Case Study Nordstrom: How to Succeed by Selling Just One Shoe by Allen White
Introduction to Marketing
Identify the type of retailer that Nordstrom's is classified as. Describe the characteristics it shares with other retailers of this type. Nordstrom falls under the department store category of retailing usually selling upscale durable products. Stores that mirror Nordstrom are Sears, JCPenny, Dillards and Macy’s. These department stores carry a variety of goods from apparel, cosmetics, housewares, electronics and furniture. Each department having its own buying center that’s run by a department head that is in charge of ordering merchandise, running product promotions and managing department employees. Nordstrom is able to keep a moderately high gross margin by choosing the right merchandise from using new computerized inventory systems that helps buyers and salesman make smarter decisions on what’s needed in stores enabling them to sell merchandise at full retail value.
Describe Nordstrom's level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences. Nordstrom offers a moderately high level of service perfecting the art of focusing on the right customer and giving its customers their undivided attention. Building strong relationships with the customers employees often swap business cards and notifies them when new merchandise are available at the stores. Patrick McCarthy the first Nordstrom salesperson to generate over a million dollars kept handwritten account of all 12,000 of his personal customers. McCarthy also tells of a customer leaving his plan tickets in a store and an employee paying a cab out of pocket to the airport so that the customer would not miss his flight. “This is an example of heroic service, and at Nordstrom they expect nothing less.” McCarthy says. The return policy at Nordstrom is also great, “In a...
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