The main selling point of Amazon is convenience. According to Hahn et al. (2018), the e-commerce retailer sells more products than anyone could count – but Amazon’s authentic core benefit offering is the priority given to convenience in its customers' shopping experience. Presently, the company is looking at ways to deliver its millions of products to various homes within a turnaround time of fewer than 24 hours (Hahn et al., 2018). Amazon realized that it could utilize its innovative capabilities to help consumers save money, time, and effort through seamless purchasing (Hahn et al., 2018).
Conversely, Walmart is another competitor in the multi-billion e-commerce industry that is rivaling Amazon in different spheres. However, Walmart's core benefit offering is the affordability of its wide range of products and services. According to Jindal et al., (2020), Walmart's ability to offer consumers "everyday low prices" offers the business its competitive edge in the market. The firm's awareness that it can still make up for the slim profit margins through economies of scale enables Walmart to effectively compete with other participants in the market (Jindal et al. 2020).
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Describe the Target Market as Evidenced by the Website
From the firm’s website, Amazon is driven by customer obsession instead of focusing on its rivals in the industry (Ertem-Eray, 2020). For this reason, Amazon mainly targets consumers between the ages of 25-50 years (Ertem-Eray, 2020). The company makes this analysis based on the understanding that these customers can use the internet and other purchasing activities.
Walmart’s target market is made up of individuals who are inclined to saving money. From its website, it is clear that its customers are diverse but majorly consist of people in low and middle classes of age between 25-65 years ( Ertem-Eray, 2020). The discounting strategy used by Walmart is among its key business drivers of success. Because of this assessment of its target audience, the business uses the " Save money. Live better “mantra - a critical element in its marketing strategies ( Ertem-Eray, 2020).
Describe how each Company Might Manage Service Quality
Managing service quality requires consistency in value propositions and customer service offerings (Gummesson, 2017). One of the ways Amazon can accomplish this is through refining is order fulfillment procedures. According to Jindal et al. (2020), customers' preferences are rapidly changing, and they are demanding high-quality service delivery from brands. At the backdrop of this evaluation, Amazon may improve customer satisfaction levels by ensuring that its inventory is efficiently managed. To achieve this, Hahn et al., (2018) suggest that Amazon should ensure that ordered products are accurately labeled to minimize delivery errors. Moreover, successful product inventory management approaches will allow Amazon to support consistent marketing activities tailored to meet unique customer expectations ( Hahn et al., 2018).
For Walmart, managing service quality might entail adopting a proactive customer support element. Studies show that about 80 percent of consumers require some form of assistance to complete an online transaction, and 75 percent of sales rely on how these customers perceive the quality of service they receive from a brand (Jindal et al., 2020). A reactive approach will repulse customers from visiting the business. However, exceptional customer service from Walmart’s customer support through anticipating issues and solving them as they emerge will allow the retailer to offer an admirable customer experience. Kumar et al. (2017) assert that such strategies can attract and retain more customers, besides fostering customer trust.
Ascertain if and How Each of the Respective Companies Manage Customer Satisfaction
For most companies, the focus is on making high profits, often at the expense of having happy customers (Kumar et al. 2017). Amazon, nonetheless, strives to maintain and improve customer satisfaction by offering value to its customers. Hahn et al. (2018) affirm that since its inception, Amazon’s focus has been on providing its consumers with value for their money. The enterprise accomplishes this by giving its customers an expanded selection of products and services, which was not possible in the physical store ( Hahn et al., 2018).
Walmart prioritizes customer feedback to improve its customer satisfaction levels (Jindal et al., 2020). Walmart performed dismally in customer services for a long time due to many negative reviews from its customers. However, the company realized that the decline in its value could partly be caused by poor customer service (Jindal et al., 2020). The supermarket chain has presently instituted a customer-driven change effort that involves using customer feedback to offer cleaner restrooms and high-quality products (Jindal et al., 2020). Walmart’s use of customer reviews for improvement purposes has significantly pleased its customers.
Describe how each Company Uses its Website to Manage the Intangible of the Service
Amazon utilizes its website to build its credibility. In the realm of service marketing, trustworthiness is essential (Gummesson, 2017). For online retailers, mutual trust between the brand and its customers is particularly vital in establishing a long-term business relationship. Amazon, for instance, establishes its credibility by providing brief background information regarding the services offered by the firm, reasons for starting the business, and how long the company has been online (Jindal et al., 2020). Amazon, thus, utilizes its website to allow customers to understand the value of the services it offers.
Walmart uses its website as the pillar of its online presence ( Jindal et al., 2020). Even at non-business hours, Walmart customers can access its website and go through the catalog of services offered by the business from the comfort of their homes. Gummesson (2017) acknowledges that marketing plays a central role in business growth, and Walmart’s website allows the firm to inform millions of its customers regarding its value proposition.
Describe how Each Company Manages its Customer Expectations
The high customer expectations remain the single biggest challenge facing online retailers, and effectively managing them will ensure loyalty and satisfaction (Kumar et al., 2017). Amazon is using different approaches to realize this integral organizational goal. One of the strategies that have allowed the business to manage customer expectations effectively is the monitoring relevant metrics. According to Gummesson (2017), the areas that companies choose to compete on should define their most critical metrics. Whether it is promptly responding to customer queries or offering fast deliveries, businesses need to track and examine these domains to determine whether customer expectations are met ( Kumar et al., 2017). Since Amazon is inspired by fast delivery, it monitors metrics such as delivery speed and the number of late deliveries to identify where it is doing well and where it needs to improve.
Walmart customers are always demanding high-quality service from the brand. One way that the company is managing customer expectations is through its focus on cultivating customer loyalty (Jindal et al. 2020). Specifically, Walmart and its partner merchants have introduced a hybrid loyalty element to credit, debit, and prepaid card offerings that offer an additional incentive to its customers to complete online transactions (Jindal et al., 2020). Loyalty initiatives are effective tools for managing and exceeding these growing consumer demands with every sale (Kumar et al., 2017).
Describe how the Company Communications Reflect on their Core Value Propositions.
Amazon’s value proposition includes a customer-centric approach where customers get a wide selection of products and services at low prices (Hahn et al., 2018). The company uses integrated marketing communications, which mirrors the unique benefits that Amazon's customers get from doing business with the company. For instance, its use of a customized homepage with products relevant to customers’ recent purchases closely reflects the firm’s commitment of providing a wide range of options to the customers to facilitate a seamless shopping experience (Jindal et al., 2020).
Walmart's marketing communications strategy is also aligned with its value proposition of enhancing customer satisfaction through low prices. The company's communications always stress on lower prices. Jindal et al., (2020) remark that Walmart's advertising approach is a critical channel through which the business conveys its message of affordability to a wide range of customer segments. As Gummesson (2017) notes, this is a more effective and meaningful strategy that allows companies to share their value propositions with different stakeholders.
Prepare a Blueprint for the Service Offer
An Eco-Friendly Purchasing Blueprint of Amazon
Walmart’s Blueprint to Improve Customer Experience
Describe the Servicescape
With the advent of the digital age, the servicescape for Amazon and Walmart's service offers is the Internet. Accordingly, Gummesson (2017) recommends that online retailers should incorporate customer preferences into their service blueprints' designs. The online environment utilized by Amazon and Walmart allows these retailers to have an impactful interaction with their customers by reflecting their core service attributes, including intangibility (Kumar et al., 2017). To ensure that the servicescapes are effective, the two retail giants should integrate strategies such as interactive advertising and long-term relationship creation between customers and brands.
References
Ertem-Eray, T. (2020). Addressing corporate social responsibility in corporations: a content analysis of Amazon's and Walmart's websites. Corporate Communications: An International Journal . 184 (1), 197-229.
Gummesson, E. (2017). From relationship marketing to total relationship marketing and beyond. Journal of services marketing , 18 (4), 58-79.
Hahn, Y., Kim, D., & Youn, M. K. (2018). A Brief Analysis of Amazon and Distribution Strategy. The Journal of Distribution Science , 16 (4), 17-20.
Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2020). The omnichannel battle between Amazon and Walmart: Is the focus on delivering the best strategy?. Journal of business research , 122 , 270-280.
Kumar, V., Anand, A., & Song, H. (2017). Future of retailer profitability: An organizing framework. Journal of Retailing , 93 (1), 96-119.
