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Question #1 What percentage of U.S.

households have a computer at home? 55%

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Question #2 What percentage of U.S.

households have a Internet access at home? 51%

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Question #3 After the USA, what country

has the highest percentage of adults going online? Netherlands – 46% followed by Australia at 45% and Hong Kong at 42%

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Question #4 After the USA, what country

has the highest percentage of adults purchasing online? Japan, with 20%, then UK and Canada with 18% and Germany with 17%

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Question #5 What is the profile of online

shoppers? (gender, age, income) 57% males w/online access shop 25-34 (66%), then 35-44 (49%) > income, higher percentage shop

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Question #6 What are the 3 attributes of

favorite web sites? Good product selection Competitive prices Ease of use

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Question #7 What is the greatest barrier to

online purchasing? Fear factor - Credit card safety (69%), then privacy (61%)

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Other barriers Other fears

Returns Customer service questions answered

Feel factor Feel, see, try out/on Prefer shopping at stores

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Try-out/”experience” Zanybrainy.com – selected toys 3D interaction to zoom in and

out, “use” products (sharperimage.com)

3D shoe boutique (neimanmarcus)

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Zanybrainy link

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Other barriers Fulfillment factor

Not willing to pay shipping/handling Don’t want to wait for products

Frustration factor Difficult to shop online Completing transaction takes too long

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Question #8 What is the greatest barrier to

online purchasing for clothing? Inability to try on clothes for fit before purchase (81%)

Unable to feel material quality (45%)

Concern about ease of return (44%)

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The Fit Issue Hat size, “Melon Meter” (lids.com) Shop by body type (lucy.com)

Eight virtual boutiques Virtual models (landsend.com and

jcpenney.com) Fit guides and comparisons (

pants@gap.com and eddiebauer.com)

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Question #9 What is the cause of e-

shoppers abandoning their shopping carts? Excessive shipping costs (1/2) 66% abandonment rate

Present shipping costs up front

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Question #10 What is the most frequently

purchased online category? Media (books, CDs/cassettes, videos, software)

Amazon.com

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Question #11 What categories experienced

the highest growth levels? Toys Infant/children/teen clothes Home office supplies Cosmetics/fragrances

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Question #12 How much are consumers

spending on Internet purchases? $230 in 1997 $1200 in 1999 Users estimate 36% of total retail spending will be on the Internet

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Question #13 What is the main advantage of

being a pure-play e-tailer? Focused and nimble

What is the main advantage of being a multichannel e-tailer? Brand name

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What has Amazon done right?

Amazon simplifies shopping Equity built with consumers is

saving Amazon with investors Selection, competitive prices Ease of navigating

site/convenience Delivery speed and options