taking care of business note 6

TAKING CARE OF BUSINESSNOTE 6

Introduction to Business BBI2O1

TAKING CARE OF BUSINESS Not only do businesses take care of the three

basic survival needs of consumers: food, shelter and clothing … they also sell many consumer wants from luxury cars to chewing gum

Deciding which goods and services to offer takes a great deal of thought but also risk-taking

Businesses must make many decisions so they are both: Successful Provide for the needs and wants of consumers

BUSINESS RESPONDS TO CONSUMERS By studying consumer behaviour, businesses try

to create an environment to promote sales and increase profit

Three factors help determine when customers buy: Time Spent in Store Contact Time Waiting Time

Table 2.1 Time Spent in StoreType of Store Buyer Non-buyerElectronic Store 9 min. 29 sec. 5 min. 6 sec.Toy Store 17 min. 10 min.

TIME SPENT IN STORE The time spent in the store is the most

important factor in determining whether or not a customer will buy

What things have stores done to increase the time customers spend in stores?

CONTACT TIME Contact time or [Interception time] is the

amount of time a customer spends with a store employee

As contact time increases… the chances of a customer buying increases

In what ways do stores try to increase – contact time?

WAITING TIME Waiting time is amount of time a customer is

able to enter the store and leave it Lineups discourage customers from buying

and being able to pay for their goods and services

What ways have business responded to decrease waiting times?

SETTING UP AN EBUSINESS In developing an eBusiness you will neet:

A domain name A website Web Pages An online payment method A distribution system

Measures of your online success include: Online sales The number of Web site hits The number of referrals in social media

INTERNET SHOPPERS IN CANADA

Targe

t populati

on(2)

Internet

users f

rom an

y locati

on(3)

Internet

shoppers

(4)

Electr

onic ord

ers(5)

Window shoppers

(6)

Direct p

urchase

s(7)

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Internet Shoppers in Canada- 2009

Count

Source: Statistics Canada CANSIM Table 358-0135 www.statcan.gc.ca

FREQUENCY OF INTERNET PURCHASES

Computer so

ftware

Computer hard

ware

Music(6)

Books, m

agazin

es an

d on-line n

ewsp

apers

Videos a

nd digital

video

discs (

DVD)

Other en

tertai

nment p

roducts

(7)

Food, co

ndimen

ts an

d bevera

ges

Prescri

ption drugs

Other hea

lth products

, beau

ty an

d vitam

ins

Clothing, jew

ellery

and ac

cessorie

s

Houseware

s(8)

Consumer

electr

onics(9)

Automotive products

(10)

Trave

l arran

gemen

ts(11)

Flowers

, gifts

Sports

equipmen

t

Toys

and ga

mes

Real es

tate

0

10

20

30

40

50

60

Internet Shopper vs Window Shopper - Canada 2009

OrdersWindow Shoppers

Percent

Source: Statistics Canada CANSIM Table 358-0136 www.statcan.gc.ca

INTERNET COMMERCE BY SOURCE

Electronic orders by Source in Canada -2009

Canada Elsewhere

Number of orders 54,043,700 41,625,800

Average Number of Orders 5.1 3.9

Value of Orders in Canadian $$9,082,034,0

00$5,989,028,4

00Average value of Order per person in Canadian $ 855.80 564.30

Source: Statistics Canada CANSIM Table 358-0137 www.statcan.gc.ca

INTERNET COMMERCE IN CANADA 2009

Orders paid directly over the Internet (with a credit card or debit card)

Orders paid by credit card over the telephone

Orders paid on delivery (cash on delivery)

Orders paid by cheque

Other type of payment

0 10 20 30 40 50 60 70 80 90

Internet Commerce by Type of payment - Canada 2009

Percentage

Source: Statistics Canada CANSIM Table 358-0138 www.statcan.gc.ca

TOP 5 REASONS WHY PEOPLE HESITATE TO BUY ONLINE

Reasons why People Hesitate to Buy Online

81% Worry about unreliable or dishonest retailers72% Don’t want to deal with the HASSLE to return goods69% Worry about credit card number misuse63% Don’t want to deal with follow up junk mail62% Want to see and touch the goods they buy

TASK Go to the following site and answer the

questions at the bottom of the page. https://

sites.google.com/site/misskingonlineshopping/is-shopping-online-a-good-thing/advantages-and-disadvantages-for-the