Page 45 - Electronic Commerce

Chapter 1

Role of Merchandising
20
Retail merchants have years of traditional commerce experience in creating store
environments that help convince customers to buy. This combination of store design,
layout, and product display knowledge is called merchandising. In addition, many
salespeople have developed skills that allow them to identify customer needs and find
products or services that meet those needs.
The skills of merchandising and personal selling can be difficult to practice remotely.
However, companies must be able to transfer their merchandising skills to the Web for their
Web sites to be successful. Some products are easier to sell on the Internet than others because
the merchandising skills related to those products are easier to transfer to the Web. You will
learn more about how merchandising can be accomplished online in Chapters 3 and 4.

Product/Process Suitability to Electronic Commerce
Some products, such as books or CDs, are good candidates for electronic commerce
because customers do not need to experience the physical characteristics of the particular
item before they buy it. Because one copy of a new book is identical to other copies, and
because the customer is not concerned about fit, freshness, or other such qualities,
customers are usually willing to order a title without examining the specific copy they will
receive. In later chapters, you will learn how to evaluate the advantages and disadvantages
of using electronic commerce for specific business processes. Figure 1-5 lists examples of
business processes categorized by suitability for electronic commerce and traditional
commerce. As technologies develop, many processes that were strictly handled through
traditional commerce have become more suitable for electronic commerce. This trend will
likely continue. You will learn more about transitions of this type in Chapter 3.

Suited to a Combination of
Well Suited to Electronic and Traditional Well Suited to
Electronic Commerce Commerce Strategies Traditional Commerce

Sale/purchase of books Sale/purchase of Sale/purchase of impulse
and CDs automobiles items for immediate use
Sale/purchase of goods Banking and financial Sale/purchase of used,
that have strong brand services unbranded goods
reputations
Online delivery of software and Roommate-matching
digital content, such as music services
and movies
Sale/purchase of travel Sale/purchase of
services residential real estate
Learning
Online shipment tracking Sale/purchase of high-
value jewelry and antiques
Cengage
Sale/purchase of
investment and insurance
products 2015
©
FIGURE 1-5 Business process suitability to type of commerce

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