Business Research Proposal: Amazon's Whole Foods Customer Growth

This business research proposal explores strategies for Amazon to increase the percentage of its Prime members who also become Whole Foods customers. The proposal includes a problem statement, management questions, exploratory questions, investigative questions, and a hypothesis. It examines experimental design, including types of variables and data, and outlines the research methodology, including analysis, the null hypothesis, and tables used. The report addresses threats to validity, potential limitations, and provides recommendations and a conclusion. It justifies the study's importance and benefits, referencing relevant literature. The research methodology involves collecting primary data from a sample size of 50 participants through surveys, email, and phone calls. The analysis utilizes F-tables, t-tables, and P-values to determine the correctness of the hypothesis and identify the factors that influence customer behavior in the Whole Foods market. The study aims to provide Amazon with actionable insights to improve its market share and customer acquisition strategies.

Running head: BUSINESS RESEARCH METHOD
Business Research Method
Name of the Student
Name of the University
Author note

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Table of Contents
1. Introduction..................................................................................................................................3
Problem Statement.......................................................................................................................3
Management questions................................................................................................................4
Exploratory question and secondary resources............................................................................4
Investigative or research questions..............................................................................................5
Hypothesis...................................................................................................................................5
The importance or benefits of the study......................................................................................6
2. Experimental design....................................................................................................................6
Type of variable...........................................................................................................................7
Type of data.................................................................................................................................7
3. Research methodology.................................................................................................................8
Analysis...........................................................................................................................................8
Null hypothesis............................................................................................................................8
Tables used in the research methodology....................................................................................9
4. Threats to validity........................................................................................................................9
Potential limitations...................................................................................................................10
Recommendation – Conclusion.................................................................................................10
Justification for the study...........................................................................................................10
Concerns....................................................................................................................................11

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Benefits of this research.............................................................................................................11
References......................................................................................................................................12

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1. Introduction
When a document is used to propose a research project, is known as a research proposal.
The viability of the proposal depends on the soundness, possible impact and expense of the
project. Here, a research paper is proposed on what should be done to increase percentage of
Amazon prime members to be whole foods members. Amazon is a multinational company,
which is headquartered in Seattle, United States and operates in artificial intelligence, digital
streaming, cloud computing and e-commerce (Amazon.com, 2019). This paper includes some of
the important factors of the research proposals such as problem statement, management
questions, hypothesis, experimental design, research methodology, analysis and threats to
validity.
Problem Statement
A concise description about an issue, which need to improve or addresses, is known as
problem statement. It helps to identify the difference between the current problem and desired
goal of the problem. To improve any project, it is used by the organizations or businesses. Here,
Amazon planned to increase percentage of its prime members to be whole foods customers
(Welch, 2015). To strengthen the market of the company in whole foods, it tried to get whole
foods customers from the existing prime members. The company took various measures in this
regard. A multinational supermarket chain of United States (US) is Whole Foods Market Inc.,
which is based in Austin, Texas. It specializes in selling products free from preservatives,
flavors, artificial colors and hydrogenated fats. Moreover, it is an organic grocer, which is
certified by the USDA. The supermarket chain is famous for its offerings of organic products. In
2008, Amazon first entered into the food industry by launching AmazonFresh in the US. Later in

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2017, it finalized a deal to buy organic grocer Whole foods markets, to gain significant market
share in the whole food industry.
Management questions
Management question is an essential part of the research proposal related to management.
To get the solution of the managerial problem faced by the Amazon, it is important to include
management questions in the proposal (Wayne, 2018). Here, the management of the company
stuck with the issue, where it wanted to increase percentage of prime members to be whole foods
customers. It will help the company to capture the whole foods industry. The management
questions which should be included in the research paper are
 What environmental factors have prevented the growth of the whole foods customers?
 How can management stop these factors from preventing the growth of the company in
the whole foods customers?
 How Amazon can avail opportunities related to market expansion?
 Which course of action should be taken by the company to avail opportunities?
Exploratory question and secondary resources
Exploratory question is asked to understand the problem in depth. It also provides
insights with the help of secondary and primary research methods. Here, Amazon planned to
increase its customer base in whole foods markets. Therefore, it is required to understand the
problem in details to get the proper solutions (Weber, 2016). To research about the topic, it is
better to have clear understanding of the existing problems. When a research paper is done on the
basis of previously published primary research, it is known as secondary research. Secondary
resources can be collected from the books, newspapers, magazines and cast studies. Secondary

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research method is considered as very useful. In this paper, research on whole foods market of
the Amazon will be done on the basis of secondary resources. There are various previously
published works on the proposed topic. This paper includes literature research as it is an
inexpensive way to do research. Other secondary resources such as case study research and
online research, which are included to conduct the research.
Investigative or research questions
Research or investigative questions are important part of the research proposal. This
paper includes useful research questions, which will help in the research project. First, refining
and assessing the questions is essential (Chen, Mislove & Wilson, 2016). The questions are
based on the research problem and topic. Amazon faced problem to increase their market share
in the Whole foods industry. It tried to attract its existing prime members to be whole foods
customers. Hence, the research questions which are included in the proposal are
What measures can be taken to improve Amazon’s market share in the whole foods
sectors?
What can be done to increase number of customers in whole foods segment of the
company?
How to encourage existing prime members to become whole foods customers?
What measures can be taken to attract prime members in the whole foods sectors?
Hypothesis
In case of hypothesis quantitative approach is taken into consideration. It takes scientific
studies and scientific techniques in order to test the hypothesis. Amazon offered various
discounts and incentives to attract customers in the whole foods market (Martin et al., 2018). It

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also focused on existing members through prime members. Various policies taken by the
company in order to
The importance or benefits of the study
One of the important aspect of the research proposal is that it will facilitate in solving the
proposed problem. It will provide solution to the company. It will make the work of management
easier. The resources used in the proposal gives idea about the whole project. It analyses and
assesses the current problem (Heng et al., 2018). It also suggests ways to solve the problems. It
gives idea about the whole food market of the Amazon. It also emphasizes on the discounts
extended by the company to attract prime members.
2. Experimental design
The experiments done under the research project is known as experimental design. It
includes all the strategies and methods of data collection, which is helpful in the research. Two
types of data selected for the research project include quantitate and qualitative. Analysis of the
collected data is a vital part of the experimental design. Control group is used as a benchmark for
the experiment (Almirante, 2018). As a result, the outcome of the research is mainly dependent
on the control group. However, in this research proposal no such control group is used. There
will be no pre-test and post-test for increasing percentage of whole foods customers.
There are various factors which may attract the customers. In addition, these factors may
influence the decision of the customers to stay in the whole foods market of the Amazon. After
acquisition of the whole foods markets with 13.7 billion US dollars. It expanded the number of
physical stores, which is an advantage for the customers. The bricks and mortar stores of more
than 400 benefitted the customers. Amazon also took a competitive strategy of slashing prices of

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some organic products. It also made available a voice control assistance named Amazon Echos
for the customers. It is present at the front of stores to assist the customers in the organic shop.
The company also installed Amazon Lockers at different whole foods locations, which helped
customers in pick up and drop off online orders. Therefore, the goal of the company to establish
itself as whole foods infrastructure largely depends on these factors. To attract the customers in
the whole foods market, the company also offered discounts for the prime members. Moreover,
two-third of the US households subscribed to Amazon’s prime membership program.
Type of variable
The dependent and independent variables are basically cause and effect of the problem.
There are several independent variables in this research project. Any changes in the independent
variable will affect the dependent variable. In the experiment the value of dependent and
independent variable may change. However, the value of the independent variable can be
controlled. Dependent variable will only change with the change in any of the independent
variables. As the Amazon planned to increase its whole foods customers with the help of various
tools. Here, dependent variable is the experience of the customers in the whole foods market of
the Amazon (Ives, Cossick & Adams, 2019). In addition, the independent variables such as price
cutting mechanism of the company and discounting facilities for its prime members. Amazon
offered 5% of cashback at whole foods for its prime card holders. Other than this, the company
also offered voice controlled assistance for its customers in the physical store and lockers for
pick up and drop off facility.
Type of data
Primary data can be collected in order to conduct the research. It will easy to conduct the
research on the basis of primary data. The sample size of the primary data is 100. The total

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number of 100 people will be interviewed in order to complete the research project. However,
response is not given by whole population size (Insider & Lutz, 2017). Total number of 50
people responded. Thus, the sample size of this primary data collection process is 50. The data of
the proposal can be collected from email, phone calls and online surveys. Here, age and gender
of people is nominal variables. Data have been operationalized. As the variables are strictly kept
into measurable factors.
3. Research methodology
In a research methodology, information and data area collected to make a business
decision (Phillips-Connolly & Connolly, 2017). Here, research is done on the basis of primary
data. After the research analysis is done on the basis of independent and dependent variables.
The samples, factors and variables are also used in the research methodology.
Analysis
Null hypothesis
Null hypothesis is used in this research methodology. It is a part of inferential statistics.
Null hypothesis states that there is no similarities between two variables or groups. Here,
variables are different from each other. Null hypothesis incudes disapproving, rejecting,
approving and accepting. Until the evidence provides a negative result about the null hypothesis,
it is believed that null hypothesis is true (Vyt, Jara & Cliquet, 2017). Thus, research project
related to Amazon’s increasing customer base in the whole foods market will be helpful due to
null hypothesis. Alternative hypothesis can also be used in this research proposal in order to
solve the problem of the Amazon. However, the alternative hypothesis directly contradicts with
the null hypothesis. Though, these two hypothesis are similar in nature but they actually give

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different outcome. According to the alternative hypothesis, there will be an observed effect for
the experiment done. It usually bears a sign of inequality.
Tables used in the research methodology
Critical values in the statistics is the value of Z. Critical value can be obtained with the
help of F-table, t-table and z-table. In this research methodology to calculate the critical value F-
table and t-table have been used. The F-table is used in the analysis of variance. Here, to solve
the problem of Amazon’s whole foods customers F-table is considered as the useful tool
(Johnston, 2018). It is right-skewed distribution table. T-table represents probabilities of the t
distribution under the probability density function for different degree of freedom. P value is a
statistical measure, which helps to determine whether the results obtained is correct or not. The P
value of this research proposal is evaluated with the help of excel sheet. In addition, collected
data from the research is plotted on the excel sheet to find out the P value. It determines the
correctness of the hypothesis.
The given alpha value is 0.05. Therefore, the null hypothesis will be rejected if the value
of alpha is greater than the p value (Conaway et al., 2018). On the other hand, if the result of the
alpha is less than the p value then the null hypothesis will be accepted.
4. Threats to validity
Validity of a research is an important aspect. It checks whether the research has been
done on the basis right and transparent elements. It also emphasizes on the measures of the
instruments and what they intended to measure (Cusumano, 2017). Reliability is an essential
factor for the instruments of the research proposal. However, other than reliability there should
be valid instruments. There are two ways of a research validity such as external and internal.

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Internal validity ensures whether the research findings match with reality. Here, research has
been done on the basis of primary data, which means it is matching with the reality. It also
ensures the transparency of the findings. The primary data collected from different sources are
not tampered. The data has not been manipulated by any means. On the other hand, when the
data can be replicated with other environments, it is known as external validity of a data.
Potential limitations
There are various limitations of the project. The main constraint of this project is budget.
The collection of primary data is restricted due to budget issues (Brites, 2018). In addition, with
greater budget, the population and sample size of the primary data collection can be larger. It will
be helpful for the research. Other limitations incudes that the sampling validity is not vast. It is
not possible to cover all the elements and items within the phenomenon.
Recommendation – Conclusion
The role of recommendation is significant in a research proposal. It may improve the
result of the research project. The research can be done in more practical way to get better
results. It may focus more on problem solving in some contexts (Baskin & Olszyk, 2018). The
research project will yield better findings if the budget of the research increases. Though, idea of
this research project is significant in obtaining the better results. Few improvements in the
research project may solve the problem of the Amazon easily. It may also help the company in
attracting prime members to become whole foods customers.
Justification for the study
Amazon is one of the largest multinational company of the world. It started its operation
in the whole foods segment by acquiring whole foods markets of the United States. It is one of

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the largest organic supply chain of the US (Veilleux Jr, 2019). Therefore, analysis of whole
foods markets us important. It is also important to emphasize on how Amazon catching its prime
members to be whole foods customers by giving lucrative offers.
Concerns
The main concern of the company is to increase its customer base in the whole foods
markets (Nadar, 2018). It will make the entry of the Amazon in the whole food market
successful. The company intended to expand its market share in the respective market. It will
strengthen the presence of the company in the food supply chain market of the US.
Benefits of this research
There are various facilities of this research project. It helps to understand the market of
the whole foods in the US (Hair Jr, Page & Brunsveld, 2019). It also helps to know the
importance of the company in the whole foods market. It will provide the suggestion to the
manage team of the company that how to make prime members to be whole foods customers. In
addition, the research project provides clear understanding about the problem and suggests ways
to overcome it. Therefore, to solve the problem of the whole food market of the Amazon, this
research project will be very beneficial.