When the recent recession hit, Zappos decided to stop offering complimentary overnight shipping to first-time buyers and offer it to repeat buyers only, which is an example of the ________ best practice of top service companies.
A) strategic concept
B) profit tiers
C) top-management commitment
D) high standards
E) monitoring systems

Question

Quizplus · Accepted Answer

This decision by Zappos reflects the "profit tiers" best practice, where companies recognize that not all customers are equally profitable. By offering complimentary overnight shipping only to repeat buyers, Zappos is focusing on customers who are likely to generate more profit over time, rather than on one-time or first-time buyers.

When the Recent Recession Hit, Zappos Decided to Stop Offering