Question

FOUR (4) types of bonds can tie a customer to an organisation. how Amazon use of these bonds improves the customer retention rate in the organisation?

Answer 1

Amazon can use four types of bonds in order to tie the customer to the organisation by-

A. Financial bonds- Amazon can use financial Bond in order to tie the customer primary through financial incentive of lower cost for Greater volume purchase and it can also be used for lower price for customer who have been with the organisation for a long time.

B. Social bonds- social bonds can also be used by the Amazon and they will be trying to build the long-term relationship through social and interpersonal connections and customer will be viewed at client and these are the individual whose needs and wants the organisation will be trying to understand.

C. Customisation Bond- Amazon can issue with the customisation Bond which can either be issued through mass customisation and customer intimacy and it will be helping in flexible processes and structure to provide different customised products .

D. Structural bonds- structural bonds will be helpful for the Amazon in creation of provision of the service to the client that are often designed into the service delivery system for the client so it will be helpful in raising of the money for the longer period.