I confused at one step of getting exact sequence of reduced homology groups for a good pair (ref. Algebraic topology by Hatcher).
Theorem 2.13 (p.114). Let $X$ be a space and $A$ a closed subspace which is a deformation retract of an open neighborhood in $X$. Then there is an exact sequence of reduced homology groups: $$\cdots \tilde{H}_n(A)\rightarrow \tilde{H}_n(X)\rightarrow \tilde{H}_n(X/A)\rightarrow\cdots\rightarrow \tilde{H}_0(X/A)\rightarrow 0.$$
Proof.
1. For $n\geq 1$, $\tilde{H}_n(Y)\cong H_n(Y)$ and for $Y\neq \phi$, and $n=0$, $H_0(Y)\cong \tilde{H}_0(Y)\oplus \mathbb{Z}$. (see para after defining reduced homology groups on p.110
2. For any pair $(X,A)$ the relative homology groups fit in exact sequence (end of p.115) $$\cdots H_n(A)\rightarrow H_n(X)\rightarrow H_n(X,A)\rightarrow\cdots\rightarrow H_0(X,A)\rightarrow 0.$$
3. As a consequence of excision theorem (prop.2.22, p.124), $$H_n(X,A)\cong \tilde{H}_n(X/A) \mbox{ for all } n.$$
4. Replacing relative homology groups by reduced homology of quotients in (2) we get exact sequence $$ \cdots \tilde{H}_n(A)\rightarrow \tilde{H}_n(X)\rightarrow \tilde{H}_n(X/A)\rightarrow\cdots\rightarrow H_0(A)\rightarrow H_0(X)\rightarrow \tilde{H}_0(X/A)\rightarrow 0.$$ Question. We have not replaced $H_0(A)$ and $H_0(X)$ by reduced homology groups, and we can not replace them directly from (1); how to proceed for this? Am I missing anything here?