STM

SCHOOL OF TECHNOLOGY AND MANAGEMENT

Dissertation Proposal

Title

Critical evaluation of organizations that adopted Ecommerce

strategies by focus on communication between web shops and
consumer (B2C)

Student Name: Sadaqat Hussain

Student Id: 0121VLVL1109

Supervisor Dr.Uma Mohan

Course: MSC/IT
Introduction
Planet earth is shrinking due to the virtual world. Internet applications all over the
world have now made it necessary for the people to make internet a part of daily life.
This advent is leaving its impression on all industries and especially the clothing
industry. E-commerce is a business application of internet all over the world. The
companies which are operating in apparel business are developing their web shops.
In order to create loyal customers and meeting the consumer demand it is important
to do necessary communication of the products with the consumers. Otherwise the
products might be a surprise at the time of delivery to the consumers. Every
consumer has his/ her own way of evaluating a product. So it is important for a web
shop to address to every kind of consumer in order to meet the consumer demand
and create more customers. The virtual world has its own complications and
deviation from the usual world. So the thesis is focused on testing of shopping
experience for an online purchase and to do the analysis of the communication
between the web shop and the consumer.

There has been a significant growth in retail activity via the World Wide Web (Web) over the last
decade or so years. Some unique aspects of the textile and apparel business create challenges in
execution of ecommerce. The most important factor is the difficulty of exactly

characterizing the product online. Many parameters of the garment that are essential to the
consumer decision making process like color, feel, fit are difficult to communicate online.
However, it is easy to deal online with product like books, music, and consumer electronics.
Although for online purchases, like catalog purchases, brand names help consumers to understand
certain aspects of quality or fit, especially for consumers making repeat purchases in the clothing.
Garments purchasing decisions have strong affection to personal’s feelings about themselves. As
clothing is the skin one picks to project his/her self-image to the society and hence is closely tied
to one's sense of self. So the decision can be attached with emotional factors that are less
important in decisions to buy books, music and electronics.
Sufficient evidence advocates that present B2C sites are incapable to characterize their products
effectively to allow consumers to make effective choices. Due to these reasons there is high
return rate for apparel products purchased online.7

The studies are done on the basis of evaluation of feedback collection from
consumers and information search of the various products online. The focus was
more on the customers who do careful information search before doing a purchase
and also some random customers who purchase a product without deep evaluation
of the products. Traditional consumer behavior and the consumer behavior for online
shopping were compared analytically and the results have been discussed in the
end.
Need for improvement in existing systems is the base for this thesis. Studies showed
that the e-commerce systems are still unable to understand the new customer
segment for online shopping and there is a great need of improvement in this area to
get more customers.. For example, an electronics store may allow the user to order
online, but pick up their order immediately at a local store. Conversely, a furniture
store may have displays at a local store from which a customer can order an item
electronically for delivery.

STATEMENT OF THE PROBLEM    

Background

Socio-economic characteristics such as growing demands on consumers’ time,

increased wealth, and heightened levels of stress in many regular situations are
among those factors dramatically changing many consumer markets. These poses
are challenge for firms dealing directly with consumers.

The previous concept of consumers who spent a lot of time getting advice about
product attributes from “small talk” with friends and family, researching a product,
and then selecting and purchasing articles from specialized retailers has
disappeared.

Consumers prefer the convenience of “one-stop shopping”. In response, online

stores have expanded to offer many products to attract consumers. Traditional
retailers must offer more services and a larger range of products and varieties

The cutting edge for any business now a day is Ecommerce. Generally defined
Ecommerce is an up to date business methodology that fulfill the needs of
organizations, merchants, and consumers to decrease costs as well as improving
the quality of goods and services by shorter lead times. As we know, e-commerce is
linked with the buying and selling of information, products, and services via computer
networks today.1
The most important advantage of e-commerce is that it allows the business
companies or individuals to reach the global market without any restriction of
geographical boundaries. Through electronic commerce even small enterprises can
reach the global market for selling and purchasing products or services. Without any
time limit and non existing boundaries while conducting businesses, e-commerce
authorizes one to execute business transactions 24 hours a day and even during
holidays and weekends.2
After the globalization era it has become too hard for a company to stay in this
competitive market. Consumers have a lot of options for purchasing one product. To
stay in the competition every company is focusing on understanding the consumer
behavior. Now a day consumer’s assists firms and organizations to improve their
marketing strategies by understanding consumers thinking, feeling, reasoning, and
selection between different alternatives like brand and products. Limitations in
consumer knowledge or information about the products or services influence
decisions and marketing outcome in ecommerce business.
Ecommerce and consumer behavior are closely attached to each other. All the stakeholders in a
value chain for online shopping have huge responsibility of maintaining product’s quality at
reasonable price. Most important factor is the time of action. The systems which are used for
communication between the retailer and the consumers are of much importance. So companies
are more focused to understand the customers and the medium of communication.
Although the supply of items to purchase on the Internet is multifarious and placing
online order constitutes a tremendous advantage for time-constrained consumers
(after an initial learning period), the question remains whether or not (and what type
of) customers are willing to switch from their traditional purchase behaviours to these
new ordering systems. Customer’s reluctance to change may be due to a range of
concerns (Internet access and familiarity, ease of transactions, and data security)
with which they will be confronted when adopting Ecommerce. For example, that
many respondents of their survey had concerns about the security of online
transactions

  

Problem Discussion
Conventional supply chain is under continuous change with the change in the global
business. E-commerce implementation in different businesses has changed the
shopping behavior of the consumer. This change in shopping behavior is connected
with the supply chain of the traditional supply chain. Therefore this changed
shopping behavior is creating a new challenge to cope up with the new demand of
distance shopping. Companies are still unable to understand that this consumer
segment is same as it was in traditional shopping or this change in shopping
behavior have created a new consumer segment. Or consumer behavior has
changed slightly.
In conventional retail supply chain there are different customers with different
characteristics. Some end users check the fitting, sizes and everything very carefully.
Before purchasing they want to try the product. There is another type of consumers that just
take a product simultaneously and then they try them at home.
For such consumers with different characteristics, is there any e-commerce system which can
address them properly? A web shop is providing them the means to check the sizes are all
guidelines that must be there to understand the characteristics of the actual product. As in e-
commerce the physical existence of product isn’t there. What is the hit rate for the careful
customer and how does it differ from the less careful one that order by chance? To get the
answers of these questions this study is conducted.

My research will focus on the issues encountered by an organization that have

multiple convenience stores in London and also doing the retail business. The
research will focus on the different issues relating using the brick and click
ecommerce strategies towards the adoption of online operations and traditional
operations. I am looking into traditional businesses on the one hand and online
businesses on the other hand. The focus is on the issues that companies might face
in terms of their brick and click ecommerce strategies adoption during the migration
process because there are many issues such as
Does the availability of particular food and non-food items online drive the decision to
buy online? Are consumers averse to E-Grocery shopping because they cannot use
traditional “search” processes to determine the quality of produce, seafood, or meat?

If so, is that constraint on E-Grocery shopping causing consumers to avoid online

purchases of other less quality-signalling-dependent items from the centre of the
store (dry goods) even when those products are available online at a lower total cost.

Alternatively, are E-Grocery shoppers making their purchases because of prices or

unique services (home delivery or at-store pickup options, bundling with non-food
items such as pharmacy orders) offered online?

Although the supply of items to purchase on the Internet is multifarious and placing
online order constitutes a tremendous advantage for time-constrained consumers
(after an initial learning period), the question remains whether or not (and what type
of) customers are willing to switch from their traditional purchase behaviours to these
new ordering systems. Customer’s reluctance to change may be due to a range of
concerns (Internet access and familiarity, ease of transactions, and data security)
with which they will be confronted when adopting Ecommerce. For example, that
many respondents of their survey had concerns about the security of online
transactions

So research will focus on different methods that help the organization that adopting
the brick and click ecommerce strategies to enhance the performance of business
and how organization achieves the competitive advantage through brick and click
ecommerce strategies. The research investigation aims at providing answers to the
following questions.

How to evaluate the effectiveness of Ecommerce strategies and what factors

make it successful in sector of fashion clothing?

1. What are the potential impacts of ecommerce strategies on

organizations?
2. How Ecommerce get advantages on the traditional Ecommerce.
3. What are the factors that influence the intension of consumers toward
online shopping?
4. What are present problems and challenges facing organizations with
the use of ecommerce?
5. What are the possible solutions to overcome the limitations of
ecommerce on organization?
6. How will ecommerce strategies enhance the performance of
organization?
 7. How can company achieve competitive advantages through
ecommerce strategies?

AIMS
Several studies in the past had acknowledged that UK had all the advantages that
favour the development of e-commerce. This is because it has a liberalized and
competitive telecommunications market. However, there have been limited studies
which proven the benefits of e-commerce on UK supermarket. Thus, this study will
identify the specific effects of e-commerce on supermarket. The descriptive research
design will be used to attain the ultimate goals of this study. This study also aims to
prove the following:

 To outlined the development of the brick and click ecommerce strategies

and analyze its implication on organization

OBJECTIVES
As the guide for the researcher, the following objectives for this study has been laid
down:       
To outlined the development of brick and click ecommerce strategies in past,
present, possible future

 To outline different variation of the brick and click ecommerce strategies

 To analyse the business environment.
 To analyse the current state and likely development brick and click
ecommerce strategies in organization.
 To determine the usefulness of the brick and click ecommerce strategies for
organization according economic sector.

SIGNIFICANCE OF THE STUDY

The supermarket in United Kingdom is facing a stretched competition in the

international market. To remain forward of the competition a better comprehension
on e-commerce strategies must be furnished. This study will promote a bigger
conscience and understanding of impact and the potential one of brick and click e-
commerce strategies on the business organization.
The study will encourage the organization to adopt the brick and click ecommerce
strategies to improve their competitiveness in the market. Besides, this will increase
the conscience of the businesses to transform the sector for e-commerce. Of more,
this study will furnish them the manners to reduce the costs of development and
discussion for the brick and click ecommerce solutions.

Chapter 2: Literature Review

Introduction
A “brick and click business” is a term used mainly on the Internet to differentiate
between companies that are based solely online, and those that have a real-world
counterpart. A brick and click business has a commercial address “made
of brick and click” where customers can transact face-to-face. The company might
also have an online presence to provide the facilities to their customer to place order
online, after that they can pick their order from the local store or the home delivery.

Of the many different business models such as e-commerce, home businesses, mail

order, and brick and click, there are advantages and disadvantages to each. Some
types of businesses are best served by, or even require a hands-on base of
operations to provide their products or services, such as auto repair and healthcare;
and many companies benefit from augmenting this model with an online presence.
But prior to the Internet, a brick and click business was standard for nearly any
company that sold goods. Today the business model is expanding to include e-
commerce, in many cases foregoing the need of a commercial building all together.
The reason lies behind the main disadvantage of a brick and click business.

When e-commerce was new, however, some consumers were wary of doing
business with companies that did not have a commercial address. This brings us to
one of the main advantages of a brick and mortar business: customer security.

In the early years of Web-based commerce, much emphasis was placed on sources
of competitive advantage that Internet firms had over traditional ones, primarily using
transaction cost logic [1].
Greater operating and transaction efficiencies, coupled with lower search costs are
just a few of the many hypothesized advantages of virtual firms [25]

Difference between Traditional business and online business

In many situations, traditional firms may lack important competencies needed to

achieve synergy benefits with e-commerce. For example, traditional firms may lack
Web development skills, or logistics skills needed to serve distant markets. In these
situations,
Alliances may be more useful than attempting to develop a virtual channel in-house.
The final component of the framework identifies four categories of synergy benefits,
including
  lower costs
 differentiation through value-added services,
 Improved trust, and geographic and product market extension. We elaborate
on these potential benefits from physical and virtual integration below.

Lower costs:

Cost savings may occur in a number of areas, including labour, inventory, promotion
and distribution. Labour savings result when costs are switched to consumers for
such activities as looking up product information, filling out forms, and relying on
online technical assistance for after-sales service. Inventory savings arise when
firms find that they can avoid having to stock infrequently purchased goods at local
outlets, while still offering the full range of choices to consumers via the Internet.

Marketing and promotion efficiencies are garnered when each channel is used to
inform consumers about services and products available in the other. Delivery
savings may result from using the physical outlet as the pick-up location for online
purchases, or as the initiation point for local deliveries.

Differentiation through value-added services:

Physical and virtual channel synergies can be exploited at various stages in a

transaction in order to help differentiate products and add value. Examples of pre-
purchase services include various online information aids to help assess needs and
select appropriate targets, or, conversely, opportunities in the physical environment
to test out products. Examples of purchase services include ordering, customization,
and reservation services, as well as easy access to complementary products and
services. Post-purchase services include online account management, social
community support, loyalty programs and various after-sales activities that may be
provided either online or in the physical store. Typical opportunities are in the areas
of installation, repair, service reminders and training.
Although many of these value-added services are potentially available to single-
channel vendors, combined deployment of such services (e.g. online purchase of
computer with in-store repair or training) can enhance differentiation and lock-in
effects [3]

How information gives you competitive advantage

In these works, the authors emphasize the theoretical advantages of hybrid
approaches to ecommerce. Importantly, these works suggest that advantages arise
not only from the ability that a multichannel approach offers for reaching new
customers and offering new services, but also because each channel can have spill
over effects that result in increased purchases and reduced costs in the other
channel. A framework for understanding click and mortar advantages can be derived
from a combination of classic competitive advantage and inter-organizational
networks theories [4]
Chapter 3: Research Design and Methodology
To examine these questions, I have chosen survey research and case-studies as my
research strategy. Primary research will be conducted by mean of personal interview
and a survey in the form of questionnaire. Secondary research will be conducted
using newspapers, magazines, books, reports, by consultancies and the internet

We are using quantitative and qualitative approach for our research, that’s why
surveys and case-studies are the most fast and convenient way to conduct this kind
of research.

That is suitable for the research to observe the organization in dept and focus on the
specific area to research on for better and successful result.

Participants

The participants are first to consist equal direction, the superior framework, the
customer, these participants were chosen base on their field placement to London,
their kindness to participate in the study, and my initial perception that they were
effective employees.

Sources of Data

The data will be collected by discussions with the participants, the continuous
conversations through the period of reception of data, the organization observations,
and the observations of ideas of the participants.

Data Collection Procedures

A protocol of reception of data repeatedly will be developed during the first phase of
the study of treaty. The reception of primary data will intervene on a ten periods of
week lasts roughly of October 2010 to January 2011. During this period, I will
observe that the organization and asks the question to my participants, collecting
data by the usage of vast grades of field. As a home for the conversations, some
discussions will be videotaped. Two round ones of structured to half of discussions
will be directed, the audio recorded, and transcribed.

Proposed Analysis

In the case study, to reduce and analyze the data itself, I propose to use verbal
analysis coding. This method, which I have used in previous research, allows a
researcher to formalize his impressions of a data set, yielding quantitative findings
about the frequency of occurrences as well as a qualitative picture created by using
selections from the data in the results. Data management will be facilitated through
the use of QSR NUDIST, a special-purpose qualitative data analysis tool.
References
[1] Cairncross, F. (1997) The Death of Distance. Boston, Massachusetts: Harvard
Business School Press.
[2] Steinfield, C., Mahler, A., & Bauer, J. (1999). Electronic commerce and the local
merchant: Opportunities for synergy between physical and web presence. Electronic
Markets, vol. 9 (1/2), 51-57.
[3] Shapiro, C. and Varian, H.R. (1999) Information rules: a strategic guide to the
network economy. Boston, Mass.: Harvard Business School Press.
[4] Porter, M. E., & Millar, V. E. (1985). How information gives you competitive
advantage. Harvard Business Review, July-August: 149-160.

Time schedule

   Weeks

        TASK 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

Supervisor’s                        
approval

Reading Literature                        
review

Finalizing Aims &                        

Objectives

Draft Literature                      
 
Review
 

Devise Research                        
Approach

Review Secondary                        
Data
Organizing                        
Interviews

Developing                        
Interview questions

Conduct Interviews                        

Analysis of primary                        
& secondary data

Evaluating data                        

Draft Findings                        
Chapter

Complete remaining                        
chapters

Submit to supervisor                        
and wait for
feedback

Revise draft and                        

format for
submission

Print, Bind                        

Submit