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Customer as coproducer and service customization.

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Amazon.com opened its virtual doors in July 1995. Since then, the retailer has served millions of customers in 160 countries and grosses more than $20 in sales per second on its Web site. Many people regard Amazon.com as the “golden child” of the Internet. The company is the concept of Jeffrey Bezos. The young CEO started Amazon with the intention of establishing a strong brand name that he could leverage into other products. He marketed books first, because he believed they are ideal cyberspace products. Customers do not need much physical interaction with the product or with a...

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Amazon.com opened its virtual doors in July 1995. Since then, the retailer has served millions of customers in 160 countries and grosses more than $20 in sales per second on its Web site. Many people regard Amazon.com as the “golden child” of the Internet. The company is the concept of Jeffrey Bezos. The young CEO started Amazon with the intention of establishing a strong brand name that he could leverage into other products. He marketed books first, because he believed they are ideal cyberspace products. Customers do not need much physical interaction with the product or with a salesperson to purchase books. Books, therefore, are well suited to marketing over the Web. A key success factor for Amazon.com is that it captures market share and fosters brand loyalty by focusing on customer needs. Bezos believes that paying too much attention to short-term gains means forgetting about long-term customers satisfactions. This long-term customer focus comes at a price. Despite impressive sales growth, Amazon did not turn a profit quickly, but that hasn’t stopped Amazon from becoming a dominant force in online retailing. The Amazon Web site now includes products and services such as music, software , toys, and online auctions. AMZON’s GIUDING FORCE-THE CUSTOMER Amazon’s guiding philosophy is to provide superior service to its customers. Bezos and his management team spent one year creating the web site and database programs that drive Amazon.com. They sought to create a friendly site that would not demand a high level of computer literacy. Bezos recognized that Internet commerce would shift the balance of power toward consumers. Consequently, Amazon.com builds customer relationships by customizing its service, involving its web site visitors in the service, and creating a communal spirit. Focus on the consumer is the cornerstone for developing customer loyalty. CUSTOMER AS COPRODUCER AND SERVICE CUSTOMIZATION Amazon.com integrates customers into the service delivery process in several ways. Customers may participate in the Discussion board service. This service presents an opportunity to read comments from readers about books of interest to the customer. The customer also can chat with other Discussion board participants. The “wish list” is another service that Amazon.com offers. A customer can either titles of books he or she would like to have in a personal wish list. Someone who wants to give a friend a book as a gift, for example, can make a selection from the friend’s wish list. Amazon also makes personalized recommendations to individual customers. Some of these recommendations are based on the customer’s past purchases, and other recommendations are based on the behaviour of past customers who have made purchases similar to those of the customer. If a customer purchases a book on Amish quilts, for example, Amazon.com’ s software will search for all the people who purchased this same book. Using a mathematical process called collaborative filtering, the software determines what other books are popular with people who read the Amish quit book. It then develops a list of proposed titles for the customer to read based on this information. Amazon.com uses this technology to provide the same friendly and personalized Please download the attached file.

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Click and Mortar is a kind of business that comprises of operations online as well as offline, and therefore generally include a physical store as well as website. This kind of business facilitates the customers to undertake online shopping and/or offline shopping for making comparisons between different products and then make purchases after complete investigation. The transactions with such businesses can be online or face-to-face.
            The various Click-and-Mortar retailers include - Barnes & Noble, Books-a-Million, and Angus & Robertson. To stand in competition with the competing companies as well as to gain competitive edge, Amazon takes several measures to provide finest services. The purchases can be made day and night and there are no sleeping hours for the business. This gives the customers the convenience of shopping late night, early morning, as well as all other times. Amazon.com has worldwide recognition, which it has gained from orientation of long-term. The organization makes attempts towards keeping itself one-step ahead so that it offers the services before other companies do. Amazon has also undertaken collaboration with other organisations and offers loyal, and reliable customer base, together with addition of novel features, such as, low price, quick delivery, as well as convenience. (Anon., 2010)

            In certain aspects, Amazon.com is disadvantaged by Click-and-Mortar Companies. These facets include not having physical bookstores, which makes it harder for gaining the loyalty of the customers, lacking in-person dealings, possibility that the potential customers are unable to undertake Internet access, need for extreme advertising, and excessive focus on the customers. To overcome these disadvantages, Amazon can open physical bookstores, launch and establish several methods of gaining loyalty from customers, such as, offering

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