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321
services accompanying them. The firm thus calls itself the chief technical officer of its small
firm customers. What does that role mean, in terms of the demand for and supply of service
outputs, along with the product purchased?
•
CDW is a key provider of
advice and expertise to buyers, involving everything from the
appropriate configuration of products to buy to the setup of a local area network. CDW is
also available after the purchase if any customer service problems arise.
•
CDW prides itself on its
speed of delivery; 99 percent of orders are shipped the day they are
received. The company can make this promise because of its investment in a 400,000-square-
foot warehouse, which permits it to hold significant speculative inventory and avoid stockouts.
•
CDW
offers different customer service options: a customer can buy online, without a great
deal of sales help, but CDW also assigns a salesperson to every account, even small, online
purchase accounts. This service output gives the buyer access to a person to talk to if any ques-
tions or problems arise, and it increases the buyer’s flexibility in terms of how to shop. The
salesperson has no incentive
to be overly aggressive, because a sale results in the same com-
mission, whether the customer orders online or through the salesperson. A CDW salesperson
goes through four months of training before being allowed to serve customers, so his or her
level of expertise and professionalism is high enough to serve the customer well.
•
CDW offers its customers broad
assortment and variety. A small business buyer can buy directly
from a manufacturer, such
as Dell or Hewlett-Packard, but that means restricting him- or her-
self to one manufacturer’s product line. Buying through CDW gives the buyer access to many
different brands, which can be useful when putting components together in the optimal com-
puter systems. CDW enhances the effective assortment available by also refiguring products
before shipping them out, to customize them to the demands of the business buyer.
How well does CDW compare to the competition? Offering high levels of service outputs is great,
but the question always remains: How well did the channel perform against other routes to market
through which a customer can buy? When CDW faced a strong challenge from Dell Computer, offer-
ing 0 percent
financing for the first time, together with free shipping and rebate programs, how
did CDW withstand the competitive attack? For an individual buyer, such questions take on a dif-
ferent perspective: how much are CDW’s extra service outputs worth to my company? For the buyer
that values quick delivery, assortment, and CDW’s targeted customer service, the apparent price
premium is well worth the money, because it saves the buyer the cost of acquiring those services
in another way (or the cost of not getting the desired level of service). Ultimately, the appealing
service outputs provided by CDW motivated Dell to enter into a partnership with the supplier, span-
ning Europe, Asia, and North America. Thus, Dell’s servers, PCs, storage solutions,
and networking
services are available through CDW. For Dell, the combination of its product portfolio with CDW’s
sales and technical expertise proved optimal, leading to increased sales and customer satisfaction.
3
Thus CDW’s strategy of focusing on a particular subset of all computer buyers and providing
valued service outputs to them, along with a wide assortment of quality products, has helped the
company cement its relationships with these buyers, while also making it a preferred intermedi-
ary channel partner for key manufacturers.
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322
In the omni-channel era,
these examples are widespread; for example, contrac-
tors use e-commerce platforms in several ways. Some rely on e-commerce from
start to finish and order items online; others leverage these tools to research
technical specifications and then order over the phone or in person with their
preferred distributors.
4
Even when a product can be standardized across global markets, the user’s
preference in terms of how to buy the product likely is unique to each country.
Researchers argue that among the four standard marketing mix variables (prod-
uct, promotion, price, place), place,
which defines the
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