Evaluation Of Impactful Antecedents Of Consumer Behaviour _Amazon (GC0655)

1.0 Introduction

Auction is a Latin word which means “I increase” or “I augment”. The event Auction has been continuing for years. Online Auction developed with the introduction of computers. Online Auction is mainly dealt over the net. Online auction broke the method of the auction that is held with a limited set of customer, at a particular time and venue. In 2000 the account of all the e-commerce increased up to 30% due to this online auction method (Wang, 2012). There are various types of the online auction such as- English auction, Dutch section, First price sealed bid, Vickrey auction, Reverse auction and Bidding fee auction (Gudmundsson et.al.  2012).

It is an American company established in the year 1994, 6^th July. The founder of Amazon is Jeff Bezos. It has its head office at Seattle, Washington. It is one of the largest online retailer companies. Initially, Amazon.com started selling online books slowing it grew its business from books to electronics, home appliances, food, jewellery etc. Amazon has different websites for different countries such as India, Netherlands, Germany, China etc (Amazon.com, 2015).

1.1 Aim of the research:

The aim states to evaluate an impactful antecedent consumer behaviour that affects online auction with respect to a case study of Amazon.

1.2 Objectives of research:

This research is based on a few objectives, for example-

• To identify factors that affect online auction in case of Amazon.
• To identify the demands of customer expectation from online auction by Amazon
• To check the policy Amazon applied to gain good consumer response.

1.3 Research questions:

There are few research question faced by the researcher are –

• What are the factors that create a good impact on the mind of customers during purchasing?
• What does the customer demand from Amazon?
• What are the various problems faced by Amazon in their online auction business strategy due to the antecedent of consumer behaviour?

2. Literature review:

2.0 Consumer behaviour:

 A consumer is a group or section of people who buys goods from the market according to their demand and satisfaction. They demand an object to be cost-effective, useful, and long-lasting. If the goods satisfy their choice the consumer prefers to buy that product (Martins, 2011) Consumer behaviour depends upon psychology, sociology and economics. Consumer behaviour is one of the most important factors for trade. The economy of trade depends on consumer choice and behaviour. Businessman prefers to satisfy consumer demands in order to maintain a healthy relationship with the consumer. If the company is having a good relation with consumer its business never fails (Martins et al. 2012).

2.1 Consumer behaviour in relation to an online auction:

Online auction is highly a modernized technique launched in the market. Nowadays everyone has an internet connection. The online auction can be done from any corner of the world, at any place and at a convenient time. Consumers are satisfied with the modern mode of auction. Amazon has a huge customer range (Schiffman, 2014). They can easily buy and sell the products online. Consumer behaviour towards Amazon is satisfactory, as a result, Amazon.com network is spread all throughout the world and it is one of the most highly used networks. (Refer to Appendix 1)

2.2 Black Box Model related to customer behaviour:

In the Black box model, there is an interaction between stimuli, consumer characteristics, decision making and consumer’s responses. It can easily distinguish between stimuli within people and stimuli between people. Black box model mainly focuses on the relation between stimuli and responses. It depends upon various factors –

Environmental factors:

Marketing stimuli: It is based upon price, product, promotion and place. While marketing all the above four need to be taken under consideration. Before launching a product retailer needs to see the location where the product is launched. Price is one of the most important factors. Consumers are very much cautious about price rate. This stimulus is very clear and processed by companies (Spink and Heinström, 2011)

Environmental stimuli: It depends upon various social issues such as economic, political, cultural and natural. It focuses on social issues. All the above issues have a role in marketing as well as in consumer satisfaction.

Buyer’s Black box: It has two sections such as Buyer’s characteristics and decision process. This section helps in determining the buyer’s responses.

Buyer’s characteristics: Buyer’s characteristics play an important role in the market. Different buyers have a different attitude, motives, perception. While launching a product in the market or to develop a new scheme of business consumer’s views need to be maintained and valued (Ziniel, 2013).

Decision process: Decision process includes problem recognition, information search, purchase decision and post-purchase behaviour. To satisfy a consumer, decision-makers need to be done. Depending on this decision product sell and consumer response and behaviour depends (Cockrum, 2011)……………….

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