1.
Background of Use of Advanced Customer
Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
Amazon as the world largest retailer
is successfully working all over the globe. Amazon is using modern technology
as e-commerce website that is fully interactive and customer-oriented website
to sell out various kinds of products including grocery items, electronics,
books, clothing, and other household accessories. The major targeted market of
the company in Germany, Turkey, Japan, Spain, Pakistan, United Kingdom,
Singapore, United States, India, Netherlands, France, Brazil, Mexico, Canada,
and Italy. In the present age, Amazon.com is an online platform that provides
all type of goods and services that are required by the customer. In the
beginning, Amazon and very few other retailers were leading the market of
e-retailing but now technology advancement and changes in the behavior of
customers is causing to promote competition in the market, therefore, Amazon is
also adopting changes in their service. In the highly competitive market
building, customer's equity is necessary therefore Amazon is enriching its
product line, improving quality of services and introducing more advanced
customer services to get their desired goals of the business and remain
sustainable in the market by increasing customer satisfaction.
2.
Statement of the Problem of Use of Advanced
Customer Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
Amazon was founded in 1994 with the vision to become
the market leader in retailing business by providing high quality products.
Management of the Amazon tried their best to make the Amazon a successful and
maker leading company in the few years and they achieved the title of world
largest e-retailers in a few years with continued improvement in the service
quality and product line improvement. Even Amazon is leading e-retiling market
and owns the largest portion of the market shares but still, they need to make
improvement as with the time competition is increasing and more substitutes are
available to the customers in the market.
The consumer wants to have products that can satisfy
their needs and requirements. They are not vocal when things go against their
expectations and desires. Quality is the vital key that can make customers satisfied
and dissatisfied towards the products and services. Therefore, they always
search for products with high quality and affordable rates. The target of the
quality and customer satisfaction can be achieved through improvement in
services and through providing something better and advance in comparison to
the other available substitutes and competitors' products in the market.
3.
Purpose of the Project of Use of Advanced
Customer Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
Purpose of the project is to
study and elaborate the current efforts of the Amazon for its advance customer
services to ensure quality and customer satisfaction. The research project will
identify the results of the efforts taken by the Amazon on customer
satisfaction level. While research project is taken with the aim to identify
and elaborate on how the quality of the Amazon is influenced by and influencing
their advance customer services offered to the customers in the various
targeted segments and market. Basically, the purpose of the research project is
to conclude that whether efforts to advance customer services and improvement
in the quality can improve customer satisfaction or not? And what are the ways
through which companies working in similar fields can ensure maximum customer
satisfaction and best quality services?
4.
Theoretical Bases and Organization and Use
of Advanced Customer Services by ‘Amazon’ to Ensure its Quality and Customer
Satisfaction
This paper will be focusing on
analyzing the advance customer services of the Amazon and the quality and
customer satisfaction of the Amazon advance customer services in the targeted
market.
5.
Limitation of the Project and Use of
Advanced Customer Services by ‘Amazon’ to Ensure its Quality and Customer
Satisfaction
The study is mainly based on the
analysis of secondary material published and provided in open databases for the
Amazon, therefore, there may raise issues related to the reliability and
validity when the data and findings are being implemented in other companies.
However, another major limitation associated with the project is related to the
area and targeted market covered in the research. As Amazon is working in 13 to
16 different countries in the region of Asia, Europe, and the Middle East,
therefore covering information about the customer satisfaction level in all
these areas was not possible. Particularly information used in the survey
should include all areas and all type of customers of the company, therefore,
covering only a limited market and customer is a limitation for the research
project. There can other factors also other than the quality and advance
customer services that may indirectly increase the customer satisfaction level
that is not studied in this research project that can be also taken as a
limitation for the research project.
6.
Definitions of Terms and Use of Advanced
Customer Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
·
Advance customer services
Advance customer services include all services that are being
improved and offered at the advanced level in comparison to the competitors'
products, for instance, making the payment system easy for the customers
through fulltime technical support.
·
Quality
A standard or measure for a thing that is also known as the
degree of excellence of something.
·
Customer satisfaction
Customer satisfaction elaborate that products or services
experienced by the customer meets with the expectations of the customers and
thus customers are satisfied with the products and services and want to
purchase again. Customer dissatisfaction: In case products and services offered
to the customers fail to meet the expectation level and requirements of the
customer.
Review of the Literature and Use of Advanced
Customer Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
The customer interaction with the services provided by
Amazon.com is rapidly changing due to self-service technologies. The exclusive
academic literature emphasizes the dynamics of customer services and technology-based
delivery process for the customers. Amazon.com changed characteristics of
advance customer services extensively to improve the quality of services and
customer satisfaction [1].
In a previous research work carried out by Bitner,
Brown, and Meuter in 2000, the customer services and some technological
interfaces were identified. The research identified improvement in the customer
services to ensure the quality provided to the customers. The main objective of
the research was to identify the sources of customer satisfaction and the
causes of customer dissatisfaction along with the impact of SSTs [2]. The interpersonal
interactions were considered to analyze similarity and differences in the
causes of customer satisfaction and dissatisfaction [1].
The critical incident technique was used to measure attributions, repurchase
intention, complaining behavior, and word of mouth. The research evaluated
causes for customer satisfaction including solved intensified needs, Amazon
provides better alternatives, and services save money. Amazon provides services
that are intensified for the external environment. The services are widely
available even in the flexible hours of operation. The additional benefits
provide more customer satisfaction [1].
The interpersonal method is used by Amazon to deliver the services. The
straight forward process for services such as ATM transaction and drive up
windows makes Amazon more preferable for the customers [1].
The factors resulting in the dissatisfaction of customers include technology
failure, process failure, poor design of services and customer drove failures.
The research contributed to the extrapolation of a range of customer
satisfaction and quality [1].
Amazon is listed in the top companies due to
improved customer services, personalized experiences, amazing perks, and higher
quality products. The company is customer obsessed company of 2018 that is
setting gold standards and improving due to leading focus towards the customer
experiences. The main focus of Amazon is to build emotional connections between
the customers, staff, products, and services [3].
According to Forrester, 72% of the business holders expressed their vision
about customer satisfaction. In a previous research, NewVoiceMedia indicated
that Amazon affords service laggard. The customer services are improving and
getting better as $62 billion statistics mentioned that customer services are
becoming worse. The tracking of big data trends and use of technology in the
services shows the personalized experience of the customer that caters the
needs of individuals. Amazon introduced the concept of customer success to get
more popularity [3].
In the process, the products having higher levels of
frustration and needs of the customer supports were considered. The quality of
the services is improved over the past five years because proactive customer’s
services are getting more popularity. The use of software to get the alert of
issues helped Amazon in resolving the problems and mitigating the claims of
customers [3].
In Amazon Customer services, the human to human interaction was connected by
the quick first line of support and the alternative channels were becoming more
norm to the services. Numerous surveys were conducted in the previous
researches to reveal the abysmal results for the response time, questions,
complaints, and support channels [3].
The previous researchers analyzed the response time of customers to the comments,
questions postponed on the channels, complaints, comments on the social media
or through email. Amazon changed ultimate customer services on the basis of
customer requirement to improve the quality of services and to increase
customer satisfaction [3].
On December 17, 2013, Amazon asked the customers to rate the satisfaction level
with the customer services for the evaluation of customer experience. In the
survey, the customer satisfaction level of Amazon scored 90 that was the
highest score ever recorded by a firm [4].
The
research carried out by Philipp Klaus identified the psychological factors and
functionality for the main dimensions. The technical attributes were considered
for sub-dimension usability, social presence, communication, and product
presence. The conceptual model was developed to expand the existing literature
and online customer services [5].
The research identified dimensions of online customer services and transaction
process for the customers. The previously unexplored vision was considered for
customer services. The impact of technical problems encountered in the customer
services was considered. The shift in the quality of the product can alter the
number of customers and induces risk on the customer satisfaction of the
Amazon. The social presence of dynamic conceptual framework incorporated with
the online experiences and data extraction process [5].
Discussion and Use of Advanced Customer
Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
To ensure the aim of advance
customer services, Amazon is facilitating the customers in many ways. The
corporate level management of the Amazon is developing customer-driven
strategies and introducing policies that can add value to the customer's
experiences. Advanced FAQ system and all time support for the customers enable
the visitors to become loyal customers of the company. Amazon prime is also a
great example of advanced customer service offered by the Amazon that is
enhancing customer's level of satisfaction for their services. Amazon prime
directly deals with the membership- only delivery services. Amazon Prime
members can enjoy instant streaming of television shows and movies, free 2-day
shipping on all types of products, and instant access to thousands of Kindle
books and magazines.
A survey conducted to determine
the customer satisfaction level for the Amazon explains that customer
satisfaction level is fluctuating with the time. The graph mentioned below is
basically a graphical representation of the customer’s response to the services
of the Amazon. In the survey total score was set 100 and accumulated scores of
all samples/ respondents presented the obtained scores in the graph. in
accordance with this graph from 2000 to 2017 the least score presenting
customer satisfaction level is 83 in 2015 and the highest score 88 was earned
in 2001, 2003, 2007, and 2013.
Figure 1Amazon Customer satisfaction score
Source:
https://www.statista.com/statistics/185788/us-customer-satisfaction-with-amazon/
Quality is the attribute that is
given more importance than the price. Customers even ignore the price tags when
the offered product has excellent quality and standards. Research findings
elaborate that Amazon is not only paying attention to the quality of their
offered products but also paying focus on the quality of services. Amazon is consciously
improving its website to make the shopping process easy for the new customers
also. The easy payment system, user-friendly website and technical improvement
in the website is causing to improve customer satisfaction level. Reducing
complexity in the process of e-retailing is also an evidence of the advance
customer service of the Amazon.
Even online shopping is not a new
trend in the market. But still, a large audience is not familiar with the
online shopping process. While sometimes customers also feel difficulty when
searching for something unique and unusual. Therefore, to address such issues
of customers Amazon is offering Mayday service that is a full-time support
service for the customers. Through this customer can ask questions about the
quality, prices, availability of the products and other concerning questions
directly to the Mayday support team by just tapping on the Mayday button.
Auto-fill, easy to navigate the
site, 1 click ordering and maximum shared information about the products are
also the factors that encourage the customers to give preference to the Amazon
on the other e-retailers. Basically, research has proved that customer satisfaction
highly depends upon the service features, quality, and concerns. A customer-oriented
service ever results in good experiences for the customers [1]. While the market
selected by the Amazon company is not static and same all the time. Trends in
online shopping changes with time. Every time customers come up with the new
requirements and needs that they want to be full filled. Amazon researches the
market and understands the needs and requirements of the customer to make changes
in their service quality and to improve their advance services offered to the
customers. Thus the whole discussion projects that the efforts of the Amazon
including the advance customer services are the path way for the Amazon Company
to achieve the targeted destination in the market and achieve the goals set for
the maximization of the market shares in the highly competitive and frequency
changing market.
Summary on Use of Advanced Customer Services by
‘Amazon’ to Ensure its Quality and Customer Satisfaction
The service quality and customer
satisfaction are increasingly recognized aspect for the technical features of
the products and to compare the traditional channels. The conceptual model as
conspired in the present work to identify the implementation of advanced
customer services by ‘Amazon' to ensure its quality and customer
satisfaction. The research investigates
the dimensions of service quality and customer retention towards the services.
The active dimension of the research consists of support, communication,
incentives, security, reliability and efficiency perspectives related to
customer satisfaction and customer services of Amazon. The company is required
to consider the risk associated with the online based business, for instance,
low customer services result in a decrease of customer satisfaction with the
services.
Conclusion on Use of Advanced Customer Services
by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
Amazon advance services offered to the customers mainly concerned with
the customer’s satisfaction and customer’s equity. Research and surveys
conducted to analyze the current condition of the Amazon services and its
customer equity in the market concludes that efforts of the Amazon taken to
ensure quality and to enhance level of customers satisfaction are projecting
positive outcomes for the company as customer satisfaction is improving with
the time rather than decreasing in response to changes in the customers’
requirements and changes in the market trends because of the introduction of
the competitors, however, research conducted on this topic also conclude that
advance efforts and services for the customers are ensuring improvement in the
quality of the services offered to the targeted market by the largest
e-retailer Amazon.com.
References on Use of Advanced Customer
Services by ‘Amazon’ to Ensure its Quality and Customer Satisfaction
[1]
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M. L. Meuter, A. L.
Ostrom, R. I. Roundtree and M. J. Bitner, "Self-Service Technologies:
Understanding Customer Satisfaction with Technology-Based," Journal
of Marketing, vol. 64, no. 03, pp. 50-64, 2000.
|
[2]
|
M. J. Bitner,
"Evaluating Service Encounters: The Effects of Physical Surroundings
and Employee Responses," Mary Jo Bitner, vol. 54, no. 02, pp.
69-82, 2000.
|
[3]
|
Forbes. com,
"Ten Customer Service And Customer Experience Trends For 2017,"
07 01 2017. [Online]. Available:
https://www.forbes.com/sites/shephyken/2017/01/07/10-customer-service-and-customer-experience-cx-trends-for-2017/#d2454de75e58.
|
[4]
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Amazon. com,
"For the Ninth Consecutive Year, Customers Rank Amazon #1 in Customer
Satisfaction," 2018. [Online]. Available:
https://www.amazon.com/gp/feature.html?ie=UTF8&docId=1001924291.
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[5]
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P. Klaus, "The
case of Amazon.com: towards a conceptual framework of online customer
service experience (OCSE) using the emerging consensus technique
(ECT)," Journal of Services Marketing, vol. 27, no. 06, pp.
443-457, 2013.
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