Business-To-Consumer – B2C
Business-to-consumer, B2C, also business-to-customer, is the trade carried on directly between the producer, seller or service provider and the consumer via the Internet (Note: the consumer and not even necessarily client because the consumer may still only know the products and services). From the standpoint of the consumer: define an updated corporate image, demonstrating an evolving organization, modern and able to offer a product or service quality.
Capabilities and Features of the Model B2C
The Internet has quickly become a vital component for companies. The role and importance of electronic markets have been increasingly varied. The power of electronic circuits such as the Internet to increase efficiency of business performance is one of the most important reasons for it. The capacity and potential of electronic markets, depends on how well it can leverage the power of the Internet to create sustainable competitive advantages. Some of the capabilities of the electronic marketplace are:
Instant communication: Help on instant communication between the various participants of business systems. It also helps in reducing the “time to market” for new products. Global Access: The products / services offered through electronic markets have a global reach and provide greater access to markets;
Customization: Providing the ability to offer products and services in real time, the ability to customize goods for the needs are greatest;
Increased availability: e-commerce offers a greater availability of company’s products being available 24 hours a day, 7 days a week 365 days a year;
De-Intermediation: Aids in the elimination of inefficient intermediaries, offering a simplified electronic distribution and differentiation of products based on customer choice;
Consolidation and Convergence: Help to further consolidation and convergence, which makes the economies of scale, facilitating the implementation of orders and hence compliance. This allows the revitalization of products that add value through the depth, context, or scanning;
Collaboration: Facilitates automation of electronic transactions between enterprises, support real-time exchange of information enabling a collaborative process.
Challenges in the initiative to implement B2C
Organizational change: For the successful transformation of a traditional business to a B2C e-commerce, there must be a radical organization. This becomes particularly difficult due to strong resistance to change by workers.
Redesign of business: As explained above, there are profound differences in how a traditional business functions and how a company conducts its e-commerce functions. Hence, one of the biggest challenges for a traditional society which changes to a B2C e-commerce to be successful is to re-design and streamlining of existing processes under the new form of business.
System integration barriers: In addition, the B2C e-commerce also requires that the various systems that represent a business as well as those of its partners in the supply chain are integrated. That’s because the real power of e-business effectively when systems are integrated.
Difficulty in matching technology to business needs: Is there a big difference between having technology and this technology utilize properly? One problem that many electronics companies face is prominent around the face matching technology to business needs. The problem is further aggravated because the market is flooded with new products. Another major problem is that the rampant development of technologies.
The role of intermediaries: The growth of electronic commerce has reduced the role of intermediaries allowing direct interaction between the company and end customers. Thus, a key challenge for a traditional business (which accounted for their activities through intermediaries) to become an e-business is to define the role of intermediaries in its supply chain.
Getting browsers to buy: Have your site visitors is only half the battle, because only after a purchase (or several) is that it determines the success of a B2C site.
Build customer loyalty: Customer Relationship Management is probably one of the most important challenges that can be done by the following ways:
- Create a service request easier for the customer;
- Making a site easy to use.
Compliance: The success of the B2C e-commerce requires that customer orders are fulfilled as promised, and this can be done by increasing the focus on investment, supply chain and logistics technologies.
Targeting the B2C market in consumer markets
Geographic: Is the process of dividing the total market into groups based on their geographic location and other criteria, or even climate;
Population: This involves dividing the market based on population characteristics. This approach targets consumers according to variables such as age, income, gender, family size, education, occupation, etc;
Psychographic: Is the process of dividing the market based on how people conduct their lives, including activities, interests and opinions. Relates to the behavior, lifestyle, personality (outgoing, conservative, impulsive, shy, rude, etc.);
Behavior: Sorts the people according to their willingness to buy, motivation and attitude. One form of this classification was the benefit segmentation, which classifies its customers according to the primary benefit they seek on the product.
Advantages of implementing B2C
The advantages of an Internet portal B2C rests on certain aspects such as:
Retailers can build your online store, benefiting from the increased promotion of brands and at the same time, getting more revenue from consumers who prefer the Internet. With the development of Internet tools, new ways to market products (Carvalho, 2006, p.41).
The virtual store also offers the option of e-commerce directed at businesses of any size, whether small, medium or large business (Carvalho, 2006, p.41).
Disadvantages of implementing B2C
Like most markets, B2C is subject to a number of influences, some of them to personal and emotional, some practical and rational. In making an order electronically, it is possible to know what the customer perceives and want the reporting of several steps it performs. In a traditional purchase, if not find the product you want, the customer walks out and leaves no record. However, under the aegis of the B2C concept, the company can generate experiences, based on real needs that customers have shown. With these experiences may also determine the fundamental needs and thus build, integrate and deploy their presence, with some success on the Internet (Carvalho, 2006, p.42);
The truth is that one of the major constraints for this is the B2C logistics related to the business model you want. Such companies can only survive if they have a good grasp of the expectations, needs, and not least, the service that customers demand (often related to logistics) are constantly changing. This is because consumers have extensive range of information on alternative products and stores, as well as data on prices, with just one simple click, so the power of decision is, increasingly, the client side. In parallel, consumers compare the performances of different business systems and, while not knowing they assign names, places the associated logistics systems in question (Carvalho, 2006, p.41);
The fact that the supplier does not own stock in one of the ordered products considered essential by the client, you can also call into question the performance of the supplier. In this situation the client may choose to move to a traditional market for the product itself must generate a feeling of rejection of this type of business and / or putting into question the company which had requested service (Carvalho, 2006, p .43);
The gap between information and the availability of existing stock in order to respond effectively to a specific order. Ex: The terminal is a wrong count of the number of items from a given reference and the client, which is online; your order does normally, as if the product existed. These situations give rise to multiple errors, observing a crossover wrong information, which requires the company to a deterioration of its image and, additionally, very low levels of performance (Carvalho, 2006, p.43);
The customer of the online world is more demanding than the client’s physical world. On the Internet, words have more impact, as each potential customer of the Internet has a big megaphone “(your list of email and communication networks to which it belongs), that is, if the company fails to meet their desires can convey a message much more quickly than a prospective client in the traditional trade, expressing his displeasure at not five friends, but the five thousand. The reverse may be true, though usually with less exuberance. In traditional commerce, an underserved customer can not have a major impact on the purchase. In online commerce that is not true, since a client can ill-served, also using online tools, be heard by millions of potential customers who have also access to the Internet environment (Carvalho, 2006, p.43).
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