The Online Consumer Electronics Industry

1
The Online Consumer Electronics Industry

• Jay Cheatum
• Yi-Hsin Chen
• Yuan Chen
• Teguh P. Djojoargono

2
Major Players in Online Consumer Electronics

• Traditional Stores
• -Walmart.com
• -Target.com
• -CircuitCity.com
• -Service Merchandise.com

• Start-up E-Stores
• -HiFi.com
• -Comsumer-Direct.com
• -Eadvantage.com
• -Eforsell.com
• -1cache.com

3
Basics

• Unrestricted site browsing for electronic items
• Consumers sign in or establish account when
  purchasing items
• Establish customized or personalized membership
• Select items into shopping cart, pay using credit
  card, and arrange for delivery

4
A Sample Front Page
5
Personalized SiteMy Walmart
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A Sample Cart Page
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Online Consumer Electronics

• Who are the customers
• hifi.com. Serve customers interested in the best
  of high-performance audio and video equipment
• Walmat.com, Target.com, Buy.com Everyday
  customers-wide demographic and socio-economic
  background
• Circuitcity.com. Customers interested in saving
  time, avoiding sales tax charges, enjoy the
  convenience of online shopping

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Online Consumer Electronics

• How do they attract customers
• Referrals (hifi 5 for every e-order generated
  directly from links on your site )
• Group affiliation ( most )
• Weekly giveaways (consumer-direct.com)
• Media advertising (all)
• Free mail catalog (consumer-direct.com)
• Give away credit (hifi.com 25 coupon for
  registering )

9
Online Consumer Electronics

• Value added
• One stop web shopping (WalmartTarget)
• Wholesale prices on popular electronic devices
  with fast delivery
• Express pick-up delivery(Circuit City)
• Save Cart-allows customers to save cart items and
  continue shopping at a later time (Walmart)
• Order tracking (all)

10
Online Consumer Electronics

• Additional value added
• Offer expert reviews and advises for comparison
  shopper
• hifi.com How to make smart choices
• Circuitcity.com Shop Learn
• Area for enthusiat
• Debate area (hifi.com )
• Teach technical terms (hifi.com Techno Tid-bit
  of the week )
• Submit own product review (hifi.com )

11
Online Consumer Electronics

• Installation support
• hifi.com provides detailed, step-by-step
  installation instructions and simple diagrams
• Product repair
• Circuitcity.com offers factory authorized repair
  service on most products

12
Online Consumer Electronics

• Trying the product
• Free 45 day home-trial (hifi.com )
• Offer various promotions to get potential
  customers to try
• Free UPS ground shipping handling on most
  purchases (hifi.com )
• Weekly specials (hifi.com )

13
Online Consumer Electronics

• Turning one-shot customers into repeat customers
• Offer bonus points on items purchased. The more
  you buy, the more you save. (hifi.com )
• Offer store credit card (hifi.com,
  circuitcity.com )

14
Online Consumer Electronics

• Building credibility and trust with online
  consumers
• Established partnership with Bizate.com and
  BBBonline.com(Better Business Bureau)
• Allowing customers to view e-business ratings and
  customer satisfaction data
• Assurances about online privacy and security
  protections for consumers
• E-matic low price guarantee (hifi.com )