Customer Satisfaction
How E commerce effects both Businesses and Consumers
How Retail and the Retailing Network is Changing
How Customer Services Change through the use of the Internet
When looking at businesses today and the consumer industry, it is possible to view the Internet as the best thing to happen to the consumer since sliced bread. Not only will the internet aid businesses in knowing what the consumer wants, it will also mean that the consumer has more say in what they buy and how they buy it, and for how much they buy it for. Looking at the consumer industry at present it is possible to see the vast impact that E commerce and internet shopping are going to have on the retail market.
The retail market today is governed by one major factor, this factor is geography and where the store is placed. The main problem is, is that many businesses match prices of local competitors and this means that prices are very limited to area, and to competitors. It is very rare that consumers have a say on how much they want to pay for an item. Within the Internet we see that although businesses still dictate prices, these prices are no longer effected to location. There are no stores and no malls so it is an open market for consumers to shop around without leaving the comfort of their own home. When you saw the visions of the future 15 years ago, they predicted flying cars and automated robots cleaning your home. They also predicted that you would not have to leave your home in order to shop and get what you needed. It turns out that within 10 years this last prediction may be correct. Businesses without web pages where you can order and buy products are going to find it hard to compete with the online superstores and ordering systems.
E commerce is changing the way most companies do business and with online banking and online purchasing, much of todays retailing and consumer industry is changing for the better. It is no longer the better for the business however, these changes now benefit the whole market place, with consumers, suppliers and retailers all in line to reap the benefits of online commerce and purchasing/selling. The business market is becoming a electronic playing field where suppliers have never seen customers but only know there e.mail address, and where they logged on.
The major effect on businesses is that they have to be more responsive to consumer needs rather than that of whast they want to sell. So are the days of the discount store over? Who knows but with a wide variety of businesses now using online ordering systems and online design functions, it is possible to see how e commerce is going to change the lives of everyone involved in the consumption of goods. (see bottom of page for companies using on line ordering and design) The consumer now is not bound by physical constraints and although a company may be based in Australia a customer in Arkansa can now buy there products, with less effort than walking or driving to their local store. This is going to bring down costs for businesses and prices for consumers.
The internet now allows many benefits to consumers. It has now become possible for consumers to name their own price over the internet and find a seller who is willing to match this price. The major issue is that with this service it is going to change the way business actually operates. The business market will change in order to let customers dictate prices more. The biggest change is that the consumer gets the power to influence the price that they will pay.This will also mean there is more of an equilibrium of prices which suppliers and consumers finding a common ground where each wants to buy and sell products. (www.priceline.com is a good eaxample of one of these businesses that is going to enable a change in the business landscape)
The internet and buying over the internet is going to help businesses highlight areas where they can improve and match the customers trends. It could be said that ten years ago none of this seemed imaginable to you or I. But today anything seems possible through the internet, who knows what we'll be able to do ten years from now?
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