Internet and UK Tourism Industry - Coursework Example

One of the most used and popular forms of communication technology is the internet. It has been used for various transactions from information transfer to interpersonal communications. Businesses have greatly improved with the onset of internet usage. The utilization of the internet has come to the point of it becoming a necessity rather than a luxury. 

The popularity of internet usage has made it a subject of various studies not only in the academe but including industries that nowadays depend on it. The properties, advantages as well as disadvantages have been the focus of these studies.  The introduction of the internet as one of the modes of communication has made significant changes in the lifestyle of people.

1. Background of the Study

It began in the 1980s as the Computer Revolution and now it became the Computer and Internet Revolution. During the computer revolution, computer usage has increased rapidly and between 1985 and 1999, the usage of computers at work or at home increased from 30 percent to 70 percent as the increase in computer ownership rose from 15 percent to 60 percent (Kim, 2001). Consequently, these factors have made businesses change their strategies. They introduced e-commerce in which consumers can exchange goods and avail themselves of the services offered by companies thru the internet.

E-commerce follows the same basic principles as traditional commerce that, buyers and sellers come together to exchange goods for money. But unlike traditional commerce in which the consumers go to a particular place to avail necessary products, they can visit the websites of multiple vendors anytime, any day to compare prices and make purchases online. But this does not only benefit the consumers, the sellers as well can cut costs and expand their market.  Because they sell over the internet, which can be accessed globally, they have the potential to market their products or services worldwide and are not limited by the physical location of a store. At the same time, internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs.

Nielsen (2005) wrote that there is an upward trend in global online shopping. Popular items purchased on the internet are books at 34%, videos and games at 22%, airline tickets and reservations at 21%, and clothing and accessories at 20%. The study also showed that even one percent of the total population purchase using the net does not necessarily mean successful online sales but it is still important for retailers big and small to understand the factors that drive brand equity and site usage. It also shows that sites and brands with higher brand equity attract higher visitation and sales. But e-commerce has also its downside; some customers are reluctant to buy products that need actual assessment such as furniture and appliances. Some also consider shopping a social experience; they may be going to a store with family or friends. Security and assurance of transactions are also some factors why some consumers are apprehensive to use the internet for purchases (Microsoft ® Encarta ® 2007).