Thursday, April 1, 2010
Business Personalization and Loyalty
As we have talked about in class, the market place changed with the Industrial revolution. This means that instead of all the little villages with their own market places, the market place became global. This hurt the little shoe makers shop in that little village but has made the marketplace more diverse also. I think that although we can get shoes from China now and we don't personally know the people that make our shoes, businesses try to make you feel like you have a relationship with their company. In my business class, they talk about loyalty. I understand that places like Wal-mart have a very big share of the market today because of the very low prices but not everyone buys from there. Some will pay more for what they think is better quality or if they do know the local bread shop they will buy from there because they have a personal relationship with them. Even big companies try to customize or have one-on-one help with you to solve your problems to make you want to buy from them again. I think that, although the Industrial revolution has changed our market place and classes of the people a lot, they have not forgotten about what people will also take in to consideration besides the lower prices, which is personal relationships and the loyalty they develop.
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When I read this post it made me think of European countries, and I doesn't seem like they would have several Super Stop & Shops/ Wal-Marts in the neighborhood. The people in the US are constantly going and going, and when they want something, they want it now. Why should someone wait a couple of weeks to have a pair of sneakers made, when they could just go to Wal-Mart and pick up a pair for 20 bucks. I agree that personal relationships and loyalty are important, but this country is moving at such a rapid pace that most people would rather go to Wal-Mart and get everything they need. That's what makes us so different from the Europeans, they go to the local market daily and pick up what they need for that specific day. They most likely know their local butcher, or local grocer. They have a relationship, and are loyal to them, and will continue to give them their business. You're not going to find a BJ's or a COSTCO in Italy.. or atleast I don't think so.
ReplyDeleteWell, as a realist point of view is that most people will try to keep their relationship with whom they buy from until money becomes tight. When money is tight people are going to Wal-mart to try and save money, especially those who need to feed kids at home. There are issues with making walmarts and that is now products are being made in china and taking away jobs in America. Most of us know that this this means that those who used to make things in the U.S are out of jobs, and some may be able to apply at walmart. There is a real problem that marx sees and I can see with a rising population, that everyone needs work to make money in order to have necessities to live. With more innovative ways to supply more to more people it leaves less work for the individual. Eventually there are circumstances where there are so many people such as china that cause socialism. In an example most of our pencils are made in China, and are very cheap but gives everyone labor. If they made cars they would make too many and be way over the demand. Making a car part is worth more than making a pencil, giving those who make cars more money. Those making pencils have to sell way too many to make even close as the same as selling one car. To make my point, that the U.S is moving toward socialism because the government has to keep up with the work demand of the people, and I think its because of Walmarts, overseas business and increasing population.
ReplyDeleteI think that businesses today are trying to go all out and do all of those business things at once. They are all competing for the lowest prices & best quality. At the same time they are trying to build personal relationships with their customers. This allows these big businesses to gain more and more customers.
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