The Effects of E-Commerce on Firms Ability to Segment Market

THE EFFECTS OF E-COMMERCE ON FIRMS ABILITY TO SEGMENT MARKET
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(18, November, 2010)The Effects of E-Commerce on Firms Ability to Segment Market
E-commerce (Electronic commerce) is a process of selling and buying of goods and services over the internet. It is usually online promotion and sales of goods and services. It is sometimes referred to us eBiz.
E-commerce can be divided into three. The first one is where goods and services are sold directly to consumers, called business to consumers (B2C). The second one is where goods and services are sold to business directly, called business to business (B2B). The last one, goods and services are sold from consumers to consumers (C2C).
E-commerce has helped the firms to segment their market better in form of the age, gender, price, interest, tastes and preferences of its potential customers. This is because the firms are in direct contact with the customers. This direct contact has helped the firms to keep track of the required goods and the services, quantity, quality and the time for delivery. Thus helping the firms` strategize on production. This has eliminated the poor timing in production and reduces wastage of resources. This is because the firm is capable of getting first hand information on its customers needs. An example is Amazon Company i...