Market Strategies and Consumer Behavior in the Amazon Ecosystem

This report provides a comprehensive analysis of Amazon's market strategies and their impact on consumer behavior. It begins with an introduction to marketing strategies, emphasizing their importance for business growth and success, particularly in the context of a competitive market like e-commerce. The report then delves into Amazon's specific strategies, including customer focus, innovation, operational excellence, and long-term vision. It examines how these strategies influence consumer behavior, such as through low prices, reviews, and ratings. Furthermore, the report explores the internal and external factors affecting consumer behavior, including personal factors like age, income, and lifestyle, as well as psychological factors such as motivation, perception, and beliefs. External factors like culture, social class, family, and reference groups are also discussed. The report also details the consumer decision-making process within the Amazon ecosystem, including need identification, information search, evaluation of alternatives, purchase decisions, and post-purchase behavior, along with the application of the 'Utility Theory'. Finally, it highlights the importance of digital marketing for Amazon, emphasizing its cost-effectiveness, communication effectiveness, revenue generation, and trust-building capabilities. The report concludes with a summary of the key findings and insights into Amazon's market strategies and their impact on consumer behavior.

Market Strategies
Student’s Details’

Market Strategies 1
Contents
Introduction......................................................................................................................................2
Market strategies-............................................................................................................................3
Importance of market strategies...................................................................................................3
Effect market strategies on consumers behavior.........................................................................4
Impact of internal factors on consumers behaviors.........................................................................4
Personal factors............................................................................................................................5
The psychology factors................................................................................................................5
Impact of external factors on consumers behaviors........................................................................6
Culture.........................................................................................................................................6
Social class...................................................................................................................................6
Family..........................................................................................................................................7
Reference group...........................................................................................................................7
Consumers decision making process in Amazon............................................................................8
Decision-making theory ‘Utility Theory’....................................................................................8
Need identification...................................................................................................................8
Information search...................................................................................................................9
Evaluation of Alternatives.......................................................................................................9
Purchase decision.....................................................................................................................9
Post Purchase Behaviour.......................................................................................................10
Importance of digital marketing....................................................................................................10
Cost-effective.............................................................................................................................10
Effective communication...........................................................................................................11
Generates better revenue............................................................................................................11
Develops more trust...................................................................................................................11
Conclusion.....................................................................................................................................12

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Introduction
To grow and be successful in competitive marking environment effective marketing strategies
are the lifeblood for an organization. Marketing strategies combined organizational plans,
organizational goals, and targets into a simple comprehensive plan of the company. Marketing
strategies help the business organization to identify their best potential customers. The marketing
strategy also helps to identify consumers' requirements and need. Good marketing strategies help
to implement effective marketing methods in the organization (Aghazadeh, 2015).
Amazon is an American multinational technology company that provides services in the E-
commerce industry, digital streaming, cloud computing, and artificial intelligence. Amazon is
one in the top five technology companies. The company is offering the world's largest online
marketplace. In terms of market capitalization and revenue generation, the company owns the
title of the largest internet company in the world (Amazon’s Website, 2020).
According to a report by Forbes, the company is one of the top ten most valuable brands
globally. To be and retained at the position of the market leader in the ecommerce industry, the
company works on four major principals that are customer focus, innovation, operational
excellence and long terms visionary thinking. The company is positively impacting customers
and the world's economy by following these principles (Stead, 2019).
This study covers various market strategies and their importance in the growth of Amazon and
the impact of these marketing strategies on consumer's behaviours. This study also focuses on
internal and external factors such as perception, motivation, references group, social classes and
their impact on consumer behaviours in Amazon. Besides, this study discusses the consumer's
decision-making process while making a purchase or consumer's buying behaviour and patterns.

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This study also gives a brief on the importance of digital marketing in today's modern era and its
effectiveness in Amazon.
Market strategies-
A marketing strategy is a set of direction and objectives to achieve long term goals of an
organization. In an organization marketing strategies develop for a certain period such as the
next few months (Waheed et al., 2017). Marketing strategies play a key role in the growth and
success of a business organization. Marketing strategies of a business organization have a
significant impact on organizational action plans, long term goals, consumer’s behaviours as well
as competitors' action plans (Grebitus & Bruhn, 2011).
The mission of the Amazon is “To be Earth’s most customer-centric company, where customers
can find and discover anything they might want to buy online, and endeavouring to offer its
customers the lowest possible prices” (Farfan, 2019).
To achieve this vision Amazon focused on four major areas, that are email marketing channel of
Amazon, focus on rating and review and implement improvements accordingly, increase
customer loyalty, and videos of success stories for direct marketing (MacDonald, 2019).
Importance of market strategies
Effective marketing of an organization considered with effective marketing plans or strategies of
the organization. A good and effective marketing strategy defines organizational vision, mission
and organizational long term goals. Marketing strategies set outlines to a business plan that a
leader needs to pursue to accomplish organizational goals (Morgan et al., 2018). Business
managers need to define and develop effective marketing strategies as they are outlined to run a
business. Thus, an effective marketing strategy describes organizational products and services,

Market Strategies 4
and refers to the position of organizational products and services in the present market. It also
helps to develop a profile of customers as well as competitors (Ramli, 2017).
As marketing strategies set to directions to achieve organizational goals so it helps to identify
methods, techniques, and tactics to follow to goal accomplishment. Marketing strategies also
enable business managers to build marketing plans and their evaluation to measure the
effectiveness of existing marketing plans. Thus, the importance of marketing strategies states that
marketing strategies help to identify business goals, defines marketing plans, set the direction for
market research, develop a profile for targeted customers, and create a profile for market
competitors (Miller, 2020).
Effect market strategies on consumers behaviour
The company provides the largest platform for people or customers to buy things online. With
the company's mission statement, the Company developed low prices and discounted pricing
strategies to attract more customers that impact on consumer's behaviour significantly. Now
consumers are seeking online shopping platforms rather than visiting to store for shopping.
Apart, discounted offers or sales in holiday seasons are also an effective, marketing strategy of
the company that helps to generate revenue in bulk in a shorter period. Now customers are
seeking discounted offers to made purchase (Rudolph, 2016).
The Amazon welcomes reviews and ratings for self-improvement. These reviews nurture
positive feedback in a customer's mind which also helps customers to make an opinion to buy a
particular product. Now consumers prefer rating and reviews based purchases. Amazon provides
the products and services low prices, so consumers use these services to compare the market
prices of products during making purchases (Gibbons, 2017).

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Impact of internal factors on consumers behaviours
Internal factors of consumer behaviours are divided into categories as personal and psychological
factors. Personal factors majorly include age, income, lifestyle, education, profession, and
personality. The psychology factors of consumer behaviours include the family, role, reference
groups, motivation, learning, perception and beliefs and attitudes (Al-Salamin & Al-Hassan,
2016).
Personal factors
Personal factors such as age, income, lifestyle, education, profession, and personality have a high
influence on customers buying behaviours in certain ways. Consumers' behaviours change with
the ages. Consumers are more likely to buy the same at every stage of the age. For instance, the
products or services purchased at the age of 20 are more different from the product and services
to buy at the age of 70 (Manrai, 2017). A person's lifestyle education and professions changes
throughout the life that impact on the buying behaviours. There is a huge difference in the
products that had been purchased by a student or actor. These factors affect the marketing
strategies of every organization including Amazon. The company has to develop various
marketing strategies for the same product to target different age, profession and lifestyle groups
like change in packing, and different advertising. For example, the Amazon company
introducing new products like Bluetooth gadgets to targets youth and devotional and health
orientated programs to target another group (Brown & Oplatka, 2016).
The psychology factors
The psychology factors of consumer behaviours include the family, role, reference groups,
motivation, learning, perception beliefs, and attitudes that also influence consumer's buying
behaviours like personal factors. The psychology factors affect consumer's buying. Maslow's
hierarchy of need theory also supports consumers' buying behaviours according to psychological

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factors. As a lower level of Maslow's hierarchy level consumers tent to buy basic needs products
like food, shelter, water, etc. With the growing stages of a person buying needs and behaviours
also change (Ali et al., 2018). At second level people tend to buy safety and security, health
concern products and services, property and stability. In the belongingness stage, people prefer to
show and reflect the desire of love and friendship and made the purchases accordingly as
presents or gift vouchers offers by the Amazon. At self-esteem stages, people strive for respect,
prestige, and superiority and made purchases accordingly (Cetina et al., 2012). At this level of
need hierarchy, consumers are more conscious of bands and superiority rather than prices. Thus,
to targets, these consumers companies focus on quality and premium services and products that
satisfied the need for the esteem of consumers. If consumers feel than the products and services
are meeting their need they are more likely to make purchases. Hence, Amazon offers products
and services accordingly with implanting marketing strategies of buying patterns of consumers
(Ward & Lasen, 2009).
Impact of external factors on consumers behaviours
Like internal factors, external factors such as family, culture, subculture, reference group, and
social class affect the buying behaviours of people. These factors are also highly associated with
the buying pattern of the people and impact marketing strategies of Amazon Company.
Culture
Culture includes beliefs, values, and norms, patterns of behaviours, traditions, customs and
taboos in a certain nationality or region. People learn cultural norms and patterns from childhood
which influences their decision and behaviours in the rest of life (Brosekhan, 2018). Marketing
organization makes their strategies according to cultural norms of people. For instance, certain

Market Strategies 7
eating and drinking habits are taboos in certain cultures thus, Amazon avoids to sell such
products and in such culturally rich regions and nations (Ali & Swati, 2018).
Social class
The social class represents the hierarchical arrangement in the sociality which defines social
status and standing. Social class includes a prestigious class, high social-economic class, lower
economic class, etc. These classes are an important determinant of consumer's buying behaviours
and patterns. The social class of a person and consumers affects to consumption patterns of a
person, activities, and interest, adaptability and affordability of the product for the person or
consumers. Thus, social classes of consumers affect Amazon's customer's behaviours and the
company has to develop different marketing strategies to satisfy the needs of various social
classes. Like for the premium classes company offer the quality and fine product or for economic
class Amazon offers products and services at discounted and pricing saving formula (Durmaz &
Tasdemir, 2014).
Family
Family is a major determent that influences individual buying behaviours and patterns. A person
or individuals makes his/ her purchase according to the family environment. For example, if a
person belongs to a traditional family he/she might not purchase modern outfits or other things
that are not suitable for their family. While developing marketing strategies, leaders of Amazon
keep this factor in mind (Chandrasekar & R, 2013).
Reference group
A reference group is a group of people that affects an individual's behaviour or attitude.
Individuals learn attitudes, values, beliefs, and behaviour from reference groups to adopt these
attributes in their life. Family, friends, community and social circles are considered primary
Reference groups of people. People or individuals frequently interact with these people like

Market Strategies 8
family member, colleagues and schoolfellows. These people or reference groups influence's to an
individual through personal choices, acts, and behaviour. For instance, a person or an individual
prefers the same brands, food choices, and lifestyle and behaviour patterns that he/she
consistently sees suing by his/her family or friends. Besides, while the making purchase
opinions of such groups also impact on buying patterns (Rajagopal, 2019).
Consumers decision making process in Amazon
The decision-making process regarding particular products or services is tremendous and varies
according to personal attributes and external influencing factors. Although, every consumer goes
through the decision making process to some extent. The consumer decision-making process
includes some major steps. This process starts to needs identification, collect the information
regarding the fulfilment of needs, evaluate the alternatives and make a buying decision.
Decision-making theory ‘Utility Theory’
Nicholas
Bernoulli, John von Neumann, and
Oskar Morgenstern,
Nicholas
Bernoulli, John von Neumann, and
Oskar Morgenstern,
Three economists namely Nicholas Bernoulli, ‘John von Neumann, and Oskar Morgenstern
proposed decision-making theory. This theory supports that the decision-making process is
deeply influenced by the expected outcome of the decision. This theory proposed that consumers
are rational actors who can understand or estimate probabilistic outcomes or results of the
uncertain decision and recognize and select the maximum profitable outcome (Michael, 2006).
Thus to make buying decision consumers follow five major steps. These have discussed below.

Market Strategies 9
Need identification
The decision-making process starts when an individual or consumer recognizes the need to make
a certain purchase or to buy a certain product or service. The consumer recognizes the need by
feeling that they are required to have a certain thing and to full this gap they address to this
process. For example, if a person feeling hungry or thirst he/she will buy a water bottle or
something to eat. Amazon marketing strategies also develop needs for particular thing through
given options on the websites like discounted offers such as ‘deal of the day’. This step is very
crucial when making expensive purchases like property, cars, and expensive gadgets
(Stankevich, 2017).
Information search
Towards buying a certain product and service, consumers go in the information search process.
This step tends to change consumers' behaviour according to available information regarding the
purchase. The consumer goes through more and more information search to need satisfaction.
The consumer may obtain information from family, reference groups, and previous experiences.
Utility theory strongly supports to this stage, at this stage consumer evaluate estimated outcomes
of the decisions. To search the information, the consumer goes through various sources like
commercial advertisements and promotional campaigns own previous experience and opinions
from family and close ones. Amazon provides various options for information services on the
websites like price, type, material, size and quality of the product (Stankevich, 2017).
Evaluation of Alternatives
At this step of the decision-making, process the consumer evaluates to collect information and
find out the alternatives and try to recognize the most suitable and profitable option and try to
differentiate to best options. Consumer's cognitive ability and product description help
consumers to evaluate the alternatives at this step of the decision-making process. Product's

Market Strategies 10
price, quality, other factors are being evaluated at this step. Amazon's consumers evaluate their
alternatives based on price, compression, reviews, and rating and select the most suitable product
(Joshi & Rahman, 2105).
Purchase decision
Analysis of products and evolution of available options consumers decide to make the final
purchase. At this stage, consumers developed an ability of logical conclusion for the best option.
This conclusion may base on commercial advertisements, emotional connections, website
reviews references groups opinions, and personal experiences. Amazon consumers purchase the
products by clicks. Amazon also provides options to its customers for instant pay and later
payment.
Post Purchase Behaviour
The last stage of the decision-making process is post-purchase evaluation. At this stage,
consumers analyse that the product is useful or enough to satisfied the needs of the consumer.
Consumers also analyse that the product is good enough to meet his/her expectations. At this
stage, consumers act as a brand ambassador, and his experiences influence to potential
consumers. Being an Amazon consumer, consumers give their reviews and opinion that help
other consumers to decide for purchase (Pure 360, 2018).
Importance of digital marketing
Digital marketing is a platform to buy or sell the products and services using digital technologies
through phone Apps, digital advertising and other digital mediums. It covers all marketing
efforts by using electronic devices and digital technologies technology. In the present
technological advance era, digital marketing is must require a platform for business
organizations as well as consumers. Digital marketing covers endless opportunities for the

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business organization for selling and promoting products through email, social media, video, or
websites. There are many benefits to adopted digital marketing by business organisations.
Cost-effective
Digital marketing is the most cost-effective than traditional marketing platforms. Through digital
marketing business, mangers find superior and cost-effective marketing channels without
investing in assets and capitalization. This marketing platform helps to sell and promotes the
products through various digital mediums such as the company's website, social media, and
email and so on, which required less money and time.
Effective communication
This form of marketing develops effective and easy communication between companies and
consumers. Through this digital platform, consumers can communicate their experiences,
complaints, and suggestions regarding the purchase made by them. In return, companies also can
provide available solutions to consumers regarding products and services brought by the
consumer.
Generates better revenue
Since digital marketing required less investment in return gives more opportunities for making
higher money. According to a study conducted by Google, digital marketing generates 2.8 times
more revenue. A digital marketing increase the reach of the product to the maximum group
people in with less affords that also leads to sales maximization and profit maximization
(Sherman, 2019).
Develops more trust
The presence of a brand and service at various platforms provides more options to consumers to
rate or feedback to the company's services according to their experiences. A positive rating and

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reviews by satisfied customer consumers increase potential customers. Besides, the availability
of a product or service at multiple platforms creates trust in the consumer's mind for the brand.
The above discussion shows digital marketing a very important platform in today’s technological
era. Being an online giant digitals marketing is very effective in the company's growth and
revenue generation. According to a report, 43% of e-commerce sales have been captured by the
Amazon and around 50% of products search has been done on Amazon. Amazon is increasing its
revenues through a search engine and by providing advertising space on the website. So it is
encountering the marketing strategies and digital marketing adopted by the company are very
effective in term of sales maximization, reducing cost, and generating higher revenue (Lunden,
2018).
Conclusion
Marketing strategies are effective tools for growth and success of a business organisation. An
effective marketing strategy is a part of organisational plans to achieve organisational goals in a
certain period. This study discussed marketing strategies implanted by an e-commerce
organisation namely Amazon. This study concludes that to define organisational goals, vision,
develop organisational plans marketing strategies play an important role. Besides marketing
strategies also play an important role in consumer's behaviour and buying patterns.
Furthers, this study also includes internal factors such as age, income, lifestyle, education,
profession, personality, motivation, learning, perception, and other psychographic factors that
affect consumers' buying behaviour. Apart from internal factors some external factors like
family, social group, and reference groups also have a significant impact on consumers buying
behaviours specifically on potential customers of Amazon.

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This study also comprises a decision making process and Utility theory of consumer's
behaviours. The decision-making process includes five major steps such as need identification,
evaluation, purchase decision, and post-purchase analysis.
Besides, this study concludes the various importance of digital marketing in today’s business
environment. Digital marketing is helpful as it is cost-effective, increase sales and profit, and
develops brand loyalty and trust towards the organisation. In technology adoption of digital
marketing and marketing strategies of amazon is very effective in organisational growth.

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