Essay on Zappos: Delivering Happiness

621 Words Apr 15th, 2014 3 Pages
1. How would you define Zappos’ target market, and how would you describe its strategy to serve this market?

- Zappos’ target market would be mainly online shoppers. Although previously they would only be targeting customers in search of footwear, they recently expanded their product line to apparel, accessories and even home goods therefore expanding their target market significantly. The Zappos’ customer is not usually price sensitive and usually has a higher disposable income.

2. Has Zappos’ emphasis on customer satisfaction contributed to its profitability? Explain.

- Zappos’ emphasis on customer satisfaction has greatly contributed to the company’s profitability. “Zappos believes that great customer service experiences
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The average industry merchandise return rate is 35 percent, but Zappos’ most profitable customers tend to return 50 percent of what they purchase. The customers who have higher return percentages are the most profitable because they have experienced Zappos’ customer service and return policy, which create loyalty to the company. These customers are likely to make purchases more often and to spend more on each purchase (Pg. 453).”

3. Has Zappos developed long-term customer relationships that provide a competitive advantage in the purchase of shoes and other products?

- Zappos’ customer focused business model believes that developing long-term customer relationships is what is most important for their business. Their customer focused approach has proved to be very successful for the company and even providing them with a competitive advantage over others in the industry. The Zappos experience is different from any other in the industry. Zappos’ business model and operating philosophy is described through its ten core values: 1) Deliver WOW through service. 2) Embrace and drive change. 3) Create fund and a little weirdness. 4) Be adventurous, creative, and open-minded. 5) Pursue growth and learning. 6) Build open and honest relationships with communication. 7) Build a positive team and family spirit. 8) Do more with less. 9) Be passionate and determined. 10) Be humble. These values are what guide every

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