The Evaluation of a Particular E-Commerce Application - Term Paper Example

Individual critical evaluation of an eCommerce application web site, using www.dixons.com Introduction In modern market, the development of e-Commerce has been inevitable mostly due to the increased needs for communication with customer and expansion around the world. In most cases, the targets set by e-commerce are common in firms internationally; however there are firms that choose to develop a particular e-commerce strategy in accordance with their needs and their targets. It seems that the use of e-commerce as a tool of marketing by modern firms has been expanded. In this context, it is noticed by Cornet (2000, 32) that ‘during 2000, European companies have been running fast to exploit the possibilities of the World Wide Web’. On the other hand, because the cost related with the development of a firm’s e-commerce various aspects can be significant, any relevant plan should be carefully reviewed (as of its feasibility and its effectiveness in the long term). Current paper refers to the examination and the evaluation of a particular e-commerce application, the website of Dixons, a firm that is established in UK but has also a significant presence worldwide. The particular aspects of the firm’s websites will be analyzed and explained trying to identify any weaknesses and suggest appropriate solutions. At the same time, the value of the website for the firm’s performance will be identified highlighting all its advantages and strengths especially towards the firm’s competitors in the same industry. A short reference to the main aspects of e-commerce as a marketing tool has been considered as necessary in order to understand the role of website in Dixons’ success. 2. E-commerce applications – main aspects of success The use of e-commerce applications by modern firms in order for the latter to improve their performance and expand their activities worldwide is a common phenomenon. In accordance with Afuah et al. (2000, 15) there are four basic types of companies that use the Internet in the core of their business: (1) e-commerce companies that sell goods over the Internet; (2) content aggregators who gather and display content from multiple sources; (3) market makers that act as intermediaries or conduct electronic markets; and (4) service providers who furnish Internet based services’. It is clear that e-commerce applications can be appropriate for all firms that operate within the modern market. There can be no limitation for e-commerce applications available to firms around the world: all firms – no matter of their size – can enter the particular area and incorporate e-commerce applications in their activities but only under the terms that they have the necessary funds in order to respond to the needs of these applications (including the losses from a potential failure of the specific e-commerce application, especially at the first stages of its development). On the other hand, it seems that the role of Internet in the development of corporate activities is not clear yet. For this reason it is supported by Cukier et al. (2003, 105) that ‘several studies of “e-business” have attempted to develop frameworks for understanding the ways in which technology supports corporate value chains and the ways in which the Internet has changed the face of competition’. Of course, the role of the Internet in the development of the firm’s performance cannot be doubted; still it is not quite clear how exactly this development can be achieved; it is also unclear which is the reason for the failure of e-commerce applications when be used by specific firms. In accordance with the above, e-commerce is a necessary part of modern business activities worldwide; more accurately e-commerce could be characterized as an aspect of marketing as it can be used by firms worldwide in order to improve their performance. The design and the development of a website is therefore a crucial part of marketing for modern firms that need to improve their position within the international marketplace. The various requirements for success of a commercial website will be identified and evaluated – in the setion that follows - using as example Dixons, a firm established in Britain but with a significant presence (both physically – through brands – and online) in the international market. 3. Evaluation of Dixons’ website in accordance with its effectiveness as an e-Commerce application The evaluation of a website performance has to be based on a series of criteria. In accordance with the study of Welling et al. (2006, 127) ‘despite the availability of large amounts of site usage data, Web site performance measurement tends to be performed ad hoc by most organizations, and there is little assessment of the relationship between the performance of a companys external Web site and overall corporate results or increase in shareholder value’. In other words, the effectiveness of a corporate website cannot be easily identified – as mentioned above the support of the website to the firm’s various operational activities cannot be doubted but it is not clear enough how exactly this support is taking place. One aspect of the success of a website is usually its appearance; the latter is considered to be a decisive criterion for the increase of the number of the website’s visitors and the expected increase of the firm’s profits. The study of Cober et al. (2003) refers to the examination of a particular issue: ‘how perceptions of organizational web site content (compensation, organizational culture, and training opportunities) and style (aesthetics and usability) influence organizational attraction’ (Cober et al., 2003, 158). Through the above study it is proved that ‘both the content and style of organizational web sites are important precursors of organizational attraction’ (Cober et al., 2003, 158). In other words, not only the style but also the content of a website can influence the perceptions of the public for a specific organization. Other aspects of a business website that could influence the public’s perceptions on a particular organization could be the following ones: a) time required for reviewing the various pages of the specific website; b) appropriate distribution of material across the various pages of the website; c) time of response to the customers’ enquiries; d) safety provided to customers regarding their various personal data and e) options available to the customers regarding the process of their order (payment, review and corrections, cancel of order and so on). Regarding the above, the following comments could be made regarding the various features and the characteristics of Dixons’ website: a) The user’s interface is quite friendly – all products are divided into categories presented in the website’s opening (home) page b) The colours used in the specific website have a crucial role in the promotion of the firm’s products – white and blue (which are both ‘calm’ colours) have been used mostly throughout the website for the presentation and the description of the firm’s products; other colours, mostly the red, have been used in order to highlight the products’ prices or their quality. c) All current firm’s offers are highlighted and are clearly visible – in fact all current offers are presented in the website’s home page (at the upper part of it) using an impressive feature – products are moving on the screen attracting the interest of the users/ customers d) The firm’s website is adequately protected; the relevant verifications of the website’s safety are made clear to the customer through a series of signs/ logos included in the firm’s home page. In accordance with these notifications, Dixons’ website has been accredited as safe from all major online organizations (that check the safety provided through websites and give relevant certifications), like Verisign and ISIS; Mastercard and Visa have also provided to the firm’s website relevant certifications of security. e) The customer can choose among the firm’s products through two paths: through ‘product category’ and through ‘brand name’. In this way, it is quite easy for potential customers to identify the product they search for. f) The firm offers to its customers a quite satisfactory service; there is a specific part of the firm’s website referring to the various issues related with customer service; the registration of the customer (offered at this part of the website) can offer to the latter a series of advantages and offers as described in the website. g) Each of the website’s pages opens quickly – no delay when waiting for next page to appear on the screen – this is quite important for customers that do not have much time when searching for a particular product h) Appropriate and clear explanations are given throughout the website regarding the qualities and the prices of the firm’s products; there are no hidden costs or missed qualities; everything is clearly explained i) The procedure of ordering the firm’s products is clear and easy; simply by following the steps explained in the website the firm’s customers can order the products they are interested for without being at risk when giving their personal details It is clear from the above that the firm’s website is quite effective offering to the potential customers all necessary info regarding the firm’s products while the safety of all the transactions is ensured (see also the relevant certifications presented in the corporate website). In other words, website as a specific e-commerce application is proved to be a valuable tool for the promotion of products/ services of modern organizations. 4. Conclusion and recommendations The use of website as a marketing tool by modern organizations cannot be denied. However, the effectiveness of a firm’s website cannot be guaranteed. There can be cases where corporate websites are inappropriate regarding the targets set by the specific organization. In this case, the website can cause delays to the development of the firm’s performance. In the literature, it is noticed that ‘developing a mindset which takes into account the importance of strategic marketing, the necessity for relationship marketing and the interactivity offered by technology, are of interest to marketers who are employed within a strategic capacity’ (Trim, 2002, 259). In other words, the responsibility for the success of a corporate website belongs primarily to the firm’s marketers; the latter should carefully examine all parameters of the entrance of their firm in the e-commerce sector taking into account the firm’s financial strength to respond to the requirements of the particular project especially in the case of a failure or a delay in the achievement of the targets set. On the other hand, it is noticed that ‘firms experiencing lower levels of transaction frequency utilize more types of Internet sales methods’ (Geiger et al., 2001, 159). It seems that there are no specific marketing methods employed by firms internationally; website is considered to be a significant part of a firm’s online presence – in fact without the website there can be no e-commerce – at least in each main form; the marketing through the WWW by publishing only advertisements (i.e. without using a website) could be probably helpful towards the increase of a firm’s sales; however this could be just an assumption. In the case of Dixons, it has been proved that the firm’s website has a crucial role in the development of the business activities. The specific website has a series of important features that support customers throughout their transactions while the firm’s products are appropriately promoted. The examination of the importance of website as an e-commerce application can lead to the assumption that website plays a vital role in the development of corporate performance but it is necessary that all its aspects and features are carefully reviewed as of their relevance with the firm’s cultural characteristics but also its targets in the long term. References Afuah, A., Tucci, C. L. (2000). Internet business models and strategies. New York: McGraw-Hill Irwin Cober, R., Brown, D., Levy, P., Keeping, L. (2003) Organizational Web Sites: Web Site Content and Style as Determinants of Organizational Attraction. International Journal of Selection and Assessment, 11 (2-3): 158–169 Cornet, P., Milcent, P., Roussel, P. (2000) ‘From E-Commerce to E-Commerce. ‘The McKinsey Quarterly’, 31-37 Cukier, W., Middleton, C. (2003) Evaluating the Web Presence of Voluntary Sector Organizations: An assessment of Canadian Web Sites. IT & Society, 1(3): 102-130 Geiger, S. W., Rasheed, H. S. (2001). Determinants of Governance Structure for the Electronic Value Chain: Resource Dependency and Transaction Costs Perspectives. Journal of Business Strategies, 18(2): 159-172 Welling, R., White, L. (2006) Measuring the value of corporate websites. Journal of Internet Commerce, 5(3): 127-145 Trim, P. (2002) Corporate intelligence and transformational marketing in the age of the Internet. Marketing Intelligence & Planning, 20(5): 259-268 www.dixons.com Read More