Why Corporations Like Wal-Mart Fail Agency Law and Customer Value

For years, huge retailers have ruled the marketplace. They have replaced the small shops that used to exist in urban areas across America. Today, there are mostly banks and law offices that still call downtown their place of business. Agency law is important in employment law, but it also can be applied to corporations relations to customers.  Misrepresentation of authority is something that can plague shoppers when they have little time. It can lead to frustration, confusion, and missed opportunity. Many times, I have listened to an employee that  incorrectly directed me in a store. This must stop. I am supposed to be able to get accurate information with little effort. Wal-mart, Target, and Best Buy are just a few of the large suburban entities that try to provide differentiated service.

Wal-mart has become the largest employer and retailer in the world due to their ability to have everything. They sell almost everything, and they have a convenience factor with a low price. Unfortunately, they take this for granted. I believe that since the recession started they have become more careless concerning customer value. For example, I shop once every two weeks at Wal-mart, and they never have carts inside the store ben. I rarely see anyone going to get carts, and yet, they have the greeters sometimes. However, I would rather not have to scout around for a cart! Then once you get a cart, they are typically broken or dirty. The store aisles are dirty and sometimes they are out of popular items like eggs. This does not add the shopping experience, and the lines for check out are always a hassle.

The associates do not want to help on average, if you have questions. Worst yet, an employee has argued about checking out a customer with 14 small items in the 10 or less express lane. The problem started when the customer was verbally told and pointed to by another employee to use the express lane after seeing the few items in the cart. Well, the express associate did not want to comply because of the rule. However, I have personally gone in the lane before with slightly more than 10 items.

Therefore, I was surprised to learn how by the book the associate was. Wal-mart must start to strictly apply their rules, or be amenable to bending them for customers specifically misinformed by an employee. After all in agency law, the third party benefits, if the agent misrepresents their authority. The consequence for customer turned out to be leaving behind some items because the lines are always too long. Both parties loose. Wal-mart looses sales, and the customer does not leave satisfied. This is not conducive to busy people and this could lead to depressed sales long term. Any other company that follows this pattern is sure for disaster, just look at Wall Street lately.

Target is smaller than Wal-mart, but they offer a different experience. They have clean bright stores for the most part. Their associates can be just as elusive, but they are more visible doing actual work than Wal-mart. Usually, Target has a small computer lab that people can use for free too.  Therefore, they are actively working to get customers to stay longer, and ultimately buy. This is a great customer value move. I never witnessed any disputes or complaints while shopping at Target, but this does not mean they don’t occur. They must handle them more discretely than some other retailers. The stocking is typically stronger than some other low end stores. Target is trying to become the elite acceptable place to shop for people that are tired of Wal-mart and the member only stores.

This branding seems to be working due to their steadying increase in marketplace according to my friend who works in Target’s management. I noticed that the recession has not influenced how they treat their customers, and that can be good, but they must not get too comfortable. Lower prices would help them compete with Wal-mart, and once they get the customers they could slowly increase their prices. Misrepresentation of authority seems to be an non-issue because their associates clearly are differentiated from management. Target could greatly improve by having greeters or by offering some savings on food items specifically. They could offer some quick tutorials for customers that use the computer lab, and offer them a discount for referring others. They need to get people more excited about their brand.

Best Buy has the electronic cornerstone as of now. They have stores that are run by young savvy professionals that seem to know their stuff. I was able to get help when the store was closing because the associate was able to understand the situation. I needed a small calculator and I knew exactly the make. Therefore, the associate turned away people that were looking to browse, but sent another employee to search for the item, so they could make the sale. This was a savvy move that took some fast thought. It was not expected, nor requested. This can make Best Buy appear consumer friendly to those that shop their frequently or to newbies. To my surprise, I ran into my neighbor and received a small discount too! This was definitely a store that realizes that going a little beyond normal can make a difference. Their prices are not the lowest, but I later learned that Wal-mart sold the same item for the exact sticker price. However, I got a discount that I would not have gotten at Wal-mart or probably Target. There are no apparent agency issues, and their customer value seems to be increasing.

In sum, managers must recognize where the corporation’s strengths are held. Interestingly, the retailer that could most afford to bend their rules, does not. Yet, the two much smaller entities do their best to think outside the box. In today’s economy, forward thinking is the way to longevity. Wal-mart must be very careful that they don’t get over confident. Target and Best Buy must stay on track or they will fall behind. More strategy and simple organization will create the ability for agency law and customer value to be better accomplished. Hopefully, these corporations will take advice from the customers that support them. I suggest that anyone with complaints or praise sends at least an email. Action is the only way the shopping experience will continue to save time, be worthwhile, and profitable for corporations. Consumer rights is important and should not be ignored.