranges of product categories trends to deliver the better business performance than a limited range of product In recently years, retailers are incorporating a diversity of goods to maintain and tempt more customers as well as strengthen their brand image and reputation According to Yu, Wantao; Ramanathan, Ramakrishnan (10), floor space an indispensable component of store layout It plays an important part in impacting consumer-buying intentions and providing a good image of retailers and assortment, which create a positive relationship between store and consumers

At analyzing above products assortment in Electrical and Multimedia is worse this is affected to the customers when decide to purchase products this is a main problem at Aeon Celadon

According to Nagar, Dhanashree (11), what and how customers get combination with technical quality and functionality are two factors that decide the retail service quality The result of interaction between retailers and consumers describes the perception of retailers in minds of customers Technical quality requires product selection under the consideration of a wide ranges of long products The functional quality is more complex, refers the store service in terms of acquiring the product, service attendant behavior, atmosphere, classification, etc Reliability, responsiveness, assurance, empathy and tangible things, integrate the distinctness of service as expected by customers According to Wing-Tai (12) store can gain a competitive advantage if a retail store integrates products and services add-up together

At the analyzing above worse of customers services is a main problem at Aeon Celadon

Chapter 4: Cause validation

Few famous Brands

Poor color/

sizes/volume

Worse assortment

of products

Too crowded

at weekend and holiday

Worse of customer services

Customers decreasing 98.8% Vs last year

Bad attitude

of services

product knowledge

S

Symptom

4.1.1 Unreasonable prices:

Pricing is defined as the level of customer reviews of retail store prices and prices comparable retail stores are reasonable, acceptable, or can be proved According to Chang, Shu-Hao; Wang, Kai-Yu (4) the similarity between the comparators will influence the perception of price equity Therefore, price is images are influenced by individual feelings, experiences or opinions and tend to be compared among retail stores Authors also point out that customers trend to have price comparison and then reference with review scores in their memory

According to survey report the prices at Celadon store very competitive with competitors, in food line more than 44% customers choose Aeon Celadon to purchase and soft line is more than 40% but in hard line only less than 20% especially Electrical and Multimedia department

Figure 10: Customer survey report Cust Purchases in food line (Unit: Ratio%)

Figure 11: Customer survey report Cust Purchases in soft line (Unit: Ratio%)

Figure 12: Customer survey report Cust Purchases in hard line (Unit: Ratio%)

4.1.2 Few famous brands:

For retail store the number of stores chain and famous brand it is very important

to provide diversity of choose Therefore, retail store is highly focused on assortment and products brands to keep in their stores to attract more and more customers

Salahuddin (2) stated that one stop shopping refers the conception that customers have the opportunities to purchase many goods or services from a retail store when they visit

According to Ms Miyata head of Merchandising Department of Hardline: She strategies that focus on imported products to make store difference with the competitor, but unfortunately after two years she finds was is wrongs because almost of famous brand have a manufacturing in Vietnam so assortments and price very competitive compare with imported products Meanwhile The Gioi Di Dong and Dien May Xanh strategies is mainly focus on keys suppliers with key products famous brand name like Panasonic, Hitachi, Toshiba, Sony, Samsung, Electrolux and Daikin… There for the products at their store’s high quality, high quantity with new models updated and variable sizes for easy to customer choose and trust

According to Ms Ngoc Tuyen customer: She always purchase at Dien May Xanh and The Gioi Di Dong, because there are a lot of products to choose and their very good services like testing, installation software, hardware and delivery … she very satisfaction about that

Beside of that their sales service and after sales service is mean sales - services, and delivery combination that offers to target customers Products and services add-ons as well as warranty even the package of sales and services, this is keys success in their stores (Figure 9 to figure 13)

4.1.3 Poor color, sizes and volume displays:

According to PR Newswire Association LLC (13) items volume displayed, size and color in retail store cloud storage service is designed to meet the unique needs of the stores retailer, it is ability to display items or serve them by enabling the identification of faces, item volume display, colors, size levels, and the right