Compare and contrast the products and their prices available on the internet and in retail shops. Is the quality, customer satisfaction and other factors the same?
The comparison between products available on the internet and in retail shops reveals several significant differences:
Price Comparison: Internet serves as a channel that is free from most of the problems associated with traditional retail. For information-intensive products such as software and music, even delivery can take place online, potentially reducing costs.
Convenience and Timing: Internet offers the advantage of '24 hours × 7 days a week × 365 days' business flexibility. Customers can shop even after midnight, whereas retail shops have fixed operating hours.
Speed of Transactions: While internet allows information exchange at the click of a mouse, there exists an incongruence between order taking and order fulfilment. Physical delivery of products takes time, which may test the patience of customers.
Quality and Customer Satisfaction: Customer satisfaction may differ as websites sometimes take unusually long time to open due to technical reasons, frustrating users. Additionally, there exists a digital divide in society based on familiarity with digital technology.
Other Factors: E-business requires a fairly high degree of technology capability and competence from both parties, unlike traditional retail which does not have such requirements.
Explanation
This question appears in the Projects/Assignments section of the NCERT textbook. The answer draws from the comparative assessment of traditional business versus e-business discussed in the chapter. Key points include the convenience factor (×365), the speed incongruence issue, the digital divide, and the specific advantage for information-intensive products. The textbook highlights both benefits and limitations of e-business when compared to traditional retail.
Solution Steps
Step 1: Identify the key comparison points from context - price, convenience, speed, quality/satisfaction, and other factors
Step 2: Extract relevant information about internet advantages ( flexibility, click of mouse speed, online delivery for information products)
Step 3: Extract limitations (incongruence in fulfilment, technical delays, digital divide, need for technology competence)
Step 4: Structure the comparison in a balanced manner covering all aspects mentioned in the question