Advantages And Disadvantages Of Using The Web As A Distribution Channel

1225 WordsMay 23, 20175 Pages
Discussion Assignment Unit 7 What are the pros and cons of using the Web as a distribution channel? Are there any situations where it is inappropriate for a company to establish an e-commerce site? Be prepared to defend your answers to your peers. There are many advantages and disadvantages of using the internet as a distribution channel. First, while the internet makes it easy for customers to look for information about a product, read reviews, and form a general idea about what to buy and where to buy it by comparing different products; buying online reduces face-to-face interaction and might have its toll on human relationships. Second, while shopping for books and other undifferentiated items might pass without any major…show more content…
356). Fifth, selling a product, which is in its growth or maturity phase, online, is relatively easy since customers are already familiar with its features and use. However, for a product in its introductory phase, human interaction is much more efficient in persuading customers, introducing a product, trying it, and getting to know more about it. Sixth, a company’s website can offer additional information for customers that they might not be able to find elsewhere. Such information can be in the form of the location of a company’s stores nationally and internationally, its distributors, its nearest stores, its brands, its products, its marketing reports, etc… This information can help customers tremendously by guiding their decisions and in planning their purchases. Seventh, when buying specialized equipment not available locally, using the web for orders, payments, and delivery can be a significant advantage not only to individual customers but to businesses as well. Eighth, while direct marketing in the form of mass mailing generates huge business for companies which use it as a direct distribution channel, direct mail is still perceived as “junk mail,” and customers tend to express irritation and frustration towards junk emails and telemarketers (Winer & Dhar, 2011, p. 374). Since companies use direct marketing to reach their

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