Consumer E-Commerce

Online Shopping


Online shopping has changed the lives of consumers. A new class of retailers has emerged as well as an increase in consumer/consumer interchange. Think Amazon, Craigslist, eBay.

Online shopping has provided a much need convenience to many consumers when it comes to purchasing goods and services. There are many major online retailers like, Amazon.com, Overstock.com, GSI commerce, and Buy.com. Not to mention that many retailers like Best Buy and Target have online outlets in addition to their stores. Amazon is the number one online book seller in the world and it was one of the first. Based out of Seattle they sell jewlery, clothes, and even groceries. The company reported revenues in 2008 of $19.7 billion, up 20% more than the previous selling year. Overstock.com is similar to amazon selling brand named goods for up to 80% off. They sell bedding, entertainment, clothing, home, jewlery, watches, and electronics. The business "leverages its partnerships with manufacturers to obtain products at low prices due to factors such as inventory reduction, overproduction, canceled retail orders, and downsizing" (Pearce). GSI Commerce is a global sporting good store that sells sports equipment and gear. Nike was granted a 10% stake in the company in echange for a special discount on Nike products and an exclusive online marketing deal with the company. Buy.com was centered mostly on the selling and purchasing of "computer hardware, software, and peripherals, but the firm also generated strong sales in books, consumerelectronics, and a number of other product categories" (Pearce). Now the company provides links to 16 specialty stores selling products from leading manufacturers in their respective field. In 2007 the company launched a digital magazine, Buy Magazine which provided consumers with products and reviews of those products. E-commerce has also created some grey area when it comes to shopping around the globe when it comes to laws and regulations of the internet. However, there are many laws in America that help to protect the consumer credit card information when shopping online.


Commenting on Emerson's post. People find online shopping to be extremely convenient because they don’t actually have to spend the time and gas going out to buy something at the store, especially when all the stores are so far away. Online shopping actually saves people money too; usually there are a bunch of online deals within each website, for example the HBO Store. The HBO Store always has great deals to offer which makes it cheaper to shop online than go to the store itself. People realize that shipping costs can get expensive but that usually depends on what you buy. Sometimes never pay for shipping when theyshop online because they rack up the bill to the free shipping qualification price; for example, amazon allows its customers to get free shipping on many different products for orders $25 or over. The only downside to shopping online is waiting for the product to come but if you’re willing to spend the cash on faster shipping then you can do so. People also like shopping online because they don’t have to deal with the people part of things; People don’t have to talk for anyone or wait around waiting for someone to come and help me, which is extremely annoying. There are certain things that some people won’t buy online but people like online shopping and they will continue to shop online for years and years to come.

Information Management


Retailers regularly collect consumer information online to predict future consumer behavior. How does social networking fit into this picture?

When it comes to E-commerce it is very important that the online business stays up to date. The online retailer must record information regarding the consumer. Its beneficial for the business to know the consumers gender, their income level, hobbies, and occupation, which all fall under Demographic Information. They can do this by using cookies; which are files that are created on the consumer's computer when they visit a website. These can track where the consumer goes on the internet and see what sites they visit. This allows the business to find out the consumers' interests by tracking where they go. Other methods of obtaining this information are software applications such as Accrue Software or Webtrends. By collecting this data it enables the business to focus on a certain group of consumers. It's beneficial for the online business because it helps them save money. It specifically targets the consumers who continuously visit the site. Then the business promotes their site by advertising to a similiar crowd of people. That way it doesn't waste money on advertsing to the wrong market.

Information management has taken a great leap because of social networking. Social networking sites such as Facebook, and Twitter are very beneficial for online businesses. Instead of the online business spending thousands of dollars on website tracking information and extra employees to document information, facebook and twitter do all the work for them. When a consumer fills out a facebook profile, it is fitted to their likes and dislikes, their hobbies, and so on. Basically all the information that a company looks for when they are conducting research for their business. Then websites can specifically target their customers by distributing ads to facebook users whos profile meets the businesses's target market. This cuts down on the cost of information management, and ultimatley advertising. When these costs are cut, then it begins a chain reaction that inevitably lowers the selling price of the product. That is one reason why many people go online to shop, because its cheaper. Social networking sites can be held responsible for costs comming down and business becomming more effecient advertisers. Information management is a vital part of the success of an online business or of businesses in general, without its data its hard for a company to properly promote their business.

Comment:
The information above is completely correct. With the use of the internet, and socal media businesses are having an easier time than ever seeing their consumers's interests. Companies can also see what it is that 's causing the changes in their consumer's interests and see what their next step in marketing, or what new product they should make to keep drawing consumers. The source gives just general information on the topic, but the post above expands on the topic more specifically.


The field of information management, like any business online, changes continually and rapidly. Information management is the means whereby information is collected, identified, analyzed, and then distributed to points within an organization where decisions are made and customers are served. Information is what is craved by all who use the internet and it is very much taken for granted. The entire world, so to say, is in each and everyone one of the consumers hands making it so much easier to shop, have fun, and talk to friends. Companies must keep up with this daily steam of new and often fleeting information. As we go into the future businesses will need to rely more and more on information management because that is what fills the gaps with the necessity to do more with less. Information management is built through software, groupware, and reporting tools.Examples of this include project management, billing, or integrated payroll systems.


E-Marketing & E-Promotion


Data is used to easily segment the marketplace and target advertising. Consumers can also easily find retailers online with the use of various search engines and directories. What role does Facebook and Twitter play here?

Facebook and Twitter makes it easy for consumers to buy products. Facebook and Twitter both offer ads on the side of their website that personally attract their consumers. By doing this Facebook and Twitter can take the information off of people's profiles and then target them directly. For example if someone posts as a status that it's a beautiful day for gardening, then Facebook or Twitter may put an ad on the side of their website for local florists, or maybe even a Home Depot. Facebook and Twitter make it easy for businesses to just advertise to the people most likely to buy their products. By doing this companies eliminate marketing to consumers not in their target market and just to those who would most likely buy their product. Also people's situations change and they might end up needing a product or service that typically wouldn't be appealing to them. Most likely in this day in age people post on Facebook or Twitter everything that happens to them. By doing this advertising constantly is changing on the social media websites to adjust to these changes. Facebook, Twitter, and other forms of social media identify the target market and are big contributors to business' success.

Comment: Melony's source does a great job of giving the class a look at how people use social media to shop and find out about products that are being sold. The ads do a great job by targetting people for certain products and services.

Facebook and Twitter play a big role in how and who companies advertise too. The user is allowed to create a profile which helps determine the advertisements that come up on their Facebook page or Twitter feed. Facebook and twitter allow businesses to advertise to their target market. This allows the business to hone in on the people who want their product rather than advertising to people who aren’t interested in the company’s product. Facebook and Twitter also introduce potential customers to new products. Twitter and Facebook ads also make it easier for businesses to deliver ads to their target market rather than trying to advertise to them through email. Facebook and twitter have opened a whole new world for advertising.

Comment:
The information above is quite accurate. Facebook and Twitter have both opened its doors to business advertisements, and thus they have allowed businesses to see people's profiles. This is a benefit for the businesses because it helps to focus their efforts directly where they are most effective but it could be taken as an evasion of privacy. Its interesting how much businesses can learn about a person through their profile, and how they directly target that person's interests. This is a very influential tool, and its impact can be seen through the dramatic increase in online sales since Facebook and Twitter arose.
This resource is very helpful because it is up to date with the current innovations of technology, and provides an insight on how Facebook and Twitter truly have impacted how advertising is conducted.




Reference: (Please apply 'user color' to the appropriate corresponding citation) Mrs. C


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"Commerce, Electronic." Gale Encyclopedia of American Law. Ed. Donna Batten. 3rd ed. Vol. 3. Detroit: Gale, 2010. 12-15. Gale Virtual Reference Library. Web. 3 Apr. 2013.
Document URL http://go.galegroup.com/ps/i.do?id=GALE%7CCX1337700949&v=2.1&u=nhais_hdpm&it=r&p=GVRL&sw=w

"Information Management Systems." Encyclopedia of Emerging Industries. Ed. Lynn M. Pearce. 6th ed. Detroit: Gale, 2011. 475-481. Gale Virtual Reference Library. Web. 1 May 2013.
http://go.galegroup.com/ps/i.do?id=GALE%7CCX1930200074&v=2.1&u=nhais_hdpm&it=r&p=GVRL&sw=w


Choney, Suzanne. "Facebook to Do Targeted Advertising by User Email, Phone Number." NBC News. N.p., n.d. Web. 16 Apr. 2013. <http://www.nbcnews.com/technology/gadgetbox/facebook-do-targeted-advertising-user-email-phone-number-974091>.

Oelkers, Dotty Boen. E-commerce. Cincinnati, OH: South-Western/Thomas Learning, 2002. Print.