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Zappos Case Study

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1.   Zappos' vision of their business is a "service business that sells shoes."   In light of this perspective, how would you describe - with specific examples - the customer value proposition on which Zappos focuses its operations?
To overcome the weakness in online shopping, Zappos set out to provide an exceptional shopping experience for its customers. First of all, the Zappos website loaded faster than any other retail website and they offer toll-free call center. Furthermore, the average phone call was answered in less than 20seconds because they believe that while most orders are made online, fast telephone support is essential for maximizing the customer experience. Also, due to online shopping, instant gratification is denied. Thus, to reduce these inconvenience, they offer free rapid delivery to their customers to get the product within 5days. Actually, UPS estimated that all of Zappos’s customers get the product within 5days. Moreover, if the customers want to return the product, they can do that whenever they want to within 365 days. This shipping and return policy also help the customer to be comfortable buying shoes online. Lastly, they offer more variety and better product information than other retail websites. Instead of being limited to the two or three brand names or products offered brick-and-mortar store, the customers can shop them all. Not only the offer variety brands but also they find what customer want, and then talk the customer through finding the product on the competitive website if they don’t have the product. Because they believe every interaction is branding opportunity and the customer would likely return to Zappos in the future even though they would lose that order. One of the biggest drawback to shopping online is the inability to touch, handle or try on the product before a customer order it. So they try to minimize the problem by providing substantially better information to customers such as pictures from several angles and...

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