The study was undertaken to address decreasing margins in horticultural retail stores and increasing competition with non-horticultural stores, especially food chains. The objectives of the project are to improve economic efficiency, to maintain satisfied and to attract new customers. Attention is given to the analysis of interaction between salesclerks and customer, Factors influencing time and success of this interaction have been identified using time studies and multiple moment observations. Theywere incorporated in an interaction model. A cost-benefit-approach has been developed to support horticultural retail stores in reducing costs, securing profit and satisfying shoppers. Investigation of the additional cost of giving advice and information to the customer by the salesperson is emphasized. Marginal costs of customer service have been analyzed. A dynamic model calculates product quantities required to be sold to compensate for higher advisory costs caused by the introduction of new/ unknown products. Results for horticultural retail stores and garden centers selling cut flowers and potted plants indicate that customer service can be designed more efficiently especially by training and education of salesclerks. New or unknown products need to be sold for higher prices in order to compensate a higher demand for explanation. Low price products should only be introduced into a store if non-personal means of information or advice (like posters etc.) are available.
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