ITC 563 - Management Issues | OZ Supermarket

Added on - Mar 2020

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Management Issues1
Question 1Nowadays, buying and shopping at big malls is becoming a day to day activity of everymetropolitan citizen. There has been huge rush in every malls and supermarkets during holidaysand weekends. The rush even gets more when there are any special discounts and special offersfor the customers. Oz supermarket, which has installed the PayWave technology and RFIDtechnology in its business operations, is very beneficial for both the customers and thecompany(Almsalam, 2014). The number of customers at the stated organisation has increasedthroughout Australia due to its cheap prices and quality products. Thus, continuous improvementis to be done in the business operations to do the transactions of the customers more speedily andaccurately. Traditional billing system needs to be improved in the current shopping context ofthe customers in order to enhance the quality of the shopping experience of the customers(Bacal,2011). In order to overcome these issues, Oz supermarket have installed and adopted PayWavetechnology at all its outlets and do not accept cash anymore. It is a modern technology regardingwhich a customer has to wave his or her card at the entrance and then allowed entry. Contactlesspayment technology has been successfully launched by many companies and Oz Supermarket isamong them. The technology is still in its expanding condition and has been accepted by manyorganisations of different nations.PayWave technology has been a successful hit in countries like Malaysia, South Korea,US and is currently enhancing its market in Australia. Over 10 million Visa PayWave cards arealready in circulation around the globe(Bruch, 2017). It has been found in various studiesregarding PayWave technology that organisations that launched and implemented the PayWavetechnology made the transactions 25% faster than the transactions made with cash. Involvingmerchants such Oz Supermarket also gets benefit from this speedy transactions and convenienceof the customers as they don’t have to make any signature or enter their pin for their low valuepurchases. The increase in the speed and convenience directly gets linked with the bettercommercial performance.(Gures, Arslan & Yucel Tun, 2014)As for illustration, customerspaying with PayWave card at the Oz supermarket now take only four to six seconds to make atransaction, as compared to the traditional magnetic stripe card which used to take more than 40seconds in average. But there is scepticism amongst many stakeholders of the Oz supermarketmainly the investors and the merchants who need to see the real benefit of this new technology.2
With the execution of the contactless payments or the PayWave payment toconsumers, there have been many benefits and barriers to the technology stake and for thecustomers. According to the survey conducted by Visa Commission regarding the views of thecustomers on contactless payment in 2006, there was mostly favourable response from therespondents. With the PayWave technology, customers now have to spend less time inqueues(Gures, Arslan & Yucel Tun, 2014). The PayWave transactions are significantly fasterthan the traditional method of swiping cards, PIN or cash transactions, thus, holds thepotentiality to reduce the queuing time of the customers. The stated modern technology also hasgreat impact on the convenience of the customers. The contactless payments seem to be moreconvenient way of making low-value transactions(Gures, Arslan & Yucel Tun, 2014). It is veryinteresting that with the execution of PayWave transaction system, consumers instead offumbling for cash at vending machines, they just wave the card and go.One of the perceived benefits of the PayWave cards or the contactless payments is thesimple ability of not carrying the change around. With it, the chance of losing money and risk ofany fraudulent transactions are also diminished. This was seen after the PayWave technology,there has been reduction in the risk of losing money and the inconvenience of not havingadequate cash to pay for any item that consumer wanted to purchase(Jayshree, Gholap & Yadav,2014). According to the survey of Visa, consumers are strongly attracted to the innovative andmodern or trendy aspects of contactless payments. As per many financial products, where thesecurity and reliability is the most important aspects for the customers, it has been noted thatPayWave technology delivers both vendors and the consumers the opportunity of greaterconvenience along with an element of excitement and fun.As per the implementation of PayWave technology, there will be a different businesssituation for Oz supermarket. Though there will be many benefits for the company inimplementing the contactless payment method, the scale of any of the impact of the will behighly situational(M S, 2013). There are many factors that impacts this modern technology suchas the percentage of business conducted during the peak hours, the intensity of the localcompetition and the customer service model executed by the company(Morea, 2010). It isevident that speed in the transaction process at a shopping centre is an important proportion andthus makes the increased speed of the contactless payments a very crucial option.3

In brief, with the automatic billing system, consumers will not have to stand in queues for a long time as billing will automatically be done at the trolleys, and thus customers just have to wave the total amount through their PayWave cards and go.

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