Name:
What are the Trends?
As you already learned, the Internet made it much more convenient for consumers to shop from home 24-7. Because of greater access to information, we can research product information on different websites, and can compare prices.
One of the challenges entrepreneurs face, however, is that while purchases are researched online, the trend for many consumers is that they still make their purchases in the traditional bricks-and-mortar retail outlets.
Go to The Consumer Trends Report of Canada's Office of Consumer Affairs to see the trends in Canadian online purchases versus the research consumers do in order to make their purchasing decisions.
What type of purchase is researched the most?
Why do you think research for this type of purchase is high, but online purchases are relatively low?
It is now easier for consumers to look for and purchase items that are difficult to find. In the past you could spend hours going through classified ads of newspapers, looking for that old PS2 Greg Hastings Paintball game, but now you can search for and find it in seconds on eBay.
Another trend in online sales has to do with dynamic pricing. Where pricing once used to be fixed, prices can now vary, depending on when you purchase. A good example of price variation is airline tickets. Prices will go down to sell more seats, but will go up closer to the travel date as fewer seats are available. Dynamic pricing is also reflected in online auctions like eBay and on sites like Priceline, where you can name your price.
Finally, consumers are sharing information and opinions about purchases they are making online. A website such as Epinions provides consumer reviews and can help others in making their buying decisions.
Because anyone can publish a website and post information, consumers do need to be concerned about the accuracy of information. When entrepreneurs develop their own websites they need to keep in mind the accuracy and credibility of the information. As more consumers become aware of and use the Internet for purchasing online, the demand for honest and reliable information will increase. Additionally, entrepreneurs will need to find ways of making consumers feel more secure about the protection of their personal and financial information.
After viewing the video, E-Commerce: The First Decade...
Provide the answers to the following questions in an e-mail to the teacher. Be sure to use complete sentences and appropriate e-mail etiquette as outlined below.
- Prior to the advent of online shopping, how did retailers reach their customers?
- In what year did businesses find the most ideal way to serve their valued customers?
- In his radio address, how many American families does Bill Clinton say will purchase some gifts online during the holiday season?
- In the early days of e-commerce, what were some of the difficulties entrepreneurs experienced?
- Who is Elaine Rubin?
- In ten years, how much have sales over the Internet grown?
- What do the speakers project for the future?
- What do you think the speaker meant when he said "I don't think we're in the first inning, but maybe we're at the top of the second"?