7. E-Commerce Takes Off Breakdown of 1998 Online Consumer Spending Fig 12.3b $13.5 - Researched online, ordered and paid for offline $10.8 – Ordered online, paid for offline $16.3 - Researched online, ordered and paid for offline $11.0 – Paid for online $4.7 – Ordered online, paid for offline BIG TICKET ITEMS SMALL TICKET ITEMS
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14. E-Commerce Takes Off This suggests that auto insurance, loans and leasing plans are highly desirable partners for both new and used car dealers Figure 12.7
17. E-Commerce Takes Off Table 12.3 continued Stage Service Providers Growth Drivers Consumer Participation (millions of households) 1998 2003
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19. The Pace of E-Commerce For e-commerce to continue to grow as quickly as forecasters expect, online selling must excel on the fundamentals that drive buyers Price Online buying is cheaper than traditional methods Assortment The range of products better matches buyer desires Convenience The timing, location and buying process are superior Entertainment Buying online is more fun than alternatives