Technological Development and Customer Perception: Amazon UK

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This report investigates the influence of technological development on customer perception of Amazon's goods and services in the UK. It explores the impact of technology on consumer behavior within the e-commerce sector. The study examines the aspects of technological development within the context of a retail online organization, the impact of technological upgrades on consumer perception, and the strategies adopted by Amazon to positively influence consumers. The research utilizes both primary and secondary sources, including a questionnaire administered to Amazon employees, to gather data on these topics. The report covers literature review, research methodology, results and analysis, recommendations, and conclusions. It highlights Amazon's use of AI-powered personalization, demand-driven forecasting, and beacon-based technology to enhance customer experience and shape their perceptions. The findings aim to provide insights into how technological advancements affect customer behavior and organizational performance in the retail industry.
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How has Technological
development transformed
customer’s perception
towards goods and services
offered by Amazon in UK?
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ABSTRACT
This study performed for gaining understanding regarding the influence that
technological development brings among the target market of an online retailer. As these days
the competition within retail sector getting more enhanced as a result of which it is provoking
the players to bring more advancement into technology for achieving competitive edge and
satisfaction of customers. The current investigation is based on Amazon a leading E-commerce
organisation that operates in several different countries. For performing this study both Primary
and secondary sources are used to get adequate information required for accomplishment of
research aim and objectives. Under this for primary data Questionnaire is used by considering 50
employees of Amazon as they have thorough understanding regarding technological
development and its influence. By performing this study, it would be identified that manner in
which the technological development influence the customers perception and its influence over
organisational performance.
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Table of Contents
ABSTRACT.....................................................................................................................................2
Topic:- How has Technological development transformed customer’s perception towards goods
and services offered by Amazon in UK?.........................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................4
Overview of study..................................................................................................................4
Background of study...............................................................................................................4
Aim of the research project....................................................................................................5
Research Objectives...............................................................................................................5
Research questions.................................................................................................................5
Rationale.................................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
The aspects of technological development related with different function of a retail online
organisation............................................................................................................................7
The impact of technological up- gradation on consumer perception.....................................8
Several strategies adopted by Amazon that influence consumers positively while using
upgraded technology..............................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
CHAPTER 4 : RESULT AND ANALYSIS..................................................................................15
CHAPTER 5: RECOMMENDATION..........................................................................................30
CHAPTER 6: CONCLUSION......................................................................................................31
CHAPTER 7: REFLECTION AND ALTERNATIVE RESEARCH METHOD.........................31
REFERENCES..............................................................................................................................33
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Topic:- How has Technological development transformed customer’s
perception towards goods and services offered by Amazon in UK?
CHAPTER 1: INTRODUCTION
Overview of study
The technology has now become a major part of everyone's life specially in term of
communicating and assessing the product or services without visiting physically. This in turn has
diverted the business toward adopting the technological platform in order to deliver their product
or services. With this advancement in technology the businesses has experienced a tremendous
shift within the consumer behaviour (Parise, Guinan and Kafka, 2016). This is so because with
the help of digital technology the customer get easier access to information in bulk regarding
several product or services that are present in market. Therefore, majority of business mainly
adopt the information technology as the major source for influencing the consumer behaviour in
order to attract them toward the offering of a company.
The use of technology is relatively higher within retail industry as compare to other
sector. This is so because the retail sector mainly offer a range of product or services that are
used by the customers in their day to day life practices and in this digital age instead of
surveying Brick and Mortar stores, people mainly prefer to visit online web pages or social
media page to form up their purchasing decision. It provide a range of product category and
affiliated information which support customers in finding the products or services that can satisfy
their need. In this activity the experienced customer feedback plays a significant role in
influencing the consumer behaviour as by getting information from the experienced customers
the potential buyers form up their decision that may be extracted out as a positive or negative
manner (Blázquez, 2014). Hence for determining this influence on consumer behaviour due to
the technological development the current study is conducted and for this Amazon is taken into
consideration as it is one among the top most techno-driven organisation worldwide. This study
will support in determining the manner in which the technology imposes influence over the
consumer perception and what it further revert toward the organisation.
Background of study
The increasing technological development is improving the connectivity among
customers as well as organisation by providing them several other medium to interact with one
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another. The technological development has bring an environment of “know everything” where
the organisations not required to put much effort to make information available to customers.
This is so because with the help of digital technology an organisation can reach millions of
customers with just a single click (Moorhouse, tom Dieck and Jung, 2018). The major player that
operates its operations with digital technology is Amazon, an American multinational technology
based organisation that offer range of services with the help of e-commerce throughout the
world. This organisation mainly focuses over cloud computing, e-commerce, artificial
intelligence and digital streaming. Additionally, Amazon is consider among the Big Four tech
companies throughout the world along with Google, Apple and Facebook.
This company initially started as a online marketplace for selling books but as time
passes it expanded to sell software, electronic items, apparels, furniture, video games, food, toy,
jewellery etc. Additionally it also distribute downloading and streaming of music, videos,
audible subsidiary, Amazon Publishing, Amazon web services (Piotrowicz and Cuthbertson,
2014). In order to promote its services Amazon use web pages as well as social media platform
by providing its target market with required information, customer feedbacks and discount or
other offers for influencing their decisions. This pay a lot in changing the customer perception
toward the product or services offered by a company.
Aim of the research project
To investigate the way Technological Development has transformed the customers
perception regarding goods and services in retail industry in UK. A study on Amazon.
Research Objectives
To study the aspects of technological development in context with different function of a
retail online organisation.
To determine the impact of technological up- gradation on consumer perception.
To ascertain several strategies adopted by Amazon that influence consumers positively
while using upgraded technology.
Research questions
What are the aspects of technological development in context with different function of a
retail online organisation?
How technological up- gradation impact on consumer perception?
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What are the several strategies adopted by Amazon that influence consumers positively
while using upgraded technology?
Rationale
The main reason behind conducting this study is to determine the changes that get
anticipated with technology in term of manner in which an organisation approach the customers
and tactics that it usually adopt in order to improve the customer perception toward the offerings
of an organisation (Oliveira, Alhinho, Rita and Dhillon, 2017). This information will further
support other organisations in getting understanding regarding the factors that can influence the
consumer perception so that appropriate actions can be undertaken in order to manage them in
favour of organisation.
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CHAPTER 2: LITERATURE REVIEW
Literature review is a method of gathering information regarding the nature of study with
the help of secondary data. Under this the researcher gather data related with the view point of
several authors or scholar which they presented in their study regarding similar area of study and
then critically review those in order to develop an understanding regarding the topic of concern.
Literature review act as a base over which the investigator can further perform the primary
investigation to broaden the knowledge (Blázquez, 2014).
The aspects of technological development related with different function of a retail online
organisation
According to the view point of Laduram Vishnoi, 2019, technological advancement
brings up huge influence over the e-commerce business by transforming the way consumers
interact with brand and empowering them to purchase the product or services in more cost
efficient manner. E-commerce make the business faster than ever before and make the things
available to customer at just a click distance. This technological advancement has enhanced the
operation as well as functioning of E-commerce retail business by providing them a medium to
perform operations in more effective manner that can satisfy the customers need. The
technological development has provided several different benefits in order to improve its
functioning. These are mentioned below:
Extensive personalisation:- Personalization is one of the biggest tend in E-commerce as
consumers demand for a relevant shopping experience which is based on the personal
preferences. The effective personalisation is only possible when the organisation develop
its understanding toward customer's behaviour and preferences. The technology has
provide this potential to have a insight over consumer preferences as every action of
consumer over online platform is being captured and stored in order to form up a pool of
information which is known as big data. Additionally, technologies like Artificial
intelligence and machine learning analytics support in driving out the customer
behaviour pattern while interpreting the data related with customer. This support in
forming up better strategies to approach right customer with right product and providing
the personalised services for effective functioning of online business.
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Shift to mobile:- Another technological development that has transformed the
functioning of E-commerce business is mobile oriented shopping activities. The E-
commerce based mobile applications help in getting a continuous employees
engagement with brand and support in making the customer familiarize themselves with
relevant purchasing opportunities. Additionally a technology named as IoT provide a
desire to effectively understand the trends prevailing among customers across the range
of connected devices. This support in providing the online services to customers by
determining all their need and requirement so that products can be aligned accordingly.
AI and Chatbots for customer communication:- Artificial intelligence has now
become a major part of everyday life. There are number of technological advancement
examples such as AI, automation tools with customer support services, chatbots, virtual
assistance etc. represents the future growth of business. These all contribute toward
enhancing the level of operations of an organisation in order to provide a great shopping
experience and at the same time more effective services that aid to consumer value by
providing response to their each issue much quickly.
The impact of technological up- gradation on consumer perception
According to the view point of Hemendra Singh, 2019 technology is an invention within
this fast paced world and a number of trending technology are being replaced or upgraded
toward improving the process. These technological changes or up-gradation has performed a lot
in changing the perception of consumers toward E-commerce digital business especially in the
retail sector. This is so because the retail industry offer the product or services that remains a
significant part of everyday life of a person .
As per the information provided by Margaret Rouse, 2020, Amazon is one among the big
four tech companies throughout the world and it bring a range of technological up-gradation in
its business operation or services it offer in order to improve the consumer perception toward it.
The top most technological up-gradation performed by Amazon are mentioned below:
AI powered personalisation:- In today's competitive world the differentiation among
the businesses become quite difficult due to increasing technological changes which
organisations are mainly offering in order to provide a superior customer experience. By
upgrading the services of Amazon to this technology it become possible to provide higher degree
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of personalisation such that each customers are treated as an individual target segment instead of
treating them as a part of generalised mass. This supported in providing customers an option to
interact directly with the organisation using this AI feature for the queries they want to clear.
This support Amazon in maintaining better relationship with customers and at the same time
period attracted them toward availing the services offered by Amazon instead of moving to other
e-commerce retailer as they are getting more personalised services here.
Demand driven forecasting:- Another technological development performed by
Amazon is “method and system for the anticipatory shipping” which it get patent in year 2013.
This mainly focuses over an idea that instead of depending over the inviting the consumers to
repurchase the item, Amazon performing experiment over the process where it predict the
customer's shopping list and make these products delivered to the nearest fulfilment centre,
before the order is placed by the customer. This help in improving the customers base by
improving their perception toward the brand and attracting them to avail services.
Beacon based technology:- It is an another transformation of retail E-commerce
business. In this the Beacons located throughout the stores can interact with the mobile devices
of customer in order to help them in locating the product or services and deliver the proximity
marketing messages regarding the product that customer is seeking. This sometimes enable the
contactless and automatic payment where the customer just have to select their item and walk out
of the store with this item. This help in attracting the attention of customer to a larger extend by
providing them a more simplified and smooth way of purchasing the product or services.
Several strategies adopted by Amazon that influence consumers positively while using upgraded
technology
As per the view point of Grace miller, 2020, Amazon mainly focuses toward offering
services that are more customer centric throughout the world and maintains a huge influence
over improving the efficiency of the organisation that contribute its growth and success. It put
more efforts toward convenience of the customers and for this at each step of the customer
journey not any time is wasted and shopper easily get access toward the services which they
want. This is the reason it continuously working over technological development as it help in
providing most customer centric services and aid toward accomplishment of its goals toward
becoming world's most customer centric company. But it can be possible only when its
customers get positively influenced by the technological up-gradation that it brings to the market.
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Hence for this larger number of strategies are being adopted by Amazon in order to influence its
customers by striving over the making things easy, instantly gratifying as well as seamless.
These strategies involves,
Email marketing:- It is one of the most important marketing channel of Amazon as
when other companies are offering email blasts, Amazon focuses toward developing an
extremely refined email strategy. Under this their remains nine different kind of transactional as
well as marketing emails where it take customers over on-boarding process where it provide a
email to the account holder that from that mail, they can accustomed to the services that new
added by the company. Therefore, while launching new technology related with services
Amazon can send emails to its customers from where they can detail about it along with the link
to directly visit them. This help in simplifying the access of customer to particular technology
and at the same time help in getting positive response from their side.
Video:- This is the another strategy that Amazon mainly used while promoting its
particular product or services. The main reason behind adopting this strategy is that it attract the
attention of the viewers toward the services offered by organisation and at the same time support
them in getting an understanding regarding the procedure to be followed for performing a
particular action. Hence, this strategy can be used by Amazon while brining some new
technology or up-grading the existing one in order to get positive response from the customers.
This is so because by offering the tutorial videos it become easier for the customers to get an idea
regarding the manner in which new technological changes should be adopted and executed. It
support in simplifying the process and hence support in getting acceptance from the customers.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is refers to a framework that consists of a detailed information
regarding the type of tools and techniques that are used by an investigator to gather, evaluate,
interpret and concluding the data in a manner that help in achieving the objective behind the
study (Flick, 2015). The research methodology help an investigator by directing them regarding
the method they must be adopted to perform investigation effectively. The tools and technique
used for this investigation is mentioned below:
Research philosophy:- It provide appropriate guidance to the investigator for
performing the investigation in effective manner. The research philosophy are mainly of two
type such as interpretivism and positivism. Among them the interpretivism philosophy will be
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taken into consideration to perform this investigation as it help in studying and presenting the
view point of human beings in more effective manner.
Research approach:- The investigation make use of two kind of approaches while
performing an investigation that are named as inductive and deductive. In this investigation,
inductive approach will be taken into consideration as it make use of theoretical framework to
represent the information with the help of theories or concepts to make it more meaningful
(Gioia, Corley and Hamilton, 2013).
Research design :- There is a certain way to perform the investigation and making its
more presentable within a specific format. The research design are of three type such as i.e.
descriptive, exploratory and experimental. In order to perform this investigation the descriptive
research design is used as it help in covering all the important aspects of a study that support in
presenting more understanding to the reader about the study area (Quinlan and et. al., 2019) .
Type of investigation:- The investigation is performed using two methods such as
qualitative and quantitative. Among them the qualitative mean of investigation is adopted by the
investigator for performing this study. This is so because it help in performing the in depth study
about the area of investigation by considering the theoretical platform that help in presenting the
information in more meaningful manner (Green, Camilli and Elmore, 2012). The qualitative
approach work best with the inductive approach.
Data collection sources:- It involve the sources through which the information is being
gathered as per the area selected for study. The investigators mainly adopt two sources for
gathering information i.e. primary and secondary data collection method. Among them primary
data collection is a process of gathering information which is fresh and collecting for the first
time by the researcher. The primary information is gathered from the sources like questionnaire,
interview, survey, brain storming, focused group etc. On other side secondary data collection
sources is a process of gathering data for already published information by some another person
on similar topic area for determining the nature of study (Kumar, 2019). This information is
selected from the sources like book, journal, articles, online libraries etc. for performing this
investigation both primary and secondary data sources will be used, among them primary
information will be gathered with the help of questionnaire and secondary data will be gathered
through online sources to perform literature review.
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Sampling:- It is a process of selecting the number of people out of whole population in a
manner that investigator can collect information non behalf of population. The sampling is
performed in two manner such as probabilistic and non-probabilistic. For performing current
research the probabilistic approach will be used as it ensure that the each individual have equal
chance of becoming a part of sample. So the respondents will be selected using random sampling
method under probabilistic sampling where the sample size is 50 employees.
Research limitation:- The current research topic is a border concept which is more time
consuming as a result of which research may found several issues. The research is more time
consuming process as it contain set of activities (Mackenzie and et. al., 2012). But the major
issue that investigator has faced while performing investigation is lack of time as period provide
for this is limited which restrict investigator in assessing several sources for collecting
information. Therefore to deal with this issue and collecting reliable information from number of
people questionnaire is used which ensure approaching larger number of people at a time.
Time horizon- Time is consider to be most crucial factor of a study as it support in
determining the duration that a particular activity undertake in order to perform well so that it
can be arranged in systematic manner. The time horizon are of two type i.e. cross sectional and
longitudinal (Mackey and Gass, 2015). For conducting this investigation the longitudinal time
horizon will be undertaken as it help in performing future planning in term of research activities
that is to be performed. Additionally for arranging the research activity plan Gantt chart will be
used which is a pictorial presentation of activities to be performed within investigation along
with time taken by these activities to get accomplished.
Research ethics: There are certain ethical consideration that must be compny by the
investigator in its study for completing and publishing it without any sort of issues. These ethics
includes authenticity, confidentiality and informed consent. Under these ethical consideration the
identity or other personal detail of the respondents will be kept confidential and not be share with
the data (McCusker and Gunaydin, 2015). Additionally it will also be considered that the
respondents will not get harmed in any manner throughout the activities performed within the
investigation. While the consent of the respondents will also be taken before sending them
questionnaire to fill them so that information can be gathered in more ethical manner by
providing them adequate information regarding the aim behind conducting study.
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