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Consumer Attitude And Behaviour Towards Amazon

1491 words (6 pages) Essay in Marketing

24/04/17 Marketing Reference this

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The main purpose of this research is to analyse online consumer behaviour in a systematic way. What factors affect online shopper while making the decision to buy goods and services from internet, to buy more items and give information about the product from website. Online shopping is the process of buying goods and services through internet. Since the development of World Wide Web, retailers sought to sell their goods and services through internet. Shoppers can visit web site and shop just sitting in form of computer. Consumer can buy anything from online such as books, household’s product, toys, hardware and software etc.

Moreover, in just few decade the internet has become more popular to Adult and young shopper because the internet offers significant Advantages. Ability of the internet contains wide range of collecting information, supplying a service or purchasing a product. It offers you to Access to products and services which are not handy in local market. Online shopping is described as a computer activity performed by a consumer via a computer based interface, where consumer’s computer is connected to retailer’s digital storefront through a network (Haubl & Trifts, 2000). Online shopping allows for choose options beyond the traditional way that may be more time consuming. It can help you to search about product in details and make comparison of prices and characteristic before you decide to buy a product.

.An online business must have their different identity from their competitors so that it can sustain in business market among various online websites. Consumer satisfaction is vital factor for the online business to remain competitive. Steady customers, besides providing steady revenue, are necessary as it helps businesses obtain more customers through the act of referral (Kumar 2001). Online shopping is described as a computer activity performed by a consumer via a computer based interface, where consumer’s computer is connected to retailer’s digital storefront through a network (Haubl & Trifts, 2000).

ORGANIZATION BACKGROUND: AMAZON.COM

Amazon was the first online bookstore and one of the largest bookstore and online store in global market. Founded in 1994 by Jeff Bozos, in 2004 it was in number one position in online services. Now it has 64 million consumers in more than 150 countries, 900,000 programmers linking with Amazon. Amazon sells directly wide range of product, books, music videos, mp3 DVDs. Clothes and kitchen items electronic goods and others. Even though company has highs and lows, Amazon able to manage the problems and sustain in competitive market. The company also used few strategies to leave behind their competitors like EBay. (Brynjolfsson & Urban 2001).

Moreover, improving of the company management, training to its employees and applying the advance technologies make more effective to the position of amazon.com.

SWOT ANAYSIS OF AMAZON.COM

The SWOT analysis is one essential tool for business to understand and measure internal and external environments where company function. SWOT is short form of Strengths, weaknesses, Opportunities and threats. SWOT analysis offer a high quality outline for reassess position, strategy and direction of organisation. It is also useful for strategic planning, competitor evaluation marketing. SWOT analysis can assist to discover opportunity that business can take advantage of market and understanding the weaknesses company can reduce threats.

Strengths:

Diversified product such as books, CD/DVD. It also has provided additional consumer in other product areas and indicates strategic movement to the business to grow through new consumer bases.

User reviews are seen as a positive attribute to share information and provide feedback which can help to stimulate sales.

Weaknesses:

It sells verity of product in different sectors, the company may lack the flexibility that some of its competitors possess.

The focus on technology is quite important for online retailers. The system requires constant maintained in order to ensure consumer satisfaction by providing service without any delay.

Opportunities:

Amazon could collaboration with the public sector like British library, that users will use it as public libraries which also cover rare and old books.

It can partner with various e-retail companies, in 2004 Amazon buy china’s biggest retailer joyo.com. it retails toys, movies and music at discounted price

Threats:

Being a global retailer, Amazon can face political problems in the countries where it operates.

Advance development in technology which could change the markets might challenge the company to adopt these changes.

Rationale:

This research proposal is determined to discover about the proposed topic due to my experience in online shopping at amazon.com.

There are some reasons why shopping at Amazon.com is better than visiting high street shops. The web is open 24/7/365 we can find anything on it.

Research objective:

The main intension of this proposal is to conduct an experimental research on the consumer attitudes and behaviours for online shopping. It also carries out primary and secondary research and re evaluate interconnection literatures on consumer behaviour towards online shopping. Online shopping primarily change the way shoppers buy goods and services. What factors affect online consumer’s behaviour? The main objective of this study is to analyze online consumer behaviour

The focus of this research project address following objectives

To identify key factors influencing online consumer behaviour.

save time and money and evaluate prices from website to website

Online retailers sell the product at a less price due to fewer operation cost.

4. To explore the success of Amazon.

To identify how competitors compete with Amazon.

To identify the competitors

Direct Competitors

Indirect Competitors

To identify how competitors compete with Amazon.

Research questions

Online shopping is good or bad?

What are the difference between traditional shopping and online shopping?

Why do consumers and businesses use the internet when they buy or sell the product?

How well do consumers know about their rights and businesses know their responsibilities, when they use internet as a retail channel?

What problems do shoppers and business encounter when they buy or sell online? And how well they resolve it?

Mythology

7.1 Research design and design adopted

The intention of this proposed is exploratory pretty than explanatory. This research will assume grounded hypothesis developed by Glaser and strauss. According to Glaser and struss , research is mainly the confirmation of theory or the growth of the theory through logical reasoning slightly than from experimental data. (Glaser and strauss, 1967). Grounded theory mainly focuses on systematic qualitative process for creating a theory that explicates concepts, procedure, action or interaction about the topic. According to Kotler the purpose of exploratory research is to collect preliminary data that will facilitate describe and suggest hypotheses. (Kotler et al 2006).

…………………………………………………………

Data collection methods

7.2 a) Sampling methods

Sampling methods are classified in two types, probability and non probability.

The shoppers of Amazon are taken as a population. The population of Amazon is too large to attempt the survey of all its members. In non probability sampling method a small number of groups represent the population. So in this research non probability sample is suitable.

7.2 (b) size of the sample

A subset of population called size of sample. Sample contain……………………..

7.3 (c) sampling techniques

……………………

Participant observation

Interviews

Interview is one of the common methods of data collection in qualitative research.

A semi structure interview method will be appropriate to know what factors are important to online shoppers. This method allow to interviewee to talk about their opinions on the particular subject. Researcher can receive and give information related to the topic.

http://www.mba-tutorials.com/marketing/248-amazon-swot-analysis.html

CONCLUSION

The proposed of this research proposal is conducting a thorough analysis of online consumer behaviour and factors which are most essential for online consumer in various aspects. Price is the most important factor that effect consumers buying decision.

Recommendation

This study provides some factors which are effect online consumer behaviour. It also suggest that to attract and retain consumer; online businesses have to adopt cost saving strategy which helps to increase buyers demand.

Ref.

Brynjolfsson, E & Urban, GL (eds.) 2001, Strategies for E-

business success, Jossey-Bass, San Francisco.

http://www.mba-tutorials.com/marketing/248-amazon-swot-analysis.html

Haubl, G. & Trifts, V., “Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids”, Marketin Science, Vol. 19(1), 2000, 4.

Kotler et al. 2006, p. 122, Principles of Marketing , 3rd edn, Frenchs Fores, Pine Forge Press http://en. /Exploratory research.com

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