Monday 30 April 2012

WEEK 6 QUESTIONS






1a) What experiences have you had with shopping online?I have shopped online for a range of reasons, on a range of websites. These have included birthday and Christmas presents on red balloon, fishing charter vouchers, and clothing websites. Of course I have also shopped on eBay, mainly for myself for a range of items including, motorbike and car parts, snow gear, womens clothes, womens shoes, and motorbike gear. Another popular online shopping item are tickets to concerts, football games, shows and festivals.
There are certain items I would never walk into a store and buy now, unless I was unable to find it on the net. For example, shoes and tickets. I find womens shoes to be alot cheaper on the web, even when I need to pay for postage. The quality of shoes are terrible these days, they only last for a few months before you need to throw them away.
Buying tickets online is self explanatory, now with ticketek and tickmaster there is no need to waste time driving to pick them up, you buy them online, they emailed to you and print them out, all within a few mintues!







1b) Describe a good experience. With online shopping you want to be able to see a short overview of the product or service you are purchasing. So that those users who regularly purchase it can quickly buy without fuss, this would include minimal clicking and scrolling. A good example is football tickets which supporters may purchase weekly. There also needs to be links and help buttons where users who need extra assistance or are first time purchasers can see more details. With football tickets there needs to be additional information like, location of parking, dress code, food and drink regulations, wheel chair access, seating chart, etc.
Websites that have the ability to summarise information, but also give the ability to clearly access any additional information needed with minimal clicking and scrolling I think provide a good experience.


1c) What did you like about the online store you used?I always enjoy using red balloon and eBay as I am able to filter out results I do not want. This can be payment options, location, dollar value, category, gender, etc.
This goes back to my point of not needing to see information, but still being able to access it if I change my mind or need it.


1d) Describe a bad experience. What I don’t like about some clothing stores is the sizing charts. Especially sites that sell a range of brands and only provide one sizing chart. As any woman or man knows, not all brands fit the same, and realistic sizing charts would encourage more online selling.
A lot of the time, I only buy my favourite brands as I already own a range of tops, dresses, jackets and therefore know how they fit. I am very hesitant in buying other brands in the fear they will not fit properly and therefore I am wasting money.



1e) What problems did you have with the online store?The only problem I have had with online shopping is when buying football tickets once, choosing to retrieve them via email, and they did not arrive. The only way to report the tickets not arriving was to send medallion club an email, in which they would then respond back via email.
Of course, the email response never came through, just like the tickets. There was no other contact information like a phone or fax.
I then had to use a family members email account to email my problem and sort the problem through a different email account.


1f) What features make an online store more appealing?Discounts, cheaper prices, fast delivery and range all make online stores more appealing then walking into a regular store.
Also visual appeal is important. Websites need to ensure they develop a look that suits their target markets.
Regularly updating website is important too. If users like the site they will go back again and again. If the information and products are always the same, they will move on to another site.





1g) What features make an online store less appealing?Over load of information on the front page and a lot of text and scrolling are not appealing to me. If I want information on postage, and the information provided to me is pages long, I will find another site to look at.
Complex sites put people off buying, and in the back of my mind I know there will be a simpler site out there I can use to buy the same or similar product.

Clear easy to read text, navigational bar, search text box, home or main page button, refining search results bar are all helpful for visitors to a site.

There is nothing worse them not being able to find the answer to your question.
If you get lost on a web site or become confused, the back button becomes your best friend! Like a flash light in the dark.


1h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?I think that prices will fall and most importantly website design improved. The online market will become more and more competitive. A range of prices will be available for users to compare and with a few clicks of the mouse, people will choose the cheapest price, on the most user friendly site to buy it on.
I know myself, if I was to buy a motorbike helmet off Website ‘A’ valued at $300 but I had to spend approximately 20 minutes trying to create an account, complete a survey and wait for an email to confirm my email address before I could buy the helmet, I would consider buying it at Website ‘B’ where I can pay $340 and only need to provide my credit card details to complete the purchase.


2a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow. I agree with this. Products that have high price will not sell as well and will be forced to drop their price. Products that have their price set to low will need to lift their price to be able to purchase more and keep up with increasing costs.

2b) The importance of brand names will decrease. As more competitors enter the market place, more brands become available. Like shopping at Aldi versus Safeway, people will try different brands with better price.
However, there will be some products that will not decrease, such as medication or cars. People can be very loyal to particular brands and therefore would rather pay a lot more to ensure they can use that product.
Therefore I do agree that for some products brand names will decrease, but not for all products.



2c) Price competition will make all products cheaper. Prices will fluctuate over time. As demand increases and decreases, so will price. As new competition enters and leaves market places, price will increase and decrease.
Therefore, at time products will become cheaper, but will eventually rise again.


Just like televisions, unless it is flat screen, throw it out! They are not worth anything these days. VCRs are technology of the past and have become dust collectors.
The demand for these are low and therefore the price has plumated, but for their new innovative alternatives prices can range from $300 to $1000's in store and online.


2d) Digital markets will become dominated by a handful of mega-sites, like
Amazon.com.If competitors cannot keep up with sites such as Amazon, they can dominate the market place and not just digitally. As they sell more, they will be able to purchase in bulk, and offer advertising on their site to receive more discounts. Therefore other websites may not be able to keep up and drop out of the market place.
Therefore, there is a possibility that this can occur.



2e) How do you think the balance of power between buyer’s and seller’s will change?There can be a shift for some products, but others may stay the same. Within the mobile phone industry, buyers push the market to produce more technological phones. However, due to the high demand, in particular when you look at Apple products, it then gives the seller power to set high prices.
a high price translates as reliability and quality. It can be the sellers that set these impressions in the market place.
Therefore the balance can never stay the same, but theories around where the push and pull of the market place comes from does stay the same.

2f) Prices are clustered online.For some products, sellers create a set price, like the IPhone. Therefore to set sellers apart, packages and bundles are offered to customers, to set them apart and create competition with each other.
However, this does not apply to all products online.



2g) Online prices are elastic. ( i.e. immune to change up and down with demand)
The demand for products is highly subject to change. With a range of substitute goods available online, the demand for products can rapidly increase and decrease as prices change.
As stock of one particular good decreases due to high demand, the price will begin to increase. This is where the store can then offer reduced price for a substitute good that high inventory stock.



2h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).The research to find and compare prices online is easier and transparent. Today, you hear a lot of people say “I buy that online for half the price”. It is the norm when purchasing an item that is considered to be expensive to a person. They will first research the range of prices over the internet now. To help ensure they are receiving a fair deal.

3a) What types of m-commerce services does your cell phone provider offer?
Paying bills, internet banking, online selling and buying, purchase movies, music and games, signing up for health services and insurance, and many more. The smart phones have enabled us to use our mobile as a small portable computer.

3b) Which of these services do you use?
There are some that I use more than others. Mainly internet banking, emails and eBay. I also use my phone to Google and browse the web. Although this does have to be monitored as fees are high on your phone, once you exceed your capped internet usage.

3c) What types of transactions do you perform through your cell phone or other wireless device?
I mainly check my banking amounts, but do not pay for items on my mobile. I normally do that via my laptop. I do bid for items on eBay, but finalise payment on my laptop.
I find it a lot easier using a keyboard and full screen.


3d) What types of transactions would you like to perform, but are currently unable to?There are none I am unable to do. I just prefer to perform certain transactions on my laptop, in store or by phone.


3e) What is your opinion of wireless advertising/mobile marketing?
To consumers they can be frustrating part of online shopping. Consumers can become hesitant in filling out email and phone sections of forms online, as they fear they will be spammed.
For a business it is a great idea, and great way to promote a product. The way in which the advertising is actioned needs to be looked at carefully. Pop up rarely get read anymore as consumers will simply close these screens and will refuse to click any links. Subscribing to updates via email or messages are great, but need to ensure they are not daily.

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