| There are many different advantages and benefits of | | | | resulting good Search Engine Results Placement |
| having an e-commerce site on the internet. | | | | (SERP) can be used to reach out to new customers |
| There is much to gain for a consumer which will | | | | who may not have known your website existed |
| encourage them to use an online store rather than the | | | | before they used the search engine to try and find the |
| conventional shopping methods. These advantages | | | | products in question. Comparing this to marketing and |
| are: | | | | promotion campaigns needed with a regular retail set |
| Choice - the web empowers the consumer and gives | | | | up, an e-commerce website becomes an even more |
| them increased choice of what to buy, when to buy | | | | attractive idea. This search engine optimisation work |
| and a greater range of prices. | | | | can cost from as little as £150 a month. |
| Vast selection online - when using the internet to | | | | Global Market - the internet is obviously by its very |
| browse for what to buy, products can be reviewed | | | | nature a global tool. The potential customer base is |
| with no cost in money and relatively little time spent. | | | | infinitely bigger than a normal retailer would have. Other |
| Quick comparison - comparisons can be made on a | | | | than for delivery purposes normal boundaries and |
| range of areas including price, specification, quality and | | | | travel restrictions are non existent, which means there |
| availability in a matter of minutes from the comfort of | | | | is the potential to reach out to many, many more |
| their own home. | | | | customers. |
| Potential pitfalls that customers need to consider and | | | | There are many ideas and customer considerations |
| therefore fears that need to be allayed by any | | | | that need to be considered when setting up an |
| potential e-tailer include: | | | | e-commerce store. In order to capitalise on the |
| - Customers prefer to make some buying decisions in | | | | advantages and opportunities presented by having an |
| store with certain products for example clothing, | | | | e-commerce site various different aspects of online |
| perfume & shoes. | | | | shopping habits and consumer trends need to be |
| - Some products require in-store help. | | | | considered. |
| - Products that can have potential delivery problems. | | | | Research has shown that there are two main factors |
| - Some website tools to help customers reach | | | | affecting customers when they buy online. These two |
| decisions are inflexible, designed without considering | | | | factors are functionality and trust. Obviously the e-tailer |
| how people really purchase. | | | | has many chances to influence these two important |
| When considering the consumer in relation to an online | | | | parts of the online shopping experience. |
| store, various ideas and notions need to be considered | | | | By making their site easy to use and easy to navigate |
| and reviewed. | | | | customers can become familiar with a site and more |
| All consumers are generally risk averse, and will | | | | likely to return due to the efficient and uncomplicated |
| always attempt to try to reduce risk during the | | | | experience they have had. Clear and uncluttered |
| purchasing process. This is no different when dealing | | | | layout would also help to add to the consumer's ease |
| with an e-commerce customer. Therefore there is a | | | | of use and convenience when they are shopping. Also |
| need for the e-tailer to consider and deal with areas | | | | there is a need for good speed of delivery in order to |
| that help to reduce risk or perceived risk in the eyes of | | | | ensure customer satisfaction. |
| the consumer. | | | | A company using an e-commerce needs to develop a |
| Guaranteeing customer satisfaction and ensuring that | | | | clear and strong reputation for consumer trust by |
| brand loyalty begins to grow will help to reduce the | | | | making sure it delivers in the following areas: |
| likelihood of a consumer worrying about risks. Also, if a | | | | Utility: including speed of delivery, convenience, good |
| customer is satisfied with all aspects of the service | | | | deals & bargains |
| provided whilst they are shopping in an e-commerce | | | | Brand elements: Companies need to develop online |
| store then there is not much of an incentive to risk | | | | consumer trust by building a strong reputation for |
| trying to find an alternative and the customer is | | | | fairness, honesty and delivery of quality products |
| therefore likely to return and continue buying from this | | | | Marketing and branding within an e-commerce site |
| store. If they can maintain this ongoing relationship with | | | | There are three main characteristics of a successful |
| their current provider then their perceived risks of | | | | online brand. These are: |
| online shopping will drop and they will be more likely to | | | | - The brand is highly dependent on customer |
| make larger and more frequent purchases from the | | | | perceptions. |
| supplier they are already happy with. | | | | - Perception is shaped and developed by the online |
| Another important way to reduce perceived risk is to | | | | product's added value characteristics. |
| try and build up a marketing strategy and technique | | | | - These characteristics must be sustainable over time. |
| involving personal communication and word of mouth | | | | The three characteristics of a successful brand are |
| recommendations rather than company | | | | multiplicative rather than additive, meaning that each |
| communication. This can only really be achieved by | | | | one is essential in order for a strong online brand |
| delivering risk free and quality service to every | | | | image to be created. |
| customer. This will then encourage existing customers | | | | Online customers often interact and experience a |
| to spread the word about the site and this helps to | | | | brand quite frequently, making the experience more |
| reduce pre purchase tension in new and prospective | | | | important than perceptions |
| customers. | | | | In order to become strong and successful an online |
| There are two models of consumer behaviour that | | | | brand should promise: |
| need to be deliberated upon when thinking about | | | | - Convenience (better than offline or with competitors) |
| strategies and actions to take with the e-commerce | | | | - Achievement (help customers achieve their goals) |
| site: | | | | - Fun and adventure |
| Expectancy Disconfirmation model - Potential | | | | - Self-expression and recognition (by personalisation |
| consumers tend to evaluate website services by | | | | and customisation) |
| comparing their expectations with their perceptions and | | | | - Belonging (to a perceived online community) |
| if the perceived service is better than or at least equal | | | | When branding online, various aspects need to be |
| to the expected service then the consumer will be | | | | considered. These aspects include: |
| satisfied) | | | | Understand the customer - Requires more thorough |
| Perceived Control Perspective - It has been observed | | | | understanding of desired purchase and usage |
| that modern people need to have control over any | | | | experience in an interactive environment |
| situations in which they find themselves. The higher the | | | | Continually monitor competitors - Competitor ads and |
| level of control over a website service situation, the | | | | activities can be monitored online |
| higher their satisfaction with the service will be. This is | | | | Design compelling and complete brand intent - Greater |
| not as simple as it sounds because the e-tailer or | | | | opportunity to customize key messages. |
| service provider needs to maintain control of the | | | | Execute with integrity - Online interactions add |
| service experience. | | | | concerns of security and privacy |
| There are various advantages to the retailer by using | | | | Be opportunistic - Customization, early recognition of |
| an e-commerce site. These include: | | | | changing customer needs requires tailoring of |
| Overheads - overhead costs are comparatively low | | | | positioning |
| when compared to that of running a shop (hosting and | | | | Invest and be patient - Building brand awareness |
| a domain name can cost as little as £120 a year | | | | requires significant investment esp. for later movers; |
| plus VAT). Obviously storage and insurance also | | | | building brand loyalty is quicker if targeting effectively. |
| needs to be considered but the difference in cost is still | | | | As can be seen if planned for and approached |
| vast. | | | | diligently and shrewdly an e-commerce site can be |
| On-Line Marketing ¬- by utilising various methods | | | | both profitable and successful. By choosing the right |
| of search engine optimisation including the publishing of | | | | product, design, marketing and branding strategy an |
| articles at online article sites, directory submission and | | | | e-tailer can make the most of the opportunities |
| the use of a text rich website many potential | | | | presented by the internet. |
| customers can be reached on the internet. The | | | | |