This case focuses on the approach to customer service and customer relationship management taken by Nordstrom, an upscale retailer headquartered in Seattle, Washington. Nordstrom has operated with the same management philosophy for over 100 years: offer the customer the best possible service, selection, quality and value. Nordstrom is famous for its exceptional customer service, which appears to be very accommodative of customers’ needs and desires ¾ apparently even if it means sacrificing Nordstrom’s own interests. However, an analysis of the case facts indicates that this is an illusory and deceptively simplistic view of Nordstrom’s approach to customer service and customer relationship management. To the contrary, Nordstrom seems to be very committed to a win-win situation with its customer service and customer relationship management. The case provides examples that reinforce this win-win perspective while also showing how the perception of an extremely accommodative perspective toward customers could arise.

Additionally, the case describes recent challenges to purveyors of upscale and luxury goods that have arisen as a result of the 2008-2009 economic recession. Within the context of changing consumer demand for high-end goods, increasing collection problems on accounts receivable, and the need to innovatively stimulate demand for the products that Nordstrom and other upscale retailers sell, the question is posed: “Can Nordstrom avoid being trapped in circumstances that could significantly alter the relationship between the retailer and its customers?” 

Questions 

1. Dealing with dissatisfied customers is, perhaps, the greatest source of conflict for retailers. Is Nordstrom’s approach to customer service and customer relationship management an appropriate way to defuse potential conflict situations? Explain the reasoning behind your answer.
2. Using the assertiveness and cooperativeness dimensions that underlie the five conflict management styles, explain Nordstrom’s approach to customer service and customer relationship management.
3. Drawing on your answer to the preceding question, discuss whether or not Nordstrom can continue with the same customer relationship management approach as the economy deteriorates.
4. What potential conflicts might arise for a luxury retailer like Nordstrom during a severe economic recession? What are some effective ways in which Nordstrom might deal with these potential conflicts?