CHAPTER 6

Enhancing Digital Commerce

In discussing the future of shopping, Burke (1997) urged managers to take an active role in defining and managing the future of the Internet. Technology plays an important role in the shopping process and the optimization of technology should be taken into consideration when defining a shopping experience (Burke 2002). Overall, the Internet has heightened the overall shopping experience for both firms and consumers. The Internet allows for anywhere, anytime shopping for consumers. Firms are able to increase their market, granularly define their market, and create deeper relationships with customers as well as supply chain partners.

The interactivity of the Internet is the most compelling argument for online, as it allows the consumer and retailer to communicate one-on-one. Yet, in going online, retailers must also provide consumers with satisfaction with the entire online experience. Online shopping added a new dimension to service for retailers, as it allowed for easier and faster feedback from customers. It also created growing pains with respect to product delivery, privacy, security, and online transactions. E-commerce has been a panacea for firms looking for interactivity with their customers. It has allowed for services such as information content, feedback to and from customers, and most importantly, the development of relationships with customers not found in traditional channels. Digital commerce offers an online experience that allows for relationships that are more individual with customers not seen since the early days of retailing.

The location and time specificity, as well as the personalization advantage of m-commerce allows marketers to use m-commerce as a platform to garner greater customer satisfaction than other marketing channels. Faster response times to customer needs, questions, and inquiries are possible in m-commerce. Firms respond to the specific individual in need of attention, which conveys a sense of privacy and confidentiality.

NFC and BLE increases the ability to interact with customers on individual levels, allows for a better understanding of the customer’s shopping experience, and integrates vital information for increase in response to customer needs.

Three Dimensionality

Now retailers can develop websites and applications with three-dimensionality to increase customer satisfaction and shopping entertainment. Virtual reality, a blending of real world and technology, aids in the achievement of these goals. Metaverse retailing and augmented reality (AR) are two different types of virtual reality technologies that can give customers the end goals of purchase satisfaction on a journey that is fun and exciting.

Metaverse retailing refers to a virtual space that is three-dimensional whereby users can interact with the environment and other individuals. The three-dimensionality of metaverse retailing allows for a more robust shopping experience. Based on virtual world technology, a three-dimensional graphic representation of the consumer, or avatar, shops within a virtual reality space. Unlike e-commerce websites, metaverse sites simulate real world retail outlets whereby users move throughout the 3-D site as if moving through the aisles of a brick-and-mortar establishment. Development of metaverse retailing for both online and mobile devices is possible.

Recent technological advances also allow more than one user to shop together. Now, shopping with friends while online provides for more engaging shopping experiences. For example, a bride can try on a wedding dress through the online metaverse. Her mother and bridesmaids can be a part of the experience—all while online and in various locations. The marketing potential of a metaverse lies in the ability to draw consumers through three-dimensional technology. This 3-D technology has many implications for marketers. However, metaverse retailing is expensive. The infrastructure costs, for now, have outweighed the possible competitive advantage for most businesses.

AR is similar as it combines both virtual and real-world environments. AR overlays digital with real-time for a computer-generated environment that mimics a real world setting. Research of AR finds that compared to traditional e-commerce, AR aids in providing more direct product information for consumers (Lu and Smith 2007). Though the tactile quality of shopping is still missing, shoppers are absorbed into a scene that blends reality with animation.

Unlike e-commerce websites, metaverse and AR sites simulate real-world retail outlets with consumers interacting with products, moving through aisles, and choosing products. Instead of reading transaction logs, as is done for online shopping, or even tracking how someone navigates through a site, marketers can now have a visual representation of consumer movements throughout the virtual store. Virtually, marketers can see the experience of shopping as it is happening. Interaction between shoppers, employees, and others can be seen and heard. The information gleaned from a virtual store can be used further to develop either the “brick” or “click” location for businesses.

Is there enough consumer motivation for retailers to invest in virtual reality retailing? In examining rotational visual simulation used to create the 3D experience as product presentation on an e-commerce site, rotation positively influenced perceived information quality, mood, attitude, and purchase intention (Park, Stoel, and Lennon 2008). Virtual reality allows retailers to highlight their wares in a social environment. However, firms need to identify what consumers are looking for in terms of shopping in any reality. Consumers are more likely to shop in these three-dimensional outlets if the sites are useful and convenient. Careful attention should be made in terms of the ease in which consumers can maneuver and navigate through the site—whether it is a website or mobile application. As with any other websites, easy navigation and pertinent content are key to consumer adoption.

Retailers should also consider atmospherics as well as the entertainment value of a virtual reality site. Consumers are looking for enjoyment. Virtual world stores allow retailers to develop the richness of the Internet in a three-dimensional environment. Retailers should take advantage of these resources to attract, maintain, and engage consumers.

In terms of digital commerce, virtual reality mixes offline, e-commerce, and m-commerce. Shopping comes alive. An immersive experience brings the shopping experience to another level for consumers through the three-dimensionality of virtual reality. Moving through the aisles of a physical location, selecting through a large assortment of goods and services as with online, combined with both the social ability and individualization of mobile gives virtual reality a unique blend of marketing qualities to make shopping a unique experience for the consumer.

The Internet of Things

Machine-to-machine communications actually defines the Internet of things (IOT). However, IOT is redefining access to the Internet. Connectivity to the Internet is not limited to communication devices. Tesla cars, for example, will preheat or precool for you depending upon the weather.

For firms, enabling devices to connect to the Internet, IOT allows for real-time information sharing that gives firms the ability to track inventory, enable efficient delivery tracking monitoring, and customize offers as well as delivery option.

Digital commerce will evolve beyond electronic and mobile as home appliances detect consumer needs. Electricity bills can be cut as the clothes dryer alerts you on your television or smartphone when it is about to finish. Lights can turn on and off depending on your schedule. Your trips to the grocery store, or even shopping online, can be lessened as refrigerators and cabinets can connect with grocery stores to place automatic food, pantry, and toiletry orders.

Wearables, however, are the most preferred of the IOT devices to catch the attention of most consumers. Wearables are those devices embedded with software or sensors to connect objects to the Internet in order to exchange data with another connected device. Watches, shoes, shirts, glasses, and headphones are just some of the wearables that are used for IOT purposes.

Watches and wristbands have become the most popular of the wearables in the past few years. Watches are now synced with smartphones to become smartwatches that allow users to receive messages, send texts, play music, and track fitness activities. Wristbands, with connectivity to smartphones, allow the user to track heart rate, walking distance, and other fitness measures.

All of this collected information brings opportunities to marketers for more precision in detecting consumer needs. Understanding how consumers use products. Understanding when to deliver products. Understanding how much and when products are used by specific target markets. IOT will aid in precise marketing—the ability to target precise targets and products to meet precise needs. Precise marketing aids digital commerce beyond both electronic and mobile; however, it will make both e-commerce and m-commerce more efficient for both the marketer and the consumer.

Gamification

Applying the elements of a game in marketing aids in motivating and engaging customers, including competition with others, score keeping, rules of play, and rewarding with points. Gamification refers to the addition of game features to a task to encourage participation (Merriam-Webster 2015).

Many firms use gamification in developing loyalty programs. Rewarding a number of purchases with points for future purchases in order to maintain repeat customers is a technique based on gamification. Others reward points based on online contributions including product reviews, uploaded photos and videos with the product, and sharing on Facebook or other social media site. Foursquare used gaming as a service. Customers could become the “mayor” of an establishment with frequent visits.

Digital commerce makes gamification an easy addition to any marketing program. Basing rewards, points, and competitions on those areas that are important to the marketer can lead to better product reviews, more Facebook likes, or product sales. Using gaming apps are ways through which mobile commerce objectives can be achieved. Fun activities on apps are more likely to be used than just filling out forms. Starbucks My Rewards gives consumers the goal of filling a cup with stars to earn a free drink or food. This is much more fun than having a card punched.

Using gamification can reward the firm with loyal customers, purchases that are more frequent, and better reviews. However, gamification must be used with caution.

• Understand your target and their willingness to play
• Use reward systems that lead to customer motivation and engagement
• Make sure the competition in the games is fair
• Deliver the content creatively
• Make the game elements interchangeable for offline, online, and mobile touchpoints

3D Printers

3D printing technology enables users to develop objects, unlike most printers that combine ink and paper. 3D printers replicate objects in three dimensions, building one layer at a time based on computer input. Though 3D printers can produce body parts, housing, and rocket engine parts, developing household products for everyday use is now possible.

There are many advantages to having a 3D printer in the home. There is no need for tools, molds, or other paraphernalia for printing. The printer obtains information from a computer. The extrusion material is an organic polymer, and, with certain printers, using food for the product is possible.

Replacement parts, small household objects, and personal items are just some of the products that someone can print at home. Instead of waiting for a replacement part, consumers can download the assembly instructions from the website and produce the part from their 3D printer.

3D printers can become another customer touchpoint as some companies are making available their products for development in 3D printers. It can change the way of product manufacturing. This can become another way of customizing products. For example, Hershey announced that consumers can make their chocolate bars at home in 3D printers. Chocolate lovers can stream chocolate into their own designs. When given the basic product, consumers can add their own extra ingredients, such as buying basic shampoos, and then adding various aromas to personalize the products. Not only can the manufacturer sell the shampoo but the additives as well.

3D printing is also pushing digital commerce in a new direction. Amazon has an area specifically for 3D products. Customers can buy and sell 3D printed objects including jewelry, toys, electronics, and products for the home. Other companies allow consumers to design 3D products, and sell them on the company website. Shapeways, for example, will allow consumers to upload products, produce them, and sell them based on the customer’s designs. This digital commerce business model allows the customer to be manufacturer and consumer.

These trends in the digital marketplace are transforming electronic commerce and mobile commerce. Where this transformation is leading is anyone’s guess. However, in each case, the customer’s needs must be met. Enhancement of digital commerce still refers to maintaining the expectations of the customer through the 4Ps—the right product, at the right price, promoting to the best target, at the place (or touchpoint) where the target will purchase.