Impact of Technology on Retail

This assignment examines the influence of various technologies on the retail sector. It delves into NFC-enabled mobile credit card acceptance, beacon usage in retail, RFID applications in supply chain management, and the impact of these technologies on customer relationship management (CRM) and consumer behavior. The analysis draws upon academic research papers and industry reports to understand the evolving landscape of retail driven by technological advancements.

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Student's Name:
Instructor's Name:
Date:

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Question 1
Report Outlining the Business Operation
Technology has revolutionized the way we live! It has a major impact on how we shop.
Few years ago, technology was used in point-of-sale terminals through smartphone
devices and cards. These technological changes are accepted by customers across the
globe (Tschirley, 2007). However, the demand for something better and efficient is
significantly high! Though technology has creeped into supermarkets, it is quite difficult
to control crowds. Supermarkets are looking for better strategies that can help them
manage crowds. This is where technologies like “PayWave” come into the picture. This
is a sophisticated technology that helps supermarkets get rid of cash and work quickly.
Definition of PayWave Technology
By definition, PayWave technology is a quick and an effective replacement for cash
(Financial Ombudsman Service, n.d.). Supermarkets can eliminate cash from their
billing cycle. In fact, customers don’t have to carry cash around. They can choose and
buy products based on their PayWave balance. This technology depends on modern
shopping gears (Leong et al., 2013). For example, special RFID readers must be
installed in the customer trolleys. These readers should be able to detect products, its
prices and quantity. The RFID reader must work in real-time. That means, it should be
able to detect all items that are kept and removed from the trolley.
Benefits in Using the PayWave Technology

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There are so many benefits in using the PayWave Technology.Supermarkets like Oz
can speed-up the entire process (Financial Ombudsman Service, n.d.). This is a smart
way of getting rid of queues especially at the checkpoints. That is because everything in
the customer trolleys would be evaluated automatically. The customer doesn’t have to
wait in long billing queues. As they reach the entrance or exit of the supermarket, their
items would be billed. All that the customer should do is, walk out of the store. This
means the entire billing cycle has been eradicated. Customers with kids and elders will
definitely benefit from this change. They are no longer expected to wait in long queues!
They will not be tired and they can focus on better things (Leong et al., 2013).
PayWave Technology gives customers better financial security. They will be able to
shop within their financial limits. As mentioned previously, the items are evaluated on
the go. As a customer chooses and loads their trolleys with goods, the final amount
would be calculated. If a customer is running out of cash, they will receive an alarm.
This alarm will help them transfer cash or remove items from the trolley. If you don’t
have a PayWave account, you don’t have to worry about anything! Oz Supermarket has
a front desk to help you with temporary cash deposits. With temporary cash deposits,
you will receive a PayWave Card. Just like the standard PayWave Card, the temporary
one can calculate the value of your purchase. If you have paid an extra amount at the
front desk, it will be returned to you or recorded. All details of PayWave customers and
their balances are stored in the cloud. This means, you can reuse your card anywhere
that supports the PayWave technology. In case your temporary card runs out of cash,
you will receive an alarm while shopping. This is where you feed more cash into the
card.

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A lot of technologists believe that PayWave Technology is an expensive investment for
any supermarket. Well, Oz Supermarket should invest a considerable amount of money
on RFID chips and PayWave cards (Lin et al., 2006). According to supermarket owners,
these costs are negligible in front of busy customers. With quick checkout services,
customers are more likely to visit their store. This would increase their turnaround and
annual return on investment. Above all, RFID chips can be treated as one time
investments. With more profits, Oz Supermarket is only likely to expand and make more
money. That is why, PayWave Technology cannot be an overhead for the supermarket.
On the other hand, customers will have more control over their shopping routines.
People with quick shopping skills don’t have to be stuck behind the slow ones. Quick
shoppers can finish their tasks and reach home/office quickly. And, people with tight
budgets don’t have to wait till the final bill is generated. This technology saves
customers from making decisions in front of huge crowds. A study in local UK
supermarkets revealed that customers feel annoyed and frustrated with customers at
the top of queue return products or make decisions! With PayWave Technology, you will
not be subject to such instances.
A lot of customers benefit from the summary generated by PayWave. The summary
gives a comprehensive insight of all products in the customer’s trolley (Leong et al.,
2013). This is a detailed summary that describes the product, quantity and price. With
this summary, customers can decide if a product is purchased incorrectly, is of the right
quality and if it surpasses their budget. Also, customers can print this summary and take
it home! The summary stations are located strategically. They are present throughout

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the store. That means, customers don’t have to search or wait at a specific point for
summaries. This is another way of reducing or getting rid of crowd.
Another place where customers spend lots of time in a supermarket would be the
parking lot! On an average, customers spend between 5 to 15 minutes in the store’s car
parking spaces. In order to cut down the amount of time a customer spends at the
parking space, Oz supermarket should charge a fee. The fee can be customized to suit
different times of the day. During non-peak periods, Oz supermarket should opt for
lower parking rates. And, during peak hours, the car parking rate should be timed on a
minute basis. Meanwhile, disabled people should receive free parking. This is a way of
preventing disabled people from spending too many minutes in the store’s car parks.
Drawbacks of Making Technological Changes
On the whole, PayWave Technology and few other store improvement plans will make
Oz Supermarket quick and customer friendly. These are services that can attract more
customers to the supermarket. However, customers should be educated of the changes
and assisted in every possible way. Apart from this time consuming task, there are no
drawbacks in adopting to the above mentioned technological changes.
Question 2
Improving Customer Service at Supermarkets
Supermarkets like the Oz depend on customer support. Research claims that
supermarket shopping is a type of self-service environment. For retailers like the Oz
supermarket to be successful, they must build a strong relationship with all their

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potential and existing clients. They must track their customer levels of satisfaction. This
is an important parameter that can help in minimizing dissatisfaction and complaints. It
would help the supermarket come up with an effective service recovery strategy too. In
this section, three different technologies are suggested to improve customer service.
Solution #1 – Cisco Voice over IP
In this modern era, supermarket chains like the Oz have relied on networking
technologies to enhance customer relationship and build business throughout its stores.
Oz supermarket can make use of Cisco’s voice over IP technology (Wallace, 2006).
This is an innovation that can result in the following improvements. Sales associates at
Oz supermarket will be able to engage in more face to face discussions with customers.
If a customer requires information about products or services, the queries can be
managed in real-time. Voice of IP technologies can save the money lost on analog
based key systems. This networking solution can connect all stores and ensure a
considerable amount of reliability and consistency. Customers will have a similar
experience in all the stores. Meanwhile, the company can gather more information on
customer queries and call center operations. This check would help the employees offer
better phone prompts and greeting services to customers. Cisco Voice over IP
technologies have a direct impact on employee productivity. Employees will have more
time to focus on customer experiences. Sooner, customers at Oz supermarket will have
the finest services around.
Solution #2 – Self Feedback Systems

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Self-checkout solutions are on the rise. However, there are very few solutions to obtain
customer feedbacks. Most customers wish to give feedback on their supermarket
experiences. With the introduction of PayWave Technologies, supermarkets need real
time feedbacks. This is where self-feedback solutions come into the picture. This is an
effective way of sharing customer opinions. Customers who value comfort and privacy
are bound to use these self-feedback systems. The self-feedback system would be
placed at the exit and entrance of the Oz supermarket. As the customer enters or
leaves the store, they can place feedbacks. These channels are different from the
conventional checkout units. That means, normal customers who don’t want to give
feedbacks can walk away from the other channels. Using the self-feedback system,
customers can give reviews on goods. They can talk about the assistance offered by
employees at the supermarket. Meanwhile, the feedback system can be used to discuss
about their concerns or positives about PayWave technology. From the supermarket’s
point of view, the self-feedback system would be a direct interaction with customers and
their thoughts (Lin et al., 2006). Supermarkets will be able to gather feedback from
numerous customers. They don’t have to invest time or money on
questionnaires/surveys. Indeed, the self-feedback system is a smart way of gathering
information from customers. However, customers should be advised to use the system.
Using the self-feedback system is not an issue because there are guided instructions,
voice prompts and screen animations to help them through. On special days, a
customer satisfaction survey can be designed on the feedback systems. These
feedbacks give a firm benchmark.
Solution #3 – Software Upgrades

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All customers look for customized experiences. They become bored and annoyed in
homogenous environments. That is why the Oz supermarket should give customers a
customized experience. The supermarket can invest on trolleys that greet customers
and help them with suggestions. Customers should be allowed to keep track of a
checklist. This checklist must help them buy everything and not forget anything. A
common problem faced by many customers would be missing things. With the help of
customizable trolleys and customer checklist facilities, this problem can be resolved.
Likewise, Oz Supermarket can use the Beacon Technology to keep customers engaged
(Silverman, 2014). With Beacon Technology, customers will be able to browse the
aisles. This technology helps customers see all items in a particular row. For example,
customers can check on the availability of certain products in each row. This is an
interesting technology that saves lots of time for customers.
Oz Supermarket should invest on a customer relationship management software. This
software has to be installed in the supermarket (McFarlane, et al., 2003). There are
several different types of CRM solutions in the market. This includes expensive
enterprise-level solutions like InfusionSoft and affordable ones like “Contactually”.
Based on the store’s current budget, the right kind of solution should be bought. With
CRM solutions, customer experiences can be managed. These solutions don’t stop with
customer data. Here is a simple example of how Oz Supermarket can use a CRM
solution:
If an elderly shopper has not visited the store recently, the CRM would generate
an alert. The alert would help the supermarket chain reach out to their regular customer.
The customer can come up with various responses. If the elderly customer is not feeling

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well, you can surprise them with a gift. If the elderly customer is shopping somewhere
else, you can give him/her a coupon that is valid for a week. The gift/coupon will
improve the bond between your supermarket and the customer. Sooner, the customer is
likely to return to your store.
CRM solutions are very useful in understanding customer responses and patterns. It is
a smart way of monitoring the supermarket.
The above mentioned solutions can improve customer experiences and the
supermarket’s services. These changes will generate positive results in the long run.
The initial cost to implement these changes will be high. However, the supermarket will
be able to experience a better return on investment too. When implemented correctly,
more customers will be attracted towards the store. This way, the store’s overall
customer base can be improved. And, news about the supermarket would spread by
word of mouth. This is one of the best ways to advertise the supermarket.

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References
Tschirley, D. (2007). Supermarkets and Beyond: Literature Review on Farmer to
Market Linkages in Sub-Saharan Africa and Asia. Retrieved from
http://www.cargillsceylon.com/AboutUs/Docs/FarmerToMarket-Gates-FINAL4.pdf
[Accessed on 22nd Aug 2017]
Financial Ombudsman Service (n.d.). Fact Sheet PayPass and payWave cards.
Retrieved from
https://www.fos.org.au/custom/files/docs/
fact_sheet_paypass_and_paywave_cards.pdf [Accessed on 22nd Aug 2017]
Leong, L., Hew, T., Tan, G. W., & Ooi, K. (2013). Predicting the determinants of the
NFC-enabled mobile credit card acceptance: A neural networks approach.
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Silverman, A. (2014). The Emergence of Beacons in Retail. Retrieved from
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McFarlane, D., Sarma, S., Chirn, J., Wong, C.Y., & Ashton, K. (2003). Auto ID
systems and intelligent manufacturing control. Engineering Applications of
Artificial Intelligence, 16(4), 365-376

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Lin, H.T., Lo, W.S., & Chiang, C.L. (2006). Using RFID in supply chain management for
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