SECTION II

Singapore's Traditional Provision Shops Traditional provision shops occupy a special place in the hearts of Singaporeans who grew up in the 1960s to the mid 1980s. Provision shops were one of the simplest business ventures for aspiring entrepreneurs with low start-up capital as well as little education and experience. Such shops were packed to the brim with a bit of everything - from shampoo to soap, crackers to bottled drinks, from sundry items to canned food, from newspapers to even toys. One would marvel at the ability of the shop keeper who knew the price of each item by heart, and their exact shelf spot as he sits behind the counter fiddling with the abacus or tugging the pulley tin can where the daily takings were kept.

With limited disposable incomes and the relatively high cost of public transportation in the past, Singaporeans generally avoided the inconvenience and the cost to travel further to procure their daily provisions. In those days when electricity was not readily available, these shops often functioned as "hubs" of community living as they would often be one of the few houses in the village that had an official address, a telephone and electricity. In fact, many villagers would direct and collect their mail from the provision shop or stand-by the shop's telephone to wait for a call. Some would gather around the shop to listen to the transistor radio or simply congregate to chit-chat with their neighbours.

Almost all traditional provision shops offered customised services to residents in their immediate neighbourhoods as they operated on a business model based on relationship and mutual trust. Customers could buy cigarettes by the stick and arrangements could be made for purchases such as heavy sacks or LPG gas cylinders to be delivered to one's doorstep. In addition, provision shops also operated a credit-based transactional system where customers were able to purchase goods on interest-free credit, all hand-scribbled in a pocket-sized notebook. Once a month, typically when they receive their salary, customers would duly turn up in person to settle the payments. Many provision shop owners even operated as "bookies" for illegal betting syndicates. With so much interest-free credit extended indefinitely, collecting illegal bets does provide a way of balancing the books.

Today, the number of such provision shops has dwindled significantly as modern supermarkets and mini-marts which offer greater diversity and range of products topped with promotional discounts. They offer a far more conducive shopping experience amidst air-conditioned comfort. As disposable income grew, so did car ownership and improved public transportation. Singaporeans also began to patronize restaurants, fast-food outlets and food courts, not to mention food deliveries. As a result, we buy and stock less uncooked foodstuff.

Adapted from eBook commissioned by the Singapore National Heritage Board (2013): Community Heritage Series 1. Traditional Provision Shops.

Question 1

(a) With the rapid pace of development in Singapore, the traditional provision shops are confronted with the changing profile of their customers and increased competition from modern giant malls. Relate three (3) characteristics of customer needs that retailers, such as traditional provision shops, need to understand and take into serious consideration to remain viable and relevant. (15 marks) *

(b) Community Knowledge is the accumulated information about the preferences of a community of customers, allowing a company to anticipate what a customer in that community will need. Demonstrate three (3) practices that companies in a Learning Relationship, can apply Community Knowledge and use such information to build customer values. This GBA question would require cohesive teamwork as it is also an assessment on the team's grasp of the various appropriate CRM concepts spanning SU1 to SU4. *Challenging Question (30 marks)

Question 2

(a) Select a retailer of your choice then distinguish three (3) reasons why the retailer should work at being Customer-Centric. (20 marks)

(b) Simply improving the quality of a product or service, while advantageous in the short term, will not necessarily yield a competitive benefit over the long term. So, many companies go beyond providing just their core products and services by customising the Expanded Need Set of their customers. With relevant examples, examine four (4) activities of the Expanded Need Set a provision shop business can undertake to stay ahead of its competition. (25 marks)