How Amazon applies the technology of neuromarketing in their daily business

Hausarbeit , 2021 , 11 Seiten , Note: 1,2

BWL - Offline-Marketing und Online-Marketing

The following article deals with the application of neuromarketing concerning real examples from Amazon.
For this purpose, the company, as well as the theory and origin of neuromarketing, were briefly introduced at the beginning.
Afterward, real examples were presented of how Amazon uses neuromarketing to continuously increase customer satisfaction and, at the same time, sales.
The main conclusion of the report is that the use of neuroscience technologies in companies has enormous potential.
The example of Amazon shows how much people are guided by emotions, feelings of security, and the masses. Neuromarketing is based precisely on these insights.
Nevertheless, both sides benefit from this approach. The customer experiences a better shopping journey and receives greater benefits, while the company can generate higher sales at the same time.

Table of content

Table of figures

Abstract

1. Introduction

2. Amazon as a Company
2.1. Mainfigures
2.2. Mission, Vision & Values

3. Theoriginof Neuromarketing

4. How Amazon uses Neuromarketing 4.1. Customer experience design
4.2. Customer decision making

5. Conclusion and recommendations

References

Table of figures

Figure 1: Main figures of Amazon

Figure 2: Mission, Vision, and Values of Amazon

Figure 3: The origin of Neuromarketing

Figure 4: How Amazon uses personalization as a neuromarketing tool

Figure 5: Listing Coffee Maker

Abstract

The following article deals with the application of neuromarketing concerning real examples from Amazon.

For this purpose, the company, as well as the theory and origin of neuromarketing, were briefly introduced at the beginning.

Afterward, real examples were presented of how Amazon uses neuromarketing to continuously increase customer satisfaction and, at the same time, sales.

The main conclusion of the report is that the use of neuroscience technologies in companies has enormous potential.

The example of Amazon shows how much people are guided by emotions, feelings of security, and the masses. Neuromarketing is based precisely on these insights.

Nevertheless, both sides benefit from this approach. The customer experiences a better shopping journey and receives greater benefits, while the company can generate higher sales at the same time.

1. Introduction

In January 2019, Amazon became the most valuable company in the world for the first time with a market capitalization of over $810 billion. Today, the e-commerce leader is in fourth place behind Saudi Aramco, Apple, and Microsoft, with a phenomenal market capitalization of over $1,200 billion (Statista, 2021).

There are many aspects to Amazon's success that need to be considered: extreme knowledge in logistics, excellent business model, customer-centricity within core values, and so on.

All of this is known by all business experts and also by amazon's customers because they feel their benefits every single time, they make a purchase.

The following essay will focus on another major success point of Amazon that is not usually at the top of the list when it comes to the cornerstones of the company's success. It is the use of neuromarketing. In other words, the science and study of how customers make decisions based on brain patterns and measurements (Collins Dictionary, 2021).

For this purpose, Amazon company is briefly introduced in terms of main figures and corporate culture. Then neuromarketing will be defined and also its origin and development will be explained.

In chapter four follows the main part where specific applications of neuromarketing are shown. The paper closes with the main findings and conclusion.

2. Amazon as a Company

This chapter gives a short overview ofAmazon as a company by looking at the main figures as well as the corporate values, mission, and vision.

2.1. Main figures

To get an idea of the power ofAmazon, the following graph shows the main figures of Amazon.

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Figure 1: Main figures ofAmazon

Looking at the graph, it is striking how big the company has already become. In a short period, Amazon has achieved extreme growth, which is far from being exhausted. Above all, Amazon is one of the big beneficiaries of the current pandemic through its online business.

2.2. Mission, Vision & Values

To fully understand the subsequent applications of neuromarketing activities, it is important to take a brief look at values, mission, and culture in general. These defined values often already reflect the level of innovation, agility, and appreciation towards the customer. The following graphic shows these in summary.

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Figure 2: Mission, Vision, and Values ofAmazon

According to the corporate environment, it is to be mentioned that customer-centricity is very much in the focus ofAmazon. It is written down in both the mission and the vision statement. Customer obsession and earning trust are also emphasized in the values, which also refer to the end consumer.

Putting the customer at the heart of the entire environment gives Amazon a huge competitive advantage and is a great cornerstone for its great success.

To push the customer value and the company's revenue to the top, the US company is known for its use of neuromarketing tools and strategies.

3. The origin of Neuromarketing

Before looking at the neuromarketing applications of Amazon, this chapter gives a short introduction to the history and origin of new marketing technology.

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Figure 3: The origin of Neuromarketing

Taking a look at graphic three, one realizes that the basis for neuromarketing is to be found in the human brain, more precisely in the limbic system. This is where all human emotions are controlled.

The science that deals with this topic is neuroscience. Neuroscience uses the latest technologies such as brain scanning, measuring brain waves, or eye-tracking to investigate how people make decisions. The result is that 95 percent of human decisions are based on emotions. Neuromarketing is ultimately the application of these methods and know-how on the marketing and business level to offer customers even greater value and comfort, while at the same time increasing the profits of the company (Dr. Terry Wu;TEDxTalks,2019).

4. HowAmazon uses Neuromarketing

Now it is time to show some real examples of how Amazon uses neuromarketing. As mentioned earlier, it is a unique conversion-boosting technique for the company.

4.1. Customer experience design

The first examples relate to the neurological design of the customer experience.

The most important basic cornerstone for Amazon is data that enables a highly personalized website for each individual customer. To do so, Amazon tracks the behavior, actions, and purchases of each visitor to its website. Each page, including the home page, is uniquely designed for each customer (Neuromarketing Services. 2021).

For instance, an image like the one shown in figure four below is displayed on the home page. Noticeably one of the first places a customer notices.

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Personalization is one of the keys to Amazon's success. Customers are directly addressed by it and feel comfortable right away due to the high level of user-friendliness.

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Figure 4: How Amazon uses personalization as a neuromarketing tool

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• Veranstaltung: Neuromarketing
• Note: 1,2
• Autor: Jakob Scheidel (Autor:in)
• Erscheinungsjahr: 2021
• Seiten: 11
• Katalognummer: V1239958
• ISBN (PDF): 9783346662798
• Sprache: Englisch
• Schlagworte: Amazon, Neuromarketing