- How does FedEx's money-back guarantee address customers' concerns about heterogeneity?
- Are FedEx's services more closely associated with experience qualities or credence qualities? What are the implications for the companys marketing activities?
- What are the customer-contact pros and cons of FedEx offering package pickup and drop-off through local locations of Walgreens, Kroger, and other retailers?
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CHAPTER 13: Services Marketing 391 FedEx location. It's also a safe alternative for packages to be picked up by people who don't want FedEx shipments left by the front door. LETON Another service FedEx offers to small and mid-sized businesses, including retailers, is FedEx Fulfillment. The purpose is to expe dite order fulfillment by having each business store its products in a FedEx warehouse. Then, when the business's customers place orders, FedEx puts the products into boxes bearing FedEx the business's own logo and ships directly to fedex.com those customers. The business doesn't need a Express separate warehouse or staff for fulfillment, and PEES packages are on their way to customers more quickly because the products were in FedEx's PHILIP LANGE/SHUTTERSTOCK.COM warehouse, ready to be packed and shipped. This service puts FedEx into direct competi- tion with Amazon.com, which offers a similar service to merchants that sell through the online Amazon According to the American Customer Satisfaction Index Marketplace. But it also gives businesses that don't sell via (ACSI), FedEx often tops the list of U.S. shipping companies Amazon a fast and professional fulfillment alternative. as ranked by customers surveyed. Every day, the company FedEx is careful to let customers know, through media delivers 13 million packages-and during the busy year-end and social-media announcements, when it anticipates that holiday season, it delivers many more. By meeting custom- extreme weather or other conditions will cause delays or ers' expectations for on-time deliveries, FedEx has increased force it to halt pickups and deliveries. For the duration of annual revenues beyond $60 billion and positioned itself for Hurricane Irma, for example, FedEx said it would suspend continued growth in the future. 36 deliveries in Florida. Some Florida customers who had ordered generators to be delivered via FedEx were unhappy, Questions for Discussion because they worried about being without power during and 1. How does FedEx's money-back guarantee address cus- after the storm. But one FedEx employee loaded several tomers' concerns about heterogeneity? generator orders into his car and took them to customers 2. Are FedEx's services more closely associated with himself. When a customer posted a grateful compliment experience qualities or credence qualities? What to FedEx on Facebook, the message generated thousands are the implications for the company's marketing of likes, shares, and positive comments. The company also activities? received positive comments for its donations of cash and 3. What are the customer-contact pros and cons of FedEx transportation services to areas devastated by Hurricanes offering package pickup and drop-off through local Irma, Harvey, and Maria. locations of Walgreens, Kroger, and other retailers?as 11 years old, and at the other end of the spectrum, to Case 13.2 FedEx Courts Customers with Convenience, Not Just Speed During nearly four decades of business operations. Over the years, FedEx has widened its delivery network Memphis-based FedEx has earned a reputation for reliable, to more than 220 countries. It has purchased more cargo on-time delivery of packages to homes and offices around jets and acquired specialized shipping firms, including Tiger the country. Founder Fred Smith originally focused on International, Roberts Express, RPS, and TNT Express, to overnight deliveries, choosing Memphis as the company's support global growth. For international business custom- headquarters because the airport rarely closes due to bad ers needing products, parts, or raw materials shipped across weather. With FedEx's planes departing and arriving on schedule nearly all the time, its express shipments usually countries or continents, the company now offers time-saving remained on schedule, then and now. To reassure custom- services such as commercial freight forwarding and cross- ers that delivery will take place when and where promised, border logistical support. the firm offers a money-back guarantee on time-sensitive To add the convenience of local drop-off and pickup express shipments, among other services. points for U.S. consumers and small businesses, FedEx FedEx has steadily expanded its portfolio of services acquired the Kinko's office services company in 2004 and since the 1970s. Its original overnight express delivery later rebranded it as FedEx Office. This acquisition also is currently available to U.S. customers in various forms, added printing and copying to the menu of services offered. including "first-overnight" delivery, next-morning deliv Then the company arranged for large U.S. retailers such as ery, next-afternoon delivery, and budget-pleasing two- or Walgreens, Albertsons, Kroger, and Safeway to accept pack- three-day delivery. The company's services also include ages for shipment and receive package delivery for customer cost-effective ground delivery for parcels and extra-speedy pickup in thousands of store locations. This means people same-day delivery for urgent deliveries within 1,800 cities. who want to send a package can head to a nearby retailer and ship where they shop, rather than making a separate trip to the
