Researching how to conduct a profitable online business Essay

Researching how to conduct a profitable online business - Essay Example Numerous studies have indicated that the power of internet shopping rests in the immediacy, 24-hour availability, and depth of product information available as consumers are able to search for information with near-zero cost since information is only 'a click away.' Further, unlike traditional retail products, the internet poses no constraints on the amount of information that may be provided. There are no shelf-space limitations, and consumers can access more information as long as they are willing to scroll down, or select another web page. Information-based decision aids are key consumer-based tools that facilitate broad search, controlled by the user, at reduced cost and with greater accuracy. Much of these functionalities are provided by means of online shopping decision aids (e.g., bargain list, best of list, comparison matrix, consumer reviews, gift reminder, live chat help, personalised recommendations, recommendation agent, related item list, sponsored chat forum, wish list, etc.), which are electronic attributes of an internet retailer website that significantly enhance the consumer's shopping experience and help them make purchasing decisions. Despite the growing popularity of decision aids with consumers, little is known about how they create value for the Internet retailer. It is unclear, however, just how decision aids contribute to the bottom line in helping consumers make purchasing decisions. By examining the decision aids currently used, this project aims to design and develop an application, which could simulate the value/appropriateness of each proposed online shopping decision aids (i.e., from several perspectives such as bookstore, food retailing and travel industry). In this regard, the dissertation poses several questions. It will help clarify the intended purpose of the decision aids by answering some of the following research questions; should Internet retailers employ one or more decisions aids Could the optimum number of decision aid s to be used be determined Could the optimum combination of decision aids be mapped out). The application should also provide some new insights for Website design, IT spending, and overall business strategy. These theories have then been tied up theories and management tools like knowledge management so as to render credibility to the studies and to demonstrate the nexus between application and technology for the successful codification of information. This codification of information will further the cause of successful business activities in the online arena. Introduction The world has shrunk to a small speck called E-commerce, where it is now possible to exchange goods and money in the form of normal transactions. Shopping on the Internet or online shopping as it is more popularly known is that form of shopping that has almost emptied shopping malls in various parts of the world. For success in this kind