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The problem of involvement of clients in electronic commerce
Nikishin Alexander Fedorovich, Plekhanov Russian University of Economics, Associate Professor, Department of Trade policy E-mail: ktdn@yandex.ru Pankina Tatiana Viktorovna, Plekhanov Russian University of Economics, Associate Professor, Department of Trade policy E-mail: pankina.tv@mail.ru
The problem of involvement of clients in electronic commerce
Abstract: The article considers the problems of involvement of clients in electronic commerce. The analysis is performed and recommendations on solution of such tasks as the problem of the use of the Internet by elder clients, problems of technical infrastructure and clients’ awareness and other problems are provided.
Keywords: electronic commerce, electronic trading, rendering of services on the Internet.
In the modern world the electronic commerce is of a paramount importance. The development of electronic commerce in the twenty-first century is particularly considered in the works of Ilyashenko S. B. [1, 150-155], Magomedov G. D. [2, 220-225] and others. The reasons of the rapid development of the electronic commerce include a few advantages; primarily, it is a high speed of information transfer. It enabled to provide the clients with the services rendered remotely in real time mode. The most development of such services was observed in the sphere of trading — currently, a lot of goods are realized via online stores, auctions, trading grounds and websites for private advertisements. Another common example is the sale of tickets — acquiring a train or plane ticket via the Internet a passenger has a few benefits such as speedy purchase that allows acquiring more deficit tickets, visual selection of seats, convenient payment, no queues and other advantages. The simplicity of ticket purchase enables the clients to buy them even when there is no time to make a purchase, including a case when a ticket is acquired for the purpose of tourism, and make impulse purchases. Similar advantages are gained by a tourist in future, which include hotel booking, purchase of tours, selection and booking of excursions. The fact that the whole process of travel planning happens at one-time is a big advantage. It has a huge potential for the development of tourism, which, in turn, determines the development of other industries [3, 125-127].
Internet technologies have enormous impact on the market of insurance services. Many clients, who are ready to get insured, can postpone it for long. The simplicity and promptness of insurance via the Internet enables the insurance companies to attract additional clients.
In spite of the advantages, the process of involvement of clients in the electronic commerce faces several
difficulties. Such difficulties are largely determined by the peculiarities of the attitude of separate categories of clients towards modern technologies.
For instance, elderly people form a problem category. They have crusted habits in the sphere of acquiring goods and services, which are difficult to change. According to different evaluations, the share of Internet users older than 55 years old accounts for 6 to 8 percent of all Internet users, whereas the number of population of such age is around 25 percent (On the example of the Russian Federation, data for 2014). Thus, the level of Internet use among this age category is significantly lower.
A high differentiation of income is observed in the indicated age group. When attracting the clients of the specified age group with a high income, such classic advantage of the electronic commerce as the reduction of the cost of goods and services, is not substantial. Many business relations for this category of consumers have already been formed and the clients have quite a big level of conservatism. Thus, the enterprises in the sphere of the electronic commerce have to look for new ways of involvement of such clients. In this case, the costs do not have a determining influence; the main criterion is the convenience of use of the respective technologies. Currently, the use of electronic ink is undergoing a rapid development. Electronic ink has a few advantages, which can be used — high energy non-dependence, including the preservation of image for a long period, low cost, safety for health. Thus, a mobile application designed with the use of electronic paper will facilitate the adaptation of a client to modern technologies. The electronic device will be perceived by the client as a piece of paper of high density. The technologies of use should be maximum conventional for
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Section 1. Economics and management
the client — the client should receive information in the form common for them, i. e. fill in a standard service order form. Due to the fact that every such client brings the company quite high profit, electronic devices can be provided free of charge to regular customers. The involvement of new clients should be accompanied by certain events on stimulation of the use of such technologies. At modern luxury shops, such devices can be given for temporary use. At such shops, the problem of thefts is less pressing and the computer system can perform the analysis of customer’s preferences. In case of a successful use and when the priorities of the given client have been defined, the device can be offered as a gift. The indirect advantage of this technology is the collection of statistics about the client’s behavior.
The advantage of the electronic commerce is the reduction of costs, which allows offering a lower price level. This specific emphasizes the relevance of involvement of consumers with low income level in the electronic commerce. For this category of clients, unlike the category viewed previously, the fact of price reduction is the main motivator itself [4, 125-127]. Thus, the task of a trade organization is not to stimulate the consumers to use technology, but to help them use it. The offered software should be maximum simple as well as the organization of client consultation should be arranged. Currently, the performance of some socially important services is done with the help of such technologies, which contributes to client involvement but causes inconvenience and difficulties. Thus, an important competitive advantage of trade organizations can be the process of client consultation. In respect of a high social importance [5, 718], it is reasonable to solve this task at a state level as well [6, 56-61]. The organization of respective free courses at the expense of the state, which will enhance computer awareness of the population, will allow reducing costs on service rendering in future, as well as contributing to the involvement of the population in the electronic commerce.
The question of a low level of technical equipment of the certain population category is related to the above described problem. This issue is especially current for the citizens of the regions. The involvement of wide masses of regional population in the electronic commerce, especially those living in small populated settlements, is impossible without solving this issue. Herewith, the problem is determined by not only computer facilities, but also by the access to the Internet.
To solve the first set task, one can install self-service terminals ensuring access to the offers of commercial
organizations. Mobile terminals can be used in populated settlements with small population, where the installation of stationary terminals is commercially unprofitable. A side commercial organization can be involved in the creation of such terminal chain. Herewith, the main source of profit for such company can be a commission charged from the commercial organizations connected to such terminals, but not the payments of the population. In the operation of the chain, one can presuppose the cooperation with already existing chain of payment terminals. The functions of such terminals may include the search of goods, formation of an order, payment for the order, delivery booking upon the wish of a customer. The realization of a chain of such terminals does not require connection to global networks to function.
The presence of a chain of terminals also contributes to the solution of the second task — organization of the Internet access. In this case, the customer can learn about the goods on producers’ websites, see the analytical articles and read the reviews of other customers. The connection of terminals to the global network will widen the circle of potential offers significantly.
It is important to note that the terminal should not be an ordinary computer connected to the Internet and performing the Internet access in a standard way. The terminal serves the union of trade organizations; requires specialized software, on the one hand, simplifying the search of offers for consumers, on the other hand, offering the goods in accordance with the assortment of trade organizations that are a part of the union.
Today, mobile operator chains have a wider circulation than computer networks. Hence, the user often has a device in hands that allows transferring and receiving information. In this case, the task of involvement of a user in the process of electronic commerce can be solved with the help of the use of such devices. Such involvement is presently realized by two ways — optimization of a website or the use of mobile applications. Unfortunately, such optimization is done only for mobile devices using a certain operating system. Thus, the process of involvement of users who have different mobile devices in the electronic commerce is important.
In compliance with GSM standard, any mobile device has a function of receiving and sending a short text message (SMS). Today, only some kinds of services use this opportunity for client interaction. This service is widely used in the sector of bank services that allows clients performing some bank operations via SMS. Such technology can be successfully applied in other spheres of activity. One can code the receipt of standard services
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The problem of involvement of clients in electronic commerce
for regular customers. Multimedia messages give more opportunities at present.
Often, the client doesn’t realize the advantages offered to them by the means of electronic commerce due to incompetence. If in the sphere of trade such incompetence often refers to the details of a transaction, in the sphere of services the client may not even know about the existence of some capabilities. Currently, the stimulation of information transfer from one client to another gained a wide spread. It should be noted that this method presupposes a high quality of service rendering. Nevertheless, a required mass of clients, through which the spread of information is effective, is absent in some spheres of activity. In this respect, it is reasonable to offer the service providers to develop partner programs offering the services of side companies together with their own ones. It is important to inform the client about the opportunities to use electronic technologies in the process of service rendering regardless the ways of rendering.
When attracting clients to the electronic commerce, the companies may face the problem of distrust. Many clients, especially elderly ones, do not trust the transactions in electronic format a priori. The reason of such distrust is a long-term habit to demand a «paper» confirming any transaction. Particularly, the service of printing a ticket on the official blank can be used
for such clients when buying tickets. In the sphere of trade the client wants to acquire goods inspecting it in detail in advance.
In order to attract such clients at the first stage, it is suggested to involve the service of settling purchase formalities through a terminal along with traditional service. Observing others, the client will pay attention to the convenience of order processing and, possibly, will try to perform such operation on their own shifting to the interaction with the website smoothly.
In future, one can offer the service of goods delivery to the customer.
After the initial involvement in the electronic commerce, the client can be offered a variety of forms of payment for goods and services, opportunity to discuss purchased goods and other additional capabilities.
The problem of stimulation of the use of means of electronic commerce by clients is current. Nevertheless, commercial organizations should solve this task. Firstly, it is related to the fact that the servicing of a client with the use of online technologies is usually notably cheaper. Secondly, this task is also solved by the enterprises-competitors. And the client attracted by the competitors will be lost. The approach to the solution of this problem requires the consideration of plethora of factors, particularly, the investigation of a reason of non-involvement of a client in the electronic commerce.
References:
1. Ilyashenko S. B. Socio-economic aspects of the condition of electronic commerce in Russia. In the collection of works: Current problems of modern science. The collection of articles of the International scientific-practical conference: in 4 parts. Responsible editor A. A. Sukiasyan. - 2013. - P. 150-155.
2. Magomedov G. D., Kakhrimanova D. G. Electronic trade: modernized approach. In the collection of works: Groundbreaking economic reforms in the conditions of risk and uncertainty. The collection of articles of the International scientific-practical conference. Responsible editor A. A. Sukiasyan. - Ufa, 2015. - P. 220-225.
3. Tyunik O. R., Nikishin A. F., Pankina T. V. Tourism as a factor of trade development.//Innovative science. -2015. - Vol. 1. - № 4. - P. 125-127.
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5. Maiorova E. A. To the issue of social efficacy of trade.//Successes of modern natural science. - 2015. -№ 1-4. - P. 718.
6. Ivanov G. G., Orlov S. L. Social aspects of entrepreneurship in trade.//Herald of economics, law and sociology. - 2013. - № 1. - P. 56-61.
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