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Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone with a 250-page user manual and instead will make the manual available online. These changes will result in a lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 1.2 pounds to 0.5 pounds as a result of these changes and the freight classification has worsened from 55 to 70. Use Table 15.2 to calculate the difference in Microtech’s monthly shipping charges if the company ships 10,000 phones per month.

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Whether Amazon.com is a model for the future of retailing based on the example below

Service Sector Growth occurs when advances in technology creates new demands for a variety of services. (Bordoloi, Fitzsimmons & Fitzsimmons, 2019). Amazon has experienced this growth by focusing continually on customer satisfaction. With all the advances in technology they could go high tech, however they have chosen to keep the website user friendly to connect with the changing customer demographics. They utilize technology to personalize the on-line shopping experience. Based on past purchases, other items are recommended. Also, collaborative filtering software determines what is popular with individuals that purchase similar items. Repeat customers are greeted by name when they log on to the website which creates a personalized approach to shopping. It’s similar to data mining that utilizes patterns and relationships to make predictions. Retailers do this to predict buying trends, increase customer base and prevent customer attrition. Its objective is to develop new marketing opportunities. Data mining detects which items or offers are the most attractive to customers. (Deveaux, Sharpe & Velleman, 2019). Amazon has become the Internet of Things on Shopping. Amazon is a true leader in innovation, pioneering Amazon Web Services that provides cloud technology for brick and mortar businesses.

A key factor in Amazon’s success is their devotion to the customer that drives brand loyalty. The approach started with a single product, books; then new products were introduced such as electronics, software, music clothing etc. The personalized customer service and online network are a win-win. This loyal customer base helps to expand their reach, encouraging the community network to share feedback and post reviews.

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You work for EZOffice, a manufacturer of office furniture such as desks, tables and chairs.

The company maintains a blog that is used for the following:

  1. discuss topics pertinent to the industry
  2. notify people of new products
  3. alert customers to product recalls
  4. provide general safety information

The company is about to launch a new product called the Comfyzoomer. This is a new desk chair specifically designed for people who spend long hours in front of a computer. It has been ergonomically designed, with the help of occupational therapists, to reduce back and neck strain. The chair upholstery is made from recycled materials. The frame is made from bamboo which has an overall low environmental impact. It has been priced very competitively with other premium office chairs.

Write an appropriate blog posting, for the company site, that introduces this new product.

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Arts N Crafts Industries manufacturers high-end light fixtures, which it sells internationally. The company is responsible for paying for shipping its product to a distributor located in Atlanta, Georgia. Due to the high cost of shipping, the company is considering shipping its products unassembled, but will include detailed assembly instructions in each package. By shipping unassembled products, Arts N Crafts will be able to shrink the size of its cartons and thereby increase the number of products per pallet from 16 (4 rows of 4) to 25 (5 rows of 5). Note that this change will not appreciably increase each product’s 8-pound shipping weight. Furthermore, since individual fixtures will be packed more tightly, they will be less susceptible to damage and easier to handle. Thus, the company expects the freight class to decrease from 85 to 70. Currently the company ships 400 units per week. a. Using Table 15.2, assess the impact of the proposed change in packaging on weekly shipping cost. b. How will your analysis change if demand for the product increases to 500 units per week?

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