Consumer Behaviour with Information Technology

Topics: Electronic commerce, Dot-com bubble, MIT Media Lab Pages: 10 (2778 words) Published: June 8, 2010
The first major impact of information technology, as we think of it today, was the facilitation of commercial transactions electronically, usually using technology like Electronic Data Interchange (EDI, introduced in the late 1970s) to send commercial documents like purchase orders or invoices electronically.

Later, with the development of the internet, the effect of information technology on consumer behavior could be seen in the purchase of goods and services over the World Wide Web via secure servers with e-shopping carts and with electronic pay services, like credit card payment authorizations.

The Internet Boom:

"First we must confront the question of what happened during the late 1990s. Viewed from 2003, such an exercise is undoubtedly premature, and must be regarded as somewhat speculative. No doubt a clearer view will emerge as we gain more perspective on the period. But at least I will offer one approach to understanding what went on.

I interpret the Internet boom of the late 1990s as an instance of what one might call ``combinatorial innovation.''

Every now and then a technology, or set of technologies, comes along that offers a rich set of components that can be combined and recombined to create new products. The arrival of these components then sets off a technology boom as innovators work through the possibilities."

"The Internet for us was like air. It was there all the time - you wouldn't notice it existed unless it was missing. But the Internet as a major social phenomenon didn't enter our radar until the advent of the World Wide Web, which was developed in Europe at CERN, beginning in 1989, by a team of physicists that included an alumnus of the Media Lab. That was what provoked the big change in the Internet. "

----------------------The impact of information technology-------------------------

"Electronic commerce is fundamentally changing the way consumers shop and buy goods and services . Consumers have begun to learn how to act in an ever-changing electronic market environment. Like any diffusion of innovation, there is a learning curve for most consumers to behave in electronic commerce in a way they feel the most comfortable. For some consumers, shopping and buying online have become part of their daily lives, whereas others may consider it, without taking any action yet. What factors can explain the differences in online buying behavior among Internet users? Our purpose in this study is to identify what factors determine whether Internet users choose to buy or not buy online, and how frequently they make such purchases."

"The economic impact of the digital revolution is, in many ways, undeniable. Without the Internet, for example, globalization and outsourcing would not be nearly as viable as they are today. Nevertheless, computers are not a silver bullet magically solving all problems they are applied to. For example, it can be argued that the coming forth of desktop publishing in the mid 1980s actually slowed office workers down. Whereas previously, they could just jot a quick note on a piece of paper and maybe photocopy it to three or four co-workers, now people feel the need to have spell checked,

grammatically correct and visually stunning memos! With the wide spread acceptance of presentation software, now people spend uncounted hours preparing presentations for a few co-workers, when a chat at a chalk board would have accomplished nearly the same thing a generation ago.

Some innovations, such as the cell phone have clearer economic return. The cell phone had measurable impact on the productivity of the American worker in the late 1990s that was far greater than most other technological improvements."

"The Net and other online systems -...
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