New Product Development Coursework - page 8
Keywords: new product development, marketing, internet, flower delivery,
By ozzy on 11/10/2006 21:28:24
Level: Bachelor Honours Degree (BA, BEng, BSc etc)
Page Number: 8 of 8 pages: 1 2 3 4 5 6 7 8
still picture file is all that is required to adequately portray what the flower(s) being purchased should look like; a true multi-media environment (eg. CD-ROMs) would expand the range of goods and services that could be marketed effectively.
From the consumer's point of view, the main appeal of on-line shopping is convenience. Electronic stores are open 24 hours a day, 7 days a week. The services draw "too busy, two income families", say the electronic merchants [8]. The computer can also provide new shopping opportunities for the house-bound or disabled. Another significant advantage of using the Web in this manner is the fact that costs can be reduced, fewer "sales assistants", smaller advertising budget needed, customers select and order the products themselves and so on. Generally, this cost saving translates into reduced sales prices; Interflora charge 6% more for delivery of a red rose in a container than FlowerNet do (stlg10.49 compared to stlg9.90). The percent saving made by using FlowerNet increases as the cost of the product being ordered increases, FlowerNet charge 10% less for delivering a bouquet of flowers than Interflora and the saving rises to 16% when comparing a basket arrangement (If only my Mum could here me now!).
The first of two final points in favour of being available on the Web is that information relating to FlowerNet and its products / services, for example prices, can be changed / updated as required and at very little cost - Interflora, however, would need to re-print brochures and so forth, this takes time and has an associated cost. The latter point is that the company that has a Web presence is likely to be perceived differently (invariably a beneficial differentiation) to the company that is not on-line. It is likely that positive inferences will be made about the technological ability of the company that is on the Web, and, rightly or wrongly, these impressions may be translated onto the consumer's perception of the products or services that that company offers. While this does not have a great deal of meaning in the context of flower delivery, it is a crucial factor in other product and service markets.
Last 5 comments…
There have been no comments posted for this article, but you need to register if you want to be the first!