Amazon Prime Consumer Behaviour

RUNNING HEAD: CONSUMER BEHAVIOUR 0
AMAZON PRIME

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Executive summary
The communication mix is considered effective technique for promoting the product and services
and raising the consumers of the organizations. The objective of the report is to investigate the
communication mix adopted by company for promoting Amazon Prime and the behavior of the
consumers. The findings of the study revealed that organization use advertising and internet
marketing strategy to improve communication and increase the profitability of the organization.
Further, to remove problem such as dynamic environment and more competition,
recommendations is provided to the company that is it can adopt efficient communication
channel, select target audience based on the segmentation and can make alterations in the
communication practices.

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Table of Contents
Introduction......................................................................................................................................3
Overview of the product..................................................................................................................3
Current marketing communication mix...........................................................................................4
Communication mix with findings..................................................................................................5
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The communication mix refers to specific methods used to promote the company or its products
to targeted customers (Adam & Sultan Khan 2017). This is most effective strategy to understand
the behavior and attitudes of the consumers and supports in achieving the objective of the
organization and helps in accomplishing the goal of promoting the product (Yeshin 2012). In this
report, overview of Amazon Prime services and present marketing communication mix which
company adopt are discussed.
Overview of the product
Amazon Prime is the paid subscription services which are mainly delivered and offer by Amazon
to help the users for consuming all the services. Through, this consumer should not have to
charge extra for each service and overcome the challenge of providing all the services at
affordable cost (Castronovo & Huang 2012). The subscription service provides music, video as
well as various other additional benefits to motivate the consumers towards purchasing the
services. It was founded in the year 2005, and delivers several efficient services through which
consumers gets satisfied such as prime music in which the Amazon members can listen most of
the songs for free and consumers also get particular subscription service it which members can
listen unlimited songs. The other services that is prime video in which customers can view
different vides for longer term and can also read from the magazines, e-books and travel guides
(Bacik et al. 2018).
This service provides all the facilities according to the needs and requirements of the consumers.
Amazon Prime subscription service also provides the option to the members for getting home
deliveries through “Amazon Flex Contactors” (Nakano & Washizu 2017). These features and
innovation in the services motivate the consumers for use than other alternatives. It is estimated
that market performance of Amazon Prime is better which is evaluated by describing that in the
year 2020 it has up to 150 million it is because of meeting the needs and requirements of the
members by providing efficient services with innovation and addition (Bacik et al. 2018). The
other strategy is that Amazon invest more amount in encouraging the consumers and to
understand the current requirements of the consumers, this results in raising the revenue of the

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organization that is in the year 2018 $ 14.17 billion and due to unique and distinctive features
which result in increasing the sales of Amazon Prime (Karjaluoto, Ulkuniemi & Mustonen
2015).
Current marketing communication mix
The different organizations adopt communication mix strategy because of increasing the
awareness among the audience about the product and complete information regarding the
product. This leads in sales and support the organization to build trust among the consumers and
results in raising profitability and status of enterprises (Mihaela 2015). Advertising is considered
the effective strategy in encouraging more customers and Amazon adopt this strategy and does
advertising in television, social media because through this they can capture more members for
the services. In the year the company earns more profits due to changing attitudes and perception
of the consumers (Wu & Li 2018).
Therefore, through this strategy it can target specific group to purchase Amazon subscription
services. Amazon focuses on this strategy it is because organization believe that attitudes and
perception of the consumers are changing it is challenging for the organization to change their
attitude and to deliver complete information about the product. Through, this strategy Amazon
Prime also influence the group to purchase and members revealed that peace of mind is the major
factor which affects the consumers to get the services. This also inclined that consumers
purchase according to their requirement because of meeting the needs on timely manner (Kim &
Park 2019).
The other strategy which Amazon is the sales promotion in which Amazon increase the sales of
Amazon Prime by providing promotional incentives and offers so that it can gain attention of the
consumers (Hassan 2015). This is become beneficial for the consumers who are taking the
services for the first time it is because through this it can understand the services which is
provided by Amazon Prime at low cost (Issock, Mpinganjira & Roberts-Lombard 2018).
However it is short term tool but used by the regular basis because of involving and targeting
different consumers segments according the age, behavior and attitudes. Through this strategy
organization change the consumers buying decision making process it is because after this

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consumers purchase the product due to the quality services is provided by the company (Kim &
Park 2019).
Therefore, the strategy is adopted by Amazon because the consumer is highly attracted towards
the discounts and offers. The sales promotion strategy is considered effective method through
which number of consumers towards the services and leads in influencing more other consumers,
this can be view from the opinion of the members that they have heard about the services
through their services. The members used Amazon prime in comparison to the competitors and
this leads in meeting the perception of the consumers (Fill & Turnbull 2016).
Amazon also use internet marketing it is because by this Amazon can reach more consumers and
can help the organization to select right media for promoting Amazon prime services to the
consumers. In this organization promote the product by using digital technologies such as social
media, mobile phones. In the year 2018, the company takes feedback from the members about
the subscription services of Amazon Prime, this is the major strategy through which the culture
of the consumers is also affected and helps in getting positive outcomes (Wu & Li 2018).
Recently promotion of the product is also done in Facebook, Instagram it is because company
describes that majority of the members are attracted from the social media due to more active
users. This supports the culture and ethics of the members due to meeting the expectations and
accepted by their families (Adam & Sultan Khan 2017). It is because the estimation demonstrate
that consumers is considered most important component of the organization and leads in
increasing the subscribers of the services which is revealed that in the current year Amazon
Prime has more subscribes in comparison to their competitors and 60% of the consumers
revealed that it buy the goods and services through Amazon Prime in the month and highly
satisfied from the services (Badgaiyan & Verma 2015).
Communication mix with findings
The communication mix is aligned with the findings of the opinions which are received from the
respondents. The adverting leads in encouraging the consumers for purchasing online it is
because 67.7% of the respondents revealed that describing new features and delivering the
information about the speed factors induce the consumers to purchase the Amazon Prime

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services. It play a major role in motivating the consumers for buying the services due to this
reason about 50% of the consumers are satisfied with the services provided by Amazon Prime.
The estimation demonstrate that there is about majority of the consumers with are motivated with
the unique features of the services, therefore through advertising company describes the different
attributes of the service in comparison to their competitors (Nakano & Washizu 2017). This
advertising strategy also leads in increasing the profits and revenue of the organization; it is
because about 60% of the youth are attracted towards the services that are about the age group of
25-34. This result in raising the number of subscribes which use the services of Amazon Prime
(Badgaiyan & Verma 2015). It also supports the organization in increasing their reputation and
reputation of the organization and this is more acceptable as compared to the other alternatives.
The sales promotion strategy also related with the findings of the consumer’s behavior it is
because the more members become the part of the services because of more offers and discounts
this leads attracting target group (Hassan 2015). The results describes that respondents
demonstrate that they heard about their services from the family members and from the other
satisfied consumers (Ahuja 2015). The loyal members increase the purchase of the Amazon
Prime and consumers also describes that consumers purchase services because of according their
needs.
This strategy of promotion leads in raising the satisfaction level it is because consumers believe
that this services is purchased according to the time, cost and availability through which the
organization focuses on developing new factors so that it can influence the members in favor of
the services such as Prime Music, Prime Video (Mihaela 2015). The number of members also
believes that they are getting more quality services through Amazon Prime than that of
competitors which includes EBay.com, Walmart.com that is about 80% of the members use this
service. The communication mix leads in increasing the awareness about the product about the
options provided by the product that is in the current year it is estimated that consumer’s
behavior is also influenced through piece of mind and several number of options (Pappas 2016).
The other strategy that is internet marketing also affect the culture of the consumers that is
93.33% of the consumers are more encouraged by the culture and encourage them to become the
part of subscription services (Ahuja 2015). The consumer also revealed that they make online

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purchasing help of Amazon Prime which describes that consumers are more satisfied with the
services. Therefore it is considered the major strategy through which that can motivate the
consumers to get the efficient services according to the requirement of the consumers.
The internet marketing supports the organization to investigate the attitudes of the consumers
and help the organization to take the feedback from the consumers about the quality services.
This leads in increasing the positive image in the eyes of the members and helps the members to
investigate the group and individual differences because of changes in the perception and needs
of the individual and group (Castronovo & Huang 2012). Therefore, it is demonstrate that
communication mix is become the major strategy which support the organization by increasing
services and sales it is also describes that this leads in raising the gaining competitive ability.
Recommendations
The above estimation revealed that due to increasing the satisfaction of the subscription members
and increasing the members the organization adopt various strategies through which the
company also gets positive response. However, company face issues due to high competitive
environment and continuously changes in the behavior of the consumers. The one of the major is
that the competitor’s changes in the services and add new services which can also become the
threat to Amazon Prime.
To overcome this issue organization can also develop the new principles and policies in which
all the employees of the organization coordinate and corporate so that all the communication
policies will be managed. This also results and increases the capability of the organization to
manage the advertising campaign and does advertising according to the budget and needs of the
consumers (Badgaiyan & Verma 2015). It is the most important strategy it is because through
this organization can make the efficient decisions and leads in targeting the different segment
consumers. This is because the organization does not done consumer segmentation, this problem
can be solved through this practices and reduce the expenditure and cost of the organization.
The organization can also adopt the strategy of communication channel in which organization
can involve more consumers and can spread the knowledge as per the requirement, this leads in
increasing the reputation of the organization. The communication channel leads and helps the

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organization to deliver the message and to decide the content which should be transmitted to the
consumers. This strategy also results in dividing the communication channel such as electronic
communication channel, mobile communication channel etc (Bacik et al. 2018). This provides
positive effects in the organization that is organization does regular flow of information about the
Amazon Prime in efficient manner. This also support in increasing the efficiency of the
organization ad helps increasing focus so that that they can understand the efficient decision and
raise the productivity of the organization (Fill & Turnbull 2016).
To overcome the strategy of more cost and changing perception of the consumers the
organization can also invest more on research and development in which it can segment the
consumers according to the age, education and needs that is target audience with all the
information about the consumers is defined. This leads in increasing the commitment of the
organization towards the consumers and understand the consumers in more efficient manner
(Adam & Sultan Khan 2017). This results in selecting the tagline which can also be used while
promoting the services, it is because through this organization can influence the culture of the
consumer positively and gain competitive advantage (Karjaluoto, Ulkuniemi & Mustonen 2015).
This also benefitted the organization to make more loyal consumers that of consumers in
comparison to the competitors which is the major opportunity for the organization and can
results in expanding their services in the international market. Therefore, it is estimated that
communication channel is more profitable channel but it is become confusing for the
organization to select the mode of communication which includes formal, informal and
unofficial communication channel it is because of different behavior of the consumers (Pappas
2016). For this segmentation is considered the efficient practices which decrease the problem of
spreading false information.
Conclusion
From the above, it is concluded that marketing communication mix increase the communication
and member for the subscription services, this also results in raising profitability in the year
2018. The above evaluation also describe that about 50% are satisfied by the services provided
by Amazon Prime, but still problem arise because of increasing raising expectation of the
consumers for this organization can select efficient communication channel.

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References
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