How Does Amazon Influence Consumer Behavior

Posted By Airah Lynn Balingit on September 2023

How Does Amazon Influence Consumer Behavior?

Amazon is the world's largest online retailer, with over 200 million active customers worldwide. It offers a wide range of products and services, from books and electronics to groceries and cloud computing. But how does Amazon influence consumer behavior? How does it affect the way people shop, spend, and make decisions?

In this blog post, we will explore some of the ways that Amazon shapes consumer behavior, based on research and insights from experts. We will also discuss some of the implications and challenges that Amazon poses for consumers, competitors, and regulators.

1. Amazon creates convenience and speed.

One of the main reasons why consumers choose Amazon is convenience. Amazon makes it easy and fast to find, compare, and buy products online, with features such as one-click ordering, Prime membership, voice shopping, and same-day delivery. According to a survey by Feedvisor, 89% of US online shoppers agree that Amazon offers more convenience than other online retailers.

Convenience and speed can influence consumer behavior in several ways. For example, they can increase impulse buying, as consumers are more likely to purchase items that they see or hear about without much deliberation. They can also reduce search costs, as consumers do not have to spend time and effort looking for alternatives or comparing prices. They can also increase loyalty, as consumers become accustomed to the ease and efficiency of shopping on Amazon.

2. Amazon provides variety and personalization.

Another reason why consumers choose Amazon is variety. Amazon offers a vast selection of products and services, from niche and specialty items to mainstream and popular ones. It also offers a range of options for different preferences and budgets, such as new and used products, private labels and brands, and different delivery methods. According to a survey by Tinuiti, 70% of US online shoppers agree that Amazon has the best product selection compared to other online retailers.

Variety and personalization can influence consumer behavior in several ways. For example, they can increase satisfaction, as consumers are more likely to find what they want or need on Amazon. They can also increase exploration, as consumers are exposed to new or different products that they might not have considered before. They can also increase trust, as consumers perceive Amazon as a reliable source of information and recommendations.

3. Amazon shapes expectations and standards.

Another way that Amazon influences consumer behavior is by shaping expectations and standards. Amazon sets the bar high for other online retailers, in terms of quality, price, service, and innovation. It constantly strives to improve its offerings and customer experience, by introducing new features, technologies, and programs. For example, Amazon has pioneered the use of artificial intelligence, machine learning, and big data to enhance its operations and offerings. It has also launched initiatives such as Prime Day, Prime Video, Prime Music, Prime Wardrobe, and Prime Gaming to attract and retain customers.

Expectations and standards can influence consumer behavior in several ways. For example, they can increase satisfaction, as consumers enjoy the benefits of shopping on Amazon. They can also increase dissatisfaction, as consumers become frustrated or disappointed with other online retailers that do not meet their expectations or standards. They can also increase switching costs, as consumers become reluctant or unwilling to switch to other online retailers that do not offer the same value or experience as Amazon.