Running Head: NORDSTROM























Description, Classification and Characteristics

Nordstrom is described as an upscale retailer, which is known for its superior customer services for the last 100 years. An Upscale retailer is one that is affluent to its consumer. Nordstrom has a number of characteristics as an upscale retailer. In these shops, the retailers are more concerned about the customer satisfaction. The store satisfies a wide range of consumer needs. They offer the customer the choice of multiple merchandise with ranging prices under the same roof. The products vary one to the other despite being of the same category. Upscale retainers own a retail chain that has many stores that are situated around the country. These department stores sell a variety of products, which include furniture, paint, toiletries, cosmetics, apparels, and electronics among other things. Nordstrom is categorized in this category because it has an inlet of operations. An inventory is kept at the store that helps customers to identify what the store offers and what cannot be located in the store. This helps the store to record profits from full priced items and improves the sales.

Level of Service

 Nordstrom has its focus on its customer and it does this by serving the consumer whole-heartedly. Nordstrom spends very little money on adverts because the clients themselves speak for the good of the store (Spector & McCarthy, 1999). The satisfied customers narrate to many people the good service they experience at Nordstrom hence the big sales for the store since many other customers want to experience the same. In the store, an incidence is narrated of a customer living behind his tickets at the store. One of the employees took it upon himself to pay a cab and deliver the tickets to the respectful owner. This is termed as heroic service. In Nordstrom, the customer satisfaction is prioritized despite the expenses that the store incurs. In the case study above, it is notable that the store meets the needs of the customers and is not only in the interest of profit gain after a business transaction but for reliability of the customer (Spector & McCarthy, 2000).

The store attained a life long customer because it went an extra mile to meet the needs of the customers by selling to the one legged customer one shoe. The store gives the best experience whether the buyer is at the store or purchasing online. The uttermost concern of the store is that their customers are treated with love and respect; this is displayed in their business strategy “greed through love” (Spector & McCarthy, 2000). The store has perfected the art in that the customers are given undivided attention. It also has a generous exchange policy, where the customers come first despite the fact that the store might incur loses; it first centers on the interest of the customer. Companies like Jcpenny and Macy’s on the other hand are on the opposite end of the continuum. They prioritize family and friends by giving them reduced price percentages. They are more focused on promotions and incentives to lure the customers, but the customer incurs the cost of advertising in the product price.

Retailing mix

 The six components in the retailing mix include product, place, presentation, price, personnel and promotion. In the past 100 years, Nordstrom has experienced a growth in products. The expansion started as a shoe store to a big department store that sells many other products. Today Nordstrom has 157 stores in different states in the United States. The company’s president Eric Nordstrom believes that the stores should not just be located in a demographic location simply because of the fact that it is good for business or it was on the paper advert. He depends on his gut feeling to know where the store will be placed. Nordstrom relies on its customer to gain more customers. The company does not invest on adverts or promotions to sell out their products but instead it believes in the good word spread by its customers. In Nordstrom, the receptive employees receive their own end of the bargain through appraisals and bonuses. The company opts to spend most of its money pleasing its customers rather than on adverts and promotions. The company prefers to incur losses but to retain the good consumer and producer relationship (Spector& McCarthy 2000). They have computerized inventory that is used to inform the people on the latest product in the store; its main goal is to perfect the relationship with their clients. The most important retailing mix is the personnel. The company prioritizes maintaining their customers by establishing relationships with them.


It is important for the company to manage the current economic conditions with the rising inflation of commercial products and unemployment that has been experienced because of these factors .These economic forces can change the way in which consumers spend their money. In the age of recession, most consumers are exploiting ways in which they would spend less; this is through bargains, incentives or promotions. Consumers are limited to buying the basic want at a subsidized rate. This can be a drawback to Nordstrom because they centre their attention to customer relationship rather than the products that bring the consumer to its producer.


 Competition amongst companies is very aggressive. Different companies are developing new strategies in which they can use to advance themselves. Business expansion in many locations is a good strategy that Nordstrom has taken to develop competition with its competitors. This works to its advantage because it makes other competitors strive to get ahead of them. The company aims to introduce “Seamless” shopping experience to most of its other branches so that it can meet the consumers’ needs in all the states (Spector & McCarthy, 1999). This is challenging to other competing companies. The company should develop new trends so that it may retain its existing customers and attract new ones to its unique products and services. In this way, the company will maintain a high profile and have a strong position in the market.



Spector, R., & McCarthy, P. D. (2000). The Nordstrom way: The inside story of America’s #1 customer service company. New York, NY: Wiley.

Spector, R. D., & McCarthy, P. (1999). The Nordstrom way. New York, NY: Wiley.


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