Amazon and B2C Business Model
Amazon.com is one of the fastest growing B2C companies of U.S. It is an American e-commerce as well as cloud computing-based firm that is operating throughout various parts of the world. It was founded by Jeff Bezos in 1994 on 5th July. The firm is recently following the B2C business model in order to execute its respective business processes. B2C business model critically refers to the transactions that are carried by the consumers as well as the company directly (Chiu, Wang, Fang, & Huang, 2014). The firm is offering a large number of the products to all its customers in more than 16 countries of the world. The products include games, electronics, clothes and many more. The primary motive of the firm is to assists the customers as per their satisfaction level along with the great quality of products and services.
The firm realized the rise of the concepts and execution of online marketing with the help of selling books online and it also recognized the lack of leadership throughout the industry along with the requirement to develop a book-store. The CEO established the business as the bookseller following six of the core values of customer obsession, bias for the action, ownership, frugality, innovation and the high hiring bar.
The push strategy adopted by the firm also supported the development and the execution of the B2C business models (Constantinides Constantinides, Schepers, & Vries, 2015). The online buying strategy has effectively helped the firm in gathering more consumers in order to increase the profitability of the business by selling a large number of the products.
the product page as listed and developed by Amazon critically supports the business model of the firm. The product design, product information as well as higher professional photography helps in evaluating the growth of the firm throughout the concerned competitive market areas (Swani, Brown & Milne, 2014). The product information as well as the reviews from the consumers help in selecting the best products and convinces the customers regarding the particular purchase and thus it supports the business model.
The transactions are the other tools which support the adoption and execution of the business model for the company and the consumers. There are various modes of payment available for the users like they can place the order of their choice by using the credit and debit card instantly and this enhances the effectiveness of the customers towards more purchase.
Segmenting Markets and Factors Used by Amazon
Four of the vital bases of segmenting the consumer markets are as follows:
It has been considered as one of the vital factors which help in evaluating the selling of the products for the firm. Different people like children, teens, adults have different needs and thus it helps in providing the relevant products as per their needs (Giuffrida, Mangiaracina, Perego, & Tumino, 2017).
It helps in classifying the products as per male and female and thus, generates great impact on the evaluation of the selling of the respective products (Chiu et al., 2014). This particular approach of segmentation is mainly used for the clothing, cosmetics as well as for magazines and this also supports the B2C model of the firm.
It has been seen that the markets have started classifying people on the basis of their income and needs in order to highlight the products which can be within their range (Liu & Hong, 2016). The income consists of the various habits of the consumer’s like housing, furniture, traveling, food, shopping etc.
The needs and selection of the products changes as per the family members. Therefore, Amazon uses this factor in order to influences the choices of the consumers and increasing the selling of the products.
Which of these bases for segmenting markets is used
Amazon critically uses family cycle and income factors in order to increase the sealing of the products by listing products as per the choices and age group of people and this generates more amount of sales. Different people have different choices and when someone orders something then the website presents the other related choices that will be within the range of the customers and will suit their other family members (Zhu, & Chang 2017). The classification of the people on the base of income is easy and well executed by Amazon as the shopping executed by consumers for past few days reflect their budget and the monthly shopping habits and thus, the website shows products as per their affordability. Various festivals and seasonal offers also encourage the consumers to make purchases for their family members.
The selection of the factors generates great impact on the execution of the promotional strategies by the organization. Since the adequate promotion needs to be done in front of the selected audience of various age groups and this effect should influence their decision regarding their actual purchase (Li & Karahanna, 2015). The income needs of the consumers influence the promotional strategies such as those products should be highlighted in front of the selected audience which is suitable as per the expense budget. On the other hand, various family needs are the primary choice of many of the customers and thus, the promotion of the products should be associated with one another in order to increase the selling of a maximum number of the products (Hong, 2018). Furthermore, the classification of the consumer markets on the basis of gender attracts both males and females towards the choices of their products and this facilitates the desired growth of the firm to a large extent.
Conclusion
The paper effectively concludes the execution of the business processes of amazon.com by utilizing the B2C model. The firm is operating in various other market segments and uses crucial segmenting market factors in order to classify the needs of its customers and enhance the overall performance of the firm. B2C is a business model which helps in selling and purchasing of the products directly between the customers and the company. The use of the demographic factors like age, gender, income and family cycle generates crucial impact on the promotional strategies of the organization.
References
Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers’ repeat purchase intentions in B2C e?commerce: the roles of utilitarian value, hedonic value, and perceived risk. Information Systems Journal, 24(1), 85-114.
Constantinides, E., Schepers, L., & Vries, S. D. (2015). B2C social media value gap-model: a study of the Dutch online retailing. International journal of electronic marketing and retailing, 6(3), 179-193.
Giuffrida, M., Mangiaracina, R., Perego, A., & Tumino, A. (2017). Cross-border B2C e-commerce to Greater China and the role of logistics: a literature review. International Journal of Physical Distribution & Logistics Management, 47(9), 772-795.
Hong, I. B. (2018). Building Initial Trust in an Intermediary in B2C Online Marketplaces: The Korean Evidence From Interpark. com. Journal of Global Information Management (JGIM), 26(2), 27-47.
Li, S. S., & Karahanna, E. (2015). Online recommendation systems in a B2C E-commerce context: a review and future directions. Journal of the Association for Information Systems, 16(2), 72.
Liu, C., & Hong, J. (2016). Strategies and service innovations of Haitao business in the Chinese market: A comparative case study of Amazon. can vs Gmarket. co. KR. Asia Pacific Journal of Innovation and Entrepreneurship, 10(1), 101-121.
Swani, K., Brown, B. P., & Milne, G. R. (2014). Should tweets differ for B2B and B2C? An analysis of Fortune 500 companies’ Twitter communications. Industrial Marketing Management, 43(5), 873-881. Swani, K., Brown, B. P., & Milne, G. R. (2014). Should tweets differ for B2B and B2C? An analysis of Fortune 500 companies’ Twitter communications. Industrial Marketing Management, 43(5), 873-881.
Zhu, D. H., Ye, Z. Q., & Chang, Y. P. (2017). Understanding the textual content of online customer reviews in B2C websites: A cross-cultural comparison between the US and China. Computers in Human Behavior, 76, 483-493.
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