Internet, Reengineering and Technology Applications in Retailing

Internet, Reengineering and Technology Applications in Retailing

Dr. Rajagopal (EGADE Business School, Tecnologico de Monterrey (ITESM), Mexico)
DOI: 10.4018/978-1-60566-248-0.ch009

Abstract

The rapid growth in computer technology and commercial needs have allowed significant changes in the information management systems. There emerged in early nineties many commercial network backbones to link with the NSFnet to provide market information to the business firms. The Internet today is a combination of NSFnet and commercially available backbone services disseminating information on the decentralized networks all over the world. It is estimated that there are over 30,000 computer networks connecting over 2 million computers with each other on the Web. In view of the increasing use of electronic information sources through the networks the Transmission Control Protocol/Internet Protocol (TCP/IP) has been designed and made essential for each user networks to abide with the protocol standards which enables the data transfer and retrieval at source.
Chapter Preview
Top

Growth Of Sales And Advertising

Marketing on Internet has performed $60 billion for the US business firms in 1995 through the catalogue and home shopping sales. The Home Shopping Network which has recently bought the Internet Shopping Network sells 20,000 goods and services for 1000 vendors receiving about 25 million indented per day on an average. It is expected to raise the Internet advertisement for about 10 million products by the end of 1996. The cost of advertising on Home Shopping Network ranges between $25,000 and $75,000 per annum (Computor World, 1994). The net has been used for advertising brands, retailing goods and services, political opinions, directory based sales, direct response advertisements, sales of industrial goods and services, institutional information and public interest information. Advertising on Internet is found to be less effective than on any media. The reason is that advertising on Internet is based on quality of graphics used, content of the message, sound and the overall design of the advertisement rather than time and frequency oriented unlike other media approaches. The cost of that advertisement on Internet is on an average one third of the amount spent on advertisements in any electronic or print media. The reach of the advertisement on Internet is very high and frequency is unlimited. The advertising on Internet provides global opportunities in view of its high accessibility and utility. The viewership of advertisements of goods and services are measured on hourly, monthly and yearly basis to endorse the consumer opinion. Advertisers can buy space on the Internet through the service provider-a private company. The advertising cost varies between $240 and $20,000 per annum. Internet offers the following primary shopping and advertising browsers.

  • Web Shops

  • Internet Malls

  • Downtown Anywhere

Complete Chapter List

Search this Book:
Reset