A. What is Traditional Markets?5
B. What is Digital Markets?5
2. Advantages of Traditional Markets6
3. Disadvantages of Traditional Markets7
4. Advantages of Digital Markets8
5. Disadvantages of Digital Markets9
Compare and contrast traditional markets with digital markets
Definition of Traditional Markets and Digital Markets
Traditional markets : Traditional market is a physical market brings buyers and sellers together in the same location and a medium that allows buyers and sellers of a specific good or service to interact in order to make an exchange. It is a product-based and formal. This kind of market is traditionally operating, and countless such markets are still in operation around the whole world.
Digital markets : Digital market is a market that do not have a physical operation between the process of buying and selling otherwise using the non-physical markets ( internet or electronic markets) In digital markets, buyers can purchase goods and services through virtual market. In digital market, the buyers and sellers do not meet or interact physically, but the transaction process is done through internet. Examples- eBay , air tickets.
What is Traditional Markets
Traditional markets are physical retail markets, and can be local markets or shopping centers and shopping malls, labor markets, international currency and commodity markets, stock markets, for the exchange of shares in corporations, illegal markets such as the market for illicit drugs, arms or pirated products. Traditional markets are preferred by most people because it provide the functions of touch, feel, visual, and more reliable. For example, importing a car from oversea buyers may like to see whether it has any invisible damages or conditions though car sales centers( traditional market) allows to test drive and check until satisfied. Traditional market is simple, in exchanging the goods and service with money or goods and service in physically, two parties will be meet or connect physically ( including telephone and emails), the main fact is that two parties interact about the deals physically. What is Digital Markets
Digital markets is deviate from the physical market with using non-physical medium like internet. Digital market is start blooming when the information technology become more advanced and secure. Electronic markets make people more easier, save time and money( eg. transportation cost). But it still has a disadvantages like fraud, unseen, spam which can be effect to the trust of buyers and sellers. Digital market is based on the electronic markets like websites, virtual markets and auctions. Participants needs to have a general knowledge of computer to use well and avoid any incidents, are basically posted about goods and services with picture or sounds followed by price and it is seem similar to put a goods into a shelf in the market. Purchaser will made a payment using online transaction or notes. Advantages of Traditional Markets
¬The advantages of traditional markets are-
Physical: Traditional markets have a physical on the goods and service which can easily seen by the purchasers and persuade. This enable the business to be easily identify by customers. It also helps in building trust with customers by having a physical shop. Trust and user resistance: Consumers do not usually trust an faceless seller which they do not know but traditional markets allow consumers to interact with seller like bargain, choosing and checking the products. Product contact: Traditional markets allows consumers to touch and feel physically, sometime customers like to touch items such as clothes and like to know exactly what they are buying. Social : Participants can be feel and fulfill their psychological needs like shopping with sightseeing, enjoying...