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Marketing Research - Amazon
Marketing Research - Amazon
Submitted to
Submitted by
Group 3
1Lian, J. W. & Yen, D. C. Online shopping drivers and barriers for older
adults: Age and gender differences, Computers in Human Behaviour,
Page 133-143
(Herna´ndez, B., Jime´nez, J. & Martı´n, M, 2010) appeared to be more trusting of the online website.
suggest that various socio-economic variables such Women did not perceive the site to be as well
as age, gender and income2 do not really moderate organized as men did. Women were less satisfied
online shopping behavior. In other words, they do w.r.t degree of interaction with website and the
not condition the behaviour of the experienced usefulness of animations. They also perceived more
shopper. While making a high value purchase such risk to buying online both in terms of probability and
as electronic items, consumers first tend to look up in terms of likelihood. They perceive more severe
the product specifications and reviews online. consequences to privacy than men. However,
Thereafter, their buying channel might be online or women didn’t perceive a higher probability of loss
a brick and mortar store. To an extent, utilitarian of privacy than men. Recommendations from
and hedonic shopping values have positive effects friends strongly influenced women to buy online but
on consumer online purchase behavior. These had no significant effect on men. Larger reduction in
values and effects are more significant for men than perceived risk after receiving recommendations
women. from friends among women than among men.
2 Herna´ndez, B., Jime´nez, J. & Martı´n, M. (2010) Age, Gender and 3 Handa M. , 2009, Gender Influence On The Innovativeness Of Young
income: Do they really moderate online shopping behaviour? Urban Indian Online Shoppers
4 Nemeth P, 2010, Gender differences in internet using habits
conducted with 8 participants each. Participants of
focus group discussion are IIM Lucknow students.
After FGD’s depth interview were conducted with 9
people. Initial insights were gathered as inputs for
quantitative research.
Data Analysis: Correspondence Analysis was used R2-H2: Ads having discount information are more
effective than ads having product information
Checked at Confidence Level = 90%
Data Analysis: One-way ANOVA analysis is used
Dependent Variable = Effectiveness of We asked the respondents to mark the 11 features
Advertisement against the brand(s) which relates most with that
feature so that we could cross tabulate the results
Independent Variable = Frequency of e-mails sent
and map it on a perceptual map based on
correspondence analysis. Leading 5 websites had to
Model Summary
be marked against 11 features.
Hypothesis
R3-H1: Amazon is not perceived as apparel seller
having trendy clothes as compared to other
competitors
R3-H2: Amazon is considered to have less variety of
apparels than competitors
Managerial Implications
Conclusion
Data analysis tool Cluster 1 hints towards the fact that majority of
Correspondence Analysis is used for H1 and H2 and people in cluster 1 are high on “Fashion
2 sample t-test was used for H3. The 2 sample table Consciousness”. Similarly Cluster 2 people
can be found in Appendix III. represent people who are “Brand Loyal”, Cluster 3
represent “Advice Seekers” and Cluster 4 represent From the conjoint analysis it can be concluded that
“Extroverts”. Filter and Website Look and feel are more important
than product information. Furthermore, from the
Managerial Implication median preference part-worth, it can be said that
Now if we look at Cluster 1 which is the Fashion Brand filter is indeed more important than price
conscious people we can see that the intention to filter and vibrant colours in website were indeed
buy from Amazon is the lowest. more important when it came to site selection.
Therefore, people having an intention to buy from
Amazon in the future follow a significant portion of Managerial Implication
the cluster who have the following characteristics The Amazon should include a variety of the filters in
are: their website. Since apparel consumer are highly
Follow latest Fashion trends price sensitive so new innovative filters like discount
Like dressing smartly filters and colour filters are a very good option.
Like reading fashion magazines
Q1. Gender?
a. Male
b. Female
a. Do not Buy
b. Once a month
c. Twice a month
d. More than twice a month
Q5. Please indicate from which online stores you have brought apparel in the past (multiple choice)
Online Store
Amazon
Flipkart
Myntra
Trendin
Lime Road
Please indicate from which online stores you plan to buy apparel from in the future (multiple
choice)
Online Store
Amazon
Flipkart
Myntra
Trendin
Lime Road
Q.6 Please indicate the frequency of email ads received by you for buying apparels online?
a. Once week
b. twice a week
c. thrice a week
d. more than 3 times a week
Q7. Please tick feature(s) closely associated with following models of Bike
website/ Amazon Flipkart Myntra Trendin LimeRoad
features
Return Policy
Certified
Buyer Review
Detailed
Information
Fashion
Advice
Security
Fast delivery
Variety
Discounts
Trendy
clothes
Understands
Local Tastes
Trustworthy
Q8. Indicate your agreement with the following statements. Which of the following factors is most
important for reliability of an online apparel store? (multiple allowed)
Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree
Brand Name
Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree
Q.10 Rate which kind of ads influences your “purchase decision” to buy apparels online
Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree
Q.11 Please rate your preference for the following brand on a scale of 1-5
Q.12 Please rate your preference for the following brand on a scale of 1-5(1 being not preferred and 5
being highly preferred)
Not all Preferred Somewhat Not Neutral Somewhat Very Much
Preferred Preferred Preferred
Amazon
Flipkart
Myntra
Trendin
LimeRoad
4. Somewhat
statements which is close to your personality by checking the
1. Strongly
5. Strongly
3. Neutral
Disagree
Disagree
Agree
Agree
most appropriate.
Q15. How do you prefer to buy the following alternative combination of website features for
navigating Amazon apparel website?
R1-H1: Websites which give fashion advice & trend information are more preferred by heavy buyers
R1-H2: Return policies which refund money to bank account are important criteria for heavy apparel buyers
Correspondence Analysis
1 2 1 2 Total
Return Policy .188 -.322 .694 .084 .033 .366 .140 .591 .731
Certified Buyer
.106 .423 -.802 .058 .032 .125 .198 .648 .845
Review
Detailed
.047 .731 -.945 .041 .042 .077 .366 .558 .924
Information
Fashion Advice .106 -1.111 -1.052 .149 .518 .015 .526 .430 .956
Security .071 .989 .060 .067 .115 .000 .621 .002 .623
Fast delivery .059 1.010 -.109 .047 .100 .001 .764 .008 .773
Variety .094 -.998 -.379 .068 .156 .025 .830 .110 .939
Discounts .047 -.131 1.218 .041 .001 .128 .012 .927 .939
Trendy clothes .106 .126 1.097 .084 .003 .033 .012 .833 .845
Understands Local
.082 -.702 .145 .044 .068 .003 .557 .022 .578
Tastes
Trustworthy .094 1.215 -.396 .126 .232 .027 .658 .064 .722
a. Symmetrical normalization
R3-H1: Amazon is not perceived as apparel seller having trendy clothes as compared to other competitors
Perceptual Map
Fashionable
Trendy clothes
Fashion Advice
Variety
Myntra
Fast delivery
Dependable
LimeRoad
Security
I (52.2%) Trendin
Discounts
Return Policy
Certified Buyer Review
Trustworthyness
Flipkart
Understands Local
Amazon Tastes Detailed Information
II (31.7%)
Positioning Map (Dim I-III)
Information Centric
Detailed Information
Amazon
LimeRoad
Fashion
MyntraAdvice
Certified Buyer Review
Dependable
Variety Discounts
I (52.2%)
Security
Return Policy
Trendy clothes Trustworthyness
Fast delivery
Flipkart
Understands Local
Tastes
Trendin
III (10.3%)
Diagnostics:
Preference Map
Trendin
Flipkart
II Myntra
Market Share =
Amazon
III
R4-H3: User and Non User of Amazon don’t differ in their belief that seller information provides reliability for the
apparel
2 Sample t-test
2 sample T test was used to test if the means of both the groups- users and non- users were equal. Which would mean
that there is no significant difference in their perception about importance of seller information.
Cluster Analysis:
R5-H1: People who are indifferent to opinion of friends are more loyal to Amazon
R6-H2: People who seek variety in apparels are not loyal to Amazon
Steps followed:
1. Check no. of clusters to be formed by doing hierarchical clustering and checking the Dendogram Plot
Result: 4 Clusters
2. Run using 4 clusters & Discriminant variables & check segmentation variables to find out which variables explain each
cluster