Management Decision Problem (MDP) and Market Research Problem (MRP): Amazon
Assignment 1 (Individual)
(max. 3 grading points): Define a management decision problem (MDP), the appropriate market research problem (MRP), and your approach to solving it. You have the choice to focus on a pressing issue in your industry (or company/client; in this case, feel free to change the company name for confidentiality), or select among the three clients available at Stukent: Amazon, Timex, or Yahoo.
• Task 1 (max. .5 grading point): Prepare a managerial report, starting with an executive summary, expected length up to 5 pages APA format, excluding cover page, table of content, and appendices.
• Task 2 (max. 1 grading points): Define the management decision problem (MDP)
• Task 3 (max. 1 grading points): Define the appropriate market research problem (MRP), based on the MDP you have identified.
• Task 4 (max. .5 grading point): Formulate your approach to the market research problem.
Submit the completed document using the Attachments tool on this page. Please be sure to include your own name in the filename (last name, then first initial—for example: doej_assignX.doc) and in the text of the document, so your instructor/facilitator always knows whose submission he/she is reading.
Assignment 1
Student's Name
College/University
Course
Professor's Name
Due Date
Contents
Executive Summary. 3
Defining the MDP. 4
Defining the Appropriate MRP. 4
Approach to the Market Research Problem.. 5
Literature Review.. 5
Data Collection. 6
Data Analysis. 7
Experimentation. 7
Data Synthesis and Insights. 8
Reporting and Recommendations. 8
References. 10
Executive Summary
This project aims to replicate the market research progress while discussing a pertinent challenge that Amazon encounters. The Management Decision Problem (MDP) is central to this project and focuses on Amazon's imperative to maximize the pricing strategy for the Amazon Prime subscription service, its flagship project. The problem lies in optimizing revenue while maintaining subscribers and attracting more. The project starts by defining the suitable Market Research Problem (MRP) to address such MDP. The MRP stresses comprehending the factors affecting Amazon Prime subscription incorporation, attrition, and renewal rates while exploring the willingness and sensitivity of customers to pay. Addressing such a complex problem entails a comprehensive literature review, collecting data through behavior analysis and surveys, data analysis involving segmentation analysis, regression, and conjoint, experimenting with pricing strategies, insights synthesis, and designing actionable recommendations. The project is vital in exploring Amazon's pricing strategy, significantly seeking to offer data-driven insights to promote subscriber retention and revenue.
Defining the MDP
The MDP beforehand revolves around the need for Amazon to make critical strategic decisions concerning the Amazon Prime subscription service, its flagship product. The fundamental concern of the company is to optimize revenue while ensuring that it retains and attracts a vast subscriber base. Amazon's major problem is determining the most effective and suitable pricing strategy for prime service. The MDP presents a multifaceted challenge which calls for careful consideration. The company must decide whether to decrease or increase subscription rates, the value-added elements to promote or include, and the balance between profitability and affordability. Also, Amazon must address problems related to consumer satisfaction and subscriber churn rates, all while trying to maintain its competitive edge in the streaming and e-commerce industry. Such MDP is integral as it directly affects the company's bottom line and general growth trajectory. Thus, a data-driven and systematic approach is vital in ensuring that Amazon's decisions align with its overarching objectives and address the needs of its customer base. Ultimately, leading cloud service providers like Amazon commonly adopt a usage-based