Complete 8 - Case: Zappos This case examines Zappos unique...

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Case: ZapposThis case examines Zappos’ unique marketing strategy and corporate culture, both of which focuson delivering happiness to the company’s varied stakeholders. Despite a few stumbles along theway, Zappos has been a role model of success since its founding in 1999. The company survivedthe dot-com collapse because its charismatic CEO, Tony Hsieh, created a corporate culture that putits customers and employees ahead of financial success. The case looks at Zappos’ business modeland how it influences the company’s relationships with customers, employees, the environment, andits communities. The case also discusses some of the challenges the company faces and how itplans to move into the future.(Ferrell and Hartline, 2014, p. 266).1.Has Zappos’ emphasis on customer satisfaction contributed to its profitability? Explain.Creating and maintaining long-terms customer relationships requires that an organization seebeyond the transactions that occur today to look at the long-term potential of a customer (Ferrelland Hartline, 2014, p. 284). To do this, the organization must strive to develop a relationshipwith each customer rather than generate a large number of discrete transactions (p. 284-285). Tobuild relationship capital, a firm must be able to fulfill the needs of its customers better that itscompetitors (p. 290). Customer satisfaction is the key to customer retention (p. 304). Fullysatisfied customers are more likely to become loyal customers, less likely to explore alternativesuppliers, less price sensitive, less likely to switch to competitors, and more likely to spreadpositive word-of-mouth about the firm and its products (p. 304).Zappos’ emphasis on customer satisfaction has contributed to the company’s profitabilitytremendously. Zappos believes that great customer service experiences encourage customers touse the store again (Ferrell and Hartline, 2014, p. 454). In addition, Zappos’ long-term strategy isbased on the idea that great customer service will help them expand into other product categories(p. 454). Zappos has established a method of serving customers and handling their issues that isdistinctive from the rest of the industry (p. 453). Zappos employees are expected to wowcustomers and provide the highest levels of customer satisfaction regardless of how much time ittakes (p. 453).Rather than urging customer service staff to take as many calls as quickly as possible, there areno quotas and the longer the call the better (Hollender, 2013). This is because Zappos usescustomer service to market the brand (Hollender, 2013). The company takes most of the money itcould spend on advertising and invests it in customer service (Hollender, 2013). Treat peopleamazingly well and they'll tell their friends (Hollender, 2013). Zappos lets it customers do themarketing (Hollender, 2013).Zappos is so focused on providing the best customer service; they will do practically anything tomake the shopping experience memorable (Ferrell and Hartline, 2014, p. 453). Employees even

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Term
Fall
Professor
N/A
Tags
Marketing, Tony Hsieh

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