WEEK 6 EBUSINESS
Question 1
a) What experiences have you had with shopping online?
I have had two main shopping online experiences. I use ebay to buy some stuff randomly and I have used the V8 race experience to buy a gift voucher for me to use at the Sandown track and drive a real v8 supercar.
b) Describe a good experience.
When I purchased my 5 hot laps from v8 race experience, I had a good online experience as It was a very simple and quick process which emailed you the voucher straight away.
c) What did you like about the online store you used?
It was simple to use, easy form to fill out and wasn’t complicated for new users.
d) Describe a bad experience.
When I first used ebay I had bought an item how ever it didn’t show up within in the time which was estimated. It was a whole week late and because I hadn’t used ebay before I thought that I had bought a fake one.
e) What problems did you have with the online store?
The online store was fine, just a bit complicated for a first time user, however it is easy to use once it has been used a few times.
f) What features make an online store more appealing?
- Pictures
- Simple easy to use website
- Good Security
- Lower prices
g) What features make an online store less appealing?
- Fake items
- Hard, complicated ways to use it
- Cant see the physical product in front of you
- Have to really on honesty from the seller
h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?
I believe we will see prices start to fall as online takes less hassle then a physical store. This will hopefully drop in store prices to help compete against the online migration of consumers.
Question 2
a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.
In the short term the dispersion of prices is very wide spread however in the long term I agree that the dispersion of prices will become very narrow.
b) The importance of brand names will decrease.
I disagree with this statement as I believe that brand names will always be a factor in purchase from consumers.
c) Price competition will make all products cheaper.
I believe that eventually this could happen as we have currently seen in supermarktets with milk prices etc. With the migration of online stores with lower prices, it could see all of the prices drop for the products (online or in store).
d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.
I agree with this statement as sites like amazon and ebay have built up their trust with security issues and until such sites build up this trust, they won’t be used as much leading to sites like amazon and ebay having a greater market share.
e) How do you think the balance of power between buyer’s and seller’s will change?
I believe sellers will hold rank with the power as the make their decisions based on themselves making the most profit, not so much of what the buyers want.
f) Prices are clustered online.
I believe prices online are not clustered. An example is the price comparision of a ps3 game, on ebay it could be purchased for $50 whereas on the dick smith online store it was $89.95.
g) Online prices are elastic. ( i.e. immune to change up and down with demand)
My opinion would be that online prices are less elastic then in store products. Online prices are generally pretty fixed.
h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).
I disagree because the only prices that buyers see are the selling price not how much the products or services cost.
Question 3
a) What types of m-commerce services does your cell phone provider offer?
I have an iphone so I have applications for:
- Commonwealth bank – bill payment, bank transfers
- Ebay
- Safari internet
- Bluetooth
- Wifi
b) Which of these services do you use?
I use all of these services on my iphone due to ease of use and being able to do it anywhere.
c) What types of transactions do you perform through your cell phone or other wireless device?
I use all of these services especially to pay bills, bank transfers, check bank balances, paypal for ebay and sportsbet.com.au deposits and withdrawals.
d) What types of transactions would you like to perform, but are currently unable to?
I cant perform visa or mastercard/ credit card transactions as I don’t have a card suitable which limits my purchases on the internet
e) What is your opinion of wireless advertising/mobile marketing?I dislike wireless advertising and mobile marketing as it is very annoying receiving marketing messages or phone calls from Telstra, banks, etc.