Strategy for Online Grocery Shopping

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CASE-STUDY #3 1) What is the value proposition to the customer of Web-based Shopping? How does it compare to the other innovations in customer service that Ives mentions at the end of the case? Value proposition to the customers shopping on the web. A) The first and foremost is the convenience of the home. This value proposition actually leads into savings of time and money in terms of gas. B) “Gives the power of the market back to the individuals” 1 – Pierre Omidyar- founder of Ebay. This quote encapsulates the entire value proposition of web-based shopping. Customers can now review the ratings of the products and compare different brands. There after narrowing down to a particular brand, compare the prices of the products through different merchants, how the merchant’s service and order fulfillment is rated and reviewed. How long do they take to ship an item? How fast can they ship? Are they good with returns? Comparison to other innovations mentioned at the end of the case. At the end of the case Ives mentions the way customer services have transformed due to customer convenient and cheaper fulfillment alternatives. Some of those technological innovations in those fields could be compared to web-based shopping and online grocery shopping and sometimes they cannot be. Banking: Banking could be compared to buying a commodity. Instead of going to the clerk, one can go to the ATM and withdraw money. One would not care how the currency notes are, because the value will remain the same irrespective of the condition of the notes. Same goes with a commodity, I don’t care if its manufactured yesterday or the month before. But I can’t say the same thing when I am buying vegetables; the fresher they are the better. Gas Jockey: Gas jockeys disappeared because gas-stations found it was cheaper to let the customer fill up gas themselves and pass on

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