1 Chapter 11 Drivers of online-selling diffusion
Learning objectives The chapter will discuss the following concepts: 2
Introduction Ecommerce has been on the rise, however, there are still certain pockets where the concept is in its infancy stage Marketers should know the factors that impact the online sale This helps in strategizing Prioritizing their resources Preparing a roadmap for their products and services The factors are continuously evolving (Cagliano et al., 2003) and even now generalizable evidence is lacking. determinants of B2C online-selling require further deliverations Limitations of online selling should be known 3
sale of information, goods and services through the Internet interconnecting and interrelating millions of consumers and firms enables marketing communications to become interactive the size of the potential market The behavioural pattern of customers technological infrastructure broadband penetration rate legal framework degree of involvement of the public authorities in framing legal framework policies that favor its development legal, fiscal 4 Driving Factors of B2C online-selling
Driving Factors of B2C online-selling..contd.. legal framework..contd... consumer protection Privacy policy (information about individuals can be combined and integrated with information obtained from conventional physical channels) The firm’s business strategy firm’s internal environment decision to adopt online-selling as a strategy consumer empowerment (information on product features, price comparisons, etc.) identifying the best products to satisfy their needs evaluating their different purchase options intervening in the design of the value proposition online price levels compared to traditional form of sale product differentiation, brand awareness and reputation from online users reviews 5
Driving Factors of B2C online-selling..contd.. The firm’s business strategy..contd.. product information, website design, customer service, reliability and speed of delivery, brand image, facilities for making orders, loyalty programs, personalization of the communication, switching costs benefits of convenience provided Perception about financial data security (fraudulent use of credit cards) winning the consumer’s confidence 6
Driving Factors of B2C online-selling..contd.. 7
Summary from empirical analysis influence of a marketing factor from the Internet firms’ competitive environment legal environment, their value proposition the technological infrastructure adoption of broadband technology legal framework of consumer protection on the Internet differentiation strategy price leadership strategy 8