M-Commerce
Essay Preview: M-Commerce
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“The greatest wealth in the 21st century will not be made from products or services, but rather by the company that creates the conduit for international m-commerce through the mobile device”
(Unknown author)
As defined by market analysts, mobile commerce is the natural extension of e-commerce that allows consumers to make business via a wireless mode anytime, anywhere and always -on. It uses digital cellular phones, PDAs, pagers, notebooks and even cars can already be online wirelessly, all this developing another channel of the value-added chain. It is the innovation to meet the evolving customer needs of wanting to escape the personal interaction eyeball-to-eyeball pressure of purchasing. In comparison for further distinction, where e-commerce uses the Web on a computer screen to run transactions, m-commerce uses much smaller screens on mobile devices. Mobile Commerce connects business and customers via the Internet through wireless devices, cell phones, Palm Pilots, personal digital assistants, handhelds and basically any wireless device. Many businesses in various mobile industries may find wireless credit card processing very appealing. These might include those involved in maintenance or delivery services to homes, towing companies, food delivery, transportation services, tradeshows, etc. With mobile commerce, you dont need a phone jack or electrical outlet, and transactions basically take only a few seconds to complete.( Coursaris, Constantinos. Hassnein Khaled. Head Milena. M-Commerce in Canada: An interaction framework for wireless privacy) Wireless credit card processing terminals are available in retail form (to swipe cards) or for real-time keyed in transactions. M – commerce have also become possible to the emerge of the 3G(third generation) phones that due to their advanced technology make the transition of data between the wired and wireless world possible. The 3G mobile phones are a key step in the evolution to a Mobile Internet because the technology provides significant gains in network capacity, and speed, which, will, enable advanced video and multimedia services in addition to rapid deployment of m-commerce capabilities through network operators and their banking affiliates. However, if m-commerce is to become a reality, “it has to save time, it has to be convenient, and it has to work everywhere,” Mike McCamon of the Bluetooth Special Interest Group said. Although mobile commerce has many facets, including the ability to conduct wireless banking, access the Internet or find information on the fly, most consumers now think of it as a wireless wallet — the ability to make financial transactions at a point of sale using a wireless device. In this scenario, consumers are recognized by the signals they emit, most likely from their wireless phones or PDAs, and they can purchase goods and services from vending machines and businesses without having to use a checkbook, credit card or cash. But making the wireless wallet a reality will require an evolution of both technology and consumer attitudes that is still far in the distance. Moreover, at the commerce phase, in which consumers should realize that using wireless devices to purchase real goods in the physical world does not necessarily deliver those goods to their wireless device. It will be a challenge to convince consumers to leave their credit cards at home and let their phones do the purchasing. In addition to this, consumers will need easy-to-carry wireless devices that they will always have with them, and terminals will have to be available at stores or in vending machines. Both of these devices must have the necessary infrastructure to enable transactions. Last, and most difficult, there must be a worldwide standards initiatives. However, the most important aspect is to explain to the consumers, what is their bennefit to use the services of m-commerce, instead of the brick-and-mortal practices of credit-card and cash purchasing. (Cell Phones As Credit Card. )
Internet doesnt change basic shopping rules
In order to assess consumers attitudes towards m-commerce, it is logical to understand in the traditional e-commerce environment how comsumers move through their decision making process. Traditional shopping advice urges consumers to obtain a quote on a loan from a bank or other lender before going out to kick tires at dealerships. The Internet can provide online loan applications and calculators that determine monthly payments, how much car consumers can afford and buy-versus-lease comparisons. However, customers know that some prices on products can be outdated or the increase will not be included, so basically they will be looking at yesterday prices in some cases. Regardless this, the Internet stays as the most valuable source of customer research. The volume of goods being purchased via the Internet is rising. However, while certain consumers know what they want and feel comfortable making an instant purchase, many have questions about product pricing, availability and quality. Increasingly, the latter group is turning to online comparison-shopping sites for help when making a purchase decision. Convenience is a big attraction of these sites. A user can find information about a variety of products and companies. BizRate.com, for example, says it works with more than 40,000 sellers and has information on more than 30 million products. Yet companies such as BizRate.com, Pricegrabber.com, NexTag and Shopping.com go beyond simply connecting potential customers to desired products. These sites feature up-to-date, side-by-side feature comparisons; written evaluations from individuals who have used different products; availability information, such as who sells an item and whether or not it is in stock; and pricing comparisons, including any shipping charges. The sites try to function like Consumer Reports and provide information about product performance and reliability. As a result, the online comparison-shopping sites feature reviews written by other consumers. For instance, Shopping.com has approximately 2 million reviews on its network. However, the Internets anonymity presents potential problems with these reviews: In hopes of boosting its sales, a company could have an employee, relative or distributor contribute a glowing product review, which might influence potential purchasers. “We do get a few positive reviews from biased sources, but the bigger problem comes from disgruntled employees writing negative reviews,” said Helen Grace, who oversees reviews in Shopping.coms Home and Gardens section. As a result, many comparison sites have been forced to put some checks and balances in place. If Pricegrabber.com finds that a company has doctored a review, it permanently bans the firm from its site. In addition to collecting