Finland-IP-04-20081 Associate professor Margarita Todorova, PhD Head of Computer Systems and...

Finland-IP-04-2008 1

Associate professor Margarita Todorova, PhD

Head of Computer Systems and Technologies Department

E-mail:

[email protected]


“St.Cyril and St Methodius” Veliko Turnovo University


Academic Staff

The University of Veliko Turnovo employs 916 professors and assistant professors. 66% of whom are

full-time. 34 % are guest lecturers from other universities and academic institutions, including

lecturers from Albania, Austria China, Germany, Italy, Japan, Poland, Romania, Spain, The UK, the USA

and others.42% of the teachers are professors (professors and

associate professors).

In June 2004 Veliko Turnovo was certified with ISO 9001


Principal Units of VTU

• The Faculty of Philology;• The Faculty of History and Jurisprudence;• The Faculty of Business;• The Faculty of Fine Arts;• The Faculty of Education (Pedagogy);• The Faculty of Philosophy;• The Faculty of Bulgarian Orthodox Theology;• College of Pedagogy – Pleven;• College of Pedagogy – Vratsa.


E-business

. 1. The Impact of Internet on Business

2. The e-Commerce in Europe 3. Classification Schema 4. Main Directions of Investigation 5. Some Results of investigation

CONCLUSIONS


The Impact of Internet on Business

• Power Shift to the Customer (the customer becomes the totally informed client);

• Global Sales Channel;• Reduced Costs of Buying and Selling;• Always Open for Business;• Reduced Time-to-Market;• Individualization and Adaptation;• Self-Service;• Expansion of the Internet User Demographics;• Physical Distribution;


The e-Commerce in Europe


In 2005 the volume of e-Commerce in USA was fifteen time larger than that in Europe

USA are the obvious leader in the filed of e-Commerce.

But the last 2 years we could say that there is great development of e-Commerce in

Europe as well


What is the situation in Bulgaria?Thanks to:

- existence of serious achievements in Europe,

- closeness of Bulgaria to Europe in respect of economy, legal regulations, users' behavior, etc., - steps of Bulgaria toward full integration with Europe,

it would be useful to get acquainted with the

situation in Europe


Consumers' Problems

1. General Observations

At that moment in Europe consumers still preferred shopping in the traditional way, despite the proven advantages of e-C.

2. Main Consumers' Problems - novelty of the procedures in Internet ;- the excessive dynamics of the procedures;- the existence of some sites with still not very

user-friendly interface


Consumers' Problems- the lack of transparency about the suppliers;-the delivery terms and costs are not always acceptable;

- the terms for returning goods and the respective costs involved, are also problematic areas - generally in contrast with the traditional commerce;


Consumers' Problems-payment is an essential problem – buyers are

suspicious towards payment security and confidentiality; some supplyers still do not offer enough guaranty and even information on this

issue; -the lack of a "real" shopping atmosphere and

advice; -the still high cost of communication for using

Internet.


3. Classification Schema

Two main groups:

- goods:

- services.


Goods: -Books;

-Audio/video (mainly CDs and films);

-Clothing (clothes, shoes, accessories);

-Home and garden;

-Computer (hardware and software, games);

-Sports and games (apparatus, sports clothes etc.);

-Gifts and jewelry;

-Food and drink;

-Health (nutrition supplements, cosmetics, body care products);

-Telecommunications.


Services - Package holidays;

- Last minute holidays;

- Flights;

- Hotel reservations;

- Car hire;

- Concert tickets and ticket booking;

- Gift services (flowers and greeting cards);

- Delivery services;

- Betting on lottery;

- Agency services.


Main Directions of Investigation

-Ordering/reserving

-Receipt of goods/confirmation of service

-Returning/canceling


Main Questions - How does one look for a specific product and how easy/difficult is it to effect the complete transaction?

- How long does it take to place an order?

- How is the graphic presentation rated?

- How good are the textual descriptions (if there are any)?

- What information is the customer given regarding the supplier?

- Are the general terms and conditions of business given?

- What methods of payment are offered?

- Are delivery times stated?

- Is it possible to return goods if not satisfied? What charges are incurred when a service order is cancelled?


Main Questions

- Is the customer informed about the additional charges which have to be met and how much they amount to?

- Is there a special security system protecting the payment procedure?

- Is the customer given a confirmation of the order?

- When is the order delivered?

- When do customs duties and import turnover taxes have to be paid, and how much do they amount to?

- Were there any problems when returning goods?


Some Results of Investigation


1. Distribution of orders placed with domestic and foreign suppliers

Approximately 2/3 of all orders have been placed with domestic suppliers

and the rest - with foreign


2. Language choice - For some of the orders more than on language has been used, but in every country investigated 100% have used their local language, too.

- In UK English has been the only language always used, which is, by the way, quite natural.

- In Germany always German has been used, but in 17.4% of the cases English has been also

used, as well as French and Spanish in 6.4% of the cases.


3. Worldwide delivery

Worldwide delivery of goods has been offered in 45.1% of the 435 transactions evaluated. For the purposes of the research, however, "worldwide" does not mean that goods are actually delivered to every country in the world, but merely that they are delivered to many countries and several continents.


Provision of Information

This information is systemized in the following groups:


1. Delivery times

In 56.8% of all cases such information has been supplied, but with substantial

difference between the various countries. Here are the extremes: 100% for UK an

Sweden, 12.5% for Italy.


2. Terms for returning goods This information has been supplied for 39.6% of all transactions, namely:

- in 62% of them it has been specified that no returning of the good had been possible in case the customer did not like it;

- in 5.1% - returning possible if only the good was defective;

- in 32.8% no indication of all has been provided.

Conclusion – electronic suppliers are not very much

inclined to accept back the good already sold.


3. Deadlines for returning goods.

In 27.7% of all cases no deadline has been indicated for returning the good if not satisfied. The remaining 72.3% are broken down as follows:

- under 7 days: 0%;

- 7 to14 days: 25%;

- 15 to 31 days: 44.6%;

- over 1 month: 2.7% - only for orders from USA


The following table shows the ratio of

delivery cost to good’s value.

Additional costs as % of the overall cost of the order

Cases %

No additional costs 8.3%

Up to 10% 8.3%

10 to 20% 11.4%

Over 20% 72.0%


Purchaser’s registration

It has been established that a registration had been required in 26.5% of all cases – most often in Sweden (80%), very rarely in Germany (17.4%) and Italy (12.5%). This is one of the most difficult decisions merchants have to take. On the one hand customer’s registration means collection of important information that could in future help to keep the customer for a long period. On the other hand people are irritated when they are requested more information than strictly necessary.


Order confirmation

Merchants have realized that purchasers insist on getting confirmation their order

has been accepted and will be completed. That is why 80% of them have acknowledged orders’ receipt.


Duration of ordering procedure

Ordering procedure duration Distribution

Up to 10 minutes 64.7%

11 to 20 minutes 20.9%



Over one hour 1.4%


Payment methods offered Payment method Distribution

Cash on delivery 10.1%

Check 36.0%

Credit card total 97.8%

Credit card online 93.5%

Credit card offline 37.4%

Installments 1.4%

Other (special cards) 21.6%


Payment method chosen

It has been proven that purchasers chose the simplest and fastest method – by

credit card online (89.1%). At the time of the study exceptions have been

Germany, Sweden the Netherlands and Portugal, but today the situation is hardly

the same


Correctness of the invoice

Generally the invoice has been practically always (87.3%) correct. In the rest of the cases one or another element has proved to be incorrect.


Security measures with the payment

In 87% the merchants have informed their customers about the security measures undertaken. Today this

percentage is probably even more higher, taking into account purchasers’ sensibility

to this issue and the really high level of security and confidentiality reached


Refund on returned goods

In 43.7% the full amount has been returned (in 3 cases even including the post and package costs), 52.3% have

received a reduced refund, in some case no refund has been given. It the latter case most often (88.6%) the merchant

has not given explanations


Have the goods been delivered

In 80.9% of all cases the purchase has reached the customer, in 18.6% - it has

not. With the creation of traditions on the e-market, most probably the non-delivery will

practically disappear.


Correctness of delivery

A delivery is considered to be correct in case it is exact (what had been ordered - has

arrived), it is complete (everything ordered has been delivered) and intact. This has been observed in 93.9% of all local cases

and in 96.5% of the cases with orders from abroad


Delivery time Country Local average

delivery time (days)Average delivery time from abroad

Germany 9.2 15.7

Belgium 12.3 11.5

France 15.5 9.2

UK 4.1 11.8

Spain 7.2 15.3

Netherlands 14.1 27.6

Sweden 13.6 16.3

Italy 15.7 10.4

Portugal 11.5 13.8


Internet penetration for Bulgaria

Internet Penetration for Bulgaria

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Perc

enta

ge

In absolute expression the Internet users, during 2005, will be about 1 200 000, that is 16% of the country population.


Evolution of E-business

To:From:

EvolutionPC-centric models(tethered)

Person-centric models(mobile)


THANK YOU FOR ATTANTION !

You are welcome to Veliko Turnovo University!

Finland-IP-04-20081 Associate professor Margarita Todorova, PhD Head of Computer Systems and...

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