Analysis of Amazon Prime's Brand Development: A Comprehensive Report

This report provides a comprehensive analysis of Amazon Prime's brand development. It begins with an introduction to the brand, outlining its services and market position. The report then delves into theoretical frameworks and models, including customer perceived value and the SERVQUAL model, to understand customer expectations and the consumer adoption process. It examines how Amazon Prime manages customer learning and experience, and how it addresses the gap between purchasing expectations and actual performance. The report highlights the importance of customer perceived value, customer loyalty, and relationship marketing in Amazon Prime's success. The study incorporates frameworks like the Customer Perceived Value model and explores the different types of values (functional, social, emotional, etc.) that drive customer decisions. The report also discusses the strategic advantages of Amazon Prime in understanding customer demands and expectations to formulate its services, and its ability to use data to achieve its targets. The report concludes with a discussion of customer expectations, perceived services, and the factors driving customer loyalty, offering insights into Amazon Prime's ability to maintain its competitive edge. This report is a valuable resource for understanding Amazon Prime's successful brand development strategies and the factors that contribute to its high customer satisfaction and market dominance.

Brand Development – Amazon Prime
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Brand Development – Amazon Prime
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Table of Contents
Introduction......................................................................................................................................2
Introduction to Brand - Amazon Prime...........................................................................................3
Theoretical Frameworks and Models..............................................................................................4
Customer Expectation/Perceived Services......................................................................................8
Consumer Adoption Process..........................................................................................................11
Customer Learning and Experience...............................................................................................13
Purchasing Expectations v. Performance......................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
Consumer value does not only work primarily to their function, but it is focused on the
function to deliver what their customer want. It leads to form perspective related to an
understanding about what customer need, and what are the factors leading them to buy a product
for their perceived values (El-Adly & Eid, 2016) In other words, these elements lead the
customers to look for their benefits developed to individuals leading towards forming customer
opinion of the products to creative, positive customer perceived values. In general, companies
are focused on developing their operational framework in a defined structure (Jiang, et al., 2016).
It can be seen as following,
Perceived product values can be explained on three different levels – physical, logical,
and emotional. It can further be understood with an example illustrated further (Hänninen &
Karjaluoto, 2017). A customer buys a new/existing product suiting its need, such as warm
clothes to stay warm in winters (physical needs), look for a new job to meet their living demands
(logical needs), and help needy personal (emotional needs) (Marbach, et al., 2016; Eggert &
Ulaga, 2002). The assignment has taken the case of Amazon Prime to support the research with
real industry evidence. It aims to underpin different theoretical frameworks and model to support
the research in setting a focus with the end goal to outline primary recommendations for the
study to work further.
Customer
Perceived
Benefit
Customer
Perceived
Cost
Customer
Perceived
Value

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Introduction to Brand - Amazon Prime
Amazon Prime is a paid subscription service initiated by Amazon to give the user access
to services, as they are paid. It is unavailable to all, or they have to pay an extra cost in
comparison to other Amazon customers. The service includes free delivery for two days, and two
hours deliver for a fee using Prime Now to use music and video. There were approximately 100
million subscribers of Amazon Prime across the world (Johnson, 2018; Winn, 2016). Since 2016,
the company has been operating with eight different categories of services namely – Prime
Music, Prime Video, Prime Reading, Prime Pantry, Prime Now, Amazon Key, Prime Air, and
Prime day. All these categories are working on different services which help them attract new
users. The strategic advantage of Amazon’s services understands the customer expectations and
demands which further lead them to plan their services (Head, 2017; Burzichelli, 2016).
Besides, to increase customer value, Amazon Prime launched an artificial holiday to offer
discounts and deals to people who were only key members of Prime at that time. Amazon Prime
is known for its similar strategies and promotional campaigns, these have resulted in an increase
of business for Prime. In fact in 2018, Prime was unable to handle the volume of traffic, even the
management had to set a fallback page to prevent a total crash (Garner, 2018; Johnson, 2018).
Besides, they have reduced international traffic while installing temporary services to
accommodate their shoppers, and restore their functionality completely. The reason behind
Amazon's success in such a short time is because of their understanding of customer perceived
values which have helped the organisation to plan their products and services meeting their
customer demands across the world. The data available on the server of Amazon has helped its
management to achieve their targets successfully (Soper, 2016; Winn, 2016).

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Theoretical Frameworks and Models – Supporting Customer Journey
The key objective of firms these days is to enhance the factor of loyalty and trust among
customers so that it can maintain the rise of its product and service purchase. However, it is
important to understand the association between customers perceive value and the company’s
approach to achieve their targets (Yadav, et al., 2016; Hooley, et al., 2017). A key factor in this
element is planning a successful relationship marketing approach to improve the interaction
between a buyer and a seller. Even in the financial industry, companies are required to follow a
defined structure in planning its internal processes and marketing approach to establish a strong
and long-term bond with their customers (El-Adly & Eid, 2016). In general, customer perceived
value is the point where the customer is able to outline customer satisfaction ration to achieve its
outcomes during the purchase decision. This is focused on what brand want from the customer
viewpoint while thinking about the brand total accumulation based on their experiences to build
contact points based on customer perspective (Hapsari, et al., 2016). The defined structure to
follow this scenario is as followed,
Figure 1: Customer Perceived Value (El-Adly & Eid, 2016)

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As can be seen in the framework above, three elements work together in forming a brand
image, thus leading to its development. They revolve around customer perceived value,
customer's perspective of public relationship, and customer loyalty to form the brand image.
Following the definition of Kotler and Keller, customer perceived value focused on the
difference between customer evaluation of the given cost and benefits to offer perceived
alternatives (Zameer, et al., 2015; KOTLER & KELLER, 2012). It can be said that customer
perceived value does not only work customer value, but it involves various elements such as
economic, functional, psychological benefits such as products, image value, and services.
Customer value is a mix of customer perception and evaluation to work on the relationship with
suppliers to increase work benefit (Burzichelli, 2016). It can be said that there are two types of
benefits of core benefits to working on the customer-supplier relationship with add-on benefits to
reflect in adding the value of customer relationship (Zauner, et al., 2015).
Figure 2: Customer Perceived Value – Framework (El-Adly & Eid, 2016)

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Five basic types of values drive from customer values; these are further discussed in other
categories as well. These include,
- The functional values to understand perceived utility to perform based on different
elements for example, functional, physical, and practice purpose.
- The values associated with the social element are perceived based on the advantage of
image and symbolisation of provided products and services to customers.
- The values associated with emotions are focused on the ability to perceive emotions
such as security, pleasure, fear, and others (Chen & Lin, 2015; Lapierre, 2000).
- The values associated with epistemic element work on the ability of the company in
increasing the curiosity of individual to satisfy their desire to gain knowledge in the
physical context.
o The conditional value is based on the perceived values based on different
situations to meet the social and physical context.
- It is also focused on narrowing down the dimensions of customer value into different
categories as followed,
o The social values to reflect social self-concept
o The emotional values to work on the utility of feeling generated from the
products and services
o The functional values to reflect the advantages gained from the portfolio of
the company's products, their quality, performance, and price value for
customers.
- In terms of the four dimensions of customer value dimensions, it is important for
research to work on the following perspective, these are,

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o Functional and instrumental values to reflect the utilisation of products, its
features, and functions being useful for customers
o The symbolic features work on the degree which reflects customer’s values in
psychological needs for example self-concept or worth.
o The experimental values reflect the products which evoke different emotions,
feelings or customer experience
o The sacrifice values are based on the expenses to be associated with the
buying and selling of products and services.
Figure 3: Customer Perceived Values – Framework (Hapsari, et al., 2016)
Following all the standards discussed above in the framework, it is important for organisations to
work on enhancing customer values in different contexts based on elements – product quality,
delivery, time, product price, processing cost, communication standards, the expertise of
suppliers, and service support. Another theory determine five forms of values which can be
supported by organisations in supporting individual development, these are,
- The net value to balance the sacrifice and benefits
- Derived values to work on user experience outcomes
- The market values to define product attributes on the customer perspective

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- Works with sales value to define the evaluation of fairness in terms of benefits and
sacrifice (Jhandir, 2012).
Customer Expectation/Perceived Services
Customers in this era are becoming very demanding, they do not only expect high-quality
products, but they also expect quality customer services to work with their favourite organisation
and improve high-quality customer services. These can be any type of product or service being
offered to the company (El-Adly & Eid, 2016). In case of Amazon Prime, the management is
found working across different regions offering their desired content, for example, in India, the
creative designers are working towards setting Indian Media and Content to attract their locals
(Soper, 2016). Meanwhile, if they are offering their services in the UAE, it will work to make the
content suitable for the UAE content. It is the reason the Amazon Prime has been working to
achieve customer perceived value by developing superior customer value, it is not the actual
product, but it is the meeting of customer expectations and services to work on actual physical
products to sustain their position in the competitive marketplace (Zauner, et al., 2015;
Munusamy, et al., 2010).
Researchers determine that Amazon Prime work on service-based models such as SERVQUAL
(service quality gap model) identify the gaps using service quality measurement to work on the
tools to be used under product manager across the industries (Jiang, et al., 2016). It is a multi-
item scale development to assess customer perception in service quality in services and retail
businesses. The model was developed in the late eighties to scale decomposes of service quality
notion based on different elements (Chen & Lin, 2015). The model is as followed,

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Figure 4: SERVQUAL Model (Chen & Lin, 2015)
The reason behind selecting the model to outline the case of Amazon Prime is the
determination of three elements – Word of Mouth, Personal Needs, and Past experience to design
the expected services given to the customers. However, in this scenario, any negligence or gap in
strategic development can increase the gaps in service criteria of Amazon Prime (Hapsari, et al.,
2016; Negi, 2009). It is the reason that Amazon is able to reduce the gap in their offered services.
Meanwhile, it is the same reason that Amazon is able to expand its business to this scale in such
a short time. The whole scenario works with perceived services before the delivery of services
and design; this has been carried out with communication to work on management perception at
the strategic level (Yadav, et al., 2016).
In order to understand customer perceived values, Amazon Prime has carried out a
customer survey and understand their expectations. In this way, the management is able to
identify the gaps in their services with the pinpoint specification. It also helps the organisation to

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understand the competition while trying to measure the emotional aspects of their performance.
Another method to assess the performance of Amazon Prime is to measure the Loyalty of
customers with a series of satisfaction measurement (Zameer, et al., 2015). To determine
customer perceived value, Amazon Prime has worked on determining the measures in which
each attribute of business can be evaluations to reach customer satisfaction level in order to
improve their operations and design their required content to attract customers (Burzichelli,
2016).
Consumer Adoption Process – Service Performance
Consumer Adoption Process is focused on the series of stages to determine if the
consumer wants to adopt a new product or services following their needs and demands. In the
competitive industry, organisations are required to work on understanding the needs and
expectations of consumers having a number of choices (Chen & Lin, 2015). Case in point,
Amazon Prime is focused on developing a variety of content suitable to meet the taste of the
audience across the world. There are five steps in the consumer adoption process – awareness,
interest, evaluation, trial, and adoption (Head, 2017). The five major steps in the process are,
- Carrying research to understand the market trend
- Completing the research from rivals, and others
- Receiving a referral
- Completing the paperwork and placement method
- Parenting the project in the right direction to achieve successful targets.
In order to understand the process, a graphical presentation is very important; it is as followed,

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As it can be seen in the figure above, Amazon Prime has worked on creating awareness of its
products and services to set a focus, they have carried out market research across the world to
design an extensive range of content suitable for the audience of all type as it is explained above.
The reason behind Amazon Prime’s success is being popular among teenager and adults because
the creative directions have target topics suitable for the target audience (Yadav, et al., 2016).
The second stage is focused on developing product interest where the company plan promotional
campaigns to guide the consumers on interest level; this is achieved by providing accessible
information for their products. The method is utilised by companies to work on the current
business landscape by providing the content based information of the website using tactics such
as product information, blog posts, tutorial, instructional videos, and others (Burzichelli, 2016;
Zameer, et al., 2015).
The third stage is based on product evaluation where Amazon Prime has worked on examine,
compare, and evaluate the product or services by understanding the needs of the customers to
create or upgrade the product or services. For example, by evaluating the content of Amazon