Daily Archives: July 24, 2011

Online Review Practices and Misuse

Online reviews and suggestions are a huge part of online retail stores and often times determine what gets sold and what doesn’t. People use the suggestions of others, either expert reviewers, or everyday people, to decide if that product is right for them. These reviews aren’t always genuine though, and often times they come from reviewers with hidden agendas. Shay Davis and Trevor Pinch conducted a study to determine how exactly people do use the review feature offered by many online retail stores. They did this by using software they created themselves to detect when nearly identical reviews were being used for two different products.

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Era of Online Grocery Store

 

By Jessie Lin

Studies done in 2000 shows that two times more consumers have experiences in online shopping than there were in 1995. At the same time, there were more online-only grocery companies who sell their goods exclusively through internet attempting to replace traditional supermarkets ;yet many of them eventually failed. The article analyzes the pros and cons of online shopping site business model as well as consumer’s motives, and concerns towards online shopping as opposed traditional grocery shopping. The author concludes that online shopping has a comparable advantage on service, convenience and product variety while traditional supermarkets tend to offer a better price. In addition, privacy and security as well as limitation on sensation (Consumers can’t touch the product)are also reasons why pure online grocery companies have a hard time attracting new customers.  Lastly, online grocery companies pay no less on fixed cost which they have to invest a large amount of capital on storage centers and to keep them in full operation all the time. With low brand identification, not very many shopping sites could survive through the early stage.

Part of the economics, or should I say all, is driven by buying and shopping. Therefore, when consumers start to make the shift onto the internet, the economic structure will also be changing as well. Although  the study was done as early as 2002, many predictions and analysts proved to be correct in today’s market. Grocery shopping comparing to cloth shopping has more barriers to get across. However, when meat and egg could also be sold online , the nothing-can’t-be-sold-online era has arrived.

Citation:
Kimpiak, M., & Fox, M. (2002). Online grocery shopping: consumer   motives, concerns, and business models. First Monday , 8(12).

Online grocery shopping presentation.docx

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