Amazon Impact of Online Service Quality in Sales and Costumer Decisio

Question: Describe the Report for Amazon and It's Impact of Online Service Quality in Improving Sales and Customers Decision. Answer: Introduction In past few years extensive growth has been noticed in the ecommerce sectors especially in the retail industry. The increased access to the internet is the major factor that contributes in the growth of ecommerce sector (Witell Lofgren, 2007). Through internet access the customers are able to easily browse different websites and purchase goods that they find suitable for themselves. The entire process from viewing the products and variety of choices to making purchase and delivery can be done by the customers by the customers from the comfort of their home due to ecommerce services. Due to this ease and comfort, ecommerce has become quite popular among the customers (Stamenkov Dika, 2015). Initially the companies were reluctant to accept ecommerce because of reliability and security issues but these issues are now resolved to large extent and thus companies widely use ecommerce platform. The main reason behind adopting ecommerce is its low cost and wide market accessibility. In present business environment, the online service quality has appeared as the most important factor that influences the buying decision of the customers (Sabiote, Frias Castaneda, 2012). Service quality can be described as the judgment of the customers based on their expectations which further are built on brand popularity and customers experiences. The organizations have realized that only price of the product is not key determinant of the success but quality of the product and services is also major factor that contributes in success of the organization. The quality of the products and services offered by the organization has a significant impact on the customer loyalty and satisfaction which influences the purchase decision and eventually impacts the profitability of the firm (O'Neil, Palmer Wright, 2003). In order to build customer loyalty and provide customer satisfaction it is important to provide quality services to customers during after product purchase. Aims and Motivation The core aim of this research proposal is to inspect the impact of online service quality on purchase decision of the customers in retail industry. The motivation of this research is that ecommerce activities has exploded due to internet accessibility which offers easy purchase option. In order to retain customers and remain profitable in long term the organizations must satisfy their customers which can be done through qualitative services. Thus, in order to understand the impact of quality online services on customers purchasing decision and ways in which it helps in improving sales this research is conducted. It is evident that in every business, customer satisfaction is a critical aspect that helps in long term sustainability of the organization along with providing huge profit margins (Li, 2015). Thus, online retail organizations must also maintain strong customer relationship by providing them quality services in order to remain profitable and sustain for long. Research Question In order to achieve the main aim of the research, following questions are formulated: What is the importance of quality online services in influencing the purchase decision of customers? Determine the factors that impact the consumer perception about the service quality? In what ways can the organizations influence the perception of the customers about service quality? Research Objectives The major objectives of this research proposal are as follows: To examine the role of quality of online service on customers perception about the product To explore the factors that influences the purchase decision of the customers To analyze the significance of quality services in influencing customers to make a purchase Research Rationale This research topic is selected because the subject is very interesting and improves the knowledge about the ecommerce sector. This research topic is the one of the recent topics of research that contains ample of information and can guide organizations. Through research on this topic, the readers will have a broad understanding about the role of quality services in ecommerce sector. This research topic can also be helpful for business organizations in improving sales of their products and services by transforming the perception of the customers towards online services. The business professionals will also be benefitted through this research study because they will be able to understand the significance of high quality services in ecommerce sector. This research study analyses the retail giant Amazon and its online customer services with specific emphasis on its business structure in Nigeria. Organizations of the Research A proper structuring of the research is important to achieve research aim and complete the research work successfully. This can be done by using a systematic approach and organizing the research appropriately. For this purpose, the research will be divided into different chapters which are as follows: Chapter 1: Introduction The first chapter is introduction chapter that contains background information about the research subject and is one of the crucial chapters that lay the foundation of the research work. This chapter contains the aims, motivation, objectives and rationale of the research. Chapter 2: Literature Review The second chapter is literature review that contains in-depth information on the research topic which is based on the previous literatures and researches done by different authors. Chapter 3: Research Methodology The third chapter is research methodology chapter that determines the different types of research methods which are used in research to gain information about the research subject. All the necessary information in the research is retrieved using tools and techniques which are described under this chapter. Chapter 4: Data Analysis and Discussion The fourth chapter is data analysis and discussion that analyses the data collected through different research methods. The data is analyzed in this chapter to gain important information and reach to a meaningful conclusion. Chapter 5: Conclusion and Recommendations The fifth chapter is conclusion and recommendation chapter that contains the overall summary of the research based on the research findings. This chapter also provides recommendations for any gaps identified in the entire research. Literature Review (Theory and Definitions) According to Hung et al. (2014), today, the competition in the marketplace has increased and become fierce due to globalization as new players are frequently entering in the market and increasing competition. The competition is even higher in ecommerce sector because several new players are entering in online business to exploit the business and make profit. It is identified that the cost of implementing online business is relatively low in comparison to traditional retail stores and online business also opens the vast market to the organizations. Zandian Riahinia Azimi (2010) also explored that the profit margins are eroded due to growing competition in ecommerce business; therefore it is important for the organizations to differentiate itself from its competitors to gain success. The online business can differentiate itself from other rivals through ecommerce service quality because it determines the way in which the service providers provide customer satisfaction and manages its customers. In the views of Sahadev Purani (2008), ecommerce service quality is the combination of different factors such as access, assurance, reliability and ease of navigation. In order to provide high quality and effective online services a combination of the above elements should be used. Turk, Scholz and Berresheim (2012), investigated that ecommerce retailing helps in gaining new customers and provide an easy way to customers in making purchase. At present, customers lack in time and demand quality products and services therefore, they are attracted towards brands as branded products and services offers quality. This is the huge opportunity for the large market players to sell their products on ecommerce platform. The small and new players can also exploit ecommerce platform and become successful by promoting business on online medium. In the views of Wang (2008), secure payment, quick customer service, online shipping, fast response are some important elements of online service quality which should be considered by the retailers to build, improve and maintain the brand image of the business. The ecommerce platform and businesses has opened doors for top retail companies such as Amazon and for local firms but in order to remain competitive over rivals providing high quality online services is essential. It is discussed by Javedi et al (2012) that examining the purchase behavior of the customers while making online purchase can be helpful for the companies to create competitive advantage and gain insight. The internet is widely used in online business activities for different purposes such as placing an online order, checking and comparing the prices of products and searching for product attributes. As per the opinion of Zhilin Kim (2004), online shopping behavior is the process of buying products and services through online medium. Five stages are identified in the process of online shopping behaviors which are search for the options, online purchase, recognition of need, evaluation of alternatives and post purchase alternatives. Other than this, there are different factors that affect the purchase decision of the customers such as brand image, service quality, easy return policy, and perceived risks including product risk, financial risk and non-delivery risk. Uzun Poturak (2014) has also explored that there are different factors that influence the customer purchase decision such as e-loyalty, customer satisfaction, online risks and online service quality. Huang Finch (2010) discovered that convenience and customer trust along with price and quality of the product and services are important variables that influence purchasing decision of the customers. It is identified that if the customers are satisfied with service quality of the organization there is high probability that will return back and make another purchase and will continue until they feel satisfied. According to Sousa (2012), there is a positive relationship between customer loyalty and service quality as organizations can retain customers by providing high quality service. Wu Wu (2010) explored that in online shopping the customer decision is based on quality of information provided to them, their perception of risk and interface quality. In addition to this, if the customers find the website attractive and easy navigation is provided they will make purchase. Moreover, Janita Miranda (2013) assumed that by integrating the online services companies can increase their profit margins along with this, high quality services also influence customers to avail the services on constant manner. Riley, Scarpi Manaresi (2009), determined that providing detailed information to the customers about the product, its reliability and efficiency along with making effective communication with them can help the companies in sustaining. Schlagel (2011) also investigated that customer satisfaction and perceived service quality are interrelated because customer satisfaction is dependent on customers expectations about the products and services they receive. According to Ch eng et al. (2012), if any organization provides high quality services but the customers expectations are not met the perceived online service quality will be low. Carlson OCass (2011) suggested that organizations should make efforts to enhance the customers perception towards the service quality provided by them this can be done by developing effective marketing strategies and building trust. Research Methodologies Research methodology is the process in which the researcher collects data which is relevant to the research study. It is a systematic and scientific method through which reliable information is retrieved (Hair et al., 2015). The present research will identify the impact of online service quality on customer purchase decision. For this purpose various tools and techniques will be used to collect data. In this research exploratory research design will be used to determine the characteristics of different variables and it will also help in exploring new ideas and assumptions related to research subject (Denscombe, 2012). In addition to this, inductive research approach will be used for this research to build meaningful conclusion. The data collection method that is suitable for this research will be both primary and secondary data collection methods. Through primary method data will be collected using questionnaires and interviews (Crowther Lancaster, 2012). The questionnaires will be provided to people who use online shopping to understand the factors that influence their purchase decision (Kuada, 2012). Moreover, the interviews will be conducted with the business development managers and logistic managers of the online retail companies. On the other hand, secondary data collection method will utilize existing sources to collect data such as books, journals, online articles and company websites (Creswell, 2013). The sample size for survey method will be 100 and for interview method sample size will be 8. After collecting relevant information data will be analyzed through graphical data representation method such as pie charts or pictograms (Pasian, 2015). Ethical Considerations There are certain ethical considerations that need to be followed while conducting any research work to maintain authenticity and reliability of the research (Kara, 2012). The ethics that will be considered during this research work will include confidentiality and privacy of the data, no biasness or discrimination, no plagiarism, use of authentic sources, and proper acknowledgement of the publication and authors whose data is used (Crowther Lancaster, 2012). Project Plan (Gantt Chart) Research Activities Oct Nov Dec Jan Feb March April May June July Aug Sept Choosing the Topic Confirmation of Research Proposal Introduction of Research Review of Literature Data Gathering Data Analysis and Evaluation Conclusion and Suggestions Submission of Report References Carlson, J. O'Cass. (2011). Developing a framework for understanding e-service quality, its antecedents, consequences, and mediators. Managing Service Quality: An International Journal, 21(3): 264286. 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