In current consumptive environment, most people tend to spend billions on expensive and luxury

The low cost product can also change customers buying behavior. Some customer who prefer to buy goods in the physical stores might decide to buy Amazon’s online product if they see it is in so low a price.

Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.

Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is

Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a

I also agree with you in how you stated that the products price and value tie into one another especially when consumers are trying to determine what would essentially be the best option that meets their criteria of value. Likewise, it is important for companies to find significant and unique methods in which to make their product stand out and be the option of choice. Consumers want a product that is highly regarded but that also qualifies with price. They want to know that what they are paying for is of high standards and quality and worthy of the money being spent. Therefore, they look into every possible option to determine if the product meets brand loyalty and has the appeal to be different from their competitors items. You are

Value is the benefits a consumer gets from buying the product. As I said before, the Apple iPhone covers almost all

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

Every time buyers buy something, they expect that they will get higher or equal worth of value he is giving. Hence, the difference between the benefit/value the customer gains from purchasing and using a product and the costs of obtaining the product is known as Customer Value.

Value is also perceived differently between customers, and is relative to the value customers perceive is available from market alternatives (Smith & Colgate, 1988). Customers may choose to shop at Smiggle over alternatives such as Kiki K because they may perceive Smiggle to have similar quality products at a lower monetary cost. Conversely, other customers may not place a high importance on colour and aesthetical appearance when shopping for a pen, and consequently may take their money to somewhere with more standard office pens, such as a newsagent. When assessing value, customers only factor in features of a product which they deem are important (Kotler et., al). Compelling value propositions must be created in order to entice customers and meet their specific demands (Smith & Colgate, 1988). Smiggle offers products that are functional, affordable and are creatively and colourfully designed to inspire fun in school and work tasks. Customers match their expectations to Smiggle’s value proposition, and if a customer believes the product does not hold the benefits it is supposed hold, the customer will be dissatisfied (Kotler et., el). Therefore, Smiggle must either meet or exceed customers’ expectations in order to satisfy them. This process is integral to the ‘mutual exchange’ characteristic of marketing, because companies must gauge demand and then deliver value in

Business like Amazon wants to make buying item from their business easier for customers. This is why Amazon offers E-retailing which gives customer option to go shopping online. The internet has had impact change on consumers shopping habit as shopping online has numerous advantages which is why online shopping continues to gain popularity. Some of the advantages of E-retailing is that it’s convenient as consumers are able to go shopping at home which could help them save cost on travelling and also gives consumers an option to compare prices of different products as there are wide range of products being sold online.

Value pricing is used where external factors such as recession or increased competition force companies to provide ‘value’ products and services to retain sales.” The

This report aims to find out the relationship between customer value and marketing. In particular, it focuses on the necessity of marketing and the composition of customer value, research on the connection between these two concepts. In particular, it indicates four elements of a market, which are price, place, products, and promotion (4Ps). The other vital part of a market is customer value, it has been divided into instrumental value, hedonic value, expressive value and cost value. Customer value and marketing connect to each other through the supplier help people do better- buying decision and improve products through the customer value.

Organizations like Amazon store realized that attaining long-term customer value through delivery of quality services is the key to their existence. Also, be alert to the customer’s needs and wants, because having a loyal base of satisfied customer brings relevant performance indicators. For example, increase in sales improved profits, and possible higher market share (Shamma & Hassan, 2013).

Last year in 2014, Amazon Prime subscriptions increase by an exceptional at 53%, with its stronger growth across the global markets than within the U.S. An estimate of Prime subscribers could be around 35 to 40 million globally at the end of 2014. What special about it is the subscription offers free shipping along with unlimited access to video contents. It could be comparable to Netflix and that streaming content is just providing subscribers with its advance features of the service to draw subscribers. Even though Prime Memberships only made up a small amount of the company’s revenue, according to various reports, the chance of Prime customers willing to buy is almost twice as much as the regular customers. Prime subscribers will continue to grow as Amazon is investing heavily in streaming content to draw in more subscribers.

It has launched country-specific services in Europe, India, and East Asia to add to its services in North America. Besides, the company allows international shipments for products sold on its websites. Moreover, it runs a popular affiliate marketing program, with millions of website owners around the world (Ungerleider par. 5). The company is also innovative in its use of technology to provide users with convenient ways of enjoying its products. In the past, the company came up with the Amazon Kindle and the Amazon Fire Tablet. It also launched Amazon Prime subscription service. Within the service, there are other bundled offers such as Amazon music and video streaming services, same-day shipment service, and book borrowing services. These have been recent additions and they highlight the potential market opportunity that the company has regarding the enhancement of its Amazon Prime service. Increasing the reasons for users to utilize Amazon and its services ends up increasing the overall purchases and delivers more revenue for