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IntroductionIt would be unwise to assume that everyone will automatically convert to shopping on the Internet just because the technology is available. There are many social implications that should be considered prior to making any decisions about radically restructuring a company’s business format. Why do People use Technology?People rarely make use of a technology just because it is there or, indeed, use it for the purpose for which it was originally developed and marketed. The sale of VCR’s, for example, was believed to have finally taken off because of the millions of people who wished to tape the Royal Wedding of Prince Charles and Lady Diana Spencer, despite the technological belief that they would be used, primarily, to play pre-recorded videotapes. Potential e-customers will need to have a reason, not only to purchase the equipment needed to use the Internet or watch Digital Television, but also to use it for interactive shopping and ultimately to purchase a particular company’s products. What do People use the Internet for?Recent research by eStats shows that over 80% of people using the net do so solely to send e-mail or gather news and information. Only 17.8% of people using the Internet list shopping as being a primary motivation. It is very important, for the potential e-retailer to consider who their current customers are and who they envisage their future customers may be. Who uses the Internet?Early research showed that the most prolific users of computers were young, white, male, professionals. More recent research shows that the trend is now moving towards greater computer ownership in families, in the middle income range, with two or more children , whilst the number of women shopping on the Internet has risen from 29% to 38% in the past year. Some experts have predicted that the next surge in the number of Internet users will come from within the ranks of retired professionals, because they have the necessary disposable time and income . Whether this happens remains to be seen but it does highlight the point you cannot assume that potential customers are of the type who would be able or willing to connect to the Internet to do their shopping. What will Influence People to Shop on the Web?The possible driving forces behind people making the move to interactive home shopping should be considered. Will the ‘excitement’ of the new technologies and the promise of free Internet access and digital television set top boxes be sufficient to start and maintain the shift, or will effective and dynamic marketing provide the impetus? "Experts expect the amount of e-commerce in the UK to grow dramatically in the next 12 to 18 months. The spread of free Internet access from service providers is widely regarded as the main driver towards increasing the number of consumers being online" Perhaps a key to the future might be found by looking at Teletel, the French Videotex System, the undoubted success of which was largely brought about by a political decision to invest vast amounts of capital in this National Infrastructure with little hope of recouping the investment for many years to come. The British Government is now making moves in a similar direction, announcing a £1billion-plus campaign to "kick-start the UK into the Internet Age". Michael Wills, the Government’s Industry Minister, said during a recent interview "It is unbelievably important for the UK to be involved in creating the infrastructure for the Internet age and it has now developed a very high priority." ConclusionWhether people decide to shop on the World Wide Web, or not, could be dependent on these or other factors but it will not be decided by the technology itself. References:http://www.emarketer.com/estats/usage_reason_online.html Times Interface, Aberdeen Press and Journal, Daily Telegraph – Money-Go-Round, Scotland on Sunday Stephen Byers – Parliamentary Written Answer – Question Time 5/3/99 |