Subject: General Questions / General General Questions
Creating Customers on the Move The advent of mobile commerce (mcommerce) has begun to create significant changes in the way consumers
make purchasing decisions. The introduction of online shopping first began to
draw customers away from brick-and-mortar retailers, changing the location of
where they made their purchases. The use of mobile devices has expanded the
location of purchase decisions even further, so now consumers can make
purchases from almost anywhere, so long as they have a mobile device with
them. It also has leveled the playing field for consumers in many cases, as it
allows them to comparison shop on prices of products that they might find in
stores. In 2009, the mobile commerce market generated $18.3 billion in total revenue.
By 2015 it’s projected to reach over $119 billion. When it comes to mcommerce, eBay has jumped in with both feet. It is estimated to hold about 3.3
percent of m-commerce, compared to online retailer Amazon’s 1.5 percent. It
also was estimated to sell $1.5 billion in goods via m-commerce in 2010,
compared to $600 million in 2009. eBay launched its first mobile application for
the iPhone in July 2008 and has since produced 14 apps, including eBay Selling,
StubHub, Deals, and Fashion. eBay’s core iPhone application has been
downloaded 14 million times, and its entire stable of apps has seen over 30
million downloads worldwide. Purchases range from clothing and accessories to
sporting event and concert tickets, computers and technology gadgets,
collectables, and even luxury automobiles. Research indicates that more than
half of regular m-commerce purchasers are comfortable spending over $100 on
a mobile purchase, and 14 percent are willing to spend over $1,000. eBay has been quick to embrace the trend toward comparison-shopping, as
potential buyers compare in-store prices online with those offered by other
retailers. In June 2010, eBay purchased RedLaser, a mobile app that uses the
cell phone camera to identify a product’s barcode and locate that product
within eBay’s system. If a buyer is searching for a certain designer jacket for example, he could
compare prices between eBay’s auctions, flat priced buy-it-now options, and eBay’s Fashion Vault, which offers limited-time deep discounts on select highend merchandise. But while eBay has excelled in m-commerce so far, its ability to fully capitalize
on this growth potential depends on how it is able to influence consumerpurchasing decisions. Merely allowing consumers to search for items, compare
prices, and then make a purchase isn’t enough. As eBay VP of mobile platforms
Steve Yankovich says, “We want consumers to engage when they don’t have a
purchase in mind.” The combination of apps with mobile devices enables browsing and purchasing
virtually anywhere at any time, especially during downtime—say when the
potential buyer is getting a haircut or waiting in line at the coffee shop. By
enabling buyers more opportunities to shop and make purchases, eBay is
hoping to spark purchases based on the buyer’s immediate situation. The eBay
Fashion app is designed to inspire browsing and experimentation, offering
features such as a clothing-focused search function, a virtual closet to save
various finds, and a mix-and-match feature that allows users to pair up articles
of clothing with various accessories. Users can even take a picture of
themselves using the phone camera and the Fashion app will superimpose the
outfits they create over their figure, allowing shoppers to digitally “try on” the
looks. So if a purchaser saw a dress she liked at a party, she could “try it on”
and match it up with accessories in her wardrobe. eBay is planning to release
even more apps like eBay Fashion, targeting key eBay shopping demographics
such as car enthusiasts and home-and-garden enthusiasts. Early trends suggest that shoppers are responding to eBay’s efforts as well. As
eBay has continued to develop the offerings of the eBay Fashion app, average
user browsing time on the app has increased by 40 percent since its original
release and mobile fashion sales tripled over the past year. If nothing else, the
new trends in m-commerce move very quickly, and eBay must continue to
innovate if it wants to stay ahead of the game. Says Yankovich, “Nobody knows
what’s going to happen in mobile. We need to be ready to spin on a dime.” Answer the following:
? Which stages of the consumer decision-making process are affected most by
comparison shopping on mobile platforms? Explain.
? Technology has drastically altered the consumer buying behavior, today as
consumers we have the luxury to browse and shop virtually anywhere at
anytime. What are your thoughts on being able to shop 24/7 virtually?
? Do you find yourself shopping online more as opposed to the traditional shopping
method of visiting the store during store hours? Why or Why not?
? What are your thoughts on Black Friday in store deals versus Cyber Monday, do
you find one to be more beneficial to the consumer than the other? The requirements below must be met for your paper to be accepted and
? Write between 500 – 750 words (approximately 2 – 3 pages) using Microsoft
Attempt APA style, see example below.
Use font size 12 and 1” margins.
Include cover page and reference page.
At least 60% of your paper must be original content/writing.
No more than 40% of your content/information may come from references.
Use at least two references from outside the course material, preferably from
EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the two reference requirement.
? Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.)
must be identified in the paper and listed on a reference page. Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) must
come from sources such as, scholarly journals found in EBSCOhost, online newspapers
such as The Wall Street Journal, government websites, etc. Sources such as Wikis,
Yahoo Answers, eHow, etc. are not acceptable. A detailed explanation of how to cite a source using APA can be found here (link).
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