book.chapter Internet influence on purchases

Empowering internet consumers In the past, consumers enjoyed significant influence in the marketplace, with personalized services like house calls from family doctors and home deliveries of fresh goods. However, as corporate mergers and chain retailers prioritized profitability over service, this consumer power diminished. The advent of the internet has reversed this trend, enabling small, specialized businesses to compete effectively against large corporations by offering niche products and services at lower costs. This shift has empowered consumers with greater access to information, wider choices beyond their immediate locality, and the ability to influence others through online platforms. The internet has democratized the marketplace, making consumer satisfaction a paramount concern for businesses of all sizes. Industry leaders now recognize the necessity of adapting to this digital model, acknowledging that success hinges on serving the consumer's needs and preferences in this new era of increased consumer power and choice. Real-time media experiences The advent of the internet has revolutionized the concept of news, offering real-time, interactive communication on an individual level. This has democratized access to information, diminishing the edge of "inside information" in markets. Now, anyone can be a news provider, with countless individuals already hosting their own websites. Entertainment is also undergoing a transformation, with a surge in options like interactive video games, on-demand movies, live sports, and online shopping. The internet's impact on how we work, play, vote, learn, and live is profound, yet its long-term effects are still unfolding. Economists like burton malkiel acknowledge the magnitude of this information revolution, while alan greenspan sees it as a significant structural shift. Tom murphy hails the internet as a major advancement in mass communication, and barry diller notes its potential to expand educational access beyond traditional institutions. Internet-linked smart devices The current trend of accessing the internet primarily through personal computers is seen as excessive. The future points to a shift where consumers will connect via affordable, widespread, and smart devices. This shift is driven by the intense focus of major tech companies on internet-centric research and development. As internet usage grows, the network improves for all users. Competitive pressures are spurring innovations, like novell's directory technology for global personal data access. The rise of feature-rich wireless devices and cell phones with integrated data and voice capabilities will further expand internet reach. Developments in electronic payment systems, remote home control, and in-car internet access are underway. Software robots, or "bots," are being created to perform online tasks autonomously. This momentum is expected to produce a variety of intelligent devices, increasing demand for bandwidth and spurring the creation of new applications, thus accelerating internet evolution. Mike bloomberg envisions a future where simplicity masks complexity, and every phone becomes an internet terminal, offering data, text, and video seamlessly. Interactive life management Internet success stories share a common trait: they're highly interactive, giving users complete control, whether for shopping, politics, or entertainment. Interactivity is measured by choice, offering more options than physical stores; competitive pricing, often lower than offline counterparts; usability, with intuitive and functional websites; personalization, tailoring experiences to individual preferences; and safety, ensuring personal information is secure. Jerry yang, yahoo's co-founder, believes the internet can foster issue awareness and dialogue, potentially increasing voter turnout. He envisions a future where online engagement could sway elections, suggesting that even national elections might eventually be conducted online, although he acknowledges it will take time to overcome current inertia. Shoppers' online empowerment Shopping has undergone significant transformations, beginning with individual shopkeepers and evolving to department stores, direct sales through catalogues, and the advent of malls and superstores. This evolution mirrors the trajectory of online shopping. Initially, small businesses established websites to attract customers. Amazon.Com then set a new standard by selling a vast array of products with consistent quality and service, prompting competition from other businesses. Manufacturers began experimenting with direct online sales, although their expertise was in production rather than marketing. Large e-tailers emerged, offering online malls and support for other retailers, with amazon.Com expanding its range to become a comprehensive e-tailer. The future of online shopping is poised for further change, with broadband access enabling consumers to purchase items instantly through their remote controls. For example, viewers could buy a shirt seen on a tv character or order pizza during a commercial with a single click, with a shopping bot handling the details. Internet shopping is rapidly evolving, empowering consumers and shifting the balance of power in their favor. Andy grove, chairman of intel corporation, compared this shift to the impact of japanese competition on manufacturers in the 1980s, suggesting that it will lead to a tougher environment for suppliers and a more favorable one for buyers, ultimately benefiting the economy by driving competitiveness and efficiency. Financial industry evolution The internet is revolutionizing financial services, making transactions like borrowing, investing, and insuring more efficient. In the u.S., nearly every home for sale is online, with over 42% of real estate buyers using the internet. Online mortgage platforms compare rates from thousands of lenders, while internet-based banks are on the rise as traditional ones consolidate. A wide array of mutual funds and online brokers, handling a significant share of individual investor orders, are accessible via the web. The future points to consolidation in financial services, with expectations of one-stop shops for all financial needs, made possible by the internet. Increased bandwidth will enhance security and user experience. New entrants, possibly from the software industry, will heighten competition. However, the ease of online transactions also brings risks, as individuals can make significant financial decisions without professional advice, potentially jeopardizing their financial health. Online healthcare delivery Distance medicine revolutionizes healthcare by providing high-quality care regardless of location. It enables less experienced health professionals to consult with experts, improving service quality. The internet facilitates healthcare on three levels: virtual doctors offering advice and potential treatments, medical suppliers selling drugs and health products online, and infrastructure providers enhancing administrative efficiency. This approach promises more choices and lower costs for consumers, improving service levels and life quality. It empowers consumers to actively participate in their healthcare, potentially saving lives. The internet's role in healthcare is pivotal, offering tools for self-monitoring and informed decision-making. Early investment in emerging companies could yield significant financial returns, as internet technologies streamline healthcare processes and empower consumers. Flexible entertainment choices In the rapidly evolving internet era, the future of entertainment is set to undergo significant transformations, empowering consumers with unprecedented choices and control. Interactive entertainment, drawing from the video game industry's model, will become the norm, replacing passive formats. Sports websites will see rapid expansion to meet fans' demands for comprehensive coverage of their favorite teams. Pornography, an early internet success, will continue to generate substantial revenue. The performing arts will experience a surge in interest as digital platforms make performances accessible to a broader audience, breaking traditional economic barriers. Advertising strategies will shift towards subtler forms, like product placements, moving away from disruptive ads. This evolution in entertainment and advertising reflects a broader trend towards more personalized, direct consumer engagement, promising a future where content is more interactive, accessible, and tailored to individual preferences. Trusted information access The essence of consumer freedom lies in the availability of diverse choices and the access to reliable information, without which freedom becomes an illusion. Traditionally, journalists have played a crucial role in providing this reliable information. However, the future points towards the internet revolutionizing information access, empowering consumers to select their news sources, thereby shifting control from organizations to individuals. High-quality information is characterized by its immediacy, reliability, editorial judgment, and interactivity. The internet's evolution emphasizes the importance of delivering such information, significantly altering the landscape of journalism. Meanwhile, the digital realm also promises to transform various aspects of daily life, from shopping and real estate to education and entertainment, while underscoring the inherent human need for connection. This digital expansion is seen as a positive development, offering new possibilities for engagement and learning.