Question

During the recent recession, some so called retail experts urged retailers to cut expenses to the bone and not worry about their customer service levels. Was this a good idea? What is the reasoning behind your answer?

Answer 1

answer-

Yes, this was a good idea. the logic behind that because of recession, the economy of country is declining and the rate of unemployment is increasing mean that purchasing power of customers is also declining so, customers would purchase goods which are cheaper so retailers should cut down its expenses and cost so that they can provide goods at low cost.the customer's disposable income is very low and customers takes very much time to make purchase in recession so it is not good idea to make expenses on other activities like marketing, customer services etc if customers would buy products according to their need in the recession. anything or any retailer's strategy would not affect consumer's buying decision.