Consumer Behavior

“Amazon: Merging Digital and

Physical Worlds for Market Growth”

Case study 9

Team members
 Luis Goiburu (F10901113)
 Nicolas Hilscher (F10901115)
 Jeremias Gonzalez (F10901114)
 Doan Hoang Phuong (B10835015)

Date: 13/04/2022
 1. What limitations existed to a purely online sales model? What role did service
innovations like Amazon locker play to bridge this divide? What limitations can be
generalized to any single-modality sales model? Doan Hoang Phuong (B10835015)

The biggest existing limitations for online commerce are

o Buyers cannot physically see, touch, and try on products, such as clothing and shoe
sizes.
o It is also difficult to sell large, expensive things such as automobiles or furniture online
due to the logistics price involved in delivering such products to the customer
o While smaller products like jewelry and fine collectible products might also seem to
ship, taxes and guarantee costs tend to rise for shipping valuable and fragile products.
o Also the Internet marketplace is becoming increasingly competitive. Selling a product
offered by other large businesses, such as electronics, is not a good way to compete.

Amazon Lockers are kiosks that allow customers to pick-up packages within 3 calendar days
and at a specifically chosen location. The Lockers are completely self-service, customers can
access them anytime. The Amazon Locker is a physical facility; it is well-integrated with
Amazon’s cloud system. Amazon Locker has created a new form factor and new delivery service
model
The positive effects of Amazon Lockers:

 Amazon Lockers help make up for its lack of physical retail stores.
 Allow more sizes of product to be shipped.
 Remove the problems of traditional doorstep delivery, such as robbery.
 Amazon Lockers are much easier for delivery workers to find comparing to a lot of
specific addresses, and deliver many packages at once, making delivery faster and more
efficient
 Bring more customers to the location where Amazon Lockers are installed, such as
convenient stores. This is a cooperation between Amazon and traditional physical
stores.
Single modality sales model means the business relies on one single sales plan/model. This
mean a single modality business is strong and efficient in one modality but it might also have
some limitations:

 Missing out the advantages of other modalities, and need to provide specific solutions
to make up for it. Just like how amazon make the lockers.
 Can only reach to a certain audience, such as people who use the corresponding online
platforms only.
 Require workers who are able to multitasks in many fields instead of separate
departments who handle one single task.
2. How can enterprises more systematically consider ways to increase customer
coverage? What are prevalent phases to interaction coverage expansion and how can
they work together? (Jeremías Gonzalez - F1090114, Nicolas Hilscher - F10901115)

Amazon needs to know its customers better than its customers. It's almost a scary
concept, especially when using artificial intelligence, but understanding shopping
behaviors, product preferences, and how Amazon can fill key moments in consumers'
lives (like birthdays, baby registrations, car purchases, etc.) is key to all relevant. Really
underestimating the shopping process from consideration to purchase to delivery and
installation is something Amazon is already good at and needs to continue try to stay
ahead of the competition. Like any other company, if you can't defeat them and join
them. I believe it is in every company's best interest to emulate this Amazon's pattern of
using big data to personalize the shopping experience. A wide variety of customers from
apps to websites to brick-and-mortar store concepts additional services provided by
you.

3. What interaction coverage expansion questions can aid enterprises in customer

interaction expansion decisions? How can they improve decision clarity, and why does
their ordering matter? (Luis Goiburu - F10901113)

We don't miss big data. But have the right data to analyze and guide Choice is key. This
means asking the right questions to consumers is critical Understand their needs and
make proactive strategic decisions. i believe in apple It's understandable that Amazon
can emulate and implement this well Anticipate consumer needs and preferences
before they realize anything you want. Asking the Right Market Research Questions
Helps Dig Deeper Consumer psychology to discover these unmet needs. Amazon must
keep using Consumer purchase and behavior data, integrating AI power to enhance
Decisions are clear.