How does the Internet change consumer and supplier relationships? Answer: The internet has made the consumer and supplier relationship more interactive as it has allowed the consumer to customize products that they are purchasing. Also, e- commerce has allowed suppliers to sell directly to consumers thus removing the middle man. As there Is no longer any need to compensate a middle man, e- commerce often results in lower prices for consumers. (K.
L) Another large cost savings is through direct delivery. Even though a consumer might lace an order on a retailer’s website, the order might be re-routed directly to the wholesaler or manufacturer and can be shipped directly to the end-user. The ‘middle man’ In this case might soul make a profit but overall shipping and storing costs might be much more cost effective. (S. M) 2. The Internet may not make corporations obsolete, but the corporations will have to change their business models. Do you agree? Why or why not?
I agree with this statement because as the internet grows in size and is widely used by the public, corporations will have to shift their policies and business models to incorporate issues related to the internet. To stay competitive with other firms, corporations will have to integrate their current business models with new ones that take Into consideration the e-commerce side of the business. To stay competitive in the market the corporations will have to address the new wants and desires of the public and that would be through e-commerce and online shopping as well as online customer service and other aspects. K. L. ) 3. How have social technologies changed e-commerce? E-commerce, in the popular sense, can be defined as: the use of the Internet and the Web to conduct business transactions. A more technical definition would be: e- commerce involves digitally enabled commercial transactions between and among organizations and individuals. E-commerce differs from e-business in that no commercial transaction, an exchange of value across organizational or Individual boundaries, takes place In e-business.
E-business Is the digital ennoblement of exchange in value. E-commerce and e-business intersect at the business firm boundary at the point where internal business systems link up with suppliers. For instance, e-business turns into e-commerce when an exchange of value occurs across firm boundaries. In Just one year from now, we’ll see social technologies disrupt e-commerce the same way they have already disrupted online gaming, music and news. Commerce has always been social.
Shopping in the real world is a form of social entertainment, and we turn to people we know for advice on products and services. This social dimension, however, is not yet reflected in today’s search-driven online e-commerce sites. The goals and metrics by which we measure our website traffic and success change with the evolution of social media. The reasons and places that online commerce take place are changing daily, and unfortunately, they are not trending towards your website. They are going social and mobile.
With influences like Backbone friend’s purchase recommendations, social plug ins, group buying incentives or photos and videos from smart phones showing off user’s acquisitions, it’s obvious that social media is playing a pivotal role in the online purchasing process. Advocacy, loyalty, personalization and targeting are still players in the game, but the delivery has changed and can now provide higher value. Think of Social Commerce as the “new mall”. Catching up with familiar faces and checking out what others are wearing. What’s hot and what’s not. Shopping is a social sport.
Online shoppers are motivated in similar ways, but rather than using window displays, it’s now “curate” online products and recommendations from friends, families or even an anonymous consumer. Word of mouth is still the cornerstone of commercial activity. 71% of online shoppers say that reviews from family members or friends exert a “great deal” or “fair amount” of influence. Social commerce is a subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the inline buying and selling of products and services.
Using Passbook’s already powerful framework, you can tap into their demographic metrics and really drive up the visibility of your product. This is not to say that Backbone is the only answer. Marketers will need to evaluate their entire brand building objectives, leverage their marketing arsenal and be sure to “conform” to the routines of social marketing. Another example is Amazon Mobile, which let you quickly search, get product details and read reviews on millions of products available from Amazon. Com and other recreants.
In the past most technologies and media offerings were “premature” in their scalability, but now is the time to test and learn and get out ahead of this new exciting marketing window of opportunity. While some technologies fall short or are just outdated, expect many of the technical and functional challenges to be remedied in the near future, allowing you to concentrate on how these social interactions translate as performance indicators. Ultimately, emphasis needs to be placed on establishing an optimized user experience that can adapt to consumer preference.