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Marketing Case Study: Zappos

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Background and brief facts of the case Zappos’ is based on the providing customer with happiness while purchasing process and their philosophy is that if they will keep strong customer relationships then they will be delivering the customer satisfaction. The profitability of business depends lot on the customer satisfaction and this is the reason behind putting much efforts in maintaining the customer relationship and providing them best services and this is one of the greatest strengths of the company. Another strength of Zappos’ is the honestly dealing the customers this also helps building the customers’ confidence on the website. 1. How would you define Zappos' target market, and how would you describe its strategy to serve this market? …show more content…

In the online shoppers Zappos’ was targeting those who wanted to purchase shoes or footwear until the recent expansion in the product line they are offering and now they are offering accessories, household items and other miscellaneous goods which means they are targeting an extended market after the recent expansion. The case study suggests that the target customers generally belong to a high income class and they are not usually price sensitive which means the products Zappos’ offer has inelastic demand. It is serving the market by providing maximum customer satisfaction and this the reason behind the customer loyalty it is enjoying. It is commonly perceived that the price sensitivity among online shoppers is high but research indicates that if an online retailer provides ample details about the product and it delivers the customer satisfaction then the target customers can be less price sensitive to the products of that retailer (Venkatesh Shankar, 2001). So far, Zappos’ strategy is going through these two guidelines i.e. they are delivering customers with the satisfaction and they provide details about the products on their website so that customers can view the product in details so that it can help aiding their buying decisions. Further, they also avoid customers’ regret by removing the out of stock items from the website, the idea behind doing this is, …show more content…

The organization has believe that if the customers’ experience with the organization remains perfect and enjoyable then there is great likelihood that customer is going to visit the website again whenever he/she needs to buy something. Zappos’ also believe that if they can provide better service to customers in one product then there are good chances that customers will place their confidence in other products introduced on its website. The case study indicates that the majority of the revenues comes from the footwear sales and based on this customer loyalty company is confident that if they expanded their product line with similar quality of service it would attract the customer as well. Zappos’ is determined to achieve that customer loyalty by providing best services, for example the employees help the customers in searching the required product and even they suggest other websites to the customers if the required product is not available in Zappos’ store. Further, the websites’ return policy is very lenient, that it gives 365 days for returning the

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