online services

Amar Raithatha 8069

1) First of all find out how the service works - describe the system, the target audience, usage figures, and non-internet alternatives. Give examples - compare the same service supplied by different providers. Explain all the aspects of the service that are offered e.g. online banking don’t just cover current account information. Profits?

2) Then find people who have used the service - regularly, intermittently, once and never again, not at all. You might want to use e-mail interviews or discussion groups.

3) Find out from these users what the benefits and drawbacks are - and what improvements they would like to the service.

Using five online services I am going to describe the system, find the target audience for the specific service, give usage figures and non-internet alternatives. I will compare the same service supplied by different providers. I will also explain all the aspects of the service that are offered. I will then find people who have used the service regularly, intermittently, once and never again or not at all. I will finally find out from these users what the benefits and drawbacks are of the service and also any improvements they would like to see take place.

The five online services I will look at are; online shopping, online bidding/ auctioning, online banking, online rentals and online reservations.

1) Online Shopping – I have decided to use Tesco as an example of shopping online.

Tesco is one of many shops you can buy online from. Tesco offers the service for you to be able to buy anything you can find in Tesco’s store to be ordered online to your home. You do this by accessing the internet and ordering anything you might need direct to your home, you can also view pictures of products. You pay for your good by credit cards.

This is convenient as your orders are delivered to your home so you can do your shopping from the comfort of your own home. Online shopping is aimed at disabled people and people who may not have car. This makes life easier for these people as disabled people may find it difficult to get around and if you do not have access to a car you can use the internet instead of having to use public transport or having to walk. The non internet alternative is to go to the store itself.

This service not only saves time having to walk around huge stores like Tesco’s trying to find your essential needs but also saves energy as you are choosing your products sitting at a computer. Also it is not a disadvantage as you can find the same range products online as you can find in stores.

A disadvantage of shopping online is that you cannot find reduced items. The cost of having the internet is another disadvantage. Also credit card connections are not always safe and credit card fraud is a possibility.

The target audience for Tesco are; women and men aged 30 and up, although mainly women, with children that work full time as they will not find time to go to the store.

To shop online you will need to register and become a member of Tesco’s.

Here are a few simple steps on shopping online:

First you need to register:

Once you are registered you click on the link shown below to sign in using your username and password.

Here once you have sined in you can start your shopping.

Supermarket giant Tesco has posted record full-year profits of £1.6bn, lifted by rising sales.

The figures, which cover 53 weeks to February 28, include like-for-like sales growth of 6.7% in the UK - a performance described by Tesco as one of its strongest in recent times.

1st October 2005

Other service providers are Sainsbury’s and Safeway. They provide similar services and are used in the same way, they also give the option for shopping online or in store.

An alternative service provider instead of shopping online with Tesco’s would be going to a grocery store. An advantage of this is that you can choose you own fruit. This way you can pick fresh fruit where as fruit delivered to you may not be satisfactory. However this means you will have to leave your home, taking more time. Other providers that have similar services available are Asda or Morrisons.

Here are some internet usage figures:

1st October 2005

Online retailing sites are prime destinations for women 18-34 years old who are Internet users. While women 18-34 are 15.7% of all Internet users, they are 24% of shoppers at fragrance/cosmetic sites, 22.3% of shoppers at jewellery/accessories/luxury goods sites and 20.8% of shoppers at apparel sites.

4th October 2005

I have carried out a questionnaire to find out how regularly if at all people use this online service. I asked 30 people.

This research has shown me that more people don’t use the online option or if they do they do not use it regularly.

I ...

This is a preview of the whole essay

4th October 2005

I have carried out a questionnaire to find out how regularly if at all people use this online service. I asked 30 people.

This research has shown me that more people don’t use the online option or if they do they do not use it regularly.

I then asked these users what benefits they found using this service, any drawbacks and what improvements they might like to see.

Benefits

You can order from the comfort of your home
The items are delivered right to your door
It saves time
There are pictures on the internet so you can look at the items before you buy them
You can sometimes pick special online deals and find things cheaper than in shops
You are able to check availability
You won’t have to wait in queues to pay for your items.
In the case of ordering over the phone there won’t be any phone queues.

Drawbacks

Credit card fraud is a major problem
People not knowing if the website or connection is safe
You have to pay for posting and packaging
There will be a delivery charge
Orders may get lost in the post or orders may not be received which you will then have to chase up
You have to be at home to receive orders.

Improvements

Faster services and deliveries
Sites should be secured so that credit card fraud is not a worry for anybody.
Orders should be on time as they can be delayed and late.
There should be no delivery charge

2) Online bidding/auctioning – I will use E-bay as an example of online bidding and auctioning.

E-bay means you can search for items on the internet through its search tool bar. To access E-bay you go on here you can search for items you may want or need using the search tool bar and typing in key words. This will then bring up matching items that other people have put on e-bay to sell. From here you can view prices, details on the items and many have images for you to view the product. If you have found something you would like to bid for you put in your bid. When the time period for that item on sale ends, usually one week the person that has put in the highest bid for it gets it for that amount. However the seller can put on a reserve, if the reserve is not met the seller does not have to sell. Payments can be made by credit card or by sending a cheque in the post. “Pay pal” is the most popular way of paying for goods as it is well protected and secure. Goods are then posted or shipped out to the highest bidder. It is open to the whole world and you can therefore purchase things from other countries like China or America. You can purchase anything from kid’s toys to cars on eBay. One of the things that more and more people are buying on ebay is holidays.

Some advantages of using online auctioning are; firstly you can shop on the internet from the comfort of your own home. This is a lot more relaxing, saves energy and time having to go in and out of shops. Another is that on ebay you can search for virtually anything and find what you need for example if you want to buy a perfume, a new handbag and look around for a new car you can look for all of these on one site. If you were to go out looking for these if would mean a lot of walking and travelling as there is not a shop that does al these. Another advantage of shopping on ebay is that you get special online prices; prices on ebay are usually a lot cheaper than in shops. Ebay alerts are useful as it emails you if your bids have been successful or if they have been out bid.

Disadvantages of using online auctioning are; credit card fraud. One of the main things that put people of bidding for items online is that credit card fraud is a risk they will have to take, as there are many hackers out their who can brake the best security codes. Another disadvantage is that you have to keep checking the status of your bid because some one may have out bid you and you will then not get the product unless you out bid them. You also have to wait for what you have bought. Firstly you have to wait for the payment to go through which may take a few days and then you have to wait for it in the mail, depending on how far you have ordered from and the conditions arranged with the seller you cloud wait a very long time or a really short time for your products. Another disadvantage is that you do not know who the seller is and although the auctioning company will have their details people can still get away with fraud by taking payments and not sending anything out. Also faulty items can be a pain, if you product is not working properly or at all you have to send the goods back to the seller and then claim money back. This can turn into a very long process and can lead to court if it turns into disputes as the seller can claim it was working and refuse to refund.

I think the target audience for online auctioning is for older people from about the age of 20 and upwards to about age 45. I think this because you need a credit card to be able to auction therefore you will need to be over the age of 18. I think male and females will use it, I also think more people without children will use it as you will need time to sit and search, with children this may be difficult.

To auction online you will need to register with a credit card. If you do not have a credit card you will not be able to do it. Once register you can bid but also sell your own items.

Here are some screen shots showing how you register and then auction online with eBay:

1st you need to fill in the form with al your information, things like your name and email address.

You then need to choose a used ID and password. This will be the ID you use to sign into the website and the password that will protect your account. You will then need to check your email, eBay will send you an email confirming your registration and your personal details like your user ID and password.

Here are some usage figures on online auctioning. According to the National Association of REALTORS®, "the value of residential and commercial properties at auctions climbed from $49.5 billion to $58.5 billion between 1998 and 2002." Further, the number of people conducting auctions in the U.S. is on the rise. The National Auctioneers Association now has a record 7,000 members.

Research Statistics Taken From the 2003 National Auctioneers Association (NAA) Survey

2003 Auction Sales: $200 billion (includes all types of sales- real estate, machinery, art, autos, etc...)
2003 Real Estate Total: $44.6 billion (down from previous reports from the Gwent Group, yet the Gwent Group also includes sealed bid sales figures)
Commercial and industrial real estate accounted for 6.2% ($12.4 billion)
Residential real estate accounted for 6.1% ($12.2 billion)
Land and farm real estate accounted for 10% ($20 billion)

11th October 2005

A non internet alternative from online auctioning will be to go to an auction centre or auctioning hall. This works in a similar way except in stead of looking at pictures on the internet you sit in a hall and you view the item before bidding starts and then someone will hold up the item or put it on display if its something big like a car, you will then bid for it which can turn into you and others bidding for the same item until someone drops out. The winner can collect their products on the day or arrange a later collect date, however this way you can pay by cash if you like. This can be an advantage. Another advantage it that you can check it works before you buy it but also have a good look at it as internet images may not always be clear and you cannot get a clear image of what you are looking to buy, this way you are sure of what you are getting and of its quality. An example of an auction hall is, Central Car Auctions Ltd. This is an auction hall in Glasgow that just auctions cars.

I have carried out a questionnaire to find out how regularly if at all people use this online auctioning service. I asked 30 people to take part.

Benefits

Most things are a lot cheaper
Its easy
You can do it from home
you can find almost everything on the site
time saving
orders are delivered so you do not have to go out to pick it up
pictures are usually available so you can see the product
bidding for it is quite quick

Drawbacks

Credit card fraud, especially if it’s not a safe connection or a well know web site.
you can loose the bid
the seller may not have a good credit rating and may not have made a lot of sales therefore you cannot be sure they are legitimate
you have to wait for the product to be delivered, depending on where its coming from it could take a long time
to try and win the bid you have to keep on checking the status on if your bid has been beaten or not
If the product is faulty or not what you expected and the seller refuses a refund it is a very long process where ebay administrators will get involved to get your money back.

Improvements

Web sites need to be a lot more secure so people are not worried about credit card fraud.
The service needs to be quicker, as bids can go on for weeks
All products for sale should have a picture are not all do, this means people get more of an idea for what they are bidding on.
False advertising should be taken out as many products when arrive are found to be different from seen in the picture on the internet

3) Online banking – I will use standard life banking as an example of online banking.

Wherever you have access to the Internet, on your home computer, at the office, it's easy for you to manage your finances. Simply by entering a secure User ID and password, you can access your savings accounts. If you have a mortgage you can view details of this online too. Banking online gives you the flexibility to manage your accounts at a time that suits you. Online banking means you can take care of most of your banking needs through the internet, this means not having to leave your home if you have a pc. You can also use online banking to check your bank status e.g. with your balance or check your mortgage. Once you have logged onto the computer and put in your ID and password you can choose from a range of options on what task you want to perform. Here is a list of just some of the possible options:

Online banking enables you to access details of your Direct Access account and 50 Day Notice account and do the following:

I've got a savings account - what will online banking mean to me?

check your balance
browse transactions
make deposits and withdrawals
set up or amend regular deposits
transfer money between accounts in your plan
check any pending transactions
print copies of your statements

I've got a mortgage - what will online banking mean to me?

If you have a Standard Life Bank mortgage, online banking enables you to view:

your next payment date
the next monthly payment amount due
the current mortgage balance
the remaining term of mortgage - 13th October

The target audience for online banking is male and females from 18 to 24 year olds. This is because you have to be over 18 to have a bank account with a credit card. It could be aimed at parents, as with their jobs and or their children it could be difficult for them to get out to do banking. This way they can do it at home while the kids are busy playing or even sleeping.

Javelin Strategy & Research found that users between 18-24 years old are more likely to use online banking than other age groups.

– 13th October

Rank -- Site --- unique audience --- Reach (active) %

1 -- egg.com --- 773,562 --- 6.15
12 -- lloydstsb.co.uk --- 699,936 --- 5.56
13 -- lloydstsb.com --- 566,740 --- 4.5
14 -- barclays.co.uk --- 502,076 --- 3.99
15 -- nationwide.co.uk --- 376,456 --- 2.99
16 -- hsbc.co.uk --- 337,694 --- 2.68
17 -- nationet.com --- 334,758 --- 2.66
18 -- halifax-online.co.uk --- 234,120 --- 1.86
19 -- nwolb.co.uk --- 229,402 --- 1.82
110 - abbeynational.co.uk -- 221,630 --- 1.76

Here are some usage figures above.

Other providers that provide the same services are; Barclays, abbey national, HSBC.

A non internet alternative is to go to the bank. There are many banks in the main towns and cities. The non internet alternative would be to go to one of the banks in person and do your banking that way.

I have carried out a questionnaire to find out how regularly if at all people use this online banking service. I asked 30 people to take part.

Benefits

you don’t have to leave your home
its convenient
its quicker
there are no queues on the internet
you can just check balance or profit information
it saves time
you can do most of the things you do in a bank on the internet

Drawbacks

it may not be safe
credit card fraud
if connections and passwords are not secure others can also check your bank information
The information is private and you have to be careful when using the service in an internet café as someone may be watching.
You cannot query anything as the internet cannot answer questions directly
You may have slow internet connections
You have to have access to a PC and internet
Its confusing

Improvements

the passwords and user ID could be more secure
banks should show people how to use the online banking service before they use it or print leaflets
more support should be available
it should be easier and simples to use

4) Online rentals – I will use blockbuster as an example of online rentals.

It works by you subscribing to blockbuster of a monthly payment. In exchange of this payment, you are allowed a certain amount of rental videos or DVD’s per month. You order these through the internet. Once you are registered and you account has been set up you orders the films you want from their website on the internet, you choose the film you want, they post you the film once you have watched it you post it back and can then order another. You can keep the film as long as you like. You do this by going on:

- 14th October

The target audience for video rentals is 20 – 35. This is because this is the age people will have started to work and may have just bought their own home. They may rent videos rather than going out to the cinema every evening as this may be more expensive, young couples instead could rent a movie and enjoy it in their new home. Also younger people are likely to use this internet service than the older generation.

Online DVD rental statistics:

The Hitwise data, collected from the daily surfing of over 9m UK Internet users throughout March, April and May shows that Video Island's platform which includes, its consumer brand ScreenSelect.co.uk as well as branded-partners, including Tesco, MSN, EasyCinema and ITV are the most used online DVD rental services in the UK.

Hitwise data confirms that for the months of March, April and May, 37% of all online DVD rental visits are logged with a service which is powered by Video Island. In comparison, both Blockbuster and LoveFilm trail behind, with 26.86% and 30.77% respectively.

IMRG release has e-commerce taking 7% of the traditional retail market after 10 years. However, according to the latest Screen Digest estimates the online video rental business is on track to represent 15% of the total UK rental sector this year.
Screen Digest research shows that by 2006, the online DVD rental business is expected to be worth £388m.

A non internet alternative to movie rentals would be to sign up with blockbuster, to do this you register with then by filling in a form and you get a membership card. With this card you can go to the shop and rent DVD’s, videos and computer games. You pay over the counter when taking the items out. You then have to bring the video back to blockbuster store; if they are closed there is a letterbox just for the videos. The same system works for other rental places like Manhattan Video or Parkside Videos.

Benefits

You order the films on the internet so there in no need to leave you home
The films are delivered to your door so you do not need to go and pick them up
You only have to post the films so you don’t need to go to the store to deliver it just to your nearest post-box
its quick and saves time
You can keep the videos for as long as you like so if you don’t get a chance to watch it you don’t have to give it back of pay charges on it for being late.

Drawbacks

You have to order in advance as if you want to watch a film in the evening the film wont be sent out and delivered until the next day
Missing post could mean the film is lost and you may be charged for it
Postal strikes means you will have to wait extra for your video
Depending on what class it is the post can take a long time
You can only hire out a certain amount of movies in a month
You can only hire out a certain amount of movies at one time

Improvements

The service could be quicker
The films could be delivered by van instead of post, this could make it quicker and safer
You should be allowed to hire unlimited amount of videos per month
You should be able to hire more videos out at once.

5) Online reservations - I am going to use the Holiday inn to show how online reservations work.

Holiday inn gives you the service of being able to book a hotel room, or bed and breakfast over the internet with your credit card, this will be where the payments will be taken from. To book a room you go on their website, from here you enter al your information and needs, for example how many rooms you need and for how long. It will tell you if they have these vacancies and how much it is, you choose any extras you may want like champagne and enter you credit card details and your room/s will be reserved. You will be given a reference and when you get to the hotel reception desk once you show this reference you will be given your rooms.

The target audience for the holiday in is young couple or a family with kids. This is because many people stay at the holiday inn the night before going on holiday so the next day they are completely ready, also because the hotel offers a free ride to the nearest airport as part of the package.

41% of hotel reservations were booked online in 2005, up from 36% last year.

A non internet alternative to booking a hotel reservation online would be to either phone the hotel up and book the room using a credit card or to go their in person and to book the room either beforehand or just turn up and hope they have a vacancy. Other service providers that provide the same service are; The Sanctuary House Hotel and the Ritz.

Benefits

you can find cheap deals on the internet
you can book last minute
you can book early in advance
its quick as you don’t have to wait in phone queues
you can view pictures so you know what the hotel is like

Drawbacks

credit card fraud
you never really know what the hotel is like until you’ve been there
the transaction may not have gone through and you could end up going to the hotel with no vacancy
you may not be informed of hidden costs

Improvements

safer connections to reduce credit card fraud
an email or fax letting you know the transaction is complete and you defiantly have a booked room
all costs to be declared before payments
only resent pictures of the hotel should be allowed not pictures of how the hotel looked ten years ago when it was first built so people get an accurate image of what the hotel is really like.