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Customers need more than just the product. They demand superior shopping
experience spanning the entire process from articulating to fulfillment of their needs.
Fulfillment impacts customer satisfaction 10 times more than selling. Fulfillment
problems include lost orders, incomplete or inaccurate product availability information,
and late shipments. Customers expect not only on-time delivery but also instant
access to their order histories, shipping information and up-to-the-second product
availability information. Many of these functions require deep integration between
front-end on-line ordering systems and back-end supply chain and logistic applications.
Both FedEx and UPS offer systems that can integrate delivery status and other
information from the shippers directly into the e-commerce systems. They can also
provide on-line capability for customers to initiate return of packages on the web and
link them to drop-off locations. They also provide the customer with the ability to track
returns and check account information. Ironically, consumer concerns on late
delivery has increased and concerns over the security of credit cards and personal
information has decreased from 1999 levels.
B2C is uniquely customer centric. Heterogeneity of user profile has become a major
problem facing online shopping service providers. One universal service is not likely
to satisfy all public users whose cognitive and demographic profiles differ substantially.
Consumers exhibit different behavior and express varied concerns that firms
must
take into account. For example, 1/4 browse on-line and buy from brick and mortar
stores, 1/5 buy from merchants they know, and 1/5 are interested in saving time and
maximizing convenience. Firms such as American Express have learned to compile
customer information from a range of sources and build a comprehensive view of the
customers. They have developed capabilities to anticipate and meet customer needs
in real time by delivering customized services superior to their competitors, leading to
higher revenues and customer retention.
Electronic commerce is at an early stage of development and vaguely understood.
There are few established rules on how to organize and implement e-commerce. The
majority of EC business models are innovative and unproven. The source of e-
commerce knowledge is generally unreliable. The knowledge often comes from
venture capitalists, investment bankers, and technically oriented entrepreneurs. They