Buying preferences

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Description:

Editing by Roel Kock (EMBA09)

Buying preferences from people is a key factor for the developement of the Internet. In some cases some new business have been successful in selling products by internet, as it is the case of CD's, airlines, etc. But in other cases the business has been a fail (e.g. grocery).

Some stores that started with one simple product (e.g. books or CD's) are now offering a wide variety of products. www.amazon.com is maybe the best example of this.

Enablers:

  • Increasing trust in the internet transactions; more experienced consumers (see graph) and more trusted brands on the internet
internet experience and internet buying
  • Secure comerce; increase in secured payments and secured delivery
  • Encriptation technologies; increase in secure payments
  • Change in laws to protect the consumer
  • Wider variety of products being offered which makes 'one stop shopping' easier
  • Easier to compare various products on price and quality also consumer evaluations on products and product bloggs on experiences (14% trust advertisement vs. 78% trust recommendations from other users http://www.youtube.com/watch?v=sIFYPQjYhv8)
  • Increase in 'second hand' buying
  • More international offering of product (cheaper)
  • More tailor made products (e.g. NikeID)
  • Better and easier search, look and feel of the product

Inhibitors:

  • Lack of safety in internet transactions
  • Not trusty internet sites
  • Not adequate logistic services (services are increasing and getting cheaper e.g. www.cdwow.com which has no delivery costs)

Paradigms:

  • People do not trust on Internet for transactions, rather consumers prefer go to shop
  • With Internet consumers save time and money in the transactions

Experts:

Please add any comments to the links below.

Timing:

1979 Online shopping was invented in the UK.

1990 Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.

1994 Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers pizza ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also becomes commercially available, as do cars and bikes.

1995 Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.

1998 Electronic postal stamps can be purchased and downloaded for printing from the Web.

1999 Business.com sold for US $7.5 million to eCompanies, which was purchased in

2002 eBay acquires PayPal for $1.5 billion [6]. Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.

2003 Amazon.com posts first yearly profit.

2007 Business.com acquired by R.H. Donnelley for $345 million[7].

2008 US eCommerce and Online Retail sales projected to reach $204 billion, an increase of 17 percent over 2007.

Above a summary from the wikipedia. http://en.wikipedia.org/wiki/E-commerce

Web Resources:

Journal of Internet Banking and Commerce [1]

Taxonomy of the Interner Comerce [2]

Social Media Revolution [3]