MGSC 300 Week 9.

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Management Information Systems!

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MGSC 300 Class Meeting 9.1 Agenda
• Welcome Back!
• Business in the News
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• Chapter 8 quiz on 4/5
• Chapter 8 – Retail, E-commerce, and Mobile Commerce

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Retailing Technology: Consumer Behavior (1 of 2)

• Trends and Changing Behavior

o Empowered Price Sensitivity: using the latest technology to
find the lowest price available.
o Nonlinear Search and Influence Patterns: consumers pursue
path through a range of new communications channels
including social media, mobile ads, e-mail, search marketing,
and other digital communications.
o Channel Hopping: increased communication channels through
which consumers can now purchase products (traditional
retailers, online, and via mobile devices and apps) called social
commerce.

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Retailing Technology: Consumer Behavior (2 of 2)

• Consumer Demands and Behavior

o Digital Immigrants: older consumers that fundamentally view
retail channels as separate and distinct.
o Digital Natives: first digital generation surrounded by digital
devices and Internet connectivity.
o Digital Dependents: emerging generation growing up in a
world of broadband connections, constant connectivity that
place greater demands on retailers to use technology.

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The Omni-Channel Retailing Concept

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Efficiencies of Business to Consumer (B2C) E-commerce
• Purchasing Online
o The most well-known B2C site is Amazon.com, whose IT
developments received U.S. patents that keep it ahead of
competition.
o Broader selection, lower prices, and easy searching and ordering
are featured through e-commerce.
• Employment
o Job openings, résumés, and applications can be transmitted or
completed 24/7, 365.
• Online Banking Services
o Transaction cost reduction is significant: banks pay $.02 for online
versus $1.07 at a physical branch.

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Business to Consumer (B2C) E-commerce: Retailing Issues
• Resolving Channel Conflict
o When regular wholesalers (on-ground) and retailers (on-line)
circumvent direct online distributors.
• Conflicts within click-and-mortar organizations
o Companies may separate online from traditional divisions, but this
may increase expenses and reduce synergies.
• Managing Order Fulfillment and Logistics
o Online sales force the need to design systems to accept and
process huge volumes of small orders, physical delivery including
labeling.
• Identifying Appropriate Revenue Models

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Business to Consumer (B2C) E-commerce: Planning

• Online Business and Marketing Planning

o Build the marketing plan around the customer, rather than on
products.
o Monitor progress toward the one-year vision for the business
in order to identify when adjustments are needed, and then
be agile enough to respond.
o Identify all key assumptions in the marketing plan. When
there is evidence that those assumptions are wrong, identify
the new assumptions and adjust the plan.
o Make data-driven, fact-based plans.

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Reminders
• Chapter 8 quiz will be on 4/5.

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