Value Proposition Proposal and Reflection of Amazon Report 2022

Running Head: VALUE PROPOSITION PROPOSAL AND REFLECTION OF AMAZON
Value Proposition Proposal and Reflection of Amazon
Name of the Student
Name of the University

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Executive summary
The detailed report attached herein briefs about Amazon’s artificial intelligence value
proposition. Artificial Intelligence is a computational modeler of human thought processes ,
learning curve, working capacity and conscious decision making. Amazon incorporates Artificial
Intelligence in the form of chat bots who redress customer complaints with a detailed report of
the complaint. With respect to service calls, artificial intelligence incorporation involves
informing the customer about lengthy queue waits or incorrect transfers before a successful
connection with the right representative.
The report details issues including their priority ranking and possible deliverables for the
same. Amazon follows varied techniques for value proposition targeting a younger demographic
for product marketing. The assessment further highlights the risk matrix of Amazon’s artificial
intelligence and product delivery.

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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Problem faced by the consumers................................................................................................................4
Significance of the problem.........................................................................................................................4
Relevant solutions for the problem.............................................................................................................5
Evaluation of specific solution.....................................................................................................................5
Value proposition........................................................................................................................................6
Target Consumers.......................................................................................................................................7
Competitive advantage and strategic fit......................................................................................................7
Risks and uncertainty..................................................................................................................................8
Arguments over the Selected Tools and Techniques...................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendices................................................................................................................................................13

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Introduction
The onset of technology growth has defied it’s limitations and has been the key harbinger
of change in our daily lives by giving easy access to gizmos. Artificial Intelligence is a system-
based technology which models the human thought process and action. Artificial Intelligence’s
key objective is computerized functional advancement to replicate various humanized functions
including learning, problem appeasement and reasoning. Amazon incorporate the same in it’s
web-hosted chat bots which act as a portal between the consumer and the company for complaint
redressal. The main purpose of this study is to extricate problems that ger generated in this
situation and to research appropriate countering solutions to the same. The value proposition
service canvas will encompass customer attention with respect to service provision and dispute
resolution in the form of queries, refunds and cash backs.
Problem faced by the consumers
Customer service can be connected to using various ways not restricted to calls or e-
mails. Over calls, the customer finds it difficult to deal with customer representatives owing to
busy networks, huge lead time before connection, information repetition to different levels,
incorrect transfer, impolite representatives thereby leading to a lengthy time consuming fruitless
experience. With respect to emails, the lead time exceeds 24 hours and the customer is at the
literal mercy of the company which leads to a very low probability of expectations being meted
out despite the event occurring over a period of multiple days. Numerous complaints over e-mail
are not paid heed to because of fear of unproductive time allocation by the customer
representative department. Amazon, hence is targeting to use Artificial Intelligence(herein
referred to as AI) over calls to enhance customer experience (Wurman, 2015). The success rate
of chatbots cannot be attributed to be 100% because of the lack of human touch which customers
require for presentation of chunks of evidence.
Significance of the problem
Significant problems faced by customers when seeking redressal regarding issues
including chargebacks over a customer care call, warrants a serious attitude from Amazon. Brand

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value stays at stake when the creators of brand value i.e., the customers themselves are not happy
with the company’s responsiveness and therefore disagree to give second chance resulting in
negative feedback on social media which damages Amazon’s competitive stances in the overall
market. Amazon in it’s effort to work towards a common customer solution has introduced AI
induced chatbots. The chatbots identify the key phases of Customer Relationship Management
(CRM) thereby inducing sales through effective communication with customers (Rossman,
2016). Chatbots can overtake the human job profile by way of provisioning of competitive
services and redressals – also awarding Amazon the benefit of search meta data picked up from
messages which can also be used for enhanced searchability on the online platform.
Relevant solutions for the problem
The highlighting aspect that every customer wants is speedy redressal which Amazon is
trying to achieve through it’s chatbots feature – the reason being some still find the lack of
human touch, a drawback and not everyone can talk over chatbots – many people prefer
communicating over emails. Amazon’s indigenous “Mayday Button” which allows a customer to
directly connect with a person for redressal of issues, can be used for all customer queries not
restricted to technical ones (Herbrich, 2017) – Hence, Amazon can apply this feature to it’s
logistical chain including product delivery and return. All customers do not come with the same
mind frame and the importance of maintenance of a separate phone line for a frustrated customer
is paramount. An IVR (Interactive Voice Response) can be annoying as it does not warrant a
100% successful connection with the right person because the innate reason for IVR’s existence
is cost reduction and not exemplifying customer service. The use of Biometric Authentication
Technology (BAT) can be used for caller voice identification for a speedier redressal. Chat bots
are suited to every company which faces mundane similar queries. Therefore, the system needs
to incorporate the availability of new and relevant information for a better end-user interface.
Evaluation of specific solution
The specified solution aforementioned in the previous section will be a key factor in the
value proposition of the company. To implement such solution discussed, Amazon’s best bet is
the introduction of the Mayday button specifically relating to the “Contact Amazon” space to
overcome high holding period or incorrect transfer issues. Although, once this option is

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implemented, the customer representative team should seek to excel at an issue they have been
entrusted with because no customer warrants being transferred. Biometric Authentication
Technology for customer identification to overcome the time spent over the call can be used.
Chat bots are well suited to the “Y Generation” individuals who are accustomed to messaging
over calling. Chat bots fulfill the purpose of answering routine common questions with haste
though at the slightest hint of complexity, a human representative becomes a necessity. Chat bots
being AI based lack human empathy and if that is inculcated into the system, it becomes helpful
(Galitsky, 2019).
Value proposition
The value proposition stands as the key element of message marketing of the company
along with characterization of the company’s customer service practice including first-time
suggestions that can enhance customer redressal (Korinek & Stiglitz 2017). The value
proposition of Amazon can be explained as :
Fig1. Value proposition Canvas
Gain Creator – AI
Service - Chat
bots
Amazon echo dot
(Alexa)
Pain Relievers - Mayday
Button
Chat bots
Value Proposition
Pains, less
humane
interactt
Consumer gains, Quick
solutions, high redressal
Jobs speed and reliability
Consumer
Profile

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The aforementioned charts showcase the instrumentalism of AI in the company’s growth
structure. Herein, the gain creator is artificial intelligence with due acknowledgement of chat
bots under the service head. The pain reliver is the vital portion of the entire structure harboring
the Mayday button useful for speedy customer redressal. The system help encapsulates quick
human representative connection which from the perspective of the customer, will warrant a
higher redressal rate thereby increasing the swiftness and reliability of the entire structure.
Target Consumers
Amazon’s target audience is expansive and distinct. Promotional emails incorporating
discount incentives are often sent to registered customers. The artificial intelligence system
enables inclusion of any specified customer into the bulk mailing contact list as the customer
database is globally high quantum wise. The choice of products and services on the online
platform offered are exhaustive and set as per the target audience guidelines incorporating
demographics, locational factors and behavioral biases falling under the population head, age
limits and social activity.
The choice of products offered on the online platform are exhaustive and arranged
according to specific consumer’s needs and choices which is further supplemented by
promotional discounts to varied age groups (mainly being the younger populace since they are
deemed to be more active in investing and purchasing fancy products from the website). Chat
bots automatically detect customer presence on a web page and hence ‘pop-up’ on any
subsequent webpages of the company – this mechanical option is called for, through Artificial
Intelligence. Adult category consumers are automatically subscribed to both promotional and
update based emails from Amazon with regard to their products and services (Erevelles et al.,
2016).
With passage of time, the company has now started offering premium services by way of
Amazon Prime and Amazon Prime Video (to target a higher growth structure) after through
surveys and chat bots induced feedback with respect to it’s online platform based product pricing
and overall shopping experience – the highlighting component being the modeling of the
younger populace behavioral bias tracked by the Artificial Intelligence System.

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Competitive advantage and strategic fit
The value proposition proponent in the marketing industry refers to customer need
fulfillment and the value additions accruing to the customer out of this. With increasing
competition in the market, Amazon can use the Cost Leadership Strategy to overcome this
hurdle. One more distinguishing aspect is Amazon’s AI technology which features enhanced
website search based on frequent uploads leading to correct discovery of relevant products
thereby transitioning the website experience in a smooth manner. Going one step further,
Amazon introduced Alexa -it’s in-home artificial intelligence and voice based virtual assistant
that can provide market and weather updates and facilitate the music listening experience.
Despite high competition in this area with other companies providing similar offshoots of Alexa
itself Amazon has distinguished itself by following a cost leadership strategy thereby making
these products affordable and sporting a unique user interface (Sin, 2016).
Aulet -
Competitive advantage over the competitor and
provide a unique product in the market
Competitive ideas -
Adding more advancement in its product and systems
helps the company to boost its services
Initial Market
Younger age group and adult category
Value Creation
The development of desirable products and
satisfaction to the market
Figure 2: Entrepreneurship canvas
Risks and uncertainty
As is the case with every company, Amazon stands no exception when it comes to an
uncertain risk matrix of it’s AI system primarily attributable to it’s competitors. The matrix
includes Amazon’s logistical support in urban as well as other areas. Since, customers order
products via the online platform without the essence of physical touch, consumer’s have a higher
return rate if the products churned out happen to be very poor in quality. The refund process
entailing the same can be lengthy and customers have an option to connect with Amazon support

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for any questions related to product servicing. Despite all this, the website based customer
reviews may not be favorable on account of the fact that the chat bots may dish out incorrect
product or service related information due to a technical glitch or due to the AI mal-functioning
(Prakash et al., 2018).
Consumer desirability: Customer oriented preference change suiting to different desires.
Financial Feasibility: Price differentials may bring about a product or a service change.
Technical feasibility: Technically unsound problems with company delivered products after
usage.
Arguments over the Selected Tools and Techniques
Eight innovative tools and techniques have been used to substantiate the findings and the
recommendations of the report specifically attesting to brand value proposition. The tools and
techniques used are :
Mind Mapping: This tool fosters innovation by way of idea creation focusing on
information gathering. Critical analysis forms part of the process which is conducted right after
business information gathering.
The checklist: This tool enlists a checklist of creative questions that can be utilized in
implementing and generating newer ideas in the near future.
Thinking Hat: This technique is involved with strategic business decision making amd
hence capitulated on by almost every business in the world.
Lateral thinking: This tool encompasses ideas generated and ideas currently available in
the industry for situational analysis.
Picture Association: This tool facilitates image mapping to search for topic detail and is
mostly utilized by consumers that are stuck on ideas and for whom idea imaging helps in idea
research.
Attribute Listing: This tool identifies the errata with the product and the company’s
brand positioning.

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Change Perspective: This technique incorporate the sharing of identified ideas to get
more knowledge with respect to that idea.
Personal Analogy: This technique is useful for sound personal analysis with regard to the
futuristic developmental process for the product. (Horkoff, 2014).

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Conclusion
This report is a brief analysis on the e-commerce giant – Amazon’s value proposition.
The problems frequently faced by customers with respect to complaints and products delivered
in this regard has underwent an exhaustive discussion in the report along with potential solution
suggestions. The value proposition herein is Artificial Intelligence acting as an important
harbinger of customer trust.
The targeted customer and it’s consequent groups have undergone extensive detailing in
the report itself pertaining to the product and service related competitive strategic advantages.
The tools and techniques used for harboring innovation in ideas along with the assessment’s
findings and recommendations have been explained.

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References
Erevelles, S., Fukawa, N., & Swayne, L. (2016). Big Data consumer analytics and the
transformation of marketing. Journal of Business Research, 69(2), 897-904.
Fidel, P., Schlesinger, W., & Cervera, A. (2015). Collaborating to innovate: Effects on customer
knowledge management and performance. Journal of business research, 68(7), 1426-
1428.
Galitsky, B. (2019). Developing Enterprise Chatbots. Springer International Publishing.
Herbrich, R. (2017, February). Machine Learning at Amazon. In WSDM (p. 535).
Horkoff, J., Barone, D., Jiang, L., Yu, E., Amyot, D., Borgida, A., & Mylopoulos, J. (2014).
Strategic business modeling: representation and reasoning. Software & Systems
Modeling, 13(3), 1015-1041.
Korinek, A., & Stiglitz, J. E. (2017). Artificial intelligence, worker-replacing technological
progress and income distribution. NBER Working Paper, 24174.
Prakash, S., Kumar, S., Soni, G., Jain, V., & Rathore, A. P. S. (2018). Closed-loop supply chain
network design and modelling under risks and demand uncertainty: an integrated robust
optimization approach. Annals of Operations Research, 1-28.
Rossman, J. (2016). The Amazon Way on IoT: 10 Principles for Every Leader from the World's
Leading Internet of Things Strategies (Vol. 2). Clyde Hill Publishing.
Sin, K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., & Sim, C. L. (2016). Relative
advantage and competitive pressure towards implementation of e-commerce: Overview
of small and medium enterprises (SMEs). Procedia Economics and Finance, 35, 434-
443.
Wurman, P. R., & Romano, J. M. (2016). Amazon picking challenge 2015. AI Magazine, 37(2),
97-99.

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Appendices

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