Case Synopsis, Uses, Discussion Questions, and Answers
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CASE 33 Customer Service and Relationship Management at Nordstrom
Synopsis: Nordstrom is an upscale department store known for its superior customer service. The
case details several aspects of Nordstrom’s philosophy and strategy of providing superior
customer service and demonstrates how customer service is the cornerstone as well as
the primary source of Nordstrom’s competitive advantage.
Use:
Chapter 5 Describes the retail market strategy of an upscale department store, including its sources
Discussion Questions
1. What steps does Nordstrom take to implement its strategy of providing outstanding
customer service?
Nordstrom’s emphasis on customer service springs from its core business philosophy of taking
care of people, and profit will take care of itself. Its emphasis on customer service is well
captured by the notion that Nordstrom’s “service is not service like it used to be, but service that
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2. How do these activities enable Nordstrom to reduce the gaps between perceived service
and customer expectations, as described in Chapter 17?
The various gaps that could exist between perceived service and customer expectations and how
Nordstrom attempts to reduce these are detailed below:
Knowledge gap: The difference betw
customer expectations. Nordstrom understands that each customer would have high
Standards gap: The difference between the retailer’s perceptions
and the customer service standards it sets. Nordstrom attempts to close the standards gap
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3. What are the pros and cons of Nordstrom’s approach to developing a competitive
advantage through customer service?
Nordstrom’s approach to competitive advantage through customer service is one of the
most sustainable approaches to competitive advantage. While other retailers may match