Reviews 1. “Love the space this laptop bag gives, the pockets for organization are wonderful. Easy to carry and transport.“ 2. "Nice backbag for basic organization and a book or two. Laptop sleeve is a bit tight and smaller than advertised.“ 3. "Very nice purse, but a bit small.“ 4. "Buy it. This suitcase is a little work horse and drives beautifully. It's compact, small, and after 5 flights look brand new. ”
Question 4 What is the difference between eBags’ core product and its actual product? Describe its actual product and your assessment of whether the actual product provides an attractive or an unattractive mix of characteristics?
Question 4 Product mix: all the product lines and items that a particular seller offers for sale Range of associated products that yields larger sales revenue when marketed together than individually or in isolation from others Width: number of different product lines Depth: number of different versions of each product (size, flavor, color) Consistency: how closely related product lines are to one another
Application Question 1 Draw a product attribute map for eBags.
Application Question 1
Application Question 2 Compare and contrast eBags and Zappos (the subject of Case 9.2).
Zappos Online shoe retailer Sales: 1990 $0 2005 $370 million 2008 $1 billion Excellent customer service Human resource management policies
#1 Online bag retailer since 1999 2.5 million customer reviews 14.8 million bags shipped 2.5/14.8 = 16.8%
Zappos Why do you think Zappos doesn’t drop ship like eBags does? Speed Different product Consumer service
What would eBags gain and what would it lose if it adopted Zappos’s approach to warehousing and distributing products? Increasing Cost (warehouse, employees, inventory) Increasing Profit margins A real company culture