Challenges of an Interactive Marketplace - Article Example

The Internet has brought immense changes, not only in the consumers’ purchase behaviour but also in how companies conduct their business. Indeed, the convergence of media—marked by the consolidation of television, radio, and print—has led to a dramatic shift in the communications platform: from one-to-many communication in which the company stood as the sole provider of information about its products and services, to one-to-one communication in which consumers rely not only on the company but also on various third-party groups and other consumers to gather user-relevant insights on the current products and services. Social media is contributing to this change, with its tremendous reach and consumer-centric features.

Although the scenario of the interactive marketplace can be analyzed from a marketing communications standpoint, it is important to zoom out our view and regard its impact on the business as a whole. Thus, it is the goal of this paper to shed light on how the convergence of media in the Internet phenomenon impacts firstly, the consumers’ purchase behaviour; and secondly, the business operations in its entirety.

As pointed out earlier, the Internet has empowered consumers in making wise purchase decisions. Firstly, with the emergence of third-party sites that conduct comparisons of the attributes of products under the same category, consumers can gain pertinent product information from an objective standpoint. Indeed, the availability of massive information on the Internet has created a more active and discerning set of consumers. This observation is also pointed out by Chinta (2006) as he highlighted the continual growth of technology-savvy, convenience-seeking, and quality-driven consumers. Secondly, with the advent of free product information, consumers can create content sites specifically catered to the buying audience. Powered by various websites like Facebook and Twitter, consumers can now create product reviews based on their usage experience. With this, it can be claimed that both phenomena continue to contribute to the shift of the consumers’ role—from merely passive audiences of company-fed product information to active shapers of product perception and image.

The Internet has also created effects on the business model of companies. With the presence of various brand contact points, companies now recognize the need to synergize all their business operations to create a unique and more favourable customer experience. Firstly, from an external point-of-view, companies continue to improve their standards on third-party transactions with their suppliers and retailers to maintain and nourish positive relationships with them. Since competition is prevalent—such third-party groups can easily shift clients—companies are drafting ways to make the business transactions beneficial for both parties. Secondly, from an internal point-of-view, companies now emphasize tighter relationships amongst their employees—from top management down to its service personnel—to acquire efficiency and synergy in the workplace. Bettering the working conditions, increasing employee benefits, and maintaining a unique culture of unity and cooperation are done to satisfy the employees. With these changes, companies are hoping to create more positive perceptions about the brands it holds.