Cash Killers: Death of the High-Street.

Cash killers: Death of the High-Street.

Since the introduction of the internet in the early nineties (Leiner et al 2003) http://www.isoc.org/internet/history/brief.shtml it has shown phenomenal growth. This is especially true of the past four years with a 23% increase in home internet access (wallis 2006). This huge increase has been fuelled by cheaper prices by both providers and hardware (as described by Moores Law) as well as higher computer literacy levels since the government introduction standardised testing in to schools and subsequently the curriculum.

As the number of internet users increase so does the services available to them. The most popular means of use are leisure, information search and shopping (as described by blur) and as can be shown on graph x ‘ increase in online retail?

This research will go on to analysise the impact of online retail, or e-commerce as its better known.

As the number of internet users increase so does the services available to them, as seen with the adoption of ‘bricks and clicks’ online presence of many high-street companies and even many choosing a separate online only identity for example Dixons., consumer now has the power, purchasing from companies direct from abroad)

Impact of e-commerce

e-commerce is defined by Ambrow (2005) as ‘Electronic Commerce, allowing customers to purchase items and conduct financial transactions over the Internet safely and securely.’ (http://www.ambrow.com/glossary.htm)

E-commerce as discussed above, has and is still, showing tremondous growth. This is reflected in the 76% increase in online spending in 2007 compared to 2006. Malvern (2007) goes on to suggest that 63% of shoppers now buy the majority of their Christmas gifts online.

It is this mass appeal and the Ј55bn it attracts each year (WHO?) that offers an explanation to why e-commerce is such a highly attractive opportunity and therefore explains the fierce competition the market sustains.

http://business.timesonline.co.uk/tol/business/money/consumer_affairs/article3031566.ece

This high level of competition means that retailers are fighting for a slice of the pie. With consumers in control and competitors only a click away, all aspects of the buyers experience needs to be produced to retain and develop the consumer in the bid to aid purchase. (high level of competition?)

There have been serious worries by economists and retail industry experts alike over the impact of the online revolution. Decline/recession of high-street stores seems almost inevitable with cost cutting initivies dampened by high energy and property prices.

Chaffey (3000) identifies fiver key points to consider when designing online retail out lets, sjsn, sihi, isufrbe, efuihe, weufio.

From these points this research will go on to analysis online payment and how it effects consumer buying behaviour.

Impact of online payment

There are also mixed feeling of this shift of spending to online, from the consumers it seems to save them money both from the cost of the item and the time spent instore, but come with its own risks associated with payment and service. (This is shown b the UK crime statistics with the growth of identy theft and how the younger generation now fear theft more that assault?)

Larose (2006) explains that these issues all stem from trust, whether it be trust in the description of the product,