5
CVS Case
Name
Department of Business, Mississippi Valley State University
Ba 445-01: Consumer Behavior
Dr. M.L. Shepherd
Sep. 1, 2021
CVS Case
Headquartered in the Woonsocket, Rhode Island is one of the number one providers of prescriptions. This company is CVS, also known as the Consumer Value Store. This company provides a number of services from cosmetics, groceries, photos, etc. Services is only one aspect, affordable prices are another area they thrive in. Satisfying customers and providing deals and initiatives has been their way to beat out competitors like Walgreens, Kroger, Rite Aide, etc. Throughout this case many things will be analyzed and evaluated. These areas include important facts, key issues, alternative course of actions, and recommendations for the best course of action.
The Most Important Facts
With 6,200 locations in forty-four states in America, CVS serves the health care needs of its customer by providing convenience (Babin & Harris, 2016). In 2001 this company had number one market share positions in Boston (28.8%), Chicago (51%), and Houston (36.9%). In August of 2001, their pharmacy sales increased by 14.7% and store sales by 10.9% (Why being able, 2017).
Key Issues
This company is facing a number of issues. This company wants to remain at the top while trying to maintain customer relationships. In addition to this, they try to compete with discounts, programs, and hours other competitors offer in their market (Babin & Harris, 2016). .
Alternative Courses of Action
Operate 24 hours
Provide a delivery program
Action Evaluation
Action #1: Providing the services at all times throughout the night may be beneficial. This way you will not lose business and you will have happy customers guaranteed. In additional to this, this will show the positive commitment you have for your customers.
Action #2: To compete you may have to compete with others that may not even be in the same realm. Providing delivery services will help you reach more customers, boost virtual visibility and compete on another level.
Best Course of Action
I believe the best course of action would be the combination of both. Having 24 hours will help you keep customers coming back. Some people may not get off of work until late and may need to grab a couple of things and some people just may not like to come outside during the day time. Implementing the delivery service would also be beneficial in a way. This will ensure that customers can get their goods without having to leave the comforts of their own homes. During these unprecedented times delivery and ordering from home has become a consumer favorite.
Questions for Critical Thinking
CVS provides pharmacy, health and beauty club rewards as well. Hedonic value will be the reward points you can spend on more products late. Utilitarian value would be the fact tat the customers are potentially earning rewards by purchasing these products.
CVS may add other programs and more rewards to their cards. I would suggest they may continue what they are doing and add just a little more. I believe offering a stock portion to the card may make it more valuable.
I believe the advantage may be that you will not have to keep up with as much information and risk peoples information being leaked. A disadvantage would be not knowing exactly who to send what to. A loyal customer may want to be notified about the same deals and get mail but may be afraid to provide that information due to software risks.
Data privacy and protection is what this question is referring to. CVS will need to worry about the misuse of information, fraud, copyright and sabotage of information.
References
Babin, B. J., & Harris, E. G. (2016). CB: Consumer behavior.
Why being able to offer 24/7 customer service will benefit your business. (2017, October 4). Frontline. https://www.wearefrontline.co.uk/blog/why-being-able-to-offer-247-customer-service-will-benefit-your-business/