Advantages:
Convenience of shopping on-line with increasingly secure technologies safeguarding
Internet transactions, e.g. on June 27th Visa International announced that more
than 60 of the world's top Internet solutions providers combined to launch its
"Visa Authenticated Payment". This will enhance the security of Internet-based
payments on a global scale. This provides Visa and the consumer the same level
of security in the virtual world as they have in the physical world. Pure play
doesn't have the challenges and risks associated with balancing their resources
between traditional media and the on-line channel; pure plays are able to invest
more in their on-line storefronts than brick-and-mortar companies are able to
do. While established brand names do attract traffic,
it is a positive shopping experience that brings the customer back. Consumers
are finding that their shopping experience on-line is more convenient, there is
greater ease of making price comparisons and gaining information about products
and services. With Internet retailing there is a good selection of products and
services.
For the Internet retailers, there is reduced
unit operating and customer acquisition costs; it is a low cost medium.
Disadvantages:
Pure plays usually don't have the advantage of established brand names and customer
bases; they have to start from ground zero. While brick-and-mortar companies are
immediately able to serve their existing customers on-line and, synchronistically,
focus on acquiring new customers, pure plays do not have the advantage of an established
brand name, customer base, and an inventory system, but must devote their resources
and time to building a brand name and customer base.
Pure
plays are occasionally beset with costly e-mail viruses, and must be ever-vigilant
against spammers. Security and technical problems sometimes have to be dealt with;
they must retrain for the Internet sales format, must learn how to use an e-mail
dialogue with customers, starting slowly and, because customer trust of the pure
play retailer is often lacking, they must gradually build the customers' trust.
Some retailers consider the Internet technology to be
too expensive, too difficult to use, of little value, or intrusive. Many consumers
believe that ads and cookies invade their privacy. Many consumers hesitate to
shop from a pure play retailer because they cannot try or feel an item before
purchasing nor, in the case of clothing, try it on. Many find it inconvenient
to return purchased goods if they are not satisfactory and a large percentage
are not comfortable using a credit card online and disclosing their personal information.
Customer service is often lacking, as well as proper delivery of goods.
References: http://www.internetretailer.com/contents.asp (6/29/01)
12:40PM Love, Jack Shakeout in a Healthy Market. Available
on-line: http://www.internetretailer.com/pressReleaseDetail.asp?id=4331 (6/29/01).
1:15PM
Wagner, Mary K.I.S.S. Keep It Simple for the
Shopper. Available on-line: http://www.internetretailer.com/article.asp?id=402,
(6/2001) 1:22PM
http://www.pagecatcher.com/aimNews/A014.html,
(6/29/2001) 1:30PM http://www.internetretailer.com/pressReleaseDetail.asp?id=4310,
(6/27/2001) 2:10PM About the Author Margot B
margotb@wonderport.com
http://margotb.tk
http://margotbworldnews.tk
http://www.worldisround.com/home/margotb/index.html
http://website4free.vze.com
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