Amazon Customer Value Analysis

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Customer value is the difference between the values the customer gains from owning and using a product and the cost of obtaining the product. In other words, it is the value created by the customer towards its product or service providers. Retailers must understand customers and know exactly what they want to be able to add value to them. Amazon as one of the biggest retailers online can create value through products they sell, services they offer & stores from which they sell. Amazon has a wide range of product assortments, categories and subcategories between Books, Music & Games, Electronics & Computers, Clothing, shoes & Jewelry, Amazon app store for android and Kindle store for books. It provides product related services such as warranties,…show more content…
It provides them with the tools and support needed for them to grow internationally without the complexity, cost or the effort of selling internationally. They can now reach hundreds of millions of loyal Amazon customers in 11 amazon marketplaces. Amazon offers them an easy and reliable ways to grow their businesses with no charges to sign up or to list their products. Customers can easily find and purchase their services while shopping on Amazon. They will even show up when customers are purchasing related products. Owners and small retailers don’t have to worry about the time consuming payment processing and payment issues, Amazon will handle it all and let them focus on building long successful relationships with customers around the…show more content…
It can be divided into micro environment which contains forces closely related to the business and micro environment which contains more widely forces outside of business. The micro environment consists of the actors in the retailer’s environment that affects its ability to serve its markets. These actors can be grouped into Suppliers, intermediaries, customers, competitors and general publics. Suppliers are those firms or individuals who provide retailers with sources and products needed to carry out their business activities. Intermediaries are those firms that aid the retailer in promoting, selling and distributing its goods to customers. A retailer links himself with suppliers and intermediaries so that he can efficiently supply suitable products and services to its target customers. Understanding who these customers are and the reasons behind purchasing activity plays an important role in creating and delivering customer value. A customer may be an individual or household purchasing for personal consumption, an organization that purchases a product for use in the production of other products, or an organization that purchases a product for resale at a profit. Competitors are those who sell similar products and services. These competitors have to be identified, monitored and to capture and

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