Answer :
Zappos uses customer loyalty programs to reduce the bargaining power of buyers, one of Porter's Five Forces. This is part of the company's strategy to create a strong corporate culture focused on customer and employee satisfaction.
Companies like Zappos use customer loyalty programs to influence one of Porter's Five Forces, specifically the bargaining power of buyers. These programs are designed to increase customer retention and reduce the propensity of customers to switch to competitors, thus reducing the power that buyers have by making them more dependent on the company.
The loyalty program at Zappos is a part of the company's broader strategy to create a unique corporate culture that emphasizes customer satisfaction, employee happiness, and a sense of family and team within the organization.
Customer loyalty programs are designed to reward customers and to encourage them to remain faithful to the company brand. The rewards the customers received encourage them to continue patronizing the company.
