Peapod Strategic Marketing

* Where difficult customer behaviour may arise and where it would be considered a risk

1. Their current customer segment is a demographic that is aging rapidly, you can expect a shrink in sales.

The time is now 1995; the internet is slowly evolving, and just as the company survived the arrival of television and other technology so it must with the internet. Convinced the internet will have

1. Issue: Seventy five percent of online customers don’t buy online, somewhere in the consumer buying process they decide not to make the purchase online.

Consumer confidence will be lowered. The confidence lowered due to the company not accepting reasonability and fixing the problem. The company operated morally, but didn’t give the customer the full product and customers will remember that.

Years ago, most people thought that it would remain impossible to click a button and place an order to buy something. Today about “195 million online American consumers” order take-out, book hotels, flights or even grocery shop (Weinstein 1). Many people can pay bills and transfer money to other people through a click of a button on their smartphone. 100,000 online consumers took a survey to reveal that most people preferred online shopping than physical shopping. 73% said it “[was] time saving” and also 58% of those people said they “liked it more because there were no crowds or lines.”(Weinstein 2). Consumers care more about the time used up than going to the store to look and try out the product in person. The internet offers a huge amount of choice and diversity in how people want to do things. But with the majority favoring online shopping, it just shows the laziness of our

Q1. What is the value proposition to the customer of Web-based shopping? How does it compare to the other innovations in customer service that Ives mentions at the end of the case?

there are fewer returns and more happy customers. For us this means that the store will

The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and

The bargaining power of customers is high. First of all, the customer size is tremendous globally, which also has an accelerating growth rate in recent years. Customers’ leverage is strengthening as a result of this. Another inevitable factor is that with countless retailors online, there is low switching cost for customers to find other alternative companies that suits their desire to conduct purchases. Moreover, consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. Their purchase pattern can also be hard to learn too.

Banks remain Relevant. In (Kell 2017) the author discusses how sports clothing company Lululemon is expanding their business not just with brick and mortar stores but also by expanding their e-commerce by 20%. Through the internet companies can reach more people worldwide than they can from their stores. Many companies are feeling a lot of pressure to close store due to the fact that e-tailing is becoming more and more popular. Companies can use websites to track consumers and get a better idea of what they are buying, this would be important for Joseph A. Bank because when they bring in new products they could have a better representation of consumer interest in it. Although it is more convenient to the consumer to shop online it does have a few drawbacks, from a retailer stand point e-tailing is all self-service. A specialty retailer like Joseph A. Banks may lose customers looking for help with selection if the focus too much on e-tail. Also another problem that can arise is the increase of competition with lower prices, due to the reach of the internet Joseph A. Banks will have to compete with stores worldwide to get

Internet Research. 2005, Vol. 15 Issue 3, p335-352. 18p that consists of seven focus groups from different parts of the country tried finding about the perception of consumers on the concept of online grocery. The research indicated some positive and some negative beliefs, which were remarkably congruent across groups. In the minds of consumers, while the concept has advantages of convenience, price and product range. Disadvantages, such as the loss of the recreational aspect of grocery shopping could act as mental barriers where one bad experience can result in permanent disapproval of the

1. Winning back the trust of loyal customers and ensuring that similar incidence is prevented in the future.

The internet has made it significantly easier for consumers to conduct an information search during the consumer decision-making process. Almost every household owns a computer and has access to the internet. This makes the internet highly accessible, hence information search is fast and convenient.