Influence of Pricing Strategies on Consumer Buying Behaviour: A Case Study of Amazon, Australia

INFLUENCE OF PRICING STRATEGIES IN CONSUMER BUYING BEHAVIOURS:
A CASE STUDY OF AMAZON, AUSTRALIA
Business Research (HI6008-B1)
Assignment 2 – Business Research Proposal
Submitted By: Sumit KC (BCM8424)
Holmes Institute,
Brisbane campus
Submitted To: Paul Ryder

TABLE OF CONTENTS
Contents
INFLUENCE OF PRICING STRATEGIES IN CONSUMER BUYING BEHAVIOURS:..........1
A CASE STUDY OF AMAZON, AUSTRALIA............................................................................1
1. INTRODUCTION.......................................................................................................................3
1.1 Overview................................................................................................................................3
2. Scope of Research....................................................................................................................4
3. LITERATURE REVIEW...........................................................................................................5
3.1 Significance of pricing in retail industry................................................................................5
3.2 Motivation for pricing decision in Australian market............................................................6
3.3 Impact of pricing strategy on customers buying behaviour...................................................7
3.4 Gaps/ limitations....................................................................................................................8
4. RESEARCH QUESTIONS.........................................................................................................8
5. RESEARCH METHODOLOGY................................................................................................8
5.1 Research Design.....................................................................................................................8
5.2 Data collection method..........................................................................................................9
5.3 Sampling................................................................................................................................9
5.4 Data analysis method.............................................................................................................9
5.5 Research Limitations............................................................................................................10
5.6 Summary..............................................................................................................................10
6. TIME SCHEDULE....................................................................................................................10
7. CONCLUSION..........................................................................................................................11
8. REFERENCES..........................................................................................................................12

9. APPENDIX................................................................................................................................15

1. INTRODUCTION
1.1 Overview
Amazon is one of the popular online shopping traders which has been offering services in
Australia online even door to door free delivery services. The capital investment of Amazon
counts to millions of Australian dollars in digital platform to start, grow and sustain in Australian
market. The management of Amazon have forecasted that small-scale retailers in Australia
would be affected with their entry in the market (Low 2017). A lot of people in Australia has
already followed the shopping trend in online platform which has a neutral impact over
Amazon’s sales. The significant problem for business can be the distance between major cities
(The Straits Times 2017).
The major issue for Amazon could be the Storing and warehousing, however it tends to maintain
online platform to continue its services. During the initial stage of launching, Amazon would be
facing greater challenges in Australian market because the existing market or other service
providers offers a lot of offers, discounts, and benefits to attract the people and built a
community of loyal customers.
If the UK and Australian market is compared, they are different in geographical orientation to
deliver services to the customers. Moreover, there are no extended warehouses which disable the
organization to keep more stock of product or it must operate with less stock or limited stock and
lower price to manipulate the customers (Colgan 2017). Price wars has been experienced in
Australian market after the introduction of Amazon.The local retailers in Australian market has
been promoting the business products with competitive price and attractive brands already
(Whitely & Soper 2017). The range of competition has become extremely high after the
introduction of Amazon.
Australian local retailers such as Woolworths and Coles are popular and mostly visited retails in
Australia. They have been providing a great service to their customers and they have their own
roup of loyal customers, Amazon should back up itself to compete with these super stores to grab
the customer interests or form own customers group.