Analyzing Customer Purchase Decisions on Amazon: A Research Project

This research project investigates the factors influencing online customer purchase behavior, specifically focusing on Amazon. The study aims to understand how consumers make purchasing decisions within the Amazon ecosystem, examining the impact of various factors such as pricing, product availability, reviews, and shipping options. The research employs a combination of literature review, primary data collection through questionnaires, and data analysis techniques to identify key drivers of consumer behavior. The project includes an introduction outlining the research aim, objectives, and questions, followed by a literature review that synthesizes existing research on consumer behavior and e-commerce. The methodology section details the data collection process, including participant selection and questionnaire design. The results section presents findings from the data analysis, while the discussion and conclusion sections interpret the results and address the research questions. The project concludes with recommendations for businesses seeking to optimize their online presence and enhance customer engagement on Amazon. The study also reflects on the research process and its implications.

Research Project

ABSTRACT
Main purpose for doing this dissertation is to identifying the importance of customers
purchasing behaviour for Amazon. There are various activities that were used by researcher for
accomplishing research objectives and research questions. Introduction or development of aim
and objectives are first activity which have been done by following research title. Literature
review is another and main activity which have been completed by researcher by using different
number of secondary sources including books, journals, magazines, articles etc. With the help of
these sources, researcher can easily identified view point of authors about the topic. Research
method is another activity which have been done by using primary and secondary source of data
collection. Under primary source, questionnaire have been prepared by researcher for analysing
opinion of 60 customers about the services or products offered by Amazon. Results is another
main section of dissertation which is completely based on primary method of data collection. For
analysing quantitative data about the study, content analysis was used by investigator. In this
method of data analysis, various themes have been done which supported researcher in
analysation of information in easy manner. Discussion and conclusion is last activity of
dissertation which have been completed for achieving research objectives. Therefore, all these
are main activities that have been completed by researcher and these helps in completion of
dissertation in systematic and effective manner

Table of Contents
TITLE .............................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
Overview of the research............................................................................................................1
Background of Amazon..............................................................................................................1
Research Aim and Objectives.....................................................................................................2
Research Question.......................................................................................................................2
Rational of the research ..............................................................................................................3
Summary of the research project ................................................................................................3
LITERATURE REVIEW ...............................................................................................................5
RESEARCH METHODOLOGY ..................................................................................................11
Setting:......................................................................................................................................11
Participants................................................................................................................................12
How many?...............................................................................................................................12
How were they selected?...........................................................................................................12
What were their characteristics?...............................................................................................12
How were refusals/non-returns handled?..................................................................................13
Materials....................................................................................................................................13
Data Collection..........................................................................................................................13
Reason or purpose of using questionnaire................................................................................13
Data Analysis ..........................................................................................................................14
Procedures.................................................................................................................................14
Characteristics of the questioner...............................................................................................14
Validity and reliability of data .................................................................................................14
RESULTS ....................................................................................................................................18
DISCUSSION AND CONCLUSION ..........................................................................................20
DISCUSSION AND CONCLUSION...........................................................................................30
CONCLUSION .............................................................................................................................37

REFLECTION ..............................................................................................................................38

TITLE
“To facilitate an understanding of factors influencing online customers purchase
behaviour focusing on their pattern of decision-making in relation to purchasing behaviour while
choosing among retailers using Amazon".
INTRODUCTION
Overview of the research
Buying decision introduces to the effective process of decision making which is used by
consumers or customers about the market transaction before, during and after the buy of product
and service. This process can be observed as a specific form of a cost advantage analysis in the
existence of multiple alternatives. For this dissertation Amazon is a chosen multinational
technology company. This company has direct influence over decision making behaviour or
process of buyers (Baek, Lee, Oh and Ahn, 2015). Along with this, consumers worship to
purchase product and service online because it's more comfortable, easy and frequently comes
with important price investments. It hasn't forever been this means, but over the last twenty years
Amazon has effectively transformed the system people purchase goods and service in all over the
world.
In the modern era the key motive of businesses is to attaining higher growth and success
at market place and for this influence of customers behaviours is the fundamental aspect which is
requires to be considered by the businesses to attaining growth and success.
Amazon is a world's largest online retailer that has developed from its humble
bookselling in early period to persuade practically every feature of the buyer purchasing
experience or decision, from browsing to ordering to returning. There are certain ways which
have been used by Amazon in order to change buying behaviour such as checking Amazon first
and last, shopping by voice, buying groceries online, buying clothes online, ease of returns and
endless, searchable aisles (6 Ways Amazon Has Changed Buying Behaviors. 2018). These are
major ways which is used by company to influence buying behaviour of consumer. It will help
company in increment of its sales and market share.
Background of Amazon
Amazon is a selected American multinational organisation for this dissertation. It was
founded in 1994 by Jeff Bezos and headquartered in Seattle, Washington, and Arlington,
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Virginia, United States. This company is well known for its well-entrenched industries via mass
scale and technological innovation. Company specialise in selling or offering of different
services such as Amazon Alexa, Amazon Appstore, Amazon Music, Amazon Prime, Amazon
Prime Video, Amazon Web Services etc. Amazon originally started as an online marketplace or
bazaar for books but afterwards stretched to sell video games, apparel, electronics, software,
furniture, food, toys, and jewellery and many other products.
The purchaser is always right” has been taken to a great with the growth of digital retail
landscape and the e-commerce. Customers have information of what they suppose from online
shopping, and 3PLs, retailers, suppliers and many other trading companies in involving are
undertaking all they can to build shoppers happy. More than 500 distributors, logistics firms’
retailers and suppliers newly weighed in on the largest factors that directly influencing buying
decision of customers (The Amazon effect on consumer expectations and buying decisions,
2017). According to the market research majority of respondents gave pointed as Amazon is a
multinational brand that influence on consumer decision making and expectations. In case of
Amazon, there are different factors that have direct influence on consumer decision making. It
includes pricing, product availability, product assortment, product information (including free
shipping, user rating and reviews), better internet discovery, faster shipping, trending in social
media and free return. All these are main factors available in Amazon online stores and also
influence on consumer decision making.
Research Aim and Objectives
Aim.
The Aim of this Research is to facilitate an understanding of factors influencing online
customers purchase behaviour focusing on their pattern of decision-making in relation to
purchasing behaviour while choosing among retailers using Amazon.
Research Question
 What is the influence of Amazon on Customers Buyers Behaviour?
 What are the demographic characteristics of customers using Amazon? How might we use existing or new models and data to improve ones understanding of on-
line customers buyer behaviour and decisions.
Research objectives
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 To establish a basis for a model(s) that can better explain the 'real-world' in relation to
individual on-line purchase and also capturing decision making processes by
organisations like Amazon.
 To identify and assess the impact of combined individual characteristics and factors on
on-line purchase and decision-making processes of the customers of Amazon.
 To use online panel data to better understand the actual current and future behaviour of
on-line customers on multiple retailers.
Rational of the research
Main reason behind selecting this topic or research is to understand the influence of
Amazon on buyers’ decision making. As it is an interesting topic which supports an individual in
identification of buyer’s decision making towards particular brand. This research also support
researcher by increasing its understanding about the influence of Amazon on decision making
behaviour of buyers. This investigation will also helps researcher by improving its literature
review, time management, data collection and data analysis skills. By having these skill they can
easily complete research activities without any difficulty (Filieri, 2015).
Summary of the research project
This is the important part of dissertation as it assists reader to identify importance of
different activities in completion of research. These activities will be explained as below:
Introduction: For doing investigation, introduction introduces to the first activity which
includes some tasks such as background of the research, background of the organisation,
research aim, research objectives and questions etc. These are introduce main part of research
proposal which support researcher to complete these tasks and do further activity (Chen, Teng,
Yu and Yu, 2016).
Literature review: This is another activity which will be more useful for researcher when
they require data in detailed and accurate manner. In this section of research, different authors
have to provide their opinion about the selected topic.
Research methodology: This is another main section of investigation as it support
investigator to gather information and data from different sources. This research is based on
second method data of collection which is more beneficial because it helps researcher in
collection of information in in-depth way. Qualitative research will be going to used for ding this
investigation in systematic manner,
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Data analysis/findings/discussion: Within an investigation, data analysis or findings or
discussion will be based on literature review because it is a secondary type of research (Moser,
2015).
Conclusion: This is another main activity which includes summary of entire activity. With the
help of this section, reader become able to find out research objectives is achieved or not (Chen
and Lu, 2015).
Recommendation: This is last chapter or activity of dissertation which is based on some
issues. Under this part of research some recommendation will be provided to the organisation.
This recommendation is based on how to solve research issues and how to develop better image
in marketplace (Farah and Ramadan, 2017).
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LITERATURE REVIEW
A literature review refers to the comprehensive summary and detailed information of
previous study on a specific topic. Literature review also known as narrative review which is an
effective type of review article. This is a scholarly paper which includes accurate understanding
about the substantive findings as well as methodological and hypothetical contributions to a
specific research topic. These are basically secondary source and do not report fresh and first
hand experimental work. In simple word, literature review refers to the systematic, reproducible
and explicit method for finding, evaluating and synthesizing actual body of recorded as well as
completed work which is produced by scholars, researchers and practitioners. Literature review
help researcher in discussion and analysation of published information or data in a specific area
of study (Farah and Ramadan, 2017). There are certain purpose of a literature review such as: to
explore existing information in the subject area, ascertain key investigators working on this
topic, identifying gaps in existing study etc. These are main purpose of literature review which
assist researcher in identification of authenticated and detailed information. In this part of
dissertation, different authors have to provide their view about the each research objectives. As
this section of dissertation plays important role in completion of research activities
systematically and effectively.
The influence of Amazon on buyers decision making.
As per the view presented by Ahsan Ali, 2018, consumer decision making introduces to
the process which involves consumers to find out their requirements, collect information or data,
evaluate alternatives and then make their purchasing decision. There are certain factors that helps
in determination of consumer behaviour including psychological and economic factors.
Environmental factor also influence buyer behaviour by impacting social and cultural values. In
addition to this, purchase decision introduces to the process that leads a purchaser from finding a
need, creating options and selecting a particular product and brand. There are different factors
that have direct impact on decision making process of buyers. It includes economic, functional,
marketing mix, personal, psychological, social and cultural factors. All these are major factors
that influence buying decision of customers towards specific product and brand. Under personal
factor, it includes lifestyle, occupation, age, economic and social status as well as gender of
consumer also. These factors can collectively or individually impact the purchasing decisions of
buyers. In case of psychological factor, it includes four essential things that have direct impact
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over decision making process of buyers. This things are attitudes, motivation, learning and
perception. Therefore, all factors are played important role in influencing consumers to buy
product or service from specific brand (Rana and Paul, 2017).
As per the view presented by Cowan and Kinley, 2014, use of model is effective in nature
as this will help in acceptance of actual results. The benefit of this is ascertained in the manner
that it has guidance power that allows all the personnel of each and every organisation in
successful completion of their activities. One important model which exist in actual in respect to
ascertain about the individual on line purchase path and decision making process is Black-Box.
The functioning of this model includes the use of external stimulus-response or meaning that
triggers the consumer to build buying decisions which are influenced on the basis of the many
factors like marketing messages, product availability, sampling, price and promotion. It is clear
from description of this model that there are many factors that help to build the path of the
decision making of the consumers which ultimately force them to made purchases. So, triggering
over them must help the organisation in attraction of large number of customers along with
market share.
According to the Trent Riter, 2017, there are various factors that have biggest impact on
consumer purchasing decision such as product assortment, pricing, product availability, product
information i.e. free shipping, user rating and reviews. There are some another factors such as
better faster shipping, free return internet discovery and trending in social media.
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Illustration 1: Factors with the biggest impact on consumer purchasing decision
(Source: Factors with the biggest impact on consumer purchasing decision, 2017)
From the above mentioned graph, it has been shown as price of product is main factor
that impact customer buying decision. Approximately, 68% respondents are agreed as online
retail store are looking for the best price of product. Amazon is a multinational retail store that
had a biggest influence on consumer expectations or need, as its market has create it incredibly
simple to compare prices.
Availability of product is second biggest factors that impact on buyers decision making
towards specific product or brand. From the above mentioned graph it has been concluded as
approximately 54% of people are agreed as product availability is major factor in purchasing
decision of customers. If an e-commerce site i.e. Amazon has the proper product in stock and the
price of product is accurate, there is effective possibility that the purchaser will purchase it. On
the other hand, after product availability and price, there is few disagreement on what users want.
Approximately 36% people said as product assortment is a biggest factor for purchasing
decision process. Product assortment play an important role in not only satisfying customers
wants but also impacting their wants and preferences. This factor play important role in
influencing buying decision as Amazon not provide all product according to the customer want,
customer are more likely to go to an another site.
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According to the above graph, it has been shown as product description is another main
factor that has direct impact on consumers decision making. In this factor, Amazon play
important role by providing detailed information about the product and service want by
consumers. This information mainly related with the colour, detailed photos and in-depth,
accurate data and also providing more confidence to customers to purchase product from
Amazon.
Shipping price and speed is another main or biggest factor in Amazon that have to
influence consumer buying decision. Shipping opinion in Amazon could be playing an important
part in setting these speed as well as price related consumer expectations. Along with this,
Amazon provides 2 day shipping on a largest assortment of products, meaning clients
understands they won't have to delay long to receive their product or orders.
Therefore, above mentioned all are essential factors which have been used by Amazon in
order to influence buying decision of customers. As it will also helps an organisation in
increment of its sales and profitability. It will further support business to retain strong positive in
marketplace as well as in customer's mind also (Raman, 2014).
The demographic characteristics of customers using Amazon.
As per the views expressed by Jim Woodruff, 2019, In the modern business environment
the key motive of the businesses is to attaining higher growth and success at market place
through fulfilling the desires of the customers at market place. Customers are the key part of an
organisation, therefore, customers buying behaviour is an essential aspect which is effective for
the firm in improvising the operations and functions at wider level. Amazon is a large e-
commerce firm which is widely concern over attaining higher growth and success at market
place, therefore, the key purpose of the firm is to influencing the decision of the customers at
market place in regards to making an appropriate purchase decision. There are different
demographic characteristics of customers who are using Amazon are associated as below:
Age: This is the key demographic factor which influences the behaviour of customers,
therefore, in the modern era people are very much based on technological advancement and
using the facilities of e-commerce for the purpose of satisfying their needs and wants. However,
people from different age group are using online facilities, thus individual's are requires change
as they grow older in the digital era (Maniatis, 2016). People from different age are using e-
commerce facility for their own purposes and needs. Thus younger, people are spend on fashion,
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