Services Marketing: Dell Being Direct To Customer

2814 words - 11 pages

The objective of this report is to analyze the services marketing performance of Dell by introduced e-commerce to build stronger relationships with customers. As the Internet continued to grow, more companies started to realize how it will enhance customer relationship and loyalty by introducing online selling. It is simplifying the range of transactions and communications with customers as well as internal management of an organizational structure. Dell masters the practice of selling computers directly online by offering build-to-order, just-in-time inventory; for that reason, cheaper prices and better quality of computers/services can be provided to end users.KeywordsComputer Industry, E-commerce, Customer Satisfaction, Marketing StrategyINTRODUCTIONServices marketing generally believe excellence service stimulate customers to buy more, become less price sensitive, interest to other services offer by the same company and share their positive experience to others. It will build customer loyalty over time if customers believe they are receiving good value of products or services. As loyalty are building up, barriers against competition of the service provider in the same industry will become higher which also generates more revenue from each customer. (Venetis & Ghauri 2004)Services provider can maintain customer relationships easily by identify service attributes of what customer wants to gain competitive advantages. Customization of products/services treats each customer with a unique set of service which will directly connect each other for long term relationship. Offer services different from competitors through differentiation will also enhance customers' perceive value of the company. (Claycomb & Martin 2002)The Internet provides opportunities to business to reach and extend sales to almost every part of the world at very low cost. Product configuration, order entry, and technical support are processed online which allows the company to grow globally without increase in customer service costs. Dell focuses on the fact that it is a computer service provider; therefore, the use of Internet and e-commerce is to improve efficiency, increase customer satisfaction and communication. This study will show how Dell's efficient use of services marketing has leaded the company to become one of the top computer manufacturers in the world.COMPANY BACKGROUNDDell Incorporated was founded by Michael Dell in 1984 and went on to public in 1988 at NASDAQ. He believes the concept of build-to-order and direct contact with customer has advantages to compete with most of the manufacturer in the personal computer industry. By offering low cost products and quality services directly to customers had assisted the company to capture most of the market share among its competitors at the early 1990s. (Dell 2007a; Wikipedia 2007)Today, Dell is one of the largest computer manufacturers in the world and their mission of providing excellent experience to customer...

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