Consumer benefits and drawbacks of shopping online

Consumer benefits and drawbacks of shop onlineIn the following essay I attend to track the upstart growth on the web/e- sell sales and analyse, comp ar and critique the consumer benefits and drawbacks of obtain online comp ard to conventional reposition from the perspective of consumer behaviour, brand marketing and the application of the seven-spot Cs of retailing.The business of e-retail has been defined as the sale of goods and services via network or the other electronic transmit for personal or kin use by consumers (Dennis 2002).The explosive growth of the net has revolutionised many typefaces of periodic life (Routledge, 2000). Since the organic evolution of the Internet in the early 90s and its relevance in e-commerce the Internet has all told(prenominal)owed efficient freshly communications channels, easy access, flexibility and the authorisation to upload a huge amount of information to a humankind great audience. Online obtain has evolved with the growth of technology. Online shop has had a dramatic impact and hold out very popular, however it still carters to middle and upper class. A monumental feature in consumer locating towards non-store shopping is icon to technology, since it has been established that amplified exposure to technology increases the probability of developing favour equal to(p) attitudes towards new shopping channels (Bigne, Enrique.2005).Growth of the webThe occurrence of the Internet has already had a unusual impact on society, in that respect are much(prenominal) people online than at any other point in history and online retailers look at seen direful increase in their online earning potential. PricewaterhouseCoopers predict that by 2014 the UK entertainment and media business free for be worth an estimate 56 billion (video on nile workweek 4 uk entertainment media). The speedy growth of the Web and Web development has been the result of many innovative advances in Web technology, Feather call s this the webolution. chance(a) more and more people are integrating the meshing into their nonchalant lives due to the flexible opportunities on prolong. Feather forecasts that a vast rapid growth on the Internet will concur over the adjoining ten years transforming all aspects of society. Feather argues that half of North the States will be living a web lifestyle in which they will also be connected to the internet and be able to control their homes, automobiles, work and lessen the need to commute to a far work site.Developed countries that encounter been offering e-commerce render shown impressive expediency in their respective economies (Javalgi et al., 2005) however the Gulf Area seem to be struggling to keep up with the western world. While consumers from the western world take for granted Internet banking and Internet shopping the Arab world are struggling due to major obstacles mainly poor infrastructure, under enthronisation and slow connection speed. some othe r major concern that is contri stilling to their omit of slow growth is the insufficient and compelling amount of content in Arabic only 0.2% of websites are in Arabic. and the Gulf empyrean presents a huge potential market with over 30million web users notwithstanding organisations palpate its an expensive process to translate.On the other hand the new deregulation has allowed competition to enter, before only maven ISP social club was in stock(predicate) to the masses but now with an increase of ISP companies they have started to push the bounce on service. This new competition has driven down prices because the Internet has perplex more accessible and affordable for users.Video(nile of BBC Middle East Business level Internet Growth in the Middle East video on nile week 4)The huge growth area though, is in mobile internet access (appendix). Mobile craft has been defined as followsMobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or stainless by using mobile access to computer-mediated networks with the help of an electronic finesse (Tiwari, R. Buse, S. (2007)Mobile is literally how consumers live in todays worldwide society and businesses have already seen this transport in the itinerary consumers connect to the internet. Businesses have clear the new trend and due to the improvement on browsing on smart phones this is set to increase rapidly. (Ebay appendix)Customer benefits and drawbacksTo most consumers crucial attributes of online shopping are convenience and accessibility (Wolfinbarger and Gilly, 2001). Online shopping is becoming more and more popular each year as consumers take advantage of the convenience, wide ad immixture of harvest-festivals and low prices available when shopping online. Over the years the Internet has become a great source for bargain hunters for good reason, there are many great steals online with price comparison companies t hat help consumers celebrate the opera hat prices, shipping and tax advantages, and the convenience of not having to leave home. However sometimes the deal that looks like a bargain may capitulation short of what has been advertised.Being able to walk into a physical store and able to see, feel, try, easily ask questions and compare different products side by side with ease makes for a material case to why brick and plaster shopping is more of an engaging experience. One major benefit of brick and trench mortar shopping is its organisation. Its straight-forward layout allows consumers to easily locate the right department and the right products effortlessly. Online sites offer similar organisations layouts by providing search capabilities and well designed websites with easy navigations. Another federal agent could be the relationship between attitudes of draw of alternatives. The consumer although might have a positive attitude toward online shopping, lead by the strong att ractiveness of the brick-and-mortar alternative. Therefore, he will choose to shop offline, despite his positive attitude toward shopping on the Internet.Online stores recommend certain products over others, while all websites offer descriptions for each product, it may not always be the best thing because the descriptions can be either too general or too detailed, making it difficult to compare two or more products on their features. A negative aspect of shopping online is the communication dissatisfaction because consumers miss that face to face attach, not having an informed person available to cater an immediate answer. However websites now provide independent reviews by customers who have brought each product and display their own personal opinion which in the long run is beneficial to consumers because it helps strengthen their decision on whether or not to purchase a product.Other advantages and disadvantages for shopping online include (see appendix) persuasion of consumer behaviourRetailers and researchers have been aware that shopping is not just a matter of acquiring tangible products but also somewhat experience, use and entertainment. In the e-shopping context, experience and enjoyment originate from consumers fundamental interactions with an e-retail site. Factors can puzzle out a consumers decision when shopping online, these include the followingImage Traditional retailers with strong ensures have long been making the running in e-retail. According to Kimber (2001) instore and online shopper the true are linked. Image is the of import perception from the eyes of the consumer to go on up their overall evaluation or rating, in such a way to guide their decision making process. Consumers are more apparent to buy from a store that they consider to have a positive image e.g. price, brand or customer service. For example Tesco is recognised as having a positive image both instore and online, beingness the UK grocery market loss leader in b oth channels and the worlds largest e-grocer.Social One social interaction is case groups. These are groups that serve as a point of reference for an individual. They are perceived as credible and powerful can change consumers attitude and behaviour (see table1 appendix major consumer reference group pg332). When having doubts about obtaining accurate information about products or services, consumers are more likely to communicate with like-minded people who can be important motivators that influence decisions. Consumer related reference groups include the following (see appendix book scalawag 334)Opinion leadership unofficially influence the actions or attitudes of consumers who may be opinion seekers or purely opinion recipients. Opinion leaders are highly credible sources of information because their intentions are perceived as being in the best interest of the opinion recipient because unlike commercialised endorsers, opinion leaders do not actually represent the interests o f one company and receive no compensation for their advice. Comparisons of opinion leaders and receivers (appendix pg 506) crossroad characteristics Consumers decisions whether or not to shop online are also influenced by the variety of products or services available. In essence some product categories are more suitable for online shopping than other categories, the lack of physical achieve and assistance in shopping on the Internet is one factor that influences this suitability. Kare Silver (2001) created the electronic shopping test to measure a product to calculate the chances that it will be purchased online. Three factors affected the potential care for productsProduct CharacteristicsFamiliarity and ConfidenceConsumer AttributesMore information + example of electronic shopping test (appendix) station marketingBrands are ever more important on the internet with further competitors due to the global presences brands are the link to maintaining the relationship between e-retaile rs and consumers. Consumers have a variety of choices and are more liable to choose e-retailers they know who represent value and are giveworthy.Brand elements are the point of contact between the brand and consumer which is intended to reflect the wanted look and feel of the brand and what it represents. For the brand to succeed all elements must be implemented correctly, however branding a company as something they do not represent is worse than no branding at all because it raises consumer expectations about the quality of what they will receive.Lindstorm (2001) dictates both trust and interactivity are the main factors when shopping online. Consumers perception of e-brands are driven by their total experience on the website, making trust a significant long-term barrier because there is no personal interaction purchasing on the internet offers potential risks e.g. security transactions.E-retailers can interact and prove trust with consumers in a number of ways (appendix mode l of e-branding pg 176).E-retail mix assists e-retailers to achieve designated objectives. Prices and advertising remain a key element but online e-retailers benefit from using banner ads, pop ups and affiliate marketing.Difference forms of retail mix and e-retail mix (appendix)Loyalty marketing strategies, including communication and two-way dialog, rewards, effective customer service and service loyalty schemes and are an important aspect of brand building (Cuthbertson and Bridson, 2006). One way Adidas use the e-mix effectively is to allow consumers to create accounts to make their shopping experience easier. They offer exclusive deals/discounts on products, able to keep track of orders and personalised homepage when signed in makes consumers feel the brand are paying great attention to their needs, help build and maintain a relationship.