Topics 6 – Digital Markets

1a) What experiences have you had with shopping online?
I haven’t had much experience with online shopping and my only experience is purchasing a couple of items through eBay. 

1b) Describe a good experience.

I have only purchased a couple of items through eBay and have had no problems with the transaction.  I purchased the items through highly rated eBay seller and received the items I bought.  The goods, price and expected delivery time was as stated. 

1c) What did you like about the online store you used?
Convenience and price.  The items I purchased were available from local retailers, but at a more expensive price. I could shop when it suited me, which is generally at night after work. 

1d) Describe a bad experience.

I haven’t had a bad experience, so far, with any online shopping transactions. 

1e) What problems did you have with the online store?

I didn’t have any problems with the eBay site or seller. 

1f) What features make an online store more appealing?

Price and convenience are the only factors that concern me when purchasing items.  I don’t really pay much attention to the site itself.  I also factor in the reputation of the seller and ensure I only deal with reputable people. 

1g) What features make an online store less appealing?

As long as the product details and pricing information is correct I’m not really fussed by the remainder of the site.  I can understand that the appearance of the online store is very important and it must look professional. Websites that are visually unappealing or look “unprofessional” may not do so well.

1h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

Pricing depends largely on what the market dictates and what the supply chain can deliver.  A recent example of this is Apple IPad 2 launch.  Apple, in my opinion, did not have enough stock to meet the expected demand.  As a result the IPad 2 is now selling on eBay at a higher price than the Apple RRP.  

2a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.

Yes, in the case I agree. Consumers generally always look for products and compare the prices. Most of the time consumers know what they want and will compare physical stores to online sites.  Most of the time a consumer will purchase through physical store if they can negotiate a lower price than the online store.

2b) The importance of brand names will decrease.

The importance of brand names, in my opinion, will not decrease. Consumers can be very brand loyal and this loyalty is developed over a long period of time.  Some consumers buy certain branded products despite the cost.

2c) Price competition will make all products cheaper.

Prices get cheaper for a number of reasons; part of this is due to competition.  Stores need to differentiate themselves from each other and if this means lowering prices to compete then stores will do so.  There has also been a rise in the number of “house brands” to help off set price wars.

2d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.

I agree that digital markets are dominated by mega sites. Sites such as Amazon, eBay and other sites dominate since are well known so consumers turn to them first.

2e) How do you think the balance of power between buyers and sellers will change?

The balance of power will always remain with the buyer.  The buyer has the money think that the balance of power will change between buyers and sellers are that people will be looking online for things. The buyers have to make sure that their prices are competing with other stores. If other stores are cheaper than consumers are more incline to go elsewhere. Sellers have more opportunity now since they can go online and see where they can get a product for a cheaper price.

2f) Prices are cluster online.

Prices, both in the physical and online store environment, vary.  If the same branded products can be purchased from multiple stores, then there will be price competition.  Pricing is also store dependant as areas like overheads will also impact on store pricing. 

2g) Online prices are elastic. (i.e. immune to change up and down with demand).

I think this depends on competition and demand.   Most prices would probably stay the same, depending on the level of demand and availability.  There is competition, but stores don’t discount unless required. 

2h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace).

Product pricing is available everywhere in both the physical and online environments.  Most people have an understanding, when they purchase a product, as to what the price levels are.  Having stores online, just gives another avenue of comparing prices.

3a) What types of m-commerce services does your cell phone provider offer?

My mobile provider, Optus, provides m-commerce functions like:

• Paying bills online
• Web Email
• Gaming
• Movies-on-Demand

3b) Which of these services do you use?

The only mobile phone based service I use is accessing the internet.

3c) What types of transactions do you perform through your cell phone or other wireless devices?

I don’t use my mobile phone to buy, sell, bank etc. 

3d) What types of transactions would you like to perform, but are currently unable to?

I don’t have any plans to use my mobile phone for any web based transaction. 

3e) What is your opinion of wireless advertising/mobile marketing?

In my opinion wireless advertising/mobile marketing is obviously a tool that organisations will use to their advantage if required.  More and more people now have a mobile phone and it make sense that marketers would tap into this trend and use this channel to assist their efforts.  With the introduction of smarter phones consumers will have more access to the information they need, when they need it. 

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