On-line businesses need to take account of changes in the way
consumers use and perceive the internet, according to market
analysts Forrester Research. Today's consumers spend less time
on-line than they did in the late 1990s and confidence in on-line
security has waned.
Consumers have come to expect integrated multi-channel
experiences incorporating on- and off-line channels, says
Forrester. Its advice to retailers is therefore that they should
integrate marketing and merchandising efforts, connecting
catalogue, retail, and on-line operations.
One clear change is that more consumers are interested in price
rather than the branding of the products they buy. Forrester says
that if companies cannot compete on price then they should try to
differentiate themselves in service, product quality, and overall
shopping experience by implementing loyalty programs and store
technologies that enhance consumers' overall shopping
experience.
Confidence in on-line security has fallen from its peak in 2001,
and shows no sign of recovery, according to the study of the last
six years. Forrester says that close to one-third of on-line
shoppers are technology pessimists, compared with 16% in 1998,
being those who are less trusting of credit card transactions.
