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Hierarchy Of Effect Of Amazon

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Introduction

Nowadays it is crucial for companies to understand and have a clear vision about trends and levels on customer knowledge, preferences and behaviors, in order to develop with success their brand and product strategy.
In effect, studies of awareness, attitudes and usage are made in way to measure these trends and they are based on the theory of Hierarchy of Effects, assumption that explains the process with which the consumer, primarily, starts to be aware about the product, with initial trial of it, and then, after adoption of the product, he becomes loyal to it.
In this way companies can see how their reputation and competition increase, starting a growth process that, if is well supported and controlled, can result in achieving …show more content…

When it was started, Amazon was an online bookstore, however, nowadays it is diversified into selling a lot of products.
You can find DVDs/CDs, MP3 downloads, computer software, video games, electronics, apparel, furniture, food and toys.
In addition to this, Amazon offers its own line of products, in order to expand its brand awareness and visibility and also to strengthen it. Products as:
• Amazon basics (amazon-branded electronic products);
• Amazon studios (online social movie studio that focuses on developing television shows, distributing and producing films, and comics from online submissions);
• Amazon Fresh (sells and delivers groceries in Seattle; it offers grocery items for sale, as well as a subset of items from the main Amazon.com storefront. Items ordered through AmazonFresh are available for home delivery on the same day or the next day: examples like pre-cooked turkeys, wine, pumpkin pie);
• Amazon Kindle (e-book reader);
• Amazon Warehouse Deals (offers discounts on refurbished products);
• Amazon Prime (membership …show more content…

To do this, after its foundation, Amazon came up with the idea of customer reviews, which it means that if people see other people’s review about products and services acquired online they feel more confident to proceed with the purchase. Doing constantly that operation, company’s reputation and safeness can increase as well as the number of people who start buy on the internet.
They developed a recommendation module, insight integrated after seeing that, between the last purchase and the following one, exists a connection. It means that after the purchase several suggestions about a set of customized products are given to the customer, in way to give more visibility to similar products and to ease their discovery.
To make easy and simplify online shopping they created a process called one-click ordering with which you can buy certain product just pressing a button and the order will be carried out automatically.
It also offers Amazon Prime, which it was created in 2005, an annually paid membership based on the offer, to customer, of a very short time shipping which it means that in only 1 or 2 you will receive you order; it also offer affordable price, requirements which users regard as the key reason for subscribing to the

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