This section explores retail businesses and the activities they are offering online. It
begins by discussing the development of the online trading environment, the formats
being used and the types of activities retailers are offering online. This is followed by
consideration of the actual products and services offered online.Development of e-retailing
In the early 1990s commercial development of the Internet was considered by many tra-
ditional retailers to be an arcane ‘geekish’ environment used by computer experts and
scientists. As commercial use of computer networks began to grow retail companies
began to consider how the Internet might impact on trade in the future and the chal-
lenges they might face (Rowley, 1996). However, not all companies were optimistic
about the retail potential of the Internet, whilst some perceived it to be an opportunity
for market development and expansion (Doherty et al., 1999), others saw it as an unsta-
ble and insecure trading environment. In terms of how retailers adopted the Internet
they could broadly be divided into two groups:1 Inactive: companies that for various reasons perceived the Internet to be a potentially
dangerous environment, with limited commercial potential: for instance, lack of secu-
rity, as it gave ‘crackers’ a means of entry to a company’s most valuable knowledge-based
assets. For such companies the approach towards Internet adoption was to watch devel-
opment and do nothing (perhaps with the hope that the Internet, like citizen bandCHAPTER 10· BUSINESS-TO-CONSUMER INTERNET MARKETING
Table 10.4Loyalty variablesLoyalty variable Web site feature
Customisation Personally, tailored product ranges, for example lists of regular grocery
purchases, favourite products, brands, etc.
Contact interactivity Two-way communications that demonstrate the dynamic nature of the
online buyer/supplier customer relationship.
Cultivation E-mail offers relating to past purchases, informing customers when there
is a discount sale on items similar to their previous purchases.
Care Real-time stock out information/order tracking. Shoppers are looking
for evidence that the retailer has paid attention to detail throughout the
purchasing process.
Community Product reviews from satisfied customers. Include a facility allowing and
encouraging exchange of opinions amongst shoppers.
Choice Online shoppers expect greater choice online. Therefore, retailer needs
to offer either wide or deep (or both) product and/or service choice.
Convenience Easy access to required information and simple transaction interface.
Over-designed and cognitively complex sites tend to lose visitors before
they make a purchase.
Character Symbols, graphics, style, colours, themes can be used to reinforce
brand image and convey brand personality.
Source: Based on Srinivasan et al., 2002