Online Shopping vs Retail Shopping Essay
* Industry Value Chain – Fig 2.3 Page 2.9
* Value chain is being altered which increases value for the consumer as the retailer “middle man” is being cut out. Where merchandiser has direct access to the consumer. Banking industry has followed suit to create BPAY, Paypal etc.
* Product Segmentation
* Clothing * Small Goods * White Goods * Food * Music * Movies * Services
* Industry Life Cycle – Fig 2.8 Page 2.19 * Early stages of the Growth Cycle
* Remote Environment * POLITICAL – Change in legislation – ie. Tariff attached to every purchase. Negative * ECONOMIC – …show more content…
Low as the products are sold by many firms. 5. Threats of Substitute products or services
Threat of substitutes as products within the industry can be sold by other firms inside or outside the industry.
Consumers in this segment do not have Internet access.
Although they have access to the Internet, consumers in this segment do not think that Internet is a great way to buy products, and rarely shop online.
Consumers in this segment prefer purchasing things online for a fixed price, do not necessarily compare prices across different websites, do not shop for previously owned items, and do not read or share product reviews.
Passionate Deal Seekers
Consumers in this segment believe that Internet is a great way to buy products. They typically read reviews and compare prices across the websites before purchasing something online. They also share their opinions about products and services, and do not mind saving money by shopping in online auctions and purchasing previously used items.
Active Quality Seekers
Consumers in this segment believe that Internet is a great way to buy products. Before purchasing