bgs final report_spa and wellness industry

Such consequences can weaken the societys trust in

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Unformatted text preview: es Authority. Such consequences can weaken the society’s trust in the government agencies, and can be quite a hefty social cost. Hard-selling Sales Tactics in Local Spas Overview 7 8 Appendix C: Interview with James Tan and Adrian Au, owners of Balik Kampung Spa 9 Appendix K: Street and online survey 10 Appendix D: Interview with therapist from Yen Wellness Spa The issue of hard-selling sales tactics has been present in Singapore for many years. It is a common problem across many industries, and the spa and wellness industry is one of them. Through the team’s survey results, it was discovered that out of the 50 people surveyed who patronize spas, 43% of them 3 said that they had experienced hard-selling sales tactics during their visits11. 44% of them also said that the spa workers seem desperate for sales12. To better understand how hard-selling sales tactics is done by the spa operators, we interviewed a regular spa patron13 of the firm which we investigated on - My Summer Day Spa. She said:” At first they try to promote [to me] nicely the products. Then when I said ‘no’ they continued to promote. But after that they stop. After a while more, they start again.” From the survey findings, the team found out that affordable and justified pricing are two of the most important criteria 14 for consumers when choosing a spa to visit. Hence, companies such as My Summer Day Spa offer affordable prices to attract customers. The issue however, is not about the price. Rather, it is what happens inside the spa which problems arise. Such spas use low pricing to first lure customers into buying treatment packages. From there, the customer is subjected to hard-selling talk every time he/she goes back for a treatment session. Most of the time, customers are asked by the workers to extend their packages. Very often, customers get irritated by hard-selling tactics. Hard-selling is prevalent in many sales industries such as the insurance industry. Consumers are consistently being exposed to this sales tactics which does not appeal to them, and they eventually perceive hard-selling as an unethical business practice. According to the interview the team conducted with Adrian Au15, he said that, “hard-selling is an issue present everywhere.” However, he thinks that the purpose of hard-selling is not to annoy or simply to force customers to buy products. He said that hardselling arises from the urgency to promote products, coupled with unprofessional sales tactics. This in turn misleads customers to think that therapists are trying to hard-sell to them. The team feels that one reason why firms are prone to this business practice is that they do not have the means to expand their advertising budget as much as bigger firms who are able to allocate resources to even advertise their brand overseas. The bigger firms are already well established in the industry, and they do not resort to using hard-selling because it...
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This document was uploaded on 01/14/2014.

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