Here is an excellent example of a company trying to compete by better understanding their consumers and providing a service with a goal to increase consumer utility.
In this video we see how Tesco (called Homeplus in South Korea) was able to leverage technology by understanding the South Korean consumer lifestyle and behavior to provide an amazing service. They realize that the South Korean consumers usually work long hours and grocery shopping in the physical store is a tough chore and time consuming. On the basis of their research findings, they developed a virtual grocery store at the subway station, where consumers select products by using QR codes on the screens and add it to their cart. Once they are done shopping, Tesco delivers the product at their door steps.
Consumers benefit: they can use the time they wait for a train to do their grocery shopping. It saves them time and trouble of going to an actual store and fighting their way around to buy what they need. Also, the convenience of home delivery is an added benefit.
TESCOs benefit: They are able to increase revenue without increasing the number of physical stores, their customer base has grown significantly and they also gain customer loyalty. So it’s a win-win situation for both the consumer and the seller.
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