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Kunnskapskilden

Kunnskapskilden – E-Business –
E-Business, E-Customer, Relationship and Interactivity
Dissertation
The E-Business, the E-Customer,
their Relationship and Interactivity
Jan Vig
Dissertation av Jan Vig om E.Business, E-Customer, Relationship and Interactivity (286 sider) i forbindelse med Masterstudie i Information Technology and Communication Juni 2000.
The E-Retailer Business, the E-Customer,
their Relationship and Interactivity
Table of Contents
Appendix 3
|
Demographics and online shopping trends
|
Who is Online |
Procentage |
Under 18
|
18,5%
|
19 – 29
|
17,3% |
30 – 49
|
31,4% |
50yrs.+
|
12,8% |
|
|
How many online August 1999 |
|
August 1999 |
March 200 |
World Total |
195 million |
304 million |
Africa |
1.72 million |
2.58 million |
Asia/Pacific |
33.61 million |
68.9 million |
Europe |
46.39 million |
83.35 million |
Middle East |
0.88 million |
1.90 million |
Canada & USA |
107.3 million |
136.86 million |
South America |
5.29 million |
10.74 million |
Source: Various; Methodology Compiled by: Nua Internet Survey |
Leading Languages online |
People |
English |
92 million |
Japanese |
9 million |
French |
7.1 million |
German |
6.9 million |
Chinese
|
1 million |
Swedish
|
3.3 million |
Korean
|
3.3 million |
Source: http://www.internetstats.com/ |
|
Top 10 Web sites |
|
Yahoo |
31.50 |
AOL.com |
25.79 |
Geocities |
24.90 |
MSN.com |
23.61 |
Passport.com |
18.88 |
Netscape |
18.64 |
AOLSignon.aol |
17.52 |
AOLWelcome.aol |
17.08 |
Microsoft.com |
17.06 |
Lycos.com |
16.56 |
Source: http://www.internetstats.com/ |
|
What do you primarily use the Internet for? |
[ 2960] 80.0% – Communication/keeping in touch[ 2937] 79.4% – Research[ 1868] 50.5% – Education[ 1842] 49.8% – Games/Entertainment[ 1811] 48.9% – Get the latest news/financial information[ 1193] 32.2% – Online chatting
[ 1023] 27.6% – Newsgroups
[ 999] 27.0% – Online shopping
[ 960] 25.9% – I have a personal web page
[ 903] 24.4% – Meeting new people; sharing interests
[ 856] 23.1% – Employment/job searching
[ 826] 22.3% – Political/social causes
[ 766] 20.7% – ‘Adult’ (sexual) activities
[ 679] 18.4% – I’m involved with an Internet-based business
[ 344] 9.3% – To generate additional revenue; explore entrepeneurship
[ 238] 6.4% – Promotion of a non-Internet related business
[ 117] 3.2% – Video conferencing
Survey.net – Internet Shopping Habits Survey Results Survey started: July 12, 1998 Total Respondents: 2594
http://www.survey.net/inet2r.html |
|
Electronic Commerce |
- 81% of Internet Consumers say they will shop online in next 12 mths (IntelliQuest Information Group)
- On-line retailing to reach $13 billion in 1999 – growing 200% per year (Boston Consulting Group)
- 53.5 million US adults use Internet (Mediamark Research)
- 72 million have access – up 16% in 3 months (Mediamark)
- At home usage now exceeds workplace by 28% (CyberStats)
- Almost 25% of consumers going online from Jan – June 1998 made an on-line purchase (Nielsen Media)
- Corporate spending on Internet: $85 billion in the US alone in 1999, $203 billion by 2002
- Business-to-business e-commerce alone was $43 billion in 1998
- Forecasted to rise to $109 billion (1999) and $1.3t in 2003
- 4 million Web sites, with 235,000 sites added each month
|
|
What is happening on the Net |
- Online advertising expediture of top 25 industries – Up 92% (Intermedia Advertising Solutions)
- 68% of top 124 largest companies advertise on Internet
- Average advertising spending tripled in 1 year $450 million
- US online retail market growing 200% per annum (Shop.org)
- Australian E-Commerce revenues projected to grow from $127.3 million last year to $16 billion in 2002 (IDC Australia)
|
|
Reasons why the E-Retailer can not ignore the Net |
- People increasingly shop online for information (16% of Americans shop online for information before going to car dealers)
- Consumers armed with information will have higher expectations
- Unbiased information is provided to consumers- biased information ignored- push medium
- Vendor inventory can be kept to minimum
- Consumers can have input over production E.g. Dell computers ($6m sales/day on Net)
- Easy comparison shopping-cheapest prices-even moving to bidding by vendors
- Geographically barriers gone- more competition and choices- offline stores face stiff competition from online stores globally
- Search time faster online- in some cases faster than going to local departmental store
- Consumer’s time and place (consumers may be willing to pay more for having products when and where they want it)
- Offline stores have high fixed costs, even a small number of customers leaving could have a profound impact on profits
- Online companies are smaller, more flexible and are more in touch with customers; Big offline companies need to go through lots of red tape just to get things changed: who’d win?
- Online companies have shorter learning cycles- happier customers
- Word of mouth powerful online- happy customers multiply fast
|
|
Different E-Commerce Tendencies of
Men and Women Percentage of Internet Purchasers
|
|
Computer Software |
Clothing |
Computer Hardware |
Electronics |
Males |
28.6% |
6.6% |
18.7% |
7.7% |
Females |
9.7% |
26.4% |
8.3% |
1.4% |
Source: The Strategic Group June 4, 1999 |
|
Different E-Commerce Tendencies of Men and Women Percentage of Internet Purchasers |
|
Computer Software |
Clothing |
Computer Hardware |
Electronics |
Males |
28.6% |
6.6% |
18.7% |
7.7% |
Females |
9.7% |
26.4% |
8.3% |
1.4% |
Source: The Strategic Group June 4, 1999 |
According to Strategis consultant Matt Page, this shift away from technology-oriented men as the mainstream Internet user should serve as a wake-up call to companies doing business over the Internet. «Companies advertising online and doing e-business will fall behind unless they understand how this shift toward more females and more mainstream users overall will affect them,» Page said.
April/March 200 NRF/Forrester Online Retail Index |
Category |
Total Spent
in April
(in thousands) |
Total Spent
in March
(in thousands) |
April Index
Results
(Mar/April) |
Small-Ticket Items |
Software |
$112,732 |
$102,530 |
1.10 |
Books |
$155,894 |
$139,016 |
1.12 |
Music |
$117,899 |
$121,098 |
0.97 |
Videos |
$104,855 |
$73,444 |
1.43 |
Office Supplies |
$100,058 |
$93,162 |
1.07 |
Apparel |
$173,938 |
$142,939 |
1.22 |
Footwear |
$49,427 |
$33,028 |
1.50 |
Jewelry |
$61,745 |
$47,311 |
1.31 |
Flowers |
$54,593 |
$39,508 |
1.38 |
Linens/Home Decor |
$48,973 |
$45,918 |
1.07 |
Health and Beauty |
$112,117 |
$122,206 |
0.92 |
Small appliances |
$34,018 |
$34,272 |
0.99 |
Toys/Video Games |
$90,795 |
$86,561 |
1.05 |
Sporting Goods |
$61,135 |
$45,615 |
1.34 |
Tools and Garden |
$44,454 |
$28,735 |
1.54 |
Big-Ticket Items |
Computer hardware |
$317,116 |
$317,726 |
1.00 |
Consumer Electronics |
$133,008 |
$181,779 |
0.73 |
Appliances |
$13,593 |
$23,038 |
0.59 |
Furniture |
$30,432 |
$36,916 |
0.82 |
Food/Beverages |
$124,497 |
$130,813 |
0.95 |
Air Tickets |
$607,981 |
$509,719 |
1.19 |
Car Rental |
$124,526 |
$108,059 |
1.15 |
Hotel Reservations |
$274,045 |
$278,341 |
0.98 |
Other |
$347,879 |
$272,391 |
1.28 |
Total Spending |
$3,295,709 |
$3,014,128 |
1.09 |
Number of Shoppers |
12,865 |
11,959 |
1.08 |
Average Spent per Consumer |
$256.18 |
$252.04 |
1.02 |
Source: NRF/Forrester |
|
PCs Used for E-Commerce Activity (number of PCs in millions) |
|
January 1999 |
January 1998 |
Percent Increase |
E-commerce purchases |
20.1 |
11.6 |
72% |
Electronic commerce activities(including financial transactions) |
26.0 |
16.3 |
60% |
Shopping activities only |
29.7 |
21.8 |
36% |
Electronic commerce and related activities(including shopping) |
37.2 |
26.4 |
41% |
Source: InfoBeads |
|
Top 10 Problems Experienced by Internet Shoppers |
Problem |
Percent of
Internet Buyers |
Gift wanted to purchase was out of stock |
64 |
Product was not delivered on time |
40 |
Paid too much for delivery |
38 |
Connection or download trouble |
36 |
Didn’t receive confirmation
or status report on purchase |
28 |
Selections were limited |
27 |
Web site difficult to navigate |
26 |
Web site didn’t provide information
needed to make purchase |
25 |
Prices not competitive |
22 |
Site didn’t offer enough gift ideas |
16 |
Source: Andersen Consulting |
|
How Internet Compares to Other Shopping Channels |
|
Internet |
Catalog |
Stores |
Offers most competitive price |
21% |
10% |
13% |
Everything from one source |
12% |
7% |
13% |
Convenience |
59% |
41% |
12% |
Saves time |
62% |
33% |
3% |
Source: Andersen Consulting |
|
Books, the first product category to be sold en masse on the Web, remain at the leading edge of e-commerce. Experienced Web users bought more books online than in stores this holiday season. In fact, according to the survey, books and videotapes were the only categories in which more online shoppers made more online purchases than in stores or via catalogs.
Source of Gift Purchases |
Type of Gift |
Percent purchased via |
Internet |
Catalog |
Stores |
Toys |
48 |
33 |
57 |
Books |
47 |
15 |
34 |
Music |
42 |
15 |
34 |
Videotapes |
35 |
17 |
30 |
Clothing |
29 |
41 |
81 |
Computer Hardware/
Software |
25 |
10 |
29 |
Collectibles/Candies/
Knickknacks |
23 |
26 |
48 |
Household items/
Appliances |
17 |
12 |
34 |
Consumer Electronics |
17 |
10 |
25 |
Cosmetics/Personal Care |
16 |
— |
29 |
Sporting Goods |
14 |
— |
16 |
Greeting Cards |
13 |
— |
35 |
Food/Wine |
11 |
10 |
17 |
Gift Certificates |
9 |
6 |
38 |
Flowers/Gardening Items |
9 |
— |
5 |
Pet Gifts |
6 |
— |
21 |
Periodical Subscriptions |
5 |
— |
4 |
Jewelry |
3 |
— |
24 |
Other |
13 |
11 |
8 |
Source: Andersen Consulting |
|
When asked which type of product or service feature would increase the likelihood of purchasing more products or services over the Internet in the future, respondents cited free delivery, on-time guarantees, and no sales tax most often.
Features That Will Drive E-Commerce |
Feature |
Percent of
Internet Purchasers |
Free product delivery |
98% |
On-time delivery guarantees |
95% |
No sales tax |
91% |
Coupons/promotions |
83% |
Toll-free customer assistance |
68% |
Live, online customer assistance |
62% |
Customers reviews or recommendations |
62% |
Helpful hints for colors, sizes, etc. |
58% |
Free gift wrapping |
58% |
Gift suggestions |
46% |
Source: Andersen Consulting |
|
Total online retail sales during 1999 are expected to reach $66 billion, according to Activ Media Research, and the buying of consumable products will lead the way into the next century.
Projected Total Web Revenues
For Consumer Products
(Billions US) |
|
1999 |
2000 |
Health/beauty |
0.8 |
1.9 |
Healthcare/medical |
1.1 |
2.6 |
Pet supplies |
0.3 |
0.8 |
Groceries/household |
0.9 |
2.2 |
Gourmet |
0.7 |
1.6 |
Total consumable sales |
3.8 |
9.1 |
Total online retail sales |
66.0 |
160.00 |
Source: ActivMedia Research, LLC (194) |
|
Reasons for Not Shopping Online |
|
Dec. 99 |
July 99 |
Can’t see and touch |
41% |
56% |
Can’t easily return |
32% |
47% |
Shipping charges |
33% |
39% |
Source: Greenfield Online |
|
Barriers to Online Purchasing |
Pricing |
77% |
Potential return hassles |
67% |
Credit card concerns |
65% |
Privacy issues |
58% |
Navigation difficulty |
35% |
Time to receive orders |
25% |
Source: The Intermarket Group |
|
Why Shop Online? |
Saves time |
64% |
Stores/malls too crowded |
56% |
More convenient hours |
52% |
Less driving |
37% |
Items cost less |
16% |
Able to shop
earlier in season |
14% |
One click shopping |
12% |
No sales tax |
12% |
Better selection |
11% |
Better availability |
9% |
Able to shop
later in season |
4% |
Gift wrapping/shipping
done by retailer |
3% |
Turnoffs for Online Shoppers in 1998 |
Shipping costs too high |
51% |
High prices |
45% |
Need to try on for fit |
38% |
Not appropriate for
large items |
36% |
Not appropriate for
luxury items |
26% |
Want to see/feel item |
23% |
Desired Improvements* |
Lower shipping costs |
63% |
Lower/more competitive pricing |
61% |
Easier to find Internet site |
22% |
More choices/selections |
21% |
Guarantee of credit
card security |
20% |
More information about products |
16% |
Faster shipping |
16% |
Toll-free telephone support |
14% |
* Among those planning to buy in 1999
Source: Ernst & Young |
|
Top 20 Web Retailers Among US Home Internet Users |
E-Tailer Rank |
E-Tailer |
October Buyers
(000) |
Reach
(%) |
Unique Users
(000) |
Buy Rate
(%) |
Oct. |
Sept. |
1 |
1 |
amazon.com |
1,178 |
18.5 |
12,080 |
9.8 |
2 |
4 |
buy.com |
389 |
3.9 |
2,545 |
15.3 |
3 |
5 |
ticketmaster.com |
360 |
3.8 |
2,506 |
14.3 |
4 |
3 |
barnesandnoble.com |
324 |
8.0 |
5,199 |
6.2 |
5 |
7 |
mothernature.com |
253 |
2.9 |
1,888 |
13.4 |
6 |
2 |
drugstore.com |
221 |
2.2 |
1,456 |
15.2 |
7 |
26 |
smarterkids.com |
218 |
2.5 |
1,618 |
13.5 |
8 |
9 |
Planetrx.com |
214 |
2.6 |
1,709 |
12.5 |
9 |
19 |
etoys.com |
181 |
4.5 |
2,911 |
6.2 |
10 |
14 |
gap.com |
164 |
1.9 |
1,267 |
12.9 |
11 |
10 |
gateway.com |
161 |
3.7 |
2,445 |
6.6 |
12 |
8 |
enews.com |
120 |
4.4 |
2,850 |
4.2% |
13 |
20 |
staples.com |
112 |
1.5 |
957 |
11.7 |
14 |
11 |
cdnow.com |
97 |
7.9 |
5,149 |
1.9 |
15 |
24 |
fogdog.com |
97 |
1.9 |
1,263 |
7.7 |
16 |
21 |
1800flowers.com |
90 |
1.2 |
795 |
11.3 |
17 |
15 |
bigstar.com |
88 |
2.2 |
1,411 |
6.2 |
18 |
12 |
chipshot.com |
84 |
1.0 |
677 |
12.5 |
19 |
17 |
yahoo.com |
74 |
56.2 |
36,733 |
0.2 |
20 |
27 |
compaq.com |
55 |
2.0 |
1,320 |
4.2 |
Source: PC Data Online http://www.pcdataonline.com/ (200) |
|
A study from Danish E-Commerce Association found out that the five most important reasons to shop on the Web was:
Easy to place an order |
83% |
Large selection of products |
63% |
Cheaper prices |
63% |
Faster service and delivery |
52% |
Detailed and clear information about what is being offered |
40% |
No sales pressure |
39% |
Easy payment procedures |
36% |
|
When asked what kind of information the E-customer looked for in the buying process the respondent gave the following answers(213)
Detailed information about the product itself |
82% |
Price comparisons |
62% |
Detailed information about the vendor |
21% |
|
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