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Tuesday, August 28, 2007

Acceptance

Acceptance

Consumers have accepted the e-commerce business model less readily than its proponents originally expected. Even in product categories suitable for e-commerce, electronic shopping has developed only slowly. Several reasons might account for the slow uptake, including:

  • Concerns about security. Many people will not use credit cards over the Internet due to concerns about theft and credit card fraud.
  • Lack of instant gratification with most e-purchases (non-digital purchases). Much of a consumer's reward for purchasing a product lies in the instant gratification of using and displaying that product. This reward does not exist when one's purchase does not arrive for days or weeks.
  • The problem of access to web commerce, mainly for poor households and for developing countries. Low penetration rates of Internet access in some sectors greatly reduces the potential for e-commerce.
  • The social aspect of shopping. Some people enjoy talking to sales staff, to other shoppers, or to their cohorts: this social reward side of retail therapy does not exist to the same extent in online shopping.
  • Poorly designed, bug-infested e-Commerce web sites that frustrate online shoppers and drive them away.
  • Inconsistent return policies among e-tailers or difficulties in exchange/return.

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