E-commerce - Cape Peninsula University of Technology

Chapter 4: Data analysis and interpretation Page 57
the effect of e-retailing on their company's traditional shop. 43% of the
interviewees believe that e-retailing does not have much impact on their
traditional shop. At the initial stage, the concem was that e-retailing would
take away substantial part of the traditional shop's trade but it did not. The
57% that does not have traditional shops responded 'no effect'.
However, there were fears that employees might lose their jobs in the shops
due to this, but job loses have proved to be negligible, according to e-retailers
who have traditional shops.
E-commerce managers' view on customer loyalty
When respondents were probed to obtain their opinion on their customers'
shopping experience, most of the respondents felt that people see shopping
as an experience and a way of socialising and not just buying goods.
Customers buy emergency goods from the Intemet and still go out on
weekends to do weekly or monthly shopping. This is part of socialising and
not just shopping. Customers who order via the Intemet also shop at the
traditional shop.
One of the respondents illustrated further, when customers purchase from the
Internet or traditional shop, the data about what they buy is linked to the
company loyalty card, so the company knows who their customers are
irrespective of the channel the customer uses. If the customer logs onto the
company website through a home computer or PDA, their favourite or
recently purchased items will be listed whether they bought in a store or
online. The company has extended this card membership system to every
person that walks into the shop. After a period of time customers who have
accumulated points will be rewarded with a voucher based on how much they
have spent in the shop. The company uses this method to track other non­
card carriers, at the same time retaining the existing customers and attracting
new ones.