Bearing Consumer Convenience, Amazon Disrupts Retail Market

Offering convenience to consumers, online retailer Amazon has disrupted the retail industry, forcing legacy retailers to rethink their strategies. Leading physical-stores retailers had to launch their own online operations, shut down significant numbers of their locations, or totally close down their business. Wharton marketing professor and author of the book, “The Shopping Revolution,” Barbara Kahn said two basic principles can help retailers make sense of the changes caused by Amazon. First, the principle of customer value, which prompts customers to “buy something they value from someone they trust.” Second, the principle of differential advantage, which means “customers want to buy from retailers who do it better than anybody else.” [Image Credit: © MikesPhotos @ Pixabay.com]