Company name: Amazon

Submited by

Gurmann Singh Khurana

Khushi Jain

Isht Garg

Yuvraj Kapoor

Anoushka Garg

Ug stage 1

Guide name:

Dr. Shruti Gill

Amazon.com, Inc. is an American multinational technology company focusing on e-
commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It
has been referred to as "one of the most influential economic and cultural forces in the world, and
is one of the world's most valuable brands. It is one of the Big Five American information
technology companies, alongside Alphabet, Apple, Meta, and Microsoft (Onyusheva &
Seenalasataporn, 2018).

Amazon was founded by Jeff Bezos from his garage in Bellevue, Washington, on July 5, 1994.
Initially an online marketplace for books, it has expanded into a multitude of product categories, a
strategy that has earned it the moniker The Everything Store. It has
multiple subsidiaries including Amazon Web Services (cloud computing), Zoox (autonomous
vehicles), Kuiper Systems (satellite Internet), and Amazon Lab126 (computer hardware R&D). Its
other subsidiaries include Ring, Twitch, IMDb, and Whole Foods Market. Its acquisition of
Whole Foods in August 2017 for US$13.4 billion substantially increased its footprint as a
physical retailer.

1. FACTORS AFFECTING CONSUMER BEHAVIOR

Consumer Behaviour is influenced by many different factors. The five major factors that
influence consumer behaviour are as follows (Furaiji et al., 2012)−

1. Psychological Factors
Human psychology plays a major role in understanding consumer behaviour. Difficult to
measure, but psychological factors are powerful enough to influence a buying decision.

Some of the important psychological factors are as follows −

a. Motivation
Motivation to do something often influences the buying behaviour of the person. Individuals
have different needs such as social needs, basic needs, security needs, esteem needs, and self-
actualization needs. Out of all these, the basic needs and security needs take a position above all
other needs, and these motivate a consumer to buy products and services.

b. Perception
Our perception is shaped when we gather information regarding a product and examine it to
generate a relevant image regarding a certain product. Whenever we see an advertisement,
review, feedback, or promotion regarding a product, we form an image of that item. As a result,
our perception plays an integral role in shaping our purchasing decisions.

c. Learning
When a person buys a product, the general tendency is to learn something more about the
product. Learning also comes over a period through experience. This learning depends on skills
and knowledge. While skill can be gained through practice, knowledge can be acquired only
through experience.

Learning can be either conditional or cognitive. In conditional learning, the consumer is exposed
to a situation continuously to develop a response towards it. Whereas in cognitive learning, the
consumer applies his/her knowledge and skills to find satisfaction from the product that she/he
buys.

d. Attitudes and Beliefs

Consumers’ attitudes and beliefs also influence the buying decision. Based on this attitude, the
consumer behaves in a particular way towards a product. This attitude plays a significant role in
defining the brand image of a product. Hence, marketers try hard to understand the attitude of a
consumer to design their marketing campaigns.

2. Social Factors
Humans are social beings, and the society or the people they live around influence their buying
behaviour. Human beings try to imitate other humans and nurture a desire to be socially
accepted. Hence, their buying behaviour is influenced by other people around them. These
factors are considered as social factors.

Some of the social factors are as follows −

a. Family
Family plays a significant role in shaping the buying behaviour of a person. A person builds
his/her preferences from his childhood by watching their family buy certain products and
continues to buy the same products even when they grow up.

b. Reference Groups
A reference group is a group of people with whom a person associates himself. Generally, all the
people in the reference group have common buying behaviour and influence each other.

c. Roles and status

A person is influenced by the role that he holds in the society. If a person is in a high position,
his buying behaviour will be influenced largely by his status. A person who is a Chief Executive
Officer in a company will buy according to his status while a staff or an employee of the same
company will have different buying pattern.

d. Cultural Factors
A group of people is associated with a set of values and ideologies that belong to a particular
community. People coming from particular communities have behaviours highly influenced by
their culture. Cultural factors also include the concepts of subculture and social class.

3. Personal Factors
Factors that are personal to the consumers influence their buying behaviour. These personal
factors vary from person to person, thereby producing different perceptions and consumer
behaviour.

Some of the personal factors include −

a. Age
The buying choices of individuals depend on which age group they belong to. Elderly people
will have totally different buying behaviours as compared teenagers.

b. Income
Income influences the buying behaviour of a person. Higher income gives higher purchasing
power to consumers. When a consumer has higher disposable income, it gives more opportunity
for the consumer to spend on luxurious products. Whereas low-income or middle-income group
consumers spend most of their income on basic needs such as groceries and clothes.

c. Occupation
Occupation of a consumer influences the buying behaviour. A person tends to buy things that are
appropriate to this/her profession. For example, a senior corporate professional would tend to
buy formal clothing whereas a creative designer would tend to spend on casual wear.

d. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying
behaviour is highly influenced by the lifestyle of a consumer. Someone who leads a healthy
lifestyle would spend more or healthy food alternatives.

4. Economic Factors
Consumer buying habits greatly depend on the economic situation of a country or a market.
When a nation’s economy is strong, it leads to a greater money supply in the market and higher
purchasing power for consumers. Whereas a weak economy reflects a struggling market that is
impacted by unemployment and lower purchasing power.

Some of the important economic factors are as follows −

a. Personal Income
When a person has a higher disposable income, the purchasing power increases simultaneously.
Disposable income refers to the money that is left after spending towards the basic needs of a
person. When there is an increase in disposable income, it leads to higher expenditure on various
items. But when the disposable income reduces, parallelly the spending on multiple items also
reduced.

b. Family Income
Family income is the total income from all the members of a family. When more people are
earning in the family, there is more income available for shopping basic needs and luxuries.
Higher family income influences the people in the family to buy more.

c. Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher spending. Sellers
are making it easy for the consumers to avail credit in the form of credit cards, easy instalments,
bank loans, hire purchase, and many such other credit options. When there is higher credit
available to consumers, the purchase of comfort and luxury items increases.

2. BRAND AWARENESS

Companies use a range of techniques to increase awareness for their brands, such as promotions,
social media, influencer programmes and most notably – brand advertising.

As humans, we have always organised, processed and communicated our experiences through
storytelling, and brands do the same thing. As such, brand advertising is one of the most relied-
upon methods to communicate their stories widely, build brand awareness and gain customers.

We’ve all seen countless brand ads. Some we remember, and many, we do not. Still, the intended
purpose of each advertisement, whether it’s a handwritten flier under your windshield wiper or a
mobile-optimised rich media ad, is to deliver an impression. These impressions raise our
awareness.

In the past, brand advertising on a large scale was something only available to big companies
with big television budgets. But that is no longer the case.

3. COMPRATAVTE ANALYSIS

Flipkart VS Amazon Comparison | Amazon Vs Flipkart which is Best

Flipkart VS Amazon Comparison: In today’s comparison, we will be comparing two big e-

commerce companies Flipkart and Amazon. The websites of these two companies have
everything from clothes to electronics items.
Speaking of Flipkart, Flipkart was started by two engineers in 2007 Sachin Bansal and Binny
Bansal. Let me tell you, these two did their studies at IIT Delhi. And for a few years after college,
they worked for Amazon. When flipkart.com was launched in September 2007, they were only
books on the website. But today in 2022 this company is giving competition to big e-commerce
websites like Amazon in India.

On the other hand, Amazon was started by Jeff Bezos in Seattle City, USA in 1994, 13 years
before Flipkart. You will be surprised to hear that Jeff Bezos started the company by hiring 2
software engineers in a small garage. And today in 2022 Amazon is a multinational company
operating its business in 58 countries around the world. In India, Amazon Company launched in
June 2013, 5 years after Flipkart.

Flipkart is a private limited company headquartered in Bengaluru City, Karnataka. Amazon is a

public listed company headquartered in Seattle, USA.

1. Market Share of Amazon Vs Flipkart

Friends, if we talk about market share, then according to the latest data, Flipkart has 40% market
share in India, while Amazon has 31% market share in India.

On average, 5 lakh products are sold on Flipkart every day, while 4.30 lakh products are sold in
India on Amazon. One of the reasons why Flipkart was successful in India was that Flipkart was
the first to start the cash-on-delivery payment system. Due to this, the trust of the customer in the
website has increased. And even today many customers prefer to buy products by doing COD.

2. Products of Amazon Vs Flipkart

Friends, if we talk about the number of products, then according to a report, there are a total of
150+ million products available for sale on Flipkart whereas Amazon has 50 million products
available on their website
There is so much competition going on in both these companies that they have to sell products to
their customers at very high discount rates. And because of this both these companies are also
running at loss. And to recover their losses, both these companies have started selling their own
private label products, Flipkart has started selling its own products like Marq, billion, perfect
homes, etc. while Amazon has started selling its own products like Amazon basics, Amazon
Echo, Amazon Kindle, Amazon Firestick, etc.

You must have heard about Amazon Prime. With an Amazon Prime subscription, you can watch
movies, music, and web series. And Amazon also offers some advantages to users with Prime
subscriptions such as One Day Delivery and Early Access to New Deals. And to give competition
to this, Flipkart has started Flipkart Plus Free Membership. And a few years back, Flipkart started
its own video service Platform, which can be seen by going to the video section of Flipkart’s app.

3. Key people of Amazon Vs Flipkart

Friends, if we talk about the important person of both these companies, then as we told at the
beginning of the video, Sachin Bansal and Binny Bansal are the founders of Flipkart company.
And Kalyan Krishnamurthy is the CEO of this company. Also to let you know America’s
multinational retail corporation Walmart holds 82% of the shares of Flipkart company as Walmart
company also had to strengthen its hold in the online market and hence Walmart bought the
Flipkart company in 2018 for $16 billion dollars. If we talk about Amazon, then Jeff Bezos is the
Chairman of Amazon and Andy Jassi is the CEO of Amazon and if we talk about Amazon India
then Amit Agarwal is the Senior VP and Country Manager of Amazon India.

4. Revenue of Amazon Vs Flipkart

Talking about the revenue, last year Flipkart earned $45 billion whereas Amazon India had earned
$33.36 billion in India, it seen from the figures, Amazon is trailing behind Flipkart, but Amazon
was started in India in 2013, and accordingly, Amazon’s growth rate is much better than Flipkart.
Let me tell you that from the Flipkart website you can order from anywhere in the whole world,
but your delivery address should be from India, this is because currently Flipkart is only
operational in India but in the coming years, Flipkart will be available in other countries as well.

5. Number of employees

Talking about the number of employees, there are 30,000 employees working for Flipkart.
Whereas 6,47,500 employees are working for Amazon all over the world.

6. Delivery System

If we talk about the delivery system, then the delivery process of both the companies is almost
similar. Flipkart uses its own logistics Ekart logistics to do the delivery. Whereas Amazon’s own
logistics company Amazon Logistics. If you are a Plus member of Flipkart and an Amazon Prime
member of Amazon then you will also get the option of one and two-day delivery.

7. Returns

Both these e-commerce sites accept returns and have their own return policy. The returns on
Amazon.in are more flexible as compared to Flipkart.

4. BRAND USAGE’S

1) Develop an Overall Brand Strategy

Building your brand involves a lot more than just a list of goals or a few ideas about a logo. To
craft a brand strategy that includes Amazon, you will first need to think bigger and plan well.

Start by determining your brand’s main objectives, defining your target customer, and building
out a loose one-year and five-year plan. Much of this will depend on if you are a new or existing
brand and how you are currently set up (i.e. online-only, brick and mortar, or a mixture of both).
You should also think about the support your brand will require. This may involve anything from
full seller account management or a single strategy consultation, listing optimization, professional
design work or photography, logistics support and supply chain management, translation or
international support, Amazon Advertising help, and much more.

Determining what aspects of your business you will need to outsource can scale your spending
much easier than random panic purchases. If you need help, eCommerce Nurse is a full-service
agency staffed with ex-Amazonians that specializes in Amazon seller and vendor account growth.

2) Protect Your Brand

We always recommend brand owners and manufacturers protect their brand from day one on
Amazon. With millions of sellers and some of the fiercest competition around, you will need to
proactively establish and control your brand. Key parts of your Amazon branding strategy include
registering trademarks to avoid IP infringement, immediately stopping any counterfeiting, reining
in resellers, documenting distribution channels, and creating a cohesive brand experience for
customers.

3) Ensure Optimal Content

Having some idea of your business's brand identity and guidelines before you sign up to sell on
Amazon will be very helpful. You may already have a website and social media presence. You
also might have print ads or product packaging ready to go.
 REFERENCES
 Furaiji, F., Łatuszyńska, M., & Wawrzyniak, A. (2012). An empirical study of the factors
influencing consumer behaviour in the electric appliances market. Contemporary
Economics, 6(3), 76-86.
 Onyusheva, I., & Seenalasataporn, T. (2018). Strategic analysis of global e-commerce and
diversification technology: the case of amazon. com inc. The EUrASEANs: journal on
global socio-economic dynamics, (1 (8)), 48-63.