The Internet has really changed the channels of distribution for many companies.

Question

The Internet has really changed the channels of distribution for many companies. For example: Amazon.com now handles the online business of Circuit City, Target, etc. Amazon gets a commission for each sale online. This frees’ up companies like Circuit City and Target to put their resources into brick and mortar stores.

Besides the illustrations in this chapter, give an example of another industry that has witnessed substantial change in channels of distribution. Address these questions with respect to the industry that you have selected:

Think about and describe the overall consumer’s behavior with respect to purchases in this industry.

What about the information search processes that accompany purchases in this industry? How has the inherent capabilities of the internet impacted that phase of decision making?

Now, address the customer service processes that have been installed to support the online purchases. Do you think that customer satisfaction has improved? Provide justification for your answer.

Explanation / Answer

Apart from retail stores, food industry has also seen disruptions in the process. Earlier, people use to go to restaurants but now there are many players who operate only on the basis of home delievery. Quality, price and convenience are some of the factors that has attracted customers to this kind of exposure . Companies apply analytics and big data to understand the buying pattern and preference of a particular customer. Based on which they give the customers relevant offers, discounts and recommendations . This has helped to increase the satisfaction level of customer.

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