Marketing Case Study: Zappos

Complete Name: Unit 8 Student Name: Case, Brandon

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1. Case: Zappos

This case examines Zappos’ unique marketing strategy and corporate culture, both of which focus on delivering happiness to the company’s varied stakeholders. Despite a few stumbles along the way, Zappos has been a role model of success since its founding in 1999. The company survived the dot-com collapse because its charismatic CEO, Tony Hsieh, created a corporate culture that put its customers and employees ahead of financial success. The case looks at Zappos’ business model and how it influences the company’s relationships with customers, employees, the environment,

304). Zappos’ emphasis on customer satisfaction has contributed to the company’s profitability tremendously. Zappos believes that great customer service experiences encourage customers to use the store again (Ferrell and Hartline, 2014, p. 454). In addition, Zappos’ long-term strategy is based 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 is distinctive from the rest of the industry (p. 453). Zappos employees are expected to wow customers and provide the highest levels of customer satisfaction regardless of how much time it takes (p. 453). Rather than urging customer service staff to take as many calls as quickly as possible, there are no quotas and the longer the call the better (Hollender, 2013). This is because Zappos uses customer service to market the brand (Hollender, 2013). The company takes most of the money it could spend on advertising and invests it in customer service (Hollender, 2013). Treat people amazingly well and they'll tell their

283). Zappos has without a doubt developed long-term customer relationships that provide a competitive advantage in the purchase of shoes and other products. The company’s customer focused business model believes that developing long-term customer relationships is what is most important for its business (p. 452). Its customer focused approach has proven to be very successful for the company (p. 451). The way that Zappos serves customers and handles their issues is different from any other company in the industry (p. 453). Zappos’ business model and operating philosophy is described through its ten core values: Deliver WOW through service, embrace and drive change, create fund and a little weirdness, be adventurous, creative, and open-minded, pursue growth and learning, build open and honest relationships with communication, build a positive team and family spirit, do more with less, be passionate and determined, and be humble (Ferrell and Hartline, 2014, p. 452). These values create a framework that guide the company’s actions (p. 452). Zappos’ untraditional core values are demonstrated in the company’s commitment to the well-being and satisfaction of its customers (p. 452). The company puts its efforts into developing relationships with each of