Fangzi Carmen Wang
February 28, 2016
BUAD 1000
Costco Craze
Reflection of Costco Craze
Costco earns customers’ favor through its reasonable prices, large quantities of goods, and good quality. As mentioned in the video, American customers hold this kind of psychology: “More and bigger is better” (Costco Craze Video). In Costco stores, all goods are packed in huge boxes, and people are easily attracted by the large size but lower prices. Customers all like to spend less money but buy more products. According to statistics mentioned in the video, Costco has 30% lower prices than most supermarkets, and only has 15% prices marked up (Costco Craze Video). I think it satisfies customers’ expectations; therefore, people are willing to shop at Costco stores. It is also important to notice that the goods at Costco by Kirkland brand are much cheaper than national brands.
Costco attracts people’s consumption through limited choices of products. I found it interesting that people get confused when facing with too many choices and they just walk away because they have trouble choosing the one they really want. At Costco, the problems are easily solved since they provide fewer types of products and offer customers the best choice. It increases the possibility of customer buying items.
The CEO really comes to stores in different locations and check prices, placing, and products. It is very meaningful because it helps understand customers’ expectation. One other important factor is that Costco cares about not only customers, but also the employees. They give employees high wages and benefits of healthcare. I think they did a great job because employees are willing to work for Costco, so that they can work harder to make customers happier and more satisfied. Ensuring the quality of service is also important in a store. Every great experience can increase the possibility of