Week 6- Digital Makrets

Question 1

a) What experiences have you had with shopping online?
I have used the internet to purchase tickets, book hotel rooms, buy a digital camera and to recharge my pre paid internet.

b) Describe a good experience.
When I brought my camera from the Ted’s Camera House website, I found it really easy to navigate around the site, to compare different camera features and prices and also the different mailing/ payment options were easy to understand and follow. There were no problems with the order or product and I will defiantly consider using the same process next time.

c) What did you like about the online store you used?
Again that it was easy to follow, it allowed me to compare the different camera styles, features and prices. The site was very clear in the procedures I needed to follow when purchasing the camera.

d) Describe a bad experience.
I once used a Best Western motel website to book a room for a night. Although the process seemed simple enough, when I called the next morning to double check my booking had been received they had no records of my booking.

e) What problems did you have with the online store?
The problems I had with this site where that the booking did not actually reach the motel that I intended to make the booking in. I had to leave my credit card details on that site and it made me feel very unsafe about who exactly got those details from that site.

f) What features make an online store more appealing?
· Instructions are easy to follow
· Store is easy to operate
· Well known/ recommended by friends/ family/ media source
· Multiple delivery options
· Multiple payment options
· Wide variety of products
· Detailed images/ features of items
· Refund or exchange for items

g) What features make an online store less appealing?
· No images of products being purchases
· Little known stores
· No refund or exchange on items
· Instructions are difficult to understand

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?
As more and more consumers migrate to online shopping, the prices of goods and services should fall as the market becomes more competitive.

Question 2

a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.
I agree. Consumers look for products and compare the prices in general. Consumers look at products from different stores not only in store but online too, and then decide which to buy through the price. If an online store has a product cheaper than a physical store then the consumer will be more likely to buy from the online store to save money.

b) The importance of brand names will decrease.
The importance of brand names in my opinion will not decrease. Due mainly to brand loyalty. People often go with what they know works regardless of the costs.

c) Price competition will make all products cheaper.
I agree that when stores compete on price that the product becomes cheaper. Such items as iPods when people purchase them they look around at the price since the product is the same in each store.

d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.
I agree. Sites such as Amazon, eBay and other sites dominate since are well known so consumers turn to them first.

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

f) Prices are cluster online.I think that the prices online vary.
If products can be purchased online this does not mean that the prices are all the same.

g) Online prices are elastic. (I.e. immune to change up and down with demand).
Most prices would most likely stay the same due to demand always varies. Such items go through waves of popularity. If the items continually change through demand then the prices will change throughout the seasons. The price for a product might reduce for a certain amount of time but I do not think that prices online are elastic.

h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).
I agree. Online prices would be close to the marketplace prices. Certain products are known for their value so if the online price is more expensive than other prices then consumers would purchase elsewhere.

http://moodle.ballarat.edu.au/file.php/24/Digital_Markets/MIT_price_paper.pdf

Question 3

a) What types of m-commerce services does your cell phone provider offer?My mobile provider which is Optus provides such m-commerce as:· paying bills online,· emailing· Bluetooth· Games· Internet

b) Which of these services do you use?
Bluetooth
Games

c) What types of transactions do you perform through your cell phone or other wireless device?
I only use my phone for calls and messages.

d) What types of transactions would you like to perform, but are currently unable to?
My phone allows many transactions however I’m not really interested in making any transactions on my phone.

e) What is your opinion of wireless advertising/mobile marketing?
Wireless advertising is a good idea as more people have a mobile then internet access. People are always on their phones it makes sense that marketers would tap into this trend. By making it easier for people to make transactions using their phone this helps people do things faster. With the introduction of iphones people have seen this as the latest craze since it allows consumers to go onto the internet to do normal things they would do on their computer. The iphone is bigger and easier to take anywhere.