Amazon Go: Analyzing Consumer Behavior, Retail Market Disruption

This report analyzes Amazon Go, an automated grocery store introduced by Amazon, examining its influence on the retail industry and consumer behavior. The research addresses two key questions: whether Amazon Go is responsible for disrupting the retail market and the factors that influence consumers to purchase products from it. The report delves into the technology behind Amazon Go, including application-based services, image recognition, and AI, and reviews existing literature on the topic. It highlights factors such as time efficiency, smart technology, one-click purchasing, the integration of online and offline platforms, and cashless options as key drivers of consumer adoption. The research design employs a qualitative approach to understand consumer behavior and the market disruption caused by Amazon Go. The report also anticipates the future expansion of Amazon Go and its continued technological innovation to maintain a seamless experience for consumers, including cost minimization strategies. The report concludes that Amazon Go's strategy is an evolution for self-checkout version that will be used throughout grocery chains across the globe, with computer integrated inventory management process and advanced technology.

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Amazon go
[Type the document subtitle]
3/21/2020
student name

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Contents
Abstract......................................................................................................................................2
The Problem...............................................................................................................................3
Literature review........................................................................................................................4
Research Design.........................................................................................................................7
Expected Results........................................................................................................................9
References................................................................................................................................11

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Abstract
Amazon Go is an automated grocery store opened by Amazon in early 2018. The
research questions that will be considered throughout this research are “what are the factors
influencing consumers to purchase products from Amazon Go?” and “Does Amazon Go
responsible for disruption of retail market?”
Amazon Go is one of the stores that allow the customers to log in with the application
while entering the store without any need of employs at the door. The research design that
will be considered for this study will include qualitative research design. Through qualitative
research design it is appropriate to search for answers to a Why questions other than what.
Analysing the suitability and understanding of the research designs it can be said that the
selected research design for this study is descriptive research design. This research is results
oriented that reflect that through this research the research questions are to be answered.

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The Problem
Through this research work the focus will be towards analysing Amazon Go influence
on retail industry and Understanding the consumer behaviour towards Amazon Go. The
research questions that will be considered throughout this research are
1. Does Amazon Go responsible for disruption of retail market?
2. What are the factors influencing consumers to purchase products from Amazon Go?
The case consider for the research purpose is of Amazon Go. Amazon Go is an
automated grocery store opened by Amazon in early 2018. The company has created a
grocery store that is considered as just walk out considering several technologies which
included application-based services, location-based services; I click like retail web shopping,
image recognition, integrated payment, artificial intelligence, multiple sensor technology, and
machine learning. My research topic reflects analysis of Amazon case while considering its
influence, impact and disruption course in retail industry. Moreover consumer behaviour is
one of the aspects or study that will reflect psychological change and perception of the
consumers towards a particular product or brand. Therefore the research will also analyse the
consumer behaviour towards Amazon Go so as to understand future opportunity or
sustainability of the brand (Chou & Shao, 2016).
Amazon is one of the popular e-commerce businesses; there brand recognition and
brand awareness is quite high which reflect a dual advantage for Amazon Go to sustain in
retail industry. Moreover the response from the consumers has been great for Amazon and so
thus for Amazon Go. Changing consumer behaviour towards digital purchasing and use of
technology reflect a major threat for traditional retailing companies and other online retailing
companies as well. Therefore this study will analyse the key factors that have been

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responsible for influencing consumers to attract and purchase products from Amazon Go
instead of any other retail store (Chung & Fiore, 2017).
Literature review
The literature reflect that by February 2018 invasion of grocery retailing that is
Amazon Go has been introduced on its website as part of the grocery items and food and
beverages. There were around 10,000 items identified to be offer to the customer by company
which acted as one of the strength for the company. Grocery home delivery has already been
considered by the company since last 5 to 6 years, where the company directly pick up
Amazon fresh and reach out to the customer adore (Ives & Adams, 2019). However true this
innovative store that is Amazon Go, the company have considered using convenience store
and integrate brick and mortar and online store facility for the customers. The convenience
store industry and retail operations have been working considering brick and mortar method
the statistics of 2016 reflected that convenience stores have successfully sold food service of
US dollar 35.7 billion. Amazon Go is one of the store that allows the customers to log in with
the application while entering the store without any need of employs at the door. The selected
products by the consumers are identified by shelf technology that includes the product
collected in the court of customer when the product is removed from the shelf by the
customer. Moreover after picking up all the products the customer exit the store through a log
out that the amount is automatically deducted from their Amazon cash. Thus this convenience
store allows the customer to easily access the grocery, collect the goods and exit without any
hassle (Evans, 2011).
The literature considering the destruction of retailing market includes researchers to
compare Amazon Go in the retail industry with that of Uber in taxi industry which acted as a
distracted initiative which remove Hazel and on convenience for the customers and provide a

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better experience to them. The company are not found to be responsible for killing of all
other companies but considered to have a big portion in the market share. The fear in the
industry is just walk out technology that is offered by Amazon Go which could increase the
level of change in the industry for around 3.5 million users in United States. Other than this
the company was found to be employed as minimum employees required it could be one
employee per shift also (Ives & Adams, 2019).
The employee work was only to check the IDs, greet the customers answer to any
particular question related to stock items and related to alcohol purchase. Moreover the
research reflected that the company is being looking towards complete removal of checkout
process which may reflect major benefits to the company both considering the labour task
and Labour investment. Some of the major dealers in retail industry like Kroger and Walmart
were considering go technologies as the major correct for their companies. The scan
technology has reduced the friction for the customers. Moreover A cashless convenience for
the customers has also been introduced through this payment options. Other than this the
major threat was due to the previous experience with Amazon which was founded in 1994
and introducing a bookstore and which has eventually providing all the possible consumer
goods to the customers. As per the statistics of 2018 March Amazon was identified to be the
third largest company in the United States as per the market capitalisation and its CEO that is
Jeff Bezos was identified to be the richest man in the group (Craig & Douglas, 2015).
The factors or the advantages that have been identified through the literature or the
existing research for Amazon Go include time efficiency. One of the major advantage is time
efficient for the consumers as the company has provided the consumers to enter into the store
I want purchasing the product that they like and exit the store without any billing lines and
wasting their time in queues (Ives & Adams, 2019).

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Another factor that has been influencing consumers to purchase goods from Amazon
Go it’s smart technology. The customers in today’s world is attracting towards the digital
technology due to increase convenience and innovative approach to purchase products. Das
for making shopping interesting and easier to smart technology used by Amazon Go are able
to steal the attraction of the consumer towards it (Ives & Adams, 2019).
In one click is another major factor that has reflected a cause for influencing
consumers towards Amazon Go. According to this aspect consumers are able to purchase the
product with maximum convenience through purchasing in a click which reflects not only
time efficiency but also make the consumers hassle and bustle free (Ives & Adams, 2019).
Another factor that has introduced consumers for purchase through Amazon Go is
taking advantage of both online and off-line platform. The disadvantage of online platform
has been acquired through this process. For instance the delivery time and process through
online mode is a bit longer which may reduce the ability of the online portal to reach to the
consumers with the emergency case. Thus through Amazon Go a consumer is able to
purchase the product through the convenience store and look out for the stock and placement
of the products through online mode (Ives & Adams, 2019).
Another major factor that has been observed through the literature for consumers to
influence for purchase of products from Amazon Go is cashless option. A consumer can
easily purchase grocery and other retailing consumer goods from the store without carrying
cash, wasting their time collecting cash and providing to the employs of the stores. Rather
they can easily check out with automated the amount deduction from the Amazon pay (Ives
& Adams, 2019).
The literature reflected the future of Amazon Go through the reports of Amazon Go
that reflect that the company is planning to increasing their stores across the globe and soon

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be opening at Los Angeles. The company is also going to advertise for employment position
in the company in order to join architecture, construction and engineering team. Moreover it
has been identified that Amazon is one of the most innovative companies across the globe,
the company will be working on technological innovation and updating the technology over
time so as to keep the company sustained and convenient for the consumers. The company’s
purpose is to provide flawless experience I am having best operating system of automated
retail sector. Moreover the partnership of the company with Amazon Web services and
fulfilment by Amazon has been expanded into brick and mortar convenience store as well
(bloomberg, 2020).
Amazon go strategy is found to be an evolution for self-checkout version that will be
used throughout grocery chains across the globe. Computer integrated inventory management
process and advanced technology of the company will allow the consumers to take off the
required products from the shells and include them in the court while without any checkout
line leaving the store. Other than the convenience for the consumers the company has also
planned a benefit of checkout clocks reduction which acts as a cost minimisation strategy of
the company. Cost of maintaining, implementing and sustainability of a process and system
may exceed the cost saving and decrease the profit margin for the company. Through this the
company is also able to offer cost-effective products that are to offer discounts without any
problem due to cost minimisation strategies. This could be one of the other factors for
consumers to attract to words such a convenience store (forbes, 2019)
Research Design
Research design reflect research methods and techniques framework that is selected
by a researcher. The research design is responsible for allowing researcher to consider one or
combination of two or more research methods that are more appropriate for the subject matter

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and will act as a base for study. A research design will reflect the type of Research and its
subtype. There are two important types of research design that is qualitative and quantitated
research design. A qualitative research is responsible to evaluate a relation between
observations and the collected data that will be based on some or the other calculations. This
could include using statistical methods in order to correlate theories to naturally existing
stimuli which will either reject or except the hypothesis. Through qualitative research design
it is appropriate to search for answers to a Why questions other than what. Quantitative
research design includes numeric collection of data and statistical conclusion. It has been
analysed that numbers are able to reflect better perspective and more clear and critical
decisions in business. This method is essential for any organisations growth. Information
collected and insights that are interpreted from hard numerical data are considered to be more
affective while making decisions pertaining to business future (Feng & Chari, 2018).
From understanding of both types of research it can be said that the research design
that will be considered for this study will include qualitative research design. This research
will include analysing consumer behaviour which will reflect the qualitative approach.
Moreover the destruction of retail market due to Amazon Go will also be considered through
understanding the reason for particular phenomenal which reflect qualitative research
approach (Feng & Chari, 2018).
Research design can be further bifurcated into five categories that is descriptive,
experimental, diagnostic, correlational and explanatory research design. Analysing the
suitability and understanding of the research designs it can be said that the selected research
design for this study is descriptive research design. As per this design a scholar is completely
interested in this situation or case and description under their study work. This method is
considered to be wholly theory-based design method that is developed by collecting,
analysing and representing the collected data. This research design method is providing

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opportunity for the scholars to reflect the viewpoint and insights of how and why offer
research problem. Through this research design it is possible to help others in understanding
the research need. Moreover the suitability reflects that is the problem statement is clear
descriptive research design is more appropriate than that of other design methods (Pappas,
2016).
Other than the research methods, data collection methods are also considered in
research design which includes either primary or secondary data collection. For this study
secondary data collection approach will be considered as this is a descriptive research where
analysis of the consumer behaviour and impact of Amazon Go on the retail industry is to be
studied and analysed. This will include use of existing information and literature already
being collected from the time being the store was initiated by now. Therefore for studying
existing journals, news articles and company’s official website will be considered to study an
answer to research question.
Expected Results
This section of the report will include data analysis that will reflect analysing method
of data. Data analysis includes not only collection but also organisation of the data collected
so as to find out a result or conclusion from the same. Data can be analysed through various
methods and are responsible for answering questions, derive important information and also
solve the problems. There are various types of methods and techniques in data analysis some
of the major types include statistical analysis, text analysis, diagnostic analysis, perspective
analysis and predictive Analysis. Considering the understanding and suitability of these
methods and techniques of data analysis, the most appropriate method that is considered for
this research report as part of expected result or text analysis which is also called data mining.
This reflects a method to analyse large data set that is transforming raw data in useful and

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relevant information which will reflect conclusion to the research questions or answers to the
research questions (Zielke, 2014).
This research is results oriented that reflect that through this research the research
questions are to be answered. For this the data collected will be through secondary research
as discussed previously, thus the secondary research included various journals which implied
impact of Amazon Go on grocery industry and retail industry. Through this journal, the data
collected will be interpreted in order to answer 1st to research question. The expected result
or hypothesis from first research question is to be have positive relation of disruption of retail
industry and Amazon Go. Moreover the research also reflected the factors that are
responsible for influence consumer perception towards Amazon Go. The expected results
include the key strengths and unique selling proposition of the company that may include
convenience as one of the major factor for influence consumers towards purchase of Amazon
Go (Evans, 2011).
Econometric methods will be used in order to find implication or relation among
Amazon Go launch and disruption of retail industry and consumer behaviour. Other than this
the industry study and various managerial duties will also be considered for studying the
variables that will result towards the proposed research question (Ayers, 2017)z (Feng &
Chari, 2018).

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References
Ayers, J. (2017). Retail supply chain management. Florida: CRC Press.
bloomberg. (2020). amazon-s-most-ambitious-research-project-is-a-convenience-store.
Retrieved from https://www.bloomberg.com/news/features/2019-07-18/amazon-s-
most-ambitious-research-project-is-a-convenience-store
Chou, Y., & Shao, B. (2016). The impact of e-retail characteristics on initiating mobile retail
services: A modular innovation perspective. Information & Management, 53(4), 481-
492.
Chung, J., & Fiore, A. (2017). The Effects of Shopping Motivation and an Experiential
Marketing Approach on Consumer Responses toward Small Apparel Retailers.
Fashion, Industry and Education, 15(2), 11.
Craig, C., & Douglas, S. (2015). International Marketing Research. Chichester: John wiley &
sons.
Evans, J. (2011). Retailing in perspective: the past is a prologue to the future. The
International Review of Retail, Distribution and Consumer Research, 21(1), 1-31.
Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of
Marketing Science, 1-26.
forbes. (2019). 10-predictions-for-retail-in-2019. Retrieved from
https://www.forbes.com/sites/gregpetro/2019/01/04/10-predictions-for-retail-in-
2019/#60450f475f13
Ives, B., & Adams, D. (2019). Amazon Go: Disrupting retail? Journal of Information
Technology Teaching Cases, 9(1), 2-12.
Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, 92.
Zielke, S. (2014). Shopping in discount stores: The role of price-related attributions, emotions
and value perception. Journal of Retailing and Consumer Services, 21(3), 327-338.