Lecture# 6 (Part 2) The Mobile Commerce Explosion

Question 1:

Take a survey in one of your classes. What percentages of students own a smartphone? Gather some data regarding how they use their smartphones for shopping. Do they use a smartphone to compare prices? Do they use a smartphone to read product reviews? For what other shopping-related activities do they use their smartphones?

 From the survey, 100% of the students have their own smartphone. Only minority of the students uses smartphone to compare the price. However, most of the students did use a smartphone to read product review. Other than this, there are some students usu their smartphone to purchase the products directly through an on-line system. 

Question 2:

How do you think large brick-and-mortar retailers like Best Buy and Walmart can compete in a world quickly moving to smartphone-enhances shopping? Do you think smartphone-enhanced shopping will outrageously transform brick-and-mortar retail, perhaps putting many retail chains out of business? Why or why not?

 

Yes. In my opinion, smartphone-enhanced shopping will outrageously transform brick-and-mortar retail and putting many retail chains out of business. This is becuase other retail chains do not have the resources to fight against the big retailer who can offer a cheaper price and the price is made known everywhere using a smartphone. Hence their business can not sustain for long under the competition. 

Question 3:

Many retailers are creating proprietary in-store apps for shoppers. Some of these apps help shoppers find the location of products in the store, while other recommend complementary products based on product searches. For an in-store app, say, for a Best Buy store, identify and describe three additional features that you believe shoppers would benefit from and encourage them to make purchases in the store.

 

 The three additional feature will be the following:- 

1. An extra interface to teach the consumer how to use the smartphone for different purpose.
2. Option for consumer to purchase the products directly through a on-line payment system or interface
3.  Option to allow the consumer to have a detail view for the product, perhaps in a 3D dimension or zoom in function. 

Question 4:

Ensure (www.esurance.com) has a slogan that states, “People when you want them, technology when you don’t.” This speaks very much to the increasing role of technology in customer service. What do you think about this? Can (and should) technology take over the primary customer-facing role for an organization, especially a retail store? Will stores like Nordstrom lose their competitive advantage based on superior customer service?

 In my opinion, yes. Technology can take over the primary customer-facing role for an organization, especially a retail store. There is no any issue having a better customer services by using technology. Stores like Nordstrom will never lose their competitive advantage based on superior customer service because customer will not only focus on the price but also include the factor of customer services before buying a product.

Question 5:

What about people who can’t afford a smartphone? Will they be disadvantaged while shopping? When do you think smartphones will become affordable to all, say in the price range of $40 to $50?

 Yes. This is indeed a disadvantages for those who can't afford a smartphone. With the current demand of the smartphone and the competition among the smartphone producer, the price of the smartphone has been reduce and it has come to a range of $40 and $50. Hence, everyone can easily buy a smartphone.