3.3.4 Making marketing decisions: Issues Involving Digital Technology and E-commerce. Flashcards
Outline the issues involving digital technology and E-commerce.
Security.
Initial costs.
Integration problems.
User resistance.
Lack of direct contact with the product.
Outline security as an issue.
Difficult to guarantee security of personal details.
Expensive to install suitable security systems.
May lead to customer reluctance to use technology if they believe their personal details are insecure.
Outline initial costs as an issue.
Can be expensive to install the systems required to operate e-commerce and related systems.
This will deter smaller businesses - unsure whether they will be able to repay these costs.
Outline integration problems as an issue.
Can be challenging for a fully operational system to enable the business to integrate all its functional areas, as they all work on slightly different systems - customer goodwill can be lost as a promises made by the marketing department are not fulfilled by the other departments involved.
Outline user resistance as an issue.
Some customers, specifically older age groups, may be resistant to the use of technology in their buying habits.
Young children may be keen to use it but have limited access.
The business should assess such factors before deciding to use digital technology and e-commerce.
Outline lack of direct contact with the product as an issue.
Some products, specifically fashion items, consumers usually like to experience the product before making the final decision to purchase - consequently, the scope for digital marketing and e-commerce may be restricted.
