Services Marketing: Dell Being Direct to Customer

Essay by chauhoyeungUniversity, Master'sB, February 2008

download word file, 11 pages 2.3

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,