Based on week 3 assignment, the
following variables have been identified:
Profitability of Amazon
Social Media
International Performance of Amazon
Customer Loyalty
Marketing Strategy
Brand Perception
Profitability of Amazon is a
dependent variable while Social Media, International Performance of Amazon, Customer
Loyalty, Marketing Strategy, and Brand Perception are the independent
variables. Each variable is defined as:
Profitability of Amazon: Since Amazon is a
for-profit organization, the main objective of the company is to increase its
profitability in terms of financial returns while maintaining its brand name,
image, quality, and commitment to customers. Almost all of the Amazon
strategies revolve around increasing the company’s profitability and the whole
team of company tirelessly and continuously works to increase the profitability
of the company. Profitability of Amazon is not an independent term as there are
hundreds of factors that impact the profitability either in a negative or
positive way, hence it is considered as a dependent variable (Soskin).
Social Media: Since Amazon is an e-commerce
company, its profitability highly depends on social media platforms such as Facebook,
Instagram, and Twitter. The users of these sites get information about Amazon
when they log in to these platforms and they order the stuff they need that
contributes to the company's profitability (Kaplan).
International Performance of Amazon: Amazon has
become an international brand as the company has started investing in foreign
countries such as Italy and India that highly affects the company's
profitability (Pride).
Customer Loyalty: customer loyalty is a
consistently positive emotional experience, customer satisfaction based on
physical attributes, and perceived values of customers. If the customers are
loyal, Amazon does not have to worry about the competitors because loyal
customers do not switch the brands that contribute to the company's
profitability (Gefen).
Marketing Strategy: it is the strategy of Amazon
that combines the marketing objectives of the company into a comprehensive plan.
Since Amazon is an e-commerce-based company, its profitability highly depends
on the marketing strategy because this is how people get to know about the
company’s products and services (Newcombe).
Brand Perception: it is a special result of consumer
experience with Amazon as a brand so it is a very important factor affecting
the profitability of Amazon.
Write at least two testable (falsifiable)
hypothesis for each research question.
Question
1. What is the impact of social media on
the profitability of the Amazon?
The hypothesis for Question 1
H10: Facebook,
Twitter, and Instagram do not significantly affect the profitability of Amazon.
H11: Facebook,
Twitter, and Instagram significantly affect the profitability of Amazon.
H20: Facebook,
Twitter, and Instagram do not positively contribute to the profitability of
Amazon.
H21: Facebook,
Twitter, and Instagram positively contribute to the profitability of Amazon.
Question 2: How the
international performance of Amazon can be enhanced?
The hypothesis for Question 2
H10: International performance
of Amazon does not significantly affect the profitability of Amazon.
H11: International
performance of Amazon significantly affect the profitability of Amazon.
H20: International
performance of Amazon does not positively contribute to the profitability of
Amazon.
H21: International
performance of Amazon positively contributes to the profitability of Amazon.
Question 3: What
is the impact of the marketing strategy on the customer loyalty of the Amazon?
The hypothesis for Question 3
H10: Customer loyalty
of Amazon does not significantly affect the profitability of Amazon.
H11: Customer loyalty
of Amazon significantly affect the profitability of Amazon.
H20: Customer loyalty
of Amazon does not positively contribute to the profitability of Amazon
H21:
Customer loyalty of Amazon positively contribute to the profitability of Amazon
Clearly define the relationship of the variables
in that hypothesis.
Since Amazon is e-commerce
company and its most of the marketing strategy depends on social media so the
expected relationship between social media and profitability of Amazon is positive
because when people see the Amazon ads on Facebook, Twitter, or Instagram, they
order the stuff from Amazon that adds to the revenue of the company.
The expected relationship between
the international image of Amazon and the company's profitability is positive
because international image means international customers will start buying
products from Amazon.
The expected relationship between
customer loyalty and profitability of Amazon is positive because loyal
customers do not switch the brand.
The expected relationship between
marketing strategy and profitability of Amazon is positive because this is how
people get to know about the goods and services that the company is offering
along with promotional offers and discounts.
The expected relationship between
brand perception and the profitability of Amazon can be negative as well as
positive. If the brand perception about Amazon is positive, then it will
positively contribute to the profitability of Amazon and vice versa.
Write a hypothesis, related to each research
question that is not testable (falsifiable). (Note: you will find that this is
much harder to do—may be impossible.)
Untestable Hypothesis for Question 1
Facebook, Twitter, and Instagram are
not social media platforms and not linked to the profitability of Amazon.
Untestable Hypothesis for Question 2
International performance of
Amazon does not exist to contribute to the profitability of the company.
Untestable Hypothesis for Question 3
Customer loyalty is not important
for Amazon to affect the profitability of the company.
Briefly discuss the data you would collect to
actually test the testable hypotheses.
The data for the above variables
would be collected through primary research using a questionnaire as a data
collection tool. A questionnaire will be designed consisting of different
questions regarding the dependent variable and each independent variable and
will be distributed among 50 employees of the company through an email. The
identity of the employees will be kept secret considering ethical reasoning. There
will be three parts of the questionnaire; the first part will contain questions
regarding demographics of the employees, the second part will contain questions
regarding the experience of the employees at Amazon, and the third part will
contain at least 3 to 5 questions about each independent variable as well as
dependent variable. The previous researches on Amazon will also be studied
along with the company's annual reports to make an observational analysis that
how each independent variable affects the profitability of Amazon.
References of Report on Succinctly identify and define each of the variables.
Gefen, D. (2002). Customer loyalty in
e-commerce. Journal of the association for information systems, 3(1), 2.
Kaplan, A. M. (2010). Users of the world,
unite! The challenges and opportunities of Social Media. Business Horizons,
53(1), 59-68.
Newcombe, C. R. (2015). How Amazon web
services use formal methods. Communications of the ACM, 58(4), 66-73.
Pride, W. (2008). Marketing.
Cengage Learning,
Soskin, D. (2010). Net Profit: How to
Succeed in Digital Business. John Wiley & Sons.