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Nov 8, 2017 in Economics
Key Ingredient in Business
Product familiarity plays a paramount role in determining consumer satisfaction. When does something become unfamiliar? According to Luhmann, 1984, familiarity is the basic foundation of familiar and unfamiliar. It is normal for customers and especially consumers of a particular to be doubtful about the authenticity of and safety of the product. As a result, companies need to give exhaustive information about the product being sold. Other companies consider giving their history of sales as a way of winning the confidence of online customers. This history may include performance records, consumer responses in the past. Psychologists argue that minus security assurance, it is not easy for any company to win its online customers. Product familiarity is also achieved by use of strong product brands (Haque, Khatibi and Al Mahmud, 2009). Familiarity of consumers with brand and brand names develops the confidence and consumer satisfaction.
Internet marketing, a key ingredient in business, has countless advantages. Millions of business people have employed it and reaped admirable fruits some of which are long term whereas others are short term. By the fact that the World Wide Web is worldly available, many companies are able to millions of potential customers at a click of the mouse. This cannot be compared to televisions and radios which cover regions or specified countries. Billboards are seasonal and are placed at strategic points permanently to advertise within a limited area unlike the internet which is on throughout the year including at night (Anderson, Brynjolfsson and Simester, 2005). With comparison to all other forms of marketing, online marketing is dominates in terms of consumer coverage. It reaches both the youths and old.
Another advantage of internet marketing as realized by many companies globally is that it cost effective compared to other methods of marketing like the use radio, television and post office. For instance a single advert for a new product is enough to market it and ensure that the company achieves it set objective. This means that a company only needs to design the advert and post it online or on its website to allow viewing by world wide customers unlike post offices which may call for individual conducting of customers wherever they are in the world. This also saves time, a very important resource in business operations. It can also be used to target particular audience of consumers. An email send to several potential customers globally usually has a link to the company’s website before customers can sign up and interact with company management from anywhere in the world.
Although internet marketing has received massive welcome and application, it is fundamentally important to note its demerits some of which have cost individuals and even companies. The authenticity of an online business or advert is the origin of many hitches which haunt internet marketing. It is possible to get involved in an illegal business or unauthorized online promotions which may turn out to be fatal. It is because of these reasons that many people interested in online purchases take caution and consider safer ways of communicating with different online companies and avoid spam messages (Anderson, Brynjolfsson & Simester, 2005). This risk is closely related to internet crimes and money laundering which have in recent years been considered as serious criminal offences under various laws in the world.
Another disadvantage of internet marketing is the inability to win the confidence of many potential customers due to tangibility factors. There are millions of products which cannot be fully described in a digital environment. They require face to face interaction between customers and the company thus limiting confidence assurance among customers. Doubts which emanate from such scenarios usually result into considering of other viable options that seem to have higher levels of security and confidence. It is also worth noting that internet marketing may not reach everybody (Anderson, Brynjolfsson & Simester, 2005). For instance, elderly people do not find the internet to be convenient since they are limited in several ways. Besides elderly people, the use of the internet and computers requires which are not inborn but acquired through training. As a result, potential customers who are not computer literate may not realize the sense of internet marketing until they are trained. The designing of adverts also needs high levels of professional approach to not only impress customers but also trigger the passion of acquiring the advertized products.