FOCUS DISCIPLINE RESEARCH PROJECTS
FALL, 2000

BUSINESS

How is technology powerful in business? It is an important question in the business. In the 21^st century, technology has changed the way people buy and sell. The Internet market is becoming more common in the whole world. E-commerce is the buying and selling of goods and services across the Internet. It allows business the ability to sell products online. Customers may easily find the goods that they need.

Internet commerce is the next big opportunity for business, for financial institutions and for customers. But doing business on the Net means finding a secure, cost-effective and reliable way to collect payments and process transactions. Online consumers must enter their credit card number over a secure site.

Now, everyone can go shopping online. Business has more opportunity to sell their product, either on the Internet or in the store. Also, business can make more money. Business design must a well-known web sites that cause customers easily get what they want and to save money.

To start a business on the Internet, a company should have a full and good web site for customers. First of all, you should make a domain name as simple as you can. A domain name is applied and available on the head of the homepage. A simple domain name makes the buyer know your company deeply. Another one is the search engine, which allows buyer to enter a keyword to easily find a product or service. Then, text should be in one short sentence. Otherwise, the buyers will refuse to read long text and stop loading your web page. The next one is homepage. The homepage tells what is your company about, what do you sell, or offer to customers. A homepage is a form of communication to customers across the web, and any customer can come from anywhere in the world and type your address and access your home page. However, a homepage must explain simply and clearly for the buyers. In addition, web site translation makes the web site easy to understand for different buyers. Web sites should provide more than one language. Even if a Chinese person doesn't know English, she/he still can buy the products on your web site. Also, a mailing list provides buyers with an incentive to leave their name and e-mail with your business. Then you can send them full information about your product and service with extra offers. It is important for the Internet business to allow the buyers to use any credit card. If the buyers don't have a Visa Card, they can use Master Card instead of Visa.

Advertising on the Internet is focused on selling targeted ads that sell quality, material, brands and markets. When you advertise online, your ads appear in a highly focused environment. Why advertise on the web? It is a good question. Businesses advertise on web because they want to easily connect with customers. There are about a million people who get online in a day. Business will reach out to consumers all hours of the day. Business will keep asking consumers questions about their product and service. Web advertising is larger than any television, radio and newspaper ads. Also, web advertising has more information than any of them, and it is less expensive. It is one of high-tech ways to sell products.

Although every business can take full advantage of e-commerce opportunities, not all business are e-commerce companies. Even if you are not an e-commerce company, your business still can learn good lessons from the Internet. There are a series of e-commerce inspired concepts that can benefit any company (www.justsell.com):

• Become a multi-niche marketer-A few years ago, location was a big problem for the Internet customer. Now, the Internet can help customers find a good location. Customers using the Internet gravitate to those web sites that provide products and services that most closely meet their needs.
• Keep changing the company-The Web site is an important part for business in e-commerce. Customers shop on your site because they need your product or just are interested in it. To make customers come back, businesses must up-date their information everyday. For example, businesses should change the ads on their product. Customers get bored if the web repeated and repeated the same message and information.
• All of life is life-E-commerce becomes part of entertainment in our life. It allows people to express their feelings for a free life. When people get tired from their work, they just click on the web site and it transports them to so many places such as games, chat, shopping or travel, and it runs quickly.
• Give customers what they want - Information. Information is free in an e-commerce environment. The Internet knocks down all walls of access. Whether a company is to be involved in e-commerce or not, it must be an information resource for the customers.

In the 2lst century, many people get on the Internet and shop for products on the web. Now, customers are so smart! If the web isn't interesting to the customers, they won't shop again at your web sites. Even if they check the information about the products, they won't buy them. The reasons may be that the price is too high, the products are not new brands, and or there is no enough information to persuade them. People won't buy if the web sites don't provide a refund/return policy. They are afraid that if they aren't satisfied with the product, they can't return it to the company. The company may take a long time to deliver. Most customers like to hear about available products, gather information about competing products, compare that information and then they can determine whether to buy products or not. Customers won't buy a product without any information. Also, customers can shop online anytime they want to. They don't need to worry about the time because the online business is open 24 hours a day and 7 days a week. It is very good for busy customers.

Of course, technology runs fast in the business. The technology has changed the 4Ps in marketing. The first P is Product. It focuses on the lowest worldwide price for well-known goods. It also focuses on using technology to deliver inquire goods at the lowest worldwide price. The second P is Place. Customers don't need to run far away to the store because there is a worldwide marketplace. Customers just get on the Internet and go shopping from desktop computer. It will deliver to their house directly. The third P is Price. Customers can buy any product with the lowest price. The software agents will locate the lowest worldwide price for the customers. The last P is Promotion. This is based on web sites and targeted on personal interactive ads. The ads are posted with offers or benefits when customers check the product. An advertisement can tell all information about the product.

Before I did this project, e-commerce had never appeared in my brain, and I didn't know what e-commerce was. Doing this project, I found out e-commerce stands for electronic commerce, which means selling and buying products through the Internet. I am a person who doesn't use the computer often. I also don't like getting on the Internet. When the professor asked us to do the research project through the Internet, I realized that technology has developed so fast. In the year 2000, almost everybody has their own personal computer and there are a million people who get online everyday. Do you know how much money a business on the net can do in one hour? I think it will be a huge number. Still, I think customers like to buy online because companies have great web site designs that attract buyers.

This research helped me to know what is the task for e-commerce. The task is persuading the customers. I feel the Internet exists anywhere. It is not only businesses selling products online. Some schools or organizations are starting to work with the Internet. We can find any product in the Internet. Even when you can't go to the store, you can just click on the computer and you will find what you want. I couldn't believe it. I don't have to buy the product face to face. I don't even know who is the manager in charge of this company. The return policy is too complicated for me. I thought my credit card and privacy wouldn't be protected. Anyone can trade the credit card number. If someone stole my credit card number, and I might not know it. Some company may charge you more than you offered. That's why I refuse to shop online. Now, I am changing my mind because almost everybody get on the Internet, and they may shop on the Internet. Why don't I try? The Internet will have more fun, as I know.

My major is Travel & Tourism and I want to be a travel agent. Being a travel agent, I must have good knowledge of technology. The Internet is one of the most important parts in travel commerce. I must know how to reserve an air ticket on the Internet. This project has made me understand how products survive on the Internet. Some factors are advertising in the Internet, developing a good web site and knowing customer's behavior. These factors may affect businesses on the Internet. In my opinion, the technology has made fewer problems for business. However, it has also created more problems for business. In the future, because business will depend on technology on a lot, technology will control business. The business will not control technology. This will be a serious problem for business. Business is doing everything online. Do we still need to go to work or can we just sit in front of the computer?

Conclusion

E-commerce has established a new interactive way of doing business. Technology has changed the way of communication between the Internet and business. The Internet has become part of markets. To be successful in business, markets must work with the Internet. Technology has not only enhanced customers' satisfaction, but has also provided insight for improving products and services. E-commerce will replace the television, radios, and newspaper in the future as it helps the way we are purchasing and selling goods and services.

E-business strategy development. (1999-2000). [Online]. http://www.hispeconline.co.uk/three_e_services.htm#emarketing

Forbes, Thom. (2000). Web Advertising. [Online]. http://www.thunderlizard.com/webad.html

InternetNews.com Staff. (April 2000). Angara Launches E-Commerce Targeting Service [Online]. http://www.internetnews.com/ec-news/article/0,,4_338331,00.html

King, Nelson. (N.D) Online seminars resource. [Online] http://ecommerce.internet.com/resources/article/0,,3661_125741,00.html

Marketing & Sales. (1999-2000). [Online]. http://www.office.com/marketing/

O'Connor, Rory J. (September 2000). Consumers care less about online privacy. [Online]. http://www.zdnet.com/ecommerce/stories/main/0,10475,2626162,00.html

Tade Publishing Group. (N.D). Why advertise on the Web? [Online]. http://www.tadesite.com/tpg/Why_Advertise.html

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Sonoko Ando
ESL 91
Fall, 2000

Advertisements have played a great role for the companies to make a profit. Due to effective advertising, companies can inform the consumers about their products or services. An effective advertisement is essential to a company's survival because it raises their capital and reputation.

E-commerce has a lot of advantages for both consumers and companies. The companies can expand their advertisements with little money. Moreover, there is no need to worry about clients' schedule because the Internet makes it possible to be in touch with consumers 24 hours a day, 7 days a week. At the same time, people can get the information whenever they want, and they can get it quickly. This makes easier for both sides to communicate. Many experts believe that E-commerce will keep growing all over the world and will represent the largest revenue for businesses in the future.

Since home personal computers became affordable, the rate of Internet users has grown rapidly. "The growth rate of the Internet is predicted to be at 10% of its total base of users every month" (Rawn, 1994) Moreover, the Internet users are expanding all over the world. The more Internet users increase, the more opportunities for a global market come to the business world.

One of the most important considerations for businesses who wish to sell over the Internet is designing an effective website. An effective website should be simple. When you make a website, you might want to put some cute pictures or advanced features. However, those complicated websites just make the users tired. Why do they make them tired? It is proved by certain research. (Nielson, 2000p106) The research says that reading from a computer screen is about 25% slower than reading from paper. People usually feel that it is unpleasant to read over the Internet. The complicated website may also take a long time to download so users must sit in the chair and wait for a while. This is one of the most predictable problems that there are a lot of people who don't like to spend their time with computer.

While the Internet has a lot of advantages, the risk is also high. If your consumer doesn't like your website, she/he will never come back. Based on the HOME principal, you need to make as simple a website as you can.

Today, the amount of Internet shopping is increasing. However, when you want to sell something over the Internet, you have to consider how you satisfy the consumers. First of all, you need a website with simple pictures and good content which makes the consumer understand what you have and what you can do for them. Again, the information must be simple. In an article about Internet advertising from the October 31^st issue of the New York Times, the author says, "effective advertisements over the Internet are generally those that are simple, with one sharp picture, a distinct focal point and an explicit message in headline contain no more than nine words"(Stamler, 2000)

Also, you have to understand payment proceeding. Since a credit card is the most useful and reasonable way to pay over the Internet, you must have connection between your businesses and credit card banks. Moreover, in order to become a reliable company, you must give the consumer security. The consumers are usually afraid of giving their credit information. You have to make sure that your consumers' information will not leak out to others.

Moreover, you need quick shipping and diversification of items which gives consumers a lot of choices. The price of shipping and items must be cheaper than other shops to be competitive. One of the reasons why people buy products over the Internet is that they don't want to waste their time and money. If shipping and items are more expensive, the consumers will go to the shop instead of buying over the Internet.

A new report from the Boston Consulting Group says that "by 2004, business to business E-commerce, will generate productivity gains equivalent to 1 to 2 percent of sales; by 2010, this figure could grow to 6 percent, or roughly $1 trillion" (Internet News.com staff, 2000)

Before I started to work on this project, my computer was almost useless. I only used it for E-mail to send a letter to my friends. I rarely connected to the Internet because I didn't like to wait a long time to open the website. Even though I connected, I didn't feel like reading a complicated website which didn't have any pictures or only had long text.

In addition, through this project, I was able to recognize whether a website is good or not. I had never thought about what kind of Internet advertisement can catch the consumers' attention, and how much knowledge the companies have to have in order to build a website. Due to observing things from the companies' sides, who build a website, I learned how to make a useful website to hold the consumers' attention. The good website should be simple and give us understandable and minimum content based on the HOME principle.

Another thing I learned is that the good website gives us the detailed information which includes the security system, payment proceeding, various products, and shipping. Before I did this project, I didn't know which company I could rely on. One day, a friend of mine who is studying computer science gave me a list of a lot of interesting websites. From his suggested websites, I found an auction website called U-Bid. Although I wanted to get a MD player from them because it was cheaper than from other shops, I was afraid of giving them my credit card number. I was neither sure that I could trust the company nor whether they had a strong security system.

Several of my friends still don't like to use the computer. They said that the process of learning about computers was so complicated that they couldn't be patient to sit in the chair for a long time. I strongly want to suggest to them how the computer can make their life easier. It is because people can buy whatever products the companies provide, and they can get them quickly. People don't need to go to the store to purchase something. Once they understand how useful the computer is and how it makes their life easier, they wouldn't feel comfortable without computers.

In this 21^st century, people are demanding more convenience when they buy something. In order to meet people's demand, companies must follow today's business. I hope that I will be able to play a great role in the business world. Some day, I'd like to contribute to the fashion company by using the Internet knowledge which I acquired from this project.

The Internet has made it possible for the companies to extend their services on a global scale and to contact a wide range of people. Although a lot of companies have taken advantage of the Internet and tried to attract the consumers through their website, they won't be able to get as many consumers as they want without any knowledge of an effective website.

The companies' success depends on whether they can make a productive website. An effective and productive website has to have, high quality content, be updated often, have minimum download time, and be easy to use. Moreover, when companies sell their products or services, the website must have simple pictures, payment proceeding information, reasonable and quick shipping, security, and diversification of cheaper items to satisfy consumers.

The development of technology has made both companies' and consumers' life much easier. In this 21^st century, it is impossible for companies to be successful without advertising on the Internet. This is because the Internet is the most valuable and productive method for the companies in order to get consumers and make higher profit.

Stamler, Bernard. (2000). "What Dot. Coms Don't Know About Marketing" New York Times October 31.

Rawn Shah (1994). The business of the Internet [Online] http://www.rtd.com/people/rawn/business.html

Silverman, Eric J. (1996), I-Highway Road To success. Direct Marketing Association, Online: http://www.smartbiz.com/sbs/arts/dma61.htm. Retrieved from the World Wide Web on October 11, 2000.

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