Integrated Advertising, Promotion and Marketing Communications 5th Edition by Kenneth Clow,Donald Baack

Exercise 4

SHOULD ZAPPOS.COM GO TO EUROPE
One of the major success stories in online retailing has been the emergence and growth of Zappos.com. Founded in 1999 by Nick Swinmurn, the company's initial focus was on selling shoes (the name Zappos is derived from the Spanish word for "shoes") to people looking for a large inventory with exactly the right model in stock. The company's warehouse and order fulfillment zone contains over 3 million pairs.
Zappos.com now offers additional items, including clothing, bags, housewares and beauty products. A visitor to the company's Web site can expect a purchase to be shipped within a few days. If the item does not fit or the customer decides it isn't right, she can return the item for full credit, with free return shipping, for up to 1 year. Phone orders are taken by friendly, upbeat, sales representatives referred to as the Customer Loyalty Team.
One of the primary features of Zappos.com is management's emphasis on great customer service. New employees are required to enroll in a 4-week training program designed to teach them how to work in the call center, even if they will eventually be placed elsewhere. During the course of the training, CEO Tony Hsieh offers to "buy them out," with a cash payment of $2,000, should the individual decide to leave within the first 90 days of his or her job. Those who remain have a high dedication to serving customers. This includes directing customers to competitors when Zappos does not have a particular item in stock.
The Zappos culture features 10 core values that employees are happy to recite. These include thoughts such as "Deliver WOW Through Service," "Pursue Growth and Learning," "Create Fun and a Little Weirdness," and "Be Passionate and Determined." Members of the Zappos team are encouraged to be spontaneous, have fun, and stay excited. The workplace features free food and a pleasant, friendly environment.
By 2010, Zappos.com had expanded into other product lines, including clothing, bags, and accessories. At the same time, more than once the question was posed, "Should we move into the European market "
One concern might be with the main product line, clothing and footwear. When Zappos executive Aaron Magness was asked specifically about differences in fashion in European countries, he responded, "We don't really think that fashion is the concern. The real challenge is from logistics and vendor relationships. Most vendors have specific distribution relationships by country, so we wouldn't be able to sell everything everywhere."
With regard to purchasing habits and methods of payment, Magness noted, "While they may be slightly different, we accept multiple types of payment options which allow for the international customer to be able to shop. Europeans seem to be accelerating their online shopping habits, so the customer base is there and ready to buy."
When asked to discuss customer service, Magness stated, "Customer service may mean different things to different people. Next day delivery is very important and a big deal in the US. Is it the same in Europe In Germany, many retailers offer same day delivery. In London, shipping is very expensive. In France, there are a lot of delays and strikes. We would need to find out what service levels people are looking for."
Finally, the issue of marketing communications arose. Magness noted that, "We'd have to find what is important to the customer and stand behind that."
1. Would the image or theme that Zappos.com portrays to its customers in the United States translate to the European market Explain.
2. Do you think Zappos.com should utilize a standardization or adaptation approach to both the products offered and the marketing messages to be sent
3. Examine Figure 1.11. Explain how each feature would be the same or different for Zappos.com, if the company entered the European market.