M/C - Media and Culture Home
M/Cyclopedia Home

Virtual Communities - Direct Online Trading

From M/Cyclopedia of New Media
Jump to: navigation, search

Contents

Direct Online Trading

Direct online trading is the use of various online retail systems, which often form internal virtual communities, to sell directly to consumers. This form of marketplace has experienced considerable growth within recent years as confidence in internet transactions has increased. (Grosso et al., 2005, p.18) The nurturing of virtual interaction and community on these sites has also increased. Though there are many benefits for both customers, retailers and manufacturers, there are also currently many drawbacks to contend with.

Virtual Communities Involved in Direct Online Trading

Direct online trading has allowed businesses to monitor and interact with their customers as well as often allowing them to interact with each other. Popular online trading mediums such as eBay often promote very open online communication between users through their business-to-consumer (B2C), business-to-business (B2B) and consumer-to-consumer or peer-to-peer (C2C/P2P) forms of e-commerce. (Bidgoli, 2002, p.50) This openness creates a more transparent and therefore more comfortable shopping environment. (Tamimi et al., 2005, p.37) In this particular system, all users have accounts where they are immediately accessible through email, though in recent times, eBay has offered much more in respect to the building of virtual communities. EBay now offers discussion boards for trading related conversation, group rooms where discussion of similar interests is promoted and chat rooms that offer a relaxed general chat format. Set-price online retailers such as Amazon.com now offer similar services, also encouraging a more relaxed unperturbed shopping environment. Virtual communities are now not only acknowledged for their social benefits, but also for their economic advantages.

Benefits

For Online Customers

  • Items can now be scrutinized by a wider audience, allowing for more informed purchases to be made.
  • Social groups can be developed from similar interest discussion groups and forums.
  • Transparency of sales is increased, therefore further efforts for greater transaction security.
  • Interaction with vendors allows for more personalized and customized purchases.

For Online Sellers

  • Sales increase as a welcoming trading environment is established.
  • Customer loyalty increases, as stronger relationship ties exist with both fellow shoppers and the online vendor.
  • Increased customer feedback allows for greater alignment with customer needs.

Drawbacks

For Online Customers

  • Customers are still operating within the parameters of the online marketplace and are therefore vulnerable to online fraud and deception.
  • E-commerce sites are primarily geared to promote sales and, therefore, may not provide completely objective discussion and input to the virtual communities they host.

For Online Sellers

  • Resources directed toward the establishment of virtual communities may take away from the marketing and primary operations of the business.
  • Virtual discussion spaces are open for infiltration by competitors and disgruntled customers desiring to derail further sales.

(Caterall and Maclaran, 2002, p.228), (Dholakia et al., 2004, p.241), (Hennig-Thurau et al., 2004, pp. 40-41)

Additional Links to Direct Online Trading Virtual Communities



References


Bidgoli, H. (2002) “Electronic Commerce: Principles and Practice�?, USA: Academic Press, ISBN: 0120959771.

Caterall, M., Maclaran, P. (2002) “Researching consumers in virtual worlds: a cyberspae odyssey�?, Journal of Consumer Behaviour, 1 (3): 228.

Dholakia, U., Bagozzi, R., Pearo, L. (2004) “A social influence model of consumer participation in network – and small-group-based- virtual communities�?, International Journal of Research in Marketing, 21 (3): 241, ISBN: 01678116.

Grosso, C., McPherson, J., Shi, C. (2005) “Retailing: what’s working online�?, The McKinsey Quarterly, 3: 18, ISBN: 00475394.

Hennig-Thurau, T., Gwinner, K., Walsh, G., Gremler, D. (2004) “Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the internet?�?, Journal of Interactive Marketing, 18 (1): 40-41.

Tamimi, N., Sebastianelli, R., Rajan, M. (2005) “What do online customers value?�?, Quality Progress, 38 (7): 37, ISBN: 0033524X.



--Dominic Jarvis 21:59, 26 Sep 2005 (EST)

Retrieved from "http://wiki.media-culture.org.au/index.php/Virtual_Communities_-_Direct_Online_Trading"
Personal tools