Business Studies Controlled AssessmentDixon Leow609314368St Joseph’s College ContentPage Dulwich BakeryRepeat PurchaseRepeat purchase is when a consumer buys from the same companyeach time and will revisit the company on each occasion. This indicatescustomer loyalty to the company; an example would be: a customer buying theirgroceries every week at the same supermarket.The BusinessDulwich Bakery is located in theheart of West Dulwich, Park Hall Road. The bakery specialises in makinghomemade pies, breakfast, lunch and organising events.
The established businessprovides breakfast and lunch daily to many customers and is sold out by theafternoon showing how popular it is in the area. As part ofmy primary research, when I asked the owner (Gemma) of the bakery, she saidthat “repeat business is the top priority for the business as it keeps thecompetitive advantage over the bakery down the road and the Tesco’s expressbakery across the road.” The repeat business has led to customer loyalty thatthe bakery upholds has led to the business having repeat purchase, thisrefrains the customers to going to the bakery’s competitors, which has led to ahigher turnover. This indicates that the business is offering customersatisfaction due to the repeat customers and the loyalty of existing customers.Gemma ensures that repeat purchase is occurring as she makes sure that hercustomers are far more than satisfied with their experience with the bakery.She offers customers a wide range of products with top quality at an affordableprice with daily special deals so that the bakery is aimed at a wide range ofconsumers and that existing and new customers are rewarded for visiting thebakery. The bakery uses a wide variety of techniques to assure that they obtainrepeat purchase.Customer SatisfactionWhen conducting my interview, Gemma had said that; “I makethe customers have a better experience in my bakery so that they will alwayscome to me”.
Gemma makes sure the customer needs are fulfilled whenever theyenter the store as customer satisfaction leads to repeat purchase, which leadsto more consistent turnover. Yelp review of Dulwich Bakery The review on the left shows a customer that was so pleasedthat he came back to the bakery numerous times. This was because he was satisfiedwith his visits at the bakery due to the customer service he received. This showsthat Dulwich Bakery provides their customers with delight with every customerthat visits the bakery. Competitor review – Blackbird bakery 5 = extremely satisfied 1= unsatisfied According to the survey, 61.3% of 31 people said that theykept revisiting the bakery because of customer satisfaction, taking themajority of the 4 reasons. 24 people gave the option of 4 or 5, no one gave theoption of 1, this shows that most customers who visit the bakery are satisfiedwith their visit and none of them are unsatisfied.
A customerof the bakery down the road reviewed the business couple months ago said thatthe staff were “very welcoming”, this shows that other businesses also use thismethod to generate repeat purchase as it shows that the customer will revisitthe store in the future due to the service they received. They don’t want tochange to another business as they don’t want to risk not having the sameexperience they had with the bakery they visited. Dulwich bakery could put moreadverts down the street to try encourage customers from competitors to come andtry their bakery.Most of thecustomers come back to the bakery because of the customer satisfaction theyreceive. They are pleased with the service they get from entering the bakery toleaving the bakery, if they are not pleased with the service they receive, theyare not likely to come back. This is an important method to generate repeatpurchase as the more times they visit, the business earns more consistent turnover.
This method also refrains customers from going to competitors, which means thatthe business doesn’t lose customers. Wide range of productsDulwichBakery offers breakfast, lunch and outside catering, it has a huge range ofbread and cookies with a different selection every day. Gemma believes that awide range of products will satisfy different people and that she will be ableto target different consumer’s tastes. Gemma stands out from her competitorswith her wide range of products as she offers what her competitors cannot; suchas: sweet dough bread and hot food.
These two customer reviews show that Dulwich Bakery offers aselection of products, the products interest many age audiences as Delvin Carinsaid that his daughter frequently visits the bakery, which shows repeat purchase.Showing a wide range of products means that every time a frequent customer entersthe bakery, they can get something new and try other things in the bakery. A customereven said that there is such a big range of products that she has trouble findingwhat to get as everything looks so good.
Having a wide range of products means thatcustomers are more likely to revisit the bakery as they would want to try out moreof the products at the bakery. From the surveyon the left, there are almost an even number of customers in each type of food,this shows that there are many different customers that come to the bakery becauseof the wide selection of products. Customers come back to the bakery for the cakesmore but are interested in other products too. Whilst visiting the bakery, theymay see more products and may be more temped to buy more what they came for.
Thismay lead to repeat purchase as customers would want to try out more of the bakery’sgoods.Quality of productAnother method of repeat purchase is the quality of the productsat the bakery, Gemma makes sure that products are made to top quality