Wednesday, February 18, 2009

Business to Business purchasing guidelines

Nordstrom is a higher end department store based out of Seattle. This is a very interesting company when it comes to the manner in which they perform their business purchasing. The company has four tiers to it's corporate social responsibility guidelines: Supporting Communities, Sustaining the Environment, Protecting Human Rights, and Caring for Our People. The first three of these tiers have a huge impact on how they conduct their business and their purchasing. Their Human Rights guidelines go above and beyond the international labor laws in some ways. For example, when sourcing their materials, garments, and fabrics from foreign countries, Nordstrom investigates the factories they are purchasing from, and even if child labor is legal in the country of origin, Nordstrom will not work with that factory. If they do not agree with the wages or hours the employees receive, they will not work with that factory.
These types of requirements help set Nordstrom apart in product and supplier selection, and it diversifies their customer base as well. As social responsibility comes to the forefront of more and more people's minds, companies that have these kinds of policies will receive the business and revenue from those that care.

Tuesday, February 3, 2009

Consumer Behavior


When thinking about consumer behavior, for me, perceived risk of the purchase or decision is a huge factor. Small changes in this, can drastically change my likehood to purchase. High perceived risk makes a purchase more high involvement, and can turn it into enduring involvement.
Consumer choice on insurance is enduring involvement, and although I have never personally made this decision, I imagine there is high perceived risk involved. Many insurance companies, such as geico and progressive, run a high amount of advertisements telling customers how easy the whole process is, and how much money they can save you. Representatives are portrayed as friendly and informed, and some insurance companies even go as far as assisting you in comparative shopping. All of this, in my opinion, is to help consumers let their guard down and lower their perceived risk in purchasing insurance in general, and especially with their company.