...Nolan Online vs. Brick-and-Mortar Shopping COM/155 Online vs. Brick-and-Mortar Shopping Most everyone loves to shop and in today’s society, and with the advancement of technology, we have more options concerning how and where we shop. Thanks to the development of the Internet, we can now do our shopping online. For most of us though, we still go to the good old brick-and-mortar store to do our shopping. There are tons of choices to make concerning shopping in today’s society, and whether we shop online or at a brick-and-mortar store is at the top of that list. When it comes time to do some shopping, you need to know which way is better for you personally. Although online stores and brick-and-mortar stores have qualities in common, payment options, ability to handle the products and where you’re most comfortable shopping at, can show the differences. When it comes time to pay for the products we want to buy, there are differences between online and brick-and-mortar shopping. If you are doing your shopping online, your payment options may be limited. Most online stores only take credit or debit cards as the form of payment. Some may offer the option of using a Pay Pal account. A Pay Pal account is essentially an account that you can save your credit card information to, that will save you time when it comes time to enter your payment information. There are some online stores that will let you use your checking account to make a payment. Also most online stores...
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...budget. In an attempt to reach as many consumers as possible, most designers sell their collections in boutiques as well as online. There has been some talk about selling online vs brick and mortar sales; so much shopping happens on the computer, the tablet, and the mobile phone, that some designers are actually seizing the brick and mortar placement efforts and selling solely via their websites. There are pros and cons to both avenues of distribution. Benefits of selling your products online: Reach. Obviously, the amount of people you can reach online is far more impressive than the amount walking into a brick and mortar of an particular day. Great website experience. You have the opportunity to create a beautifully branded website bringing all the customer service that the store would bring onto your very platform. Relationships. You have the opportunity to create stronger relationships with your customers since you are workign dorectly with them, rather than through a third party. Benefits of selling your products in brick and mortar stores: Hands On. Sometimes, when a customer can get their hands on your products in a store, it makes the sale. The ability to touch the soft fabric or get a close up on the metallic stitching can be the final push to make the purchase. This is not somethign that can be accomplished online. Dressing rooms. Regardless of the amount of clever tech fashion apps that are popping up out there, the...
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...Online shopping vs Brick and mortar shopping With many brick and mortar stores now online, shoppers have the option of visiting a traditional store or shopping online at their favorite stores from the convenience of their own home. Some people find the convenience of shopping online along with gas money they save to be an appealing way to shop. On the other hand, there are those who do not want to sacrifice the personal service they receive from shopping in a brick and mortar store along with the social experience of shopping with friends and family. While people still want a personal and social shopping experience with brick and mortar stores, online stores are attracting customers with better prices and convenience. The main attractions to online shopping for consumers have been convenience and lower prices. The cost of running an online store is considerably cheaper than a brick and mortar store; therefore, online stores are able to offer deeper discounts on merchandise and often free shipping with a minimum purchase requirement (Anderson & D'Innocenzio, 2013). There are websites like Ebates.com that offer cash back to customers that click through their website. Brick and mortar stores are fighting back by offering in-store only coupons, in addition to other discounts, in order to bring consumers back into their stores. In order to compete with many of the online store’s competitive prices, brick and mortar retailers have also begun to embrace technology by starting to sell...
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...Brick vs Click Business Managerial marketing BUS 620 Brick vs Click Business Abstract There are many avenues to go down when starting a business. The first decision to make is whether to have a web based operation or a brick and mortar business. This essay will explore and analyze the marketing implications for reaching market segments using both mediums to promote a web based business versus a brick and mortar business. In addition, some examples will be given of companies who have successfully established a space and/or place presence. The way you reach your customers will have the biggest impact on sales and that is the ultimate form of success, SALES. Brick and Mortar When starting a business the first step is to decide your approach to having a store front or a virtual store. Opening up a physical location where customers can come in and purchase the product or service being offered. Depending on the type of business or the product or service you are selling, by having a physical address there are a lot of advantages (Mullins, 2010). One of those advantages is that you can build a personal relationship with the repeat customers, and form a lasting trust worthy authority on the product or service you are attempting to sell. Despite the vastness of the World Wide Web and the perpetuation of inertia, people still like to window shop before they buy. Having certain products on display gives the customer the ability to touch and examine the product and this...
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...1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon.com started out as a large online book retailer. It has transformed itself from the little bookstore on the corner to the mega-super-duper-full-of-stuff store that squats at the end of a monstrous parking lot! You can search inside books, read customer reviews of books, etc. They have managed to keep their pricing low. Their product list has grown to include music, electronics, toys, home improvement and the list goes on. It seems that their goal of providing products for every aspect of life is working. Over the past year Amazon has seen growth along with struggles. Financially they have seen an increase in their business. Amazon has expanded their business pretty rapidly over the past fifteen years and they are still trying to expand further. Amazon is innovative – it started by losing money on books. However, it quickly expanded into other products. Surprisingly, now it even makes money on books though it sells them at a deep discount. As previously stated Amazon began by allowing customers to write comments on the products it sells. There was great resistance from the sellers but the customers loved it. Now the practice has become an industry standard. http://seekingalpha.com/article/78257-the-case-for-amazon-com. It has becomes apparent that the company is so good at reinventing itself because...
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...Online Shopping Behavior in Pakistan Arsalan S. Khan, Faisal Ahmed, Hassan Yousuf, Sohaib ul Hassan and Syed Abbas Zia Karachi School for Business & Leadership Arsalansalahuddinkhan@hotmail.com[->0] 1 Abstract The purpose of this paper is to study the consumer behavior of online shoppers in Pakistan in order to gain insights into their attitudes, preferences, decision-making frame work, and life styles. The target population for this study consisted of the urban consumers who are educated and belong to upper and upper-middle socio-economic classes. Within online shopping, two major categories could be established, namely “Electronics” and “Clothing”. As per our analysis, the experience expected from both the medium is different. For purchasing a commodity offline, the customer would rate the overall shopping experience higher as opposed to convenience. Now we had to establish that what type of goods would be preferred online as opposed to through brick & mortar, and vice-versa. Keywords: online, brick & mortar, electronics, clothingl. 2 Introduction To study the consumer behavior of online shoppers in Pakistan in order to gain insights into their attitudes and preferences, decision-making frame work, attributes for store selection and life styles encouraging online shopping. The target population for this...
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...enough time to stop to go into a store for long, do errands or even to do are Christmas shopping. All of the stores are trying to help us make are lives a little bit easier for us to shop. Since the advent of the Internet, modern holiday shoppers have been present with a choice, buy their gifts in a traditional storefront or shop online. There has been a time in everyone's life that there was just not enough time to get everything done in the day and to get the items when we wanted to. Most of the big box retailers like Wal-mart, Best Buy, and Meijer have given us a choice of delivery; as they have certain hours and holidays that they are open for business to the public. What happens if a store is closed and you need that one item to get your family through the night, like a pack of diapers or medicine because someone is sick? Every retail store is trying to make their presence know and give us the option to still shop in their stores 24 hours a day, 7 days a week at our finger tips to help with their stores closing for any reason. Mother Nature and holidays have been the only time a store has closed regularly. On the Internet, the regular shopper does not have to worry about getting out into the bad weather or have to worry about the store closed due to a holiday. With weather being a factor around most of the major holidays; the companies on the Internet offer their items to be shipped to your house free of charge. Each of the store fronts are going to have considerable...
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...“Bricks-and-Mortar” vs. “Clicks-and-Mortar”: an Equilibrium Analysis Fernando Bernstein Jing-Sheng Song Xiaona Zheng The Fuqua School of Business The Fuqua School of Business Guanghua School of Management Duke University Duke University Peking University Durham, NC 27708 Durham, NC 27708 Beijing, China 100871 Forthcoming in European Journal of Operational Research The Internet has provided traditional retailers a new means with which to serve customers. Consequently, many “bricks-and-mortar” retailers have transformed to “clicks-and-mortar” by incorporating Internet sales. Examples of companies making such a transition include Best Buy, Wal-Mart, Barnes & Noble, etc. Despite the increasing prevalence of this practice, several fundamental questions remain: (1) Does it pay off to go online? (2) Which is the equilibrium industry structure? (3) What is the implication of this business model for consumers? We study these issues in an oligopoly setting and show that clicks-and-mortar arises as the equilibrium channel structure. However, we find that this equilibrium does not necessarily imply higher profits for the firms: in some cases, rather, it emerges as a strategic necessity. Consumers are generally better off with clicks-and-mortar retailers. If firms align with pure e-tailers to reach the online market, we show that a prisoner’s dilemma-type equilibrium may arise. Keywords: Supply chain management, Game theory, E-commerce, MNL model...
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...Draft Kathleen Jacobie COM170 10/27/2014 Laura L. Dorsey Online vs. Brick-and-Mortar Shopping One of the opportunities we have in today’s world is whether to buy online or go to a brick and mortar store to do our purchasing. The two offer great sales and promotions along with selections from which we can choose. As online shopping and brick and mortar may seem similar; however, both differ in pricing, convenience and selection. Discounts are offered both online and in store which makes it easy for the purchaser to products at lower prices. The user that chooses to buy in-store may have special shopping times in order to receive a discount or closeout price. The online customer needs to have a promotional code, or an online store offers free shipping to get the customer to buy online. The customer will save money no matter how they decide to buy because both options offer ways to save money. The downfall with shopping online is the consumer has to wait for the product to arrive and to pay the shipping costs. The customer pays for shipping in the form of filling up their gas tank to drive to the store. The shipping cost is about the same if not more than if the shopper drove themselves to the store to purchase the product. If consumers discover that the item, they have already purchased is offered at a lower price later on they will return it and repurchase it. Whether you prefer to buy online or in-store, they both offer the consumer many great promotions or incentives...
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...On-line vs Brick and Mortar Shopping According to a trend analysis performed by eMarketer, online buying trends will grow from $225.5 billion dollars in 2012 to almost double the number at $434 billion dollars in 2017. Whether it is to buy food, clothing, gas or anything else ones heart desires, shopping is a necessary evil that we all must experience in everyday life. Luckily, in the past several years, the Internet has changed how society shops for goods. Now one can choose between physically driving to a brick and mortar storefront and dealing with the crowds or shopping from the comfort and convenience of their homes and avoiding the social aspect altogether. There are distinct advantages and disadvantages to both methods of shopping. Online shopping is more convenient than physical retail shopping as consumers can compare prices; there is a wider selection of goods, and it is less time-consuming. Who doesn’t enjoy a bargain? By shopping online for items, one can simply open a second tab in a web browser and then search for a better price. Within minutes, one is able to compare pricing between a plethora of different retailers to find that sought after item at a great price. Other websites may offer rebate codes and coupons that one may not find elsewhere which gives the online shopper an even bigger discount than physical retail means. Being able to multi-task with multi-tabs gives the consumer a distinct advantage by making sure that the price paid for an item is...
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...and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently Pros Using Amazon.Com to market products guarantees worldwide reach at a nominal price. Advertising techniques like pay per click advertising ensure that the advertiser only pays for the advertisements that are actually viewed. Affiliate marketing, where customers are directed to a business portal because of the effort of the affiliate who in turn receive a compensation for their efforts meeting with success, has emerged on account of e-business. Affiliate marketing has helped both the business and the affiliates. Amazon.Com engaging in e-business has managed to use cost effective online advertising strategies to their advantage. (Simonyi Business and Joint Ventures, 2011) List below are some Cost Effective Marketing and Promotions: • Confirmation email Except when they're part of a co-branded sale, Amazon's use of confirmation emails keeps users in the loop and increases their trust in the overall fulfillment process. • Fulfillment When you buy something, you get it. In the rare case that there is a problem, you get a clear email telling you so. Of course, that's the way e-commerce should be, but all too often it's not when you shop on other sites. Amazon's success with fulfillment clearly proves that the total user experience goes beyond the user interface. • Login screen Amazon's...
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...| AMAZON – ONLINE SALESMGMT 5010 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | | AMAZON – ONLINE SALESMGMT 5010 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | 1. Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located? Amazon, started as an online bookstore, has evolved to an online retailer selling anything possible under the sun. The business model that Amazon operates is pretty easy to replicate and hence the differentiating factors would decide the winner. Factors like price, delivery time and ease of usage of the online portal. For a company that has is completely online, Amazon has invested more than $14 billion since 2010 (Bloomberg, 2013) in brick and mortar warehouses. Amazon is expanding its warehouses (called as fulfillment centres) in order to reduce the response time. Hence more warehouses means better response times (same day delivery being the new benchmark) which in turn leads to more new customers and retaining old customers and hence increased profit. Location of warehouses is based on proximity to major target markets, delivery time and cost of setting up warehouses (based on real estate). For example, Amazon need not have a warehouse in New York city since that would mean unimaginable expenses. Instead these customers can be serviced from New Jersey warehouses. Number of fulfillment centres...
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...MIS 446 Unit 2 Review Music 1. Review the evolution of the music industry. a. Old Model: Go on tour for free (or little) in order to achieve higher sales with record label. i. Record Labels had all power in contracts, musicians made very little in all reality ii. Originally only way to hear music was live, so records were a big deal to be able to listen at home iii. Bundling in albums iv. Record companies had the power, tried to sue customers b. Newer Models: v. Promoting self as a brand, like “Kanye” vi. Use of video as a medium: YouTube (allows for long tail content) vii. Internet breaks the bundle, people can buy single songs viii. Give away music for free or very little (Spotify, iTunes, YouTube, Pandora) in order to make money on mega tours, on merchandise, on brand itself ix. Avoid record deals/buy out of record deals x. Capitalize on people paying for the experience, you can’t download or torrent the experience xi. Use of metadatamakes iTunes work (crowd sourcing of track names) c. General Trends: xii. Listening to music at home has become private, go to shows for actual crowd experienceUsed to be records with speakers in order to listen, group activity xiii. Music is now an experience/service/information goodUsed to be a physical commodity 2. How did the internet force the music industry to change? What are...
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...INTRODUCTION In the early 1980’s mom and pop video stores were everywhere and offered varied selection, quality, and pricing schemes. Blockbuster quickly emerged in 1985 and began buying every small store they could, becoming the de facto sole franchise for movie rentals. This changed in 1999 when Netflix first began their DVD by mail service. Netflix rentals allowed viewers and movie watchers to rent movies from the comfort of their own home. Additionally, the customer wasn’t penalized for returning the movie late. The years that followed produced a long, protracted battle that Netflix appears to have survived on top. That being said, both companies made significant mistakes and have lost millions of potential customers in the process. In this paper, a brief history of each of the company will be presented, a diagnosis of the major problems, analysis into these problems, an evaluation of potential solutions and finally, recommendations for Blockbuster and Netflix to be able to address their problems. ANALYSIS Scott Cook founded Blockbuster Video and opened the first store in Dallas, Texas on October 26, 1985. Later bought by entrepreneur Wayne Huizenga, Blockbuster Video grew to over 4,000 stores in the mid-2000’s and earned the spot as the number one video rental store in the country. Blockbuster made frequent changes to their business model, by first adding video games; later music was added. In 1993, Viacom purchased Blockbuster for $8.4 billion dollars but by...
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...Failure Analysis/Change Strategy: Blockbuster vs Netflix LDR/531 Failure Analysis/Change Strategy: Blockbuster vs Netflix Organizational Behavior Theories The organizational behavior theories which explains Netflix’s success are two; decision-making and systems approaches. Netflix made the monumental decision to become a virtual dvd rental versus a brick and mortor provided a solution in the company’s goal and vision to be ahead of technological advances in the industry. Netflix took on the systems approach in understanding and measuring the company’s input and output processes. Netflix uses the systems approach to integrate and drive processes in developing adaptive capacities, driving innovation. Blockbusters organizational behavior theory focus was on scientific leadership. The company placed a great deal of focus on how to become more effective in the company’s brick and mortor business, redefining company objectives and direction. How employing this theory failed the company was the leadership decision to not pledge the same level or more focus on the click initiative which the company could not capture the needed momentum in becoming competitive with Netflix. Blockbuster could have had a more competitive edge over Netflix sustaining its presence in the industry if only the company could define better performance practices leveraging its click business over its brick and mortor presence. Role of the organization on the Fail/Success So how did an upstart company...
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