Task 1 Market Overview
Current Market Size and Trends
Antique shops and stores are considered as part of the used merchandise industry. They are involves in buying and selling old, but still valuable items such as furniture, coins, paintings, toys, and others, The majority of antique shops do not sell big items or true antique commodities. At times, the lines can be blurred between collectibles and antique objects. Typically, shops deal in small, used items that maintain value for collectors or ignite cherished memories for the customer. Purchases may be prized as the perfect start of a hobby or as a welcome addition to an already existing collection. Demographically, more people ages 45 and older collect antiques, and more women than men collect some form of valuable memorabilia.
This industry includes stores primarily engaged in the retail sale of used merchandise, antiques, and secondhand goods, such as clothing shoes, furniture, books, and rare manuscripts, musical instruments, office furniture, phonographs, and phonograph records, and store fixtures and equipment. Prices of the more expensive items tend to vary, but parallel the rise and fall of the stock market. Stock prices tend to turn down about six months before the prices for the better antiques, but the prices of the second and third tiers of quality antiques tend to move more immediately in line with stock prices fluctuations. However it should be understood that prices may be subject to a 30 to 50 percent price cut depending on such influence as recession, speculation, availability of merchandise, consumer buying habits, and even social fads or styles.
Industry Trends
Items from the 1940s, 50s, 60s, and 70s are becoming increasingly popular as people from the influential Baby Boom generation begin their journey to maturity, increase their disposable income and become hobbyists.
What is classed as an antique is subject to regular change – the last decade has seen historical items from the rock and pop sector becoming highly collectable, other with other original 1950s and 1960s memorabilia. Perfume bottles and handbags are also becoming increasingly collectable, with designer names such as Gaultier and Chanel in the perfume sector and Prada Hermes and Fendi in the handbag sphere. The popularity of buying and selling antiques and fine art online is forecast to grow dramatically as broadband access continue to improve.
Major Customer Benefits and Need Satisfaction
Many consumers will seek out antiques for their homes as a status symbol. This is particularly true of the fine art sector, as possessing such goods is often regarded as an indication of wealth. Similarly, many investors now view antiques as viable sources of financial investment, believing they are less volatile than traditional investment options such as the stock market. Consequently, antiques have emerged as a way of investing additional cash, with investors regarding even substantial and expensive restorations to items as a sound long-term investment.
Alternative Routes to Market
There are different venues where a consumer can buy antiques, memorabilia, and collectibles. Many antique dealers have their area of specialization and deal in only certain items such as paintings or Art Deco items, while others will deal in all types of antiques. Auction houses too may specialize in certain antique items, items that have higher value, or items from a particular era, county, or style, such as antique furniture from the Victorian era or paintings by Leonardo da Vinci and Michelangelo. Websites and online auctions may deal in all types of antiques from 50 to 5000 years old.
One of the best known ways of buying and selling antiques is at an auction. Although seasoned antique hunters attend auctions for the entertainment and interest value, most dedicated antiquities enthusiasts know that bargains can also be found in salvage or ‘junk yards’, independent second-hand shops and car boot sales. General auctions can be tourist attractions as much as opportunities to buy and sell antiques, as the exciting atmosphere in the saleroom can lead to theatrical quality proceedings. Auctions operate by putting up for sale by bidding from members of the audience. Lots are displayed in a saleroom preview several days before the auction is held, allowing customers to examine them in closer detail than will be possible on the day. A catalogue of goods for sale is provided, which typically contains estimates of the price each lot is expected to fetch. Attendees are encouraged to bid for the items starting at the lower end of this price range. A lot is only worth what two or more bidders are willing to pay for it, and in this way auctions can be excitingly unpredictable. Buying and selling at auction can be an expensive way of acquiring antiques due to the associated charges in many auction houses. Many buyers of antiques choose to do so through private advertisements placed in newspapers and appropriate trade press publications. Other ways of buying antiques are at car boot sales, which are traditionally held at weekends and attract a broad range of buyers from professional antiques hunters and dealers to consumer keen on browsing for treasure. ‘Junk’ and curio shops also operate within the antiques sector. These outlets are usually filled with the contents of recent house clearances, and offer a wide variety of objects for sale. Antique fairs are a major part of the industry and offer hood opportunities to buy high quality, vetted antiques. Online antiques buying and selling has developed into a thriving sector of the industry in the past few years. The continuing popularity of eBay, which now has over ten million registered users, has contributed to this growth. Although it sells other items as well as antiques, eBay has become known as a good source of unusual and unique vintage furniture and artifacts, and its success has driven the growth of a host of similar Internet auctions sites.
Comparisons
The antique collecting trend has also hit the Hong Kong market. Consumers in Hong Kong are developing a liking for antiques and collectibles. There are different ways in which the consumers can purchase antiques and collectibles. One of the most common ways of acquiring antiques in Hong Kong is through antique shops and dealers. There is a growing number of antique shops and dealers in Hong Kong although the growth of this segment is slower compared to the growth of online auctions and sellers. Hong Kong as one of the technological hubs of Asia is a typical venue for online auctions and sellers. Hong Kong citizens acquire antiques and collectibles through the internet. Auction houses are important venues where antiques and collectibles are acquired. In Hong Kong, auction houses mostly cater to rich antique collectors.
Antique shops remain as the most popular place for antique collectors followed by online auctions and sellers.
Task 2 Antique Ownership
Almost 25 percent of the overall population collects something and more people are becoming interested and learning about this antique collecting pastime. Of those participating in this hobby, 33 percent are estimated to do so for investment purposes. Prime collectors of antiques are in higher income brackets and born in the 1950s and 1960s.
Psychological Perspective
One of the main motivation for owning antiques is nostalgia. Nostalgia leads buyers to antique shops. Many of the adult buyers fondly remember toys they owned when they were young. Just passing by an antique shop and seeing a familiar piece brings memories of days gone by.
In order to understand the psychological gains that antique buyers get from purchasing and collecting antiques it is important to understand how they are motivated. In this regard, Maslow’s Hierarchy of Needs will be employed in order to analyze motivation.
Maslow’s Hierarchy of Needs
Maslow suggested that human needs are ordered in a hierarchy of importance. The most important needs are those to do with physiological needs, whereas the least important ones are to do with self actualization. Maslow contended that people would not seek to satisfy the less important needs until the more important ones were satisfied (Proctor 2000).
Abraham Maslow suggested that human needs can be divided into five basic categories:
- Physiological – include hunger, thirst and sex
- Safety – range from security and protection
- Social Esteem – cover affection and a sense of belonging; include recognition, status, and self esteem
- Self Actualization – range from self development to self accomplishment
According to Maslow’s hierarchy of needs, after physiological and safety needs have been realized, social needs, esteem needs, and finally self-actualization needs take priority. Self-actualization is our highest need. There is overlap between each level since no need is ever completely satisfied. For this reason, the lowest needs remain as prime motivators that influence consumer behavior (Greco and Mazze 2003, p. 62).
Looking at Maslow’s Hierarchy of needs it can be said that people are motivated to buy and collect antiques because they seek to fulfill their Social Esteem and Self Actualization needs. Collecting antiques provide people with a sense of self-esteem and it gives them the feeling of gaining a social status. Other psychological reasons why people purchase and collect antiques is because they gain a sense of self accomplishment from doing so.
Economic Perspective
Antiques are primarily viewed as good investments which can yield economic gains.
Sociology of Antique Ownership
Social factors exert an influence on the purchase behavior of consumers. The decision-making process of the consumer is affected by different social factors and by the different people who he/she communicates and interacts with. The socialization process according to Michman (1991) occurs throughout the life cycle so that new activities, interests, and opinions are developed and consequently affect purchase decision.
Some people collect because they are influenced by their family, friends, coworkers or even the media. Nowadays collecting antiques have become a popular pastime of the elite or those who can afford it. Many style and leisure magazines feature antique pieces. Many interior designers and decorators make use of antiques to accentuate homes. Many celebrities and famous people are collecting antiques. Because of this, many consumers are encouraged to purchase antiques. Today’s homeowners are looking at antiques as investment pieces that offer their home a one-of-a kind look. Some are stepping out of the box by using special pieces beyond their original intention. And more and more are incorporating antiques into their modern-style homes, creating a more eclectic mixture of old and new.
Group Behavior and Dynamics
The application of sociology in analyzing antique ownership points to group dynamics. Group dynamics according to Michman (1991) influences consumer behavior in many ways and in particular the patterns of interaction among its members. Group behavior is based upon the premise that two or more individuals share a set of norms, values, or beliefs and that buyer behavior is interdependent. A group may be defined as two or more people who interact to accomplish either individual or mutual goals. Antique collecting is a pastime that people can pass to other people within their groups. People belonging in same reference groups have a high tendency to influence each other’s purchasing decisions. Reference groups emerge from either primary or secondary groups. These groups serve as a frame of reference for individuals in their purchasing decisions. One important reference group that may have a big impact on antique purchase and collection is ‘Aspiration Groups’. Aspiration groups are those groups that a person desires to join either in the immediate present or the future. Because many antique collectors are successful, high class people, many are attracted to antique collecting as a way of identifying themselves with these people.
Task 3 Consumer Behavior
How Attitude are Formed and Changed
Consumer attitude toward antiques are shaped by different factors these factors include:
1. Social Class – social classes are relatively homogeneous and enduring divisions in a society. They are hierarchically ordered and their members share similar values, interests, and behavior. Social classes reflect incomes as well as occupation, education, and other indicators. Those within each social class tend to behave more alike than do persons from different social classes.
Majority of people who collect antiques belong to the upper and middle class. It is important to analyze the lifestyle and behavior of these people as they are the existing market for antiques and collectibles.
2. Reference Groups – references groups consist of all the groups that have a direct or indirect influence on a person’s attitudes or behavior. Groups that have a direct influence on a person are called ‘membership groups’. Some primary membership groups are family, friends, neighbors, coworkers, with whom individuals interact fairly continuously and informally. Secondary groups, such as professional and trade-union groups, tend to be more formal and require less continuous interaction. Reference groups expose people to new behaviors and lifestyles, influence attitudes an self-concept, and create pressures for conformity that may affect product and brand choice.
3. Age and Stage in Life Cycle – people buy different goods and services over a lifetime. Taste in clothes, furniture, and recreation is age-related. Consumption is shaped by the family cycle. The traditional family life cycle covers stages in adult lives, starting with independence from parents and continuing into marriage, child-rearing, empty-nest years, retirement, and later life.
Majority of the people who collect antiques are adults ranging from middle-age to retirement age. Majority of these people are in the child-rearing, retirement and empty-nest years.
4. Lifestyle – people from the same subculture, social class, and occupation may actually lead quite different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests, and opinions. The lifestyle groups that usually buy and collect antiques are the following:
- Actualizers – these are successful, sophisticated, active, ‘take charge’ people whose purchases often reflect cultivated tastes for relatively upscale, niche-oriented products
- Achievers – these are successful, career-and work-oriented consumers who favor established, prestige products that demonstrate success
5. Motivation – a person has many needs at any given time. Some needs are biogenic meaning they arise from physiological states of tension such as hunger, thirst, discomfort. Other needs are psychogenic meaning they arise from psychological states of tension such as the need for recognition, esteem or belonging. A need becomes a motive when it is aroused to sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.
6. Perception – a motivated person is ready to act, yet how that person actually acts is influenced by his or her perception of the situation. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.
7. Learning – learning involves changes in an individual’s behavior that arise from experience.
8. Beliefs – a belief is a descriptive thought that a person holds about something. Beliefs may be based on knowledge, opinion, or faith, and they may or may nit carry an emotional charge.
The above factors affect buyer’s attitude and behavior. In order to become successful antique dealers and marketers need to take these factors into consideration.
Decline in Antique Collecting
Antique collecting is considered by many as a hobby or as a leisure activity. There are also those who take antique collecting seriously and earns from it. Because of the recent developments in the antique market, antique collecting have been in gradual decline. The increase in internet usage and the emergence of the world wide web as an all-around tool for interacting, communicating, and now purchasing has led to the decrease in auction houses and antique shop patrons. Online auction sites and sellers are growing in number while traditional antique shops and auction houses are decreasing. The interest of the public is also changing. The young people today do not seem to value antiques and collectibles as they are in constant search of modern and technological life. In recent years, the capacity to imitate and mass produce antique items in minute detail has also increased, causing the interest of consumers in antique items to decline.
The Role of Opinion Leader
Opinion leaders are active in receiving data, interpreting it and communicating about their judgments with others (Katz and Lazarsfeld 1955). These people are more persuasive in exerting interpersonal influence than those who interact directly through mass media. Opinion leaders are greatly respected and help in determining which new products are acceptable and which should be rejected. This people tend to be a more integrated part of a local social system. These people influence their friends and acquaintances, thereby contributing to a product’s progress.
The opinion leader has an important function in the marketing communication process, acting as a go-between in what is known as the ‘two-step flow of communication’. Information does not flow directly from the mass media to the individual buyers in the target market but is channeled through a person, the opinion leader, who interprets and evaluates the information, relaying acceptance or rejection of the message to other consumers in the target market. The role of the opinion leader is especially important in purchasing high-risk products. In the case of antiques, the opinion leader is willing to accept financial loss which the ordinary buyer is usually apprehensive to avoid. The latter will only become interested after antiques have been evaluated and approved by the opinion leader (Cant et al 2009).
Impact of Sources of Information
A growing number of consumers are spending more time and money making the most of their homes. Rising levels of disposable income, in line with a wealth of TV programs and magazines dedicated to the subject of home interiors, have led to home improvement and furniture buying becoming enjoyable leisure pastimes for many homeowners. Antique hunting is an important part of this trend. High quality antiques shops. Consumers interested in these antiques will tend to be from a higher socio-economic bracket, and possess high earning capacity. However, the interest in antiques and home furnishings has spread across society, and consumers with less money to spend are increasingly frequenting car boot sales, salvage yards and junk stores in order to source antiques for their homes. As well as amateur bargain hunters, a number of professionals have an interest in buying antique furniture and artifacts, Property development has become a popular and lucrative activity for affluent individuals. It can involve buying a derelict house or barn and converting it into a home or a number of homes for sale or lease. Many builders and other tradespeople become involved in enterprises like this, and may seek out architectural antiques or other antique pieces to incorporate within the new property. Decorators and interior designers also have a strong interest in the antiques sector, and will spend time and money browsing antique outlets in order to find treasures to use in their latest projects.
The main sources of information for antiques are Architecture-themed or Interior Design TV programs, and magazines that feature antiques. Other sources are the decorators and developers who often incorporate antiques in their designs and projects. Celebrities also posses a level of influence as well as family members (as collecting antiques may be passed from one family member to another) and friends.
Task 4 Marketing Research
Research Methodologies
There are different research methodologies that can be employed to investigate consumer behavior regarding antiques and/or collectibles.
Survey
A survey gathers data at a particular point in time with the intention of describing the nature of existing conditions can be compared, or determining the relationship that exist between specific events. Survey research according to Hutchinson (2004) can be defined most simply as a means of gathering information, usually through self-report using questionnaires or interviews (p. 285). The attraction of a survey lie in its appeal to generazability or universality within given parameters, its ability to make statements which are supported by large data banks and its ability to establish the degree of confidence which can be placed in a set of findings (Cohen et al., 2000, p. 171). The popularity of survey research is due in large to its utility on countless research situations. Surveys are used for such diverse purposes as needs assessment, program evaluation, attitude measurement, political opinion polling, and policy analysis, as well as for simple descriptions of behaviors, activities, and population characteristics. The scope of surveys can range from large-scale national surveys to smaller surveys confined to a single neighborhood, classroom, or organization. Another strength is its applicability on situations where direct manipulations of variables is either unfeasible to unethical (Hutchinson, 2004, p. 286).
Surveys are bets suited for descriptive research. Companies undertake surveys to learn about people’s knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population (Kotler 2000). An antique shop can use surveys to measure employee attitudes about antiques and what particular pieces are popular among consumers. Aside from face-to-face surveys, on-line interviewing can also be used.
Focus Groups
A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity. The moderators needs to be objective knowledgeable on the issue, and skilled in group dynamics. Focus groups can be used to fulfill different objectives (Kotler 2000). Focus groups can be used as a tool for gaining information from the consumers, more specifically; focus groups are used to discuss:
- New product concepts, or proposed product changes
- Changes in customer tastes and requirements
- Individual marketing mix issues
- Advertising concepts
- Branding issues (Baines and Chansarkar 2002)
In conducting a focus group, the moderator can start with the following questions:
1. Do you collect antique pieces?
2. What particular antique pieces do you collect?
3. How passionate are you about collecting antiques?
It is important to keep the discussion as open and fluid as possible. The moderator must encourage the participants to reveal their deep feeling and thoughts.
Secondary Data Collection
The most frequent application of secondary data in marketing research is to gain familiarity and to establish a context in which primary data are collected, analyzed, and reported, the problem is defined, and the research is designed. This application is a ‘literature search’ – an examination of existing material, searching for information pertinent to the current marketing research project. Materials are typically scholarly journals, magazines, books, newspapers, and company records. Secondary data can provide information about techniques and procedures for conducting marketing research (Patzer 1995).
The secondary data can be used to provide guidance to the marketing research. Various data can be collected from different resources such as books and journals and publications from different organizations.
Research Sample
The list of the possible respondents will come from different sources such as the members of association of antique collectors or the list of antique shop customers. From that lists, the researcher will identify the research sample. In identifying the research sample the researcher w\ill use random selection. A simple random sample according to Wallen and Fraenkel (2001) is one in which each and every member of the population has an equal chance of being selected. It is the best way yet devised by human beings for obtaining a sample that is representative of the population from which it has been selected. The larger a random sample size, the more likely it is to be representative of the population.
Research Questions
The research will primarily employ the qualitative research method which seeks to answer the following questions:
- Descriptive/Linear Questions – Can you describe to me your experiences in buying/collecting antiques?
- Narrative Questions – Can you tell me about the influences that encouraged you to engage in antique collecting?
- Structured Questions – What do you thing are the factors that led to the boom of the antique industry?
- Contrast Questions – How can you compare purchasing antiques in Auction Houses and in Antique shops?
- Evaluative Questions – How do you feel about the quality of antique pieces that you get from antique shops? How about from Auction Houses?
- Systematic Questions – What do you think would be the state of the antique shop industry 10 years from now?
- Prompts and Probes – Can you tell me more about that?
In-Depth and Participative Research
In depth research (interview) is a qualitative technique that involves conducting intensive individual interviews with a small number of respondents to explore their perspectives on a particular idea, program, or situation. In-depth research is useful when the researcher wants a detailed information about the respondent’s thought and behaviors or want to explore new issues in depth.
In-depth interview can be used in replacement for focus groups if the respondents are not comfortable talking openly in a group or when the researcher wants to distinguish individual opinions. In depth research can play an important role in determining the different reasons why individual’s purchase or collect antiques. In-depth research can be employed when the researcher wants to go deeper in determining the psychological and social reasons behind consumer behavior regarding antique collecting. The advantage of in-depth interviews is that they provide much more detailed information than what is available tjrough other data collection methods, such as surveys.
Task 5 Marketing Antiques
Arresting Purchase Decline
Marketing Antiques
Strategic and active marketing campaigns to raise people’s awareness about antiques and increase their desire to purchase and collect antiques must be employed. In order to arrest purchase decline, a market dealer must make use of the following marketing tools.
E-Marketing
Internet has become a part of everyday life for almost all the people in the world. Internet has shaped many areas of life from entertainment to communication to business. Now, businesses can reach a wider audience because of the Internet. The internet allows every business to reach potential customer more effective, efficiently and more at more affordable costs. Antique dealers can make use of the Internet to market and advertise their products. E-marketing is a new trend in marketing where in the Internet is used as a tool to reach potential and existing customers. There are different ways that a business can reach its customers through e-marketing – email, search engine marketing, e-magazines, blogging, online articles, and online public relations. Compared to traditional direct mail and print advertising, e-marketing is often a low-cost alternative that has a much higher rate of return.
Recommendations
1. Website – one of the most effective way of reaching and interacting with potential and current customers is through a company website. A company website contains information about the company, its products and services, and other information that the consumers find valuable. The company website can also contain a page where in the consumers pose their feedback and suggestion thereby, giving the company first hand information about the consumers’ needs and wants. The website can be used also to gain information about the consumers by the use of online surveys. The website is a vital e-marketing tool so the company must make sure that it displays the contents that the consumers want to see. The company must also entice the consumers to come to the website by using different strategies that will capture their interest. One strategy is encouraging consumers to post pictures of their antique collections and keeping these photos in a library that every visitor can access. The company must also write articles about the antiques that it specializes in. Another strategy is having a Question and Answer page or How-To page in the website where visitors can post their questions and where the company provides tips on shopping, restoring, maintaining, and selling antiques.
2. E-Newsletter – e-newsletters can also be a valuable tool. By publishing newsletter every month or every quarter which contains interesting, helpful articles, the company can gain invaluable ‘top of mind’ advertising. Using willingly supplied emails from the customers is called ‘permission-based marketing’. The company can have a sign-up field on its website and use the emails of the customers to send them e-newsletters.
3. Email Marketing
4. Online Public Relations (PR)
5. Blogging
6. Article Marketing
Promoting Antiques
1. Scarcity
Scarcity works like this: There is a limited amount of the item available. After those are gone, the item will not be available. “urgency” implies Scarcity. The effectiveness of the scarcity principle is well demonstrated by the large segment of the population involved in pursuing antiques, collectibles, and memorabilia simply because these items are scarce. Scarcity is often contrived, as when a company produces a “limited edition”.
Antiques like artworks follow economics of scarcity and is considered rare, unique, high in demand and finite supply. In order to encourage consumers to purchase antique items and to create a sense of urgency, antique shops and marketers must highlight its scarcity.
2. Uniqueness
Another attribute of antiques and collectibles is uniqueness. Because of the scarcity of supply, antiques are almost unique. True collectors are interested in collecting an antique for its uniqueness.
3. Historical/Cultural Importance
It is important to make the consumers understand that if they possess antiques they are holding a piece of history. Antiques represent the glorious past and evolution of human society and culture. An antique can also represent an amalgam of different culture and it makes the item more priceless. Antiques are usually items, which have a certain level of craftsmanship, or attention to design, such as an office desk, a chair, a cast iron lamppost, a painting, a sketch or drawing, or even an automobile.
4. Investment
Antiques can be collected if one wishes to earn money. Some people buy antiques as an investment and resell the items for monetary gain in a few years later.
5. Finding Passion
Antique collection can be an extension of someone’s passion. For example a person who collects stamps include antique stamps in their collection. Someone who is passionate about books include antique books in their collection. Collecting antiques is a passion and many passionate antique collectors have their favorites. Some antique lovers may collect antique candle stands, while others are more interested in antique furniture. While some may collect antique furniture from China and Asia, others are more interested in antiques from the Victorian and Elizabethan eras, and yet others are interested only in antique jewellery or books.
Antique shop owners, marketers and the industry as a whole must encourage consumers to find their hobby and passion that compliments their lifestyle. In this way, antiques can be promoted.
6. Something that can be Passed on to Next Generations
Aside from being a good investment antiques and collectibles can also be passed on to a collector’s children and to the next generations. Many collectors are interested in items from more modern times and consider these items as antiques or vintages and priceless collectibles to be cherished and passed on to their children.
Attracting People to the Dealer
1. Rational Appeals
Rational appeals attempt to stir up negative or positive emotions that will motivate purchase.
2. Emotional Appeals
Rational appeals attempt to stir up negative or positive emotions that will motivate purchase.
Attracting Customers through Relationship Marketing
Relationship marketing has been said to be a source of lasting financial profitability for an organization. Building strong relationship with customers requires an active and creative approach. Relationship marketing is about healthy relationships which are typified by concern, trust, commitment and service. Relationship marketing requires an organization-wide commitment to provide high-quality service, which is reliable, emphatic and responsive.
Attracting Customers through Customer Relationship Management
Customer Relationship Management (CRM) can be defined as the development and maintenance of mutually beneficial long-term relationships with strategically significant customers (Buttle 2000). CRM according to Plakoyiannaki and Tzokas (2001) is an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-tern superior customer value, at a profit to well identified existing and potential customers.
Customer relationship management focuses on strengthening the bond between customers and the firm by maximizing the value of the relationship for the benefit of both the customer and the firm. As a business philosophy, CRM is based upon individual customers and customized products and services supported by open lines of communication and feedback form the participating firms that mutually benefits both by buying and selling organizations. The buying and the selling firms enter into a ‘learning relationship’, with the customer being willing to collaborate with the seller and grow as a loyal customer. In return, the seller works to maximize the value of the relationship for the customer’s benefit. With the objective of most businesses today being to create and maintain loyal customers at a profit, CRM provides the platform for seeking competitive advantage by embracing customer needs and building value-driven long-term relationship (Ford et al 2003).
Service Differentiation
In order to attract consumers to the antique dealer, the importance of service must be recognized. Service serves as a secondary attraction for the consumers.
Offer
The antique shop can create innovative features in the service offering.
Delivery
The antique shop can hire and train better people to deliver its service. It can also develop a more attractive physical environment in which to deliver the service.
Price
Buying from antique shops and antique dealers can be cheaper than buying at auction houses. Auctioneer’s commission fees, taxes and VAT must be paid on top of the price of the item at the hammer. This can sometimes mean more than 15 percent of the hammer price in extra charges. In addition, the seller of the item is also charged up to 12 percent or more in fees.
Bibliography
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