Understanding Consumer Behavior in Marketing

This assignment delves into the complexities of consumer behavior within the context of marketing. It requires students to analyze various academic sources examining the factors influencing consumer decisions, including brand perception, green marketing, social media influence, and the role of technology in shaping buying habits. Students are expected to synthesize these findings and demonstrate a comprehensive understanding of how marketing strategies impact consumer choices.

Running head: CONSUMER BEHAVIOR
Consumer Behavior and Marketing Psychology
Name of the Students
Name of the University
Author’s Note

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Executive Summary
This very specific study has focused to make in-depth analysis about the various factors affecting
consumer behavior for an organization. In this study, issue has been identified in the customer
service system of Amazon. The primary role of customer service providers is to provide equal
respect and priority to every consumer. Consequently, customers would like to show their loyalty
towards the services. Amazon.com is one of the most recognizable e-commerce retailer services
occupying a prestigious place all over the World. Customers of various geographical areas tend
to receive the services of e-commerce brands. The primary role of customer service providers
should be providing services being unbiased.

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Table of Contents
1. Selected product or services:.......................................................................................................3
2. Critical analysis of the issue:.......................................................................................................4
2.1 Customers’ decision-making process:.......................................................................................4
2.2 Individual, Psychological, Cultural and Social Factors affecting consumer behavior:.............6
2.3 The most recent marketing communications of this product or service:...................................7
2.4 The current marketing strategy:.................................................................................................8
3. Strategic recommendations:.......................................................................................................10
Reference List:...............................................................................................................................12

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1. Selected product or services:
The overarching concept consumer behavior implies the decision on how people like to
make their decision before purchasing a specific product. With the gradual progress of business,
the needs and demands of the customers are changing gradually. Before purchasing a particular
product consumers intend to get detailed overview about the reliability of the specific product.
Customer loyalty is one of the integral parts of consumer behavior based on which an individual
consumer tends to choose a specific product or service from a particular organization (Solomon
2014). This very specific study has focused to make in-depth analysis about the various factors
affecting consumer behavior for an organization.
Amazon.com is one of the most recognizable e-commerce retailer services occupying a
prestigious place all over the World. After establishing the entire process of journey as a retail
supermarket chains, Amazon.com has drawn the attention of international consumers.
Customers’ decision-making is highly dependent on the reliability of brand quality of services.
FMCG is one of the most effective products with which Amazon has achieved business image
and reputation. Numerous recognizable brands such as Amway, Godrej, Amul, Emami are
available on Amazon (amazon.com 2017). However, in last few years it has been observed that
the purchasing rate of FMCG products in Amazon is exceptionally low. Research and
development analysts have identified that Amazon is unable to maintain service quality within
business process. In this study, issue has been identified in the customer service system of
Amazon. In comparison to the number of customers, the company is not effective enough in their
Customer Service System. As a result, the organization is unable to maintain a balance between
demands and supply.

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2. Critical analysis of the issue:
2.1 Customers’ decision-making process:
Based on the quality of products and services customers’ purchasing behavior is highly
dependent. As opined by Vinerean et al. (2013), people belonging to different geographical
backgrounds and attitudes like to purchase the products and services of a specific business
organization. Customers of various geographical boundaries like to purchase the products only
when they get an effective customer services. The primary role of customer service providers is
to provide equal respect and priority to every consumer. Consequently, customers would like to
show their loyalty towards the services. Customers’ decision-making process is highly dependent
on several factors. The factors include:
 Service quality:
Customers of various geographical areas tend to receive the services of e-commerce
brands. The primary role of customer service providers should be providing services being
unbiased. The customer service providers should know on how to deal with the services users so
that they do not like to show their reluctant in using services. Amazon as per current business
scenario is providing services in multi-national countries (Xiang, Magnini and Fesenmaier
2015). Therefore, customer service providers should have multi-lingual flexibility based on
which customers of various geographical backgrounds and attitudes can be attracted towards the
services. It has been analyzed that the customer support system of Amazon is not proficient
enough in dealing with the customers of different cultural backgrounds. As a result, in last few
years the customers’ purchasing rate of Amazon has been changed radically.
 Quality of products:

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Product quality is one of the most significant factors based on which the customers’
decision-making process is highly dependent. Customers like to show their interest in purchasing
products and services based on quality. After analyzing the overall product quality of FMCG, it
has been observed that product designers of Amazon are unable to draw the attention of
customers (Mihart 2012). Being unable to gain the competitive advantage, the business experts
have received immense threats in the current market. As a result, customers tend to change the
decision in using the services of Amazon.
 Impact of Amazons’ customer services on consumers’ decision-making:
Amazon being an e-commerce business chain has to face immense challenges in being
accustomed with the customers’ psychological backgrounds. Before purchasing a specific
product or services, customers get the scope to have an in-depth overview about the product
quality, product design and service quality as well. It becomes easier for the customers to make
their own decision regarding the use of services (Chen, Chen and Huang 2012). In addition, the
service providers of Amazon are flexible enough in dealing with the customers. If a specific
purchaser is not interested enough in using the brand even after purchasing products from
Amazon, the purchaser is flexible enough in returning the products.
As a result, consumers get the option for purchasing another brand from the same service
providers. As pointed out by Baker and Saren (2016), consumers’ purchasing behavior is highly
dependent on the customer service system of a specific company. In last two years, the research
and development team of Amazon has evaluated that the company should focus on improving
their quality services so that the service providers can create a market demand amidst its
competitors such as Flipcart, Ebay, Snapdeal and so on.

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2.2 Individual, Psychological, Cultural and Social Factors affecting consumer behavior:
The primary objective of a specific business organization should be providing services
being unbiased and impartial. The business experts should never focus to provide services to the
people of specific cultural backgrounds and psychological attitudes. In this situation, the product
managers have to concentrate on rendering the product variety within the organization (Cherian
and Jacob 2012). However, in this specific part, the study has focused to evaluate the several
factors affecting consumers’ behavior effectively.
 Psychological factors:
Consumers belonging to global boundaries are from various psychological attitudes and
backgrounds. The role of an effective customer support system is to deal with every consumer
properly so that customers do not hesitate in interacting with the service providers. However,
Amazon is facing challenges in several years in order to draw the attention of customers from
different psychological backgrounds.
 Cultural factors:
Based on the specific culture the way of communication of an individual person varies.
However, particular service providers have to face innumerable difficulties in dealing with the
customers of various cultural backgrounds and attitudes (Halvorsen et al. 2013). As a result,
service providers have to face innumerable barriers in maintaining an effective communication
with the customers.
 Social factors:

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Social factor is one of the most effective reasons based on which the consumers’
purchasing behavior is highly dependent. For an example, Amazon by maintaining low cost
strategy is successful enough in drawing the attention of both average cost customers as well as
low cost customers (Perreault, Cannon and McCarthy 2013). As per demographic business
scenario, people having average income level are successful enough in affording the service of
Amazon. It has been observed that large number of target group has been raised all over the
international market. Business experts have to face immense difficulties in maintaining a proper
balance between demand and supply.
2.3 The most recent marketing communications of this product or service:
Marketing communication is the systematic method of creating the brand awareness. In
order to expand the entire process of business in various geographical areas the marketing
executives have to focus on dragging customers’ attention. Amazon in quest of marketing their
brands in different multinational countries tends to focus on several marketing tools among
which followings are the most prominent.
 Social media marketing:
The impact of social media as a marketing communication tool has major significance.
People of various geographic locations can get detailed overview about products as well as
services if the brand is active in social media. In addition, the customers before purchasing the
product can get an idea about the reliability of product (Erevelles, Fukawa and Swayne 2016).
Amazon being one of the most recognizable ecommerce service providers all over the World has
chosen social media as most effective marketing tools. Automatically, the company has drawn
the attention of global consumers.

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 Sponsorship:
Amazon is very much proactive in being the sponsors of reputed brands. As a result, the
business providers do not have to face difficulties in gaining customers’ loyalty. Sponsorship is
one of the most effective marketing communication tools in increasing the rate of target
customers.
 Direct marketing:
In search of collecting consumers’ feedback, service providers have to depend on offline
promotional tools. Social media or sponsorship is not effective enough in collecting the point of
view customers immediately (Glanz, Bader and Iyer 2012). Direct marketing is the only way
based on which customers of various geographical backgrounds can communicate with sales
executives directly. As a result, they can provide their immediate feedback regarding the brands
and services. Direct marketing enables the employees in applying innovative business strategies
and policies as well towards the services.
2.4 The current marketing strategy:
In order to expand their entire process of business the business executives need to focus
on maintaining product as well as service quality. At the same time it is undeniable that
marketing and promotional strategy of a particular business organization is highly effective
based on which the organization can draw the attention of customers. Amazon primarily tends to
follow 4ps of marketing mix strategy in the current business scenario for drawing the attention
of global consumers.
 Product:

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Amazon as a retail supermarket chain is flexible enough in dealing with variety of FMCG
products. Various brands are available in Amazon based on which consumers by sitting at their
own place can receive the services (Goh, Heng and Lin 2013). The Customer Service System of
this specific brand is very effective. If an individual customer needs emergency delivery the
service, providers can deliver the product within one day.
 Price:
Amazon is affordable for both prime consumer as well as low cost customers. If an
individual tends to become the prime member of Amazon, the consumers can get sufficient
discount in products as well as services. Delivery charge for the prime customers of Amazon is
free.
 Promotion:
Social media as well as direct marketing are the most effective promotional tools based
on which the marketing executives of Amazon tends to draw the attention of global customers
(Furaiji, Łatuszyńska and Wawrzyniak 2012). In addition, people belonging to various
geographical backgrounds and attitudes can get detailed overview of products and delivery
system of Amazon through social media.
 Place:
Customers who are advanced in technology do not have to face difficulties in using the
services of Amazon. The service providers have started their journey from US. After achieving
business image and reputation the entire services of Amazon is available in several places such
as Asia, Europe, Australia and so on.

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3. Strategic recommendations:
In order to overcome the decline within the service process of Amazon business experts
can follow some of the most effective initiatives for overcoming the situation:
 Receiving training and development session for enhancing professional skill:
The customer service executives of Amazon should receive an effective training and
development session for enhancing professional skill. In order to run the services in global
market the business experts have to deal with the customers of different cultural and
psychological backgrounds (Chung, Lu Wang and Huang 2012). As a result, the professional
approach, body language, communication skill should be proper so that global customers can
show their interest in purchasing services of Amazon.
 Enhancing multi-lingual flexibility:
In order to deal with the international customers, service providers would have to be
accustomed with the several languages. Otherwise, it would be very much difficult for an
individual in maintaining effective communication with the customers. The customers on the
other hand would not have to face difficulties in communicating with the service providers.
 Improving the way of marketing communication strategy:
The marketing communication strategies that Amazon tends to use is very much
conventional in comparison to the other competitors. Proving and updating brands and collecting
reviews from the customers are not the only way of improving their services (D'amico et al.
2014). The marketing executives can upload video clips as well based on which customers can
get a visual treat with instant reaction. In addition, the data analysts of Amazon should be more

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proactive. The business analysts after gathering necessary data and information from the
customers’ review should evaluate their issues. As per the issues business providers should
render a change within service process so that they brand can meet the current trend of market.

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Reference List:
Amazon.com 2017. Online Shopping site in India: Shop Online for Mobiles, Books, Watches,
Shoes and More - Amazon.in. [online] Available at: https://www.bing.com/cr?
IG=AF9647AADA3A40B681E85D02251A7A9F&CID=035057A039D866312F585CDB38776
76C&rd=1&h=bH9JY1T5bpZxyR0HYcZmn5pyLe1uQSs8Lvv9Lw7l4TQ&v=1&r=https%3a
%2f%2fwww.amazon.in%2f&p=DevEx,5062.1 [Accessed 18 Jan. 2018].
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Chen, C.C., Chen, P.K. and Huang, C.E., 2012. Brands and consumer behavior. Social Behavior
and Personality: an international journal, 40(1), pp.105-114.
Cherian, J. and Jacob, J., 2012. Green marketing: A study of consumers’ attitude towards
environment friendly products. Asían social science, 8(12), p.117.
Chung, H.F., Lu Wang, C. and Huang, P.H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review, 29(1), pp.54-87.
D'amico, M., Di Vita, G., Chinnici, G., Pappalardo, G. and Pecorino, B., 2014. Short food supply
chain and locally produced wines: Factors affecting consumer behavior. Italian Journal of Food
Science, 26(3), p.329.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research, 69(2), pp.897-904.

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Furaiji, F., Łatuszyńska, M. and Wawrzyniak, A., 2012. An empirical study of the factors
influencing consumer behaviour in the electric appliances market.
Glanz, K., Bader, M.D. and Iyer, S., 2012. Retail grocery store marketing strategies and obesity:
an integrative review. American journal of preventive medicine, 42(5), pp.503-512.
Goh, K.Y., Heng, C.S. and Lin, Z., 2013. Social media brand community and consumer
behavior: Quantifying the relative impact of user-and marketer-generated content. Information
Systems Research, 24(1), pp.88-107.
Halvorsen, K., Hoffmann, J., Coste-Manière, I. and Stankeviciute, R., 2013. Can fashion blogs
function as a marketing tool to influence consumer behavior? Evidence from Norway. Journal of
Global Fashion Marketing, 4(3), pp.211-224.
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour: effects
on consumer decision–making process. International Journal of Marketing Studies, 4(2), p.121.
Perreault Jr, W.D., Cannon, J.P. and McCarthy, E.J., 2013. BASIC MARKETING: A Marketing
Strategy Planning Approach,-19/E.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Vinerean, S., Cetina, I., Dumitrescu, L. and Tichindelean, M., 2013. The effects of social media
marketing on online consumer behavior. International Journal of Business and
Management, 8(14), p.66.

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Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services, 22, pp.244-249.