These advances have not only increased employment but also created different industries as a result. This is one of the reasons that technology is so significant to economic growth. ICT have also inspired other establishment of a global market that didn’t exist before. Through the online marketplace citizens and businesses of all countries/world you can buy and sell goods to anyone in minutes; by doing so it increase the economy’s trade exchange. This digital global marketplace connects individuals in fulfilling their needs and also becoming part of the foreign exchange market; transferring money from one currency to another through online payment services.
Furthermore, the Internet provides a convenient way for marketers and consumers to communicate with one another. While consumers can contact the companies at any time through their official websites, thanks to social media, companies are now able to contact the consumers at any time. This opportunity for communication can be advantageous for both consumers and marketers; for instance, consumers can announce their demands and grievances or marketers can get consumers’ opinions about their new products before their release into the
Causes According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style.Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites. Users have more opportunity to choose and compare products they want to purchase or easily find and select specialized products. This kind of open market place would increase competition, provide benefit for industrial buyers as it will promote better quality and more variety of goods.
Amazon had the advantage over Walmart, Best Buy, and Netflix in some cases. Amazon and Walmart both have the online shopping experience, but Amazon does their best to have lower prices than Walmart. Some customers love the fact they do not have to go to Walmart and fight the long lines and shop in the privacy of their home. Amazon’s stability is in their revenue and the net sales are more than Walmart. Amazon goal is to lower their prices than Walmart.
Shopping centers and websites consist of varying apparatus that we may need on an everyday basis. Specifically, stores such Amazon and Walmart sell a variety of item for everyday use. Online stores, such as Amazon, usually have popular items that tend to frequently sell out in stores. Locating items with the click of a button makes searching for them a breeze makin a variety of gadgets accessible on the website. Customers are not constrained to stores within a 15 mile radius, they are able to search in stores around the globe.
Buyers in these industries have substantial power. A potential buyer’s ability to gain information is very easy with online reviews of products. With this information, a buyer can switch from one brand to another without high switching or transaction costs. Especially if consumers buy online, which is becoming increasingly popular, transaction costs practically drop to zero. While the size of each individual order may not be substantial, price sensitivity is high, as buyers have the ability to influence companies by choosing a better-priced substitute.
It has a big impact on the sales and growth of e-commerce. Since the need of the customer for the information and specification of the product that they need can easily be access thru internet, shoppers will have different choices what product to buy. Because of this e-resources, they will also have the choice what online shop will they trust. In addition, an owner of online shop should also consider the design of the website to persuade their customer. It’s one of the components of the purchasing intention of online shoppers.