Essays on Impact of Online Shopping on Traditional Retail Markets Coursework

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The paper "Impact of Online Shopping on Traditional Retail Markets" is a good example of marketing coursework.   Online shopping (especially online grocery shopping) is a booming global phenomenon of the 21st century. Online (grocery) shopping represents the adoption of the internet as a retail channel and the use of the internet for both marketing and commercial purposes by individuals and organizations. The increased use of the internet as a medium of accessing, organizing and communicating information by both individuals and organizations in the retail sector has been attributed to its characteristics such as its efficiency and the convenience it offers for both consumers and producers (Morganosky and Cude 2000).

Online shopping has potential benefits for customers including but not limited to convenience, a wide variety for selection, competitive lower prices, personalised attention or customization and easy access to product information. With advances in information technologies, more and more retailers are looking to exploit the potential and the advantages of the internet as a marketing and retail or wholesale channel which is expected to give them competitive advantages over traditional retail and wholesale markets (Dixon and Marston 2005). There is sufficient evidence that online shopping is becoming increasingly popular globally and in Australia as well.

Global and Australian trends indicate exponential growth in the frequency of online shopping and in the market share of online shopping of the revenues of the retail industry. For example, global online spending on e-commerce grew 68 percent between 2001 and 2002 to exceed a value of $600 billion. By 2009, the transaction value of online shopping in the United States alone had reached $100 billion representing 6 percent of the global total retail value (Dixon and Marston 2005, Ha and Coghill 2008).

In the UK, between 2000 and 2001, the number of online shoppers doubled from 4 million to 8.2 million with each shopper spending an average of £ 367 which represented a compound annual growth of 142 percent (Dixon and Marston 2005). Even in markets such as China, the growth in online shopping has been unprecedented and has withstood shocks such as the global financial crisis with the online shopping market growing by over 91.9 percent in the first quarter of 2009 as compared to the same period in 2008 and by 20.7 percent as compared to the last quarter of 2008 (Xinzhen 2009). Consistent with global trends, online shopping and the adoption of the internet for retail purposes has also been on the increase.

More and more adult internet users in Australia prefer the convenience and customisation of online shopping over traditional or conventional shopping forms. As evidence, the Australian Bureau of Statistics (ABS) indicated that the proportion of Australians who had purchased goods or services online rose from 5% in 1999 (when Coles Online was introduced) to 39% in 2005 (Ha and Coghill 2008).

The Australian Communications and Media Authority (ACMA) also reported that as compared to 2009 where 53 percent of adults in Australia went online for non-work related purposes, the proportion had risen to 59 percent by 2011. Similarly, ACMA reported that 62 percent of adult internet users in Australia purchased a good or service from either a local or international website between April and November 2011, a significant increase from the 39 % reported by the ABS.

References

Australian Retailers Association, 2000, The Way We Shop 2000 - Grocery Shopping in Australia, Australian Retailers Association, Sydney.

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Coles Supermarkets, 2012, About US, Retrieved on May 30th, 2012 from

Coughlan, A., 2006, Marketing Channels, Sydney: Pearson/Prentice Hall.

Dixon, T & Marston, A., 2005, Taking the shopping centre online: new models in e-commerce. Property Management 25 (2): 97-109.

Eroglu, S., Machleit, K. & Davis, L. , 2001, ‘Atmospheric qualities of online retailing:

a conceptual model and implications’, Journal of Business Research 54, 177-184.

Fernie, J. & Sparks, L., 2009, Logistics and Retail Management: Emerging Issues and New Challenges in the Retail Supply Chain, Kogan Page, London.

Ha, H. & Coghill, K., 2008, Online shoppers in Australia: dealing with problems, International Journal of Consumer Studies 32 (1): 5–17.

Kottler, P, Keller, K, & Suzzane, B., 2008, Marketing Management, Pearson Australia, Sydney.

Morganosky, M. & Cude, B., 2000, “Consumer Response to Online Grocery Shopping.”

International Journal of Retail and Distribution Management, vol. 28, no.1, pp 17-26.

Reimers, V. & Clulow, V., 2004, ‘Retail concentration: a comparison of spatial convenience

in shopping strips and shopping centres’. Journal of Retailing and Consumer Services 11, 207–221.

Stern, W., El-Ansary, .I., Coughlan, T. & Anderson, E. , 2001, Marketing Channels, 6th ed. Prentice Hall, Upper Saddle River, New Jersey.

Warkentin, M., 2003, Business to Business Electronic Commerce: Challenges and Solutions, Idea Group Inc, New York.

Xinzhen, L., 2009, Online Shopping Spree. Beijing Review (September 17)

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