Former Zappos chief Tony Hsieh extolled customer service and set the bar high for rivals

Tony Hsieh, who ran online shoe retailer Zappos.com Inc. for two decades, had surprising advice for employees: If customers wanted a shoe Zappos couldn’t supply, the rep would have to point them to a rival. who could.

This service, he thought, was a good way to cultivate loyal customers.

Mr. Hsieh, Internet pioneer, customer service …