Consumer Behaviour Aspects: Success of Amazon Kindle - Essay Example

?Consumer Behaviour Aspects: Success of Amazon Kindle Background Since the emergence of the digital revolution, many technological products came to replace existing conventional products, introducing easier means of communication. Among these products is the eBook reader, which was launched in the late 1990’s (Landoniet al, 2003). The evolution of the eBook reader involved several stages of technological developments. Initially, the first generation of the device started off by targeting professionals, offering them access to reference material such as encyclopaedias. According to Moore (2009), eBook readers enable consumers to read, store, and own all sorts of books within an electronic environment. Although it is unlikely that readers would replace paper books in the near future, the current market shift towards digitalization makes this concept viable. Amazon, one of the largest online retailers in the United States, is one of the most successful adopters of the Digital Reading Concept. The company, established in 1994, has managed to expand its online retail business across eight countries. Along with a continuously growing product spectrum, Amazon initiated the production of the first Amazon eBook reader (Kindle) in 2004 (Loebbecke, 2010).The Amazon Kindle was officially launched in the U.S market in November 2007.The fundamental idea behind this product is to allow the consumer to have any book that has ever been in print at their hand within fractions of time. The latest version of the Kindle incorporates the e-ink technology which is specially designed to mimic the appearance of an ordinary paper. With the aid of touch screen technology users can easily shop, flip pages, adjust, and highlight text. Furthermore, the device is equipped with a built-in dictionary, Wi-Fi, and 3G free connections (Amazon, 2010). McFayden (2011) argues that the success of the Amazon Kindle is due to its affordability and functionality. The fact that this device can hold an entire library was appealing to the audience, particularly students and academics put-upon by carrying heavy textbooks. It also offers substantially lower prices of eBooks than printed books. Given that, it is of no surprise that Kindle was declared the best selling product by Amazon (Macfayden, 2011). Over the 2011 Christmas holidays, Amazon sold over a million units of Kindle per week for three consecutive weeks (Amazon, 2011). This assignment will give a reflection on three consumer behaviour aspects that have contributed in the success of Amazon Kindle. These are Consumer Perception, Motivation and Attitude. 2. Perception Consumer perception is quite a vital element that should be cropped and sprouted. This ensures that a business is performing in the best of its capacity (Noel, 2009:19) .When consumer perception is lowered, the business is likely to ground and lose its committed customers. Therefore, it is a prudent act to ensure consumer perception is kept at the best of its performance. Perception relates to how individuals select, organise and interpret these stimuli through their physical sensory receptors to understand any given environment (Solomon et al, 2010). Solomon et al, 2010 From the above diagram, perception is a process that is explained in various steps. During the stimuli, a customer encounters various aspects of a product. These include sights, smell, taste, and texture. Initially, a consumer gets to purchase a product due to the taste, smell, or texture and decides to try the product. With the use of sensory receptors, a customer gets to know the product better. With frequent use, the customer gets used to the good, but starts to notice the benefits of the product by researching from reliable resources, friends, and over the internet (Maignan and Ferrell, 2001:459). Though this process is long and indulging, customers will get the right information that is connected to the products that are in the market. Instantaneously after this, they start to create attention on the goods that are in the market. After keen identification of the various goods in the market, the customers start to interpret the results and findings from the market. Interpretation in this state means evaluation of the benefits, after sales services, side effects, and the pricing. If a customer is satisfied with the services or a product, they will have a strong rating on the product. This will also go a long way in evaluating the price of the commodity. Though some commodities and products in a market may be cheap, their services are not highly rated (Maignan, 2001:57). As this will prompt a customer to lowly rate the commodity, even though they spent fewer amount on the purchase. On the other hand, some products are considerably expensive, some doubling the price of their competitors. However, their functionality and satisfaction is incomparable (Bateman 2002:84). With such a performance, a customer will rate the product highly. Therefore, a customer will have a structured form of rating goods and products in the market. This is the process that brings an outcome of perception in a market. Perception in customers is all about learning, memorising, and creating general expectations in a product. This is the same occasion that has happened to Amazon. The company initiated the launch by creating a favourable perception and ensuring every customer knows the good exists in the market (Fortini-Campbell, 2001:34). Customers have recognised their goods, products and services through marketing, advertising, and creating publicity all over the world using their website , press releases ,TV commercial and You-Tube channels .These elements have contributed in triggering the stimuli and grab consumer attention to kindle . Once consumers have identified Amazon kindle, the likelihood and intention to explore the product will increase. One of the factors that pushed the sales of kindle higher is customer feedback and product rating .Early adopters of Kindle left remarkable positive feedback on their website which in turn influenced consumer perception towards purchasing the product (Stone, 2008). Hong-yaul (2004) argues that higher level of brand satisfaction evokes higher level of purchase and consumer loyalty .Amazon has already gained a satisfied customer base through its successful operation. Hence, customers were less reluctant to purchase kindle as they encountered previous successful experiences which have created a positive perception and enhanced credibility and trust between the company and its customer base. After trying the products for a while, the customers will make a point of choosing the products that are allied to Amazon. As such, it will create a perception that Amazon produces the best goods in the market (Kardeset al, 2010:18). In a business sense, when a client makes a perception, it is very hard to change. Therefore, when they make a great perception over Amazon, they will be long term customers (Assael, 2005:45). 3. Motivation Motivation is a state where a person has a personal drive to make an action due to an unsatisfied need. According to the mean end theory, a business or firm creates a relevant message to appeal to its customers (Solomon et al, 2010). This will ensure the customers create a need to buy the product as a necessity. In the means end theory, people buy a product due to the end value they are going to get. The benefits are strongly considered while buying a product in such a situation. In means end theory, customers evidently get the product with features that brings them to the valued or desired state. As such, a customer is motivated by the features that are in a product, and this creates a need for the products (Mowen and Minor, 2001:22). For instance, Amazon appeals to its customers by creating a product which is kindle. The product has the feature in it that helps them in executing their jobs. Motivation is also brought by the benefits a customer gets from the use of the product. For instance, when using Amazon products, a customer can read thousands of eBooks, Manipulate text, and access internet on single device .The functionality, attributes and reasonable prices of Kindle motivates the client to use the product and purchase the product (Sheehan, 2011:63). Though most people may not have a defined value end state, most people feel they are using the top notch product which serves them sufficiently. However, other customers develop a high self-esteem while others have a peace of mind when they use various products that are in the market. Motivation in selling goods is therefore instilled by a product or service provider (Wright, East and Vanhuele, 2008:45). For instance, the products are manufactured in such a way that they fully satisfy the customer. Therefore, satisfying a customer’s motivation would be an initial step that will ensure customers are glued to the business (Graves, 2010:8). According to the mean end theory, a service provider creates better initiatives that will increase the motivation of a customer in a market. A firm makes it its business to ensure the market is attracted to its products by sheer motivation (Keller, 2008:41). With such a manoeuvre, it develops an upper hand in clinching a niche market for its goods. In this scenario, Amazon strategized by ensuring the customers are motivated by the products. In the first instance, it has cropped up its promotions in the market to develop popularity. In many cases, a popular product is known by many customers in the market and they may be motivated to use the good. For instance, when Amazon increased its promotions in the market, many people preferred to use the product in order to increase self-esteem or serve a certain goal. With each use of the product, they gain more courage of establishing the product as a priority over the others. A second point in the mean end theory that has been considered by Amazon is a customer’s value for money. A customer spends hard earned money on a product and expects to achieve the best services. At this point, a customer served with the best services enjoys the product more (Foxall, 2007:11). However, a customer is devastated when they use a substantial amount to purchase a good that does not give the best services. In the first example, a customer that gets the best services is motivated to cling onto the services of the firm for eternity. Consumer’s behaviour towards purchasing Amazon kindle can also be linked to Maslow’s hierarchy of needs .Maslow’s hierarchy identifies five levels of human needs, whereas the basic needs must be met before the most sophisticated needs .Those needs are described as follows: Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization. In recent years, there has been substantial growth of the economic status which enabled most people to satisfy almost the entire hierarchy of needs (Diamdong, 2012). Luxury and technical products seems to satisfy the self-actualization needs as consumers are keener to distinguish themselves from other and stay up-to date in this ever-developing world (Diamdong, 2012). As a result, when kindle entered the market consumers were motivated to buy it as it served the need to be seen as a tech savvy. In summing up, the mean end theory and Maslow’s hierarchy look at customers in many perspectives that deem to satisfy their happiness. When customers are happy, they will regard a service provider as a vital factor in their happiness (Gillin and Moore, 2009:23). Customers should feel good after using services of a service provider. 4. Attitude formation Attitude of a person is generally a conglomeration of beliefs and behavioural tendencies that are associated with feelings of a person towards a product, object, service group or events. This is an element that ensures people make their decisions depending on the feelings and beliefs. This has been extended to the business world where people purchase goods according to their beliefs and feelings (Kurtz, 2009:31). With such a prevalence in the market, there is need to have a structured manner by firms to ensure they form the right attitude in the market. The people they serve have the right beliefs, feelings, and composure to believe that the products that are offered by a firm are the best (Mohr, 2001:46). Amazon generated ways that insist on changing the attitude of the market to a much better and positive manner. All customers in the market have an attitude towards their goods, products and services that are produced by different firms. It is an admissible fact that there is not any time that a consumer will be neutral in his or her attitude. As a fact, Amazon was directly involved in forming a positive attitude in the market (Hogg, 2005:12). According to statistics, many customers in the market purchase goods with a reflection of their attitude. In such a situation, reaching out to new markets to create an attitude in the customers would achieve better results (Ulwick, 2005:22). In the end, Amazon developed a strong business bond that ensured the products of the firm are constantly demanded in the market. In many cases, attitude is considered a relatively stable notion towards a product or service. As such, it may not be easily changed in a person or customer. Once a customer develops an attitude towards a good, it is a confirmed standing that only changes in rare situation. Therefore, when a firm creates an attitude in the market, the attitude may not be easily changed (Blythe, 2008:29). In such a position, Amazon approached the market with a zealous aspect in making an attitude in the market. This created a scenario where positive attitude in the market created an upsurge in the demand for its products (Cusick, 2009:11). In using the attribution theory, Amazon ensured that the market made sense of their product and created demand. In this situation, Amazon attached meaning to its products and showed how people would benefit from using the products. As such, the market created a demand since it was driven to do so by Amazon. This was also instigated by the need to focus on the ordinary people and how they would use the product. This ensured the product was highly demanded in the market as it was fit for the entire market. The customers developed a connection to the products supplied in the market (McConnell and Huba, 2008:22). This was done by ensuring the product offered the best services and satisfy a customer to the fullest. This attracted more customers as the satisfactory results of the products were evidently seen. This was followed by ensuring the market felt the products. This was done by supplying the product in the market and exposing the product to the people. When the people experience satisfaction in the product, they develop a liking (Sen and Bhattacharya, 2001:230). This is induced connection that ensured the market was connected to the goods and products. This was followed by a presumed decision on the attitude of a market. The market then developed an individual attitude that was unchanged. With such prevalence in the market, Amazon created an attitude that guaranteed its sales. 5. Discussion Amazon is a competitive firm that has the muscle to make a better approach in the market. This is by banking on its strongholds to ensure the market is attracted to its products and services. In the first approach, Amazon should consider a global launch in its products. Though the firm has launched the third generation of kindle, the product is still not existent in some countries. The firm launched the product in a few countries, which are its current niche market. However, the rest of the world does not have any glimpse of the product. This has heightened the ignorance of the market as it does not know the product exists in the market. Therefore, it is in the interests of Amazon to ensure that the product is spread to other parts of the world, which will ensure it gains a global recognition. With the advancement of technology, this will be an easy manoeuvre. To make this po9int clear, Amazon has Wi-Fi support in more than 100 countries. Therefore, it is an easy task to support the product in more than 100 countries. In addition to this, the firm can make ties with local distributors to market the product in the other countries. For instance, the firm can use “Big Bazaar” or Tesco which have operational stores in more than 14 countries. Amazon has the financial muscle and can take the challenge of indulging other distribution channels in their business. For instance, the firm should initiate the use of retail stores in ensuring its products are sold in different parts of the world. For instance, the firm is well established in online businesses, but it can make a greater point in introducing other channels that sell their product. For instance, it could indulge the services of Curry’s PC world and others. The third point in making a greatly established business is by introducing products that are multilingual. The world has a large number of languages, with very people having to communicate in international languages like English. As such, kindle audio products are only available in English. This is a drill that has slashed the number of people that could be willing to purchase the products, due to language barrier. Therefore, giving audio options that translate the audio files to other languages would increase the customer base for the products. This will help people all over the world as they will have a choice of the language they promptly understand. 6. Conclusion Ultimately, all businesses in the market can make it or break it. This is a dependent factor that is reflected on the functionality, approach, and market strategies expressed by a firm. Vigilant and very impressive firms in the market end up getting a larger market share that demand for their services and goods. Amazon is well prepared to take a larger market niche for its products (Parsons and Maclaran 2012:192). Amazon is geared towards creating a favourable perception in the market. This is by increasing its marketability in the market, investing in other markets, and producing a wide range of products (Vitell, 2001:154). When a firm produces a wide range of products, it appeals to a large number of people in the whole world. Therefore, some people who only use one product may have a good perception of the whole firm. This may trigger their need to use other products of the same firm. With such a trend, they may find that they are using virtually all products of the firm (Rawwas, 2001:189). Similarly, the firm ensures that the products are in the best of range in their various specialties. Specialisation has increased the functionality of many products in the world, which is an improvement to products in the market (Solomon, 2010:3). As such, Amazon ensured specialisation in its products to meet the demand. This in the end created a perception in the market, which favoured Amazon. Amazon has motivated the market and spread to other markets. When a person is motivated to buy products, they ensure that they get the best from the product (Fukukawa, 2001:26). For instance, it has been improving the quality and functionality of products with advancement in technology. Customers had to demand more of the products with improvement in quality of services. Marketing and consumer behaviour go hand in hand, which has made Amazon create a consumer attitude. Consumer behaviour can only be noticed when there is effective and widespread marketing in the field. For instance, a renowned firm that supplies a large number of services to consumers will not have a hard time in predicting its customer behaviour, as they have an attitude towards the product. It will be easier to find information that relates to the firm and its products. In conclusion, a business has to find ways of impressing, attracting, and making a customer happy. This will be evident in the consumer behaviour that is displayed as either satisfactory or unsatisfactory. 7. References Amazon (2011)Customers purchasing Kindles at rate of more than 1 million per week for third straight week, viewed 6Nov 2012 from . Assael, H. (2005) Consumer behavior a strategic approach, New York, Dreamtech Press. Bateman, C.R. (2002) ‘Framing effects within the ethical decision making process of consumers’Journal of Business Ethics,vol. 36, pp. 119-123. Blythe, B.J. (2008)Consumer behaviour,New York, Cengage Learning EMEA. Brinkmann, J. 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