Modern technology has revolutionized the way we do business. "Decades ago, broadcast technology like radio and television transformed the business world," says Janice Wood, Assistant Professor of Communication Arts at Union University. "Now the Internet is making yet another significant shift by connecting consumers with products in a faster and more interactive manner."

Darin White, Assistant Professor of Marketing at Union, agrees that the Internet is having a dramatic effect on the way businesses promote themselves and sell their products and services. This, in turn, is impacting the global economy. He cites E-Bay, an online auction site where consumers register to buy, sell and trade personal items, as an example. In the first year, E-Bay registered more than 300,000 users. Now they have 2.5 million. When the company began selling stock, it opened at $18 per share. Now E-Bay stock is trading for more than $300. "Wall Street obviously recognizes the potential of the Internet," White says.

Valerie Howell ('97) was one of thousands of consumers who went Christmas shopping online for the first time in 1998. "I was looking for a specific CD for my nephew. I couldn't find it in any of the stores, so I got online and within minutes I had ordered it," she explains. Howell says she was reluctant to make her first online purchase because of the potential risks. "I was nervous about providing my credit card number and wondered if I would even get the CD," she admits. However, the gift arrived and Howell was more confident about her next purchase.

WHO'S BUYING WHAT ONLINE?

Consumers appear to be moving beyond the perceived risks of shopping online. Cam Tracy ('93), an interactive and new communication technology researcher at Florida State University, explains that shoppers are avoiding high-ticket items but are more frequently making less expensive purchases because of issues such as security. He says, "Individuals tend to go online with specific purchase plans instead of browsing like one does at the mall." Tracy also explains that consumers usually make their first online purchase after hearing about a positive experience from a trusted source.

Tracy's study on electronic commerce is beginning to reveal some initial findings about the demographics of online shoppers. "Catalog shoppers most quickly graduate into online shopping," he explains. "They are used to not being able to examine the merchandise and are usually more willing to wait for it to be delivered."

While there was a record number of consumers who utilized the Internet for Christmas shopping in 1998, retail outlets did not see a decrease in the number of cus-tomers. Brent Cunningham, Associate Professor of Marketing at Union, says, "There is still and always will be the need for the shopping experience." Many people use shopping as a social or recreational activity.

"Is the Internet going to put Wal-Mart out of business?" White asked jokingly. He answered the rhetorical question simply with a laugh and "no." While retailers will always have a niche in the market, they now have to serve both populations —those who want to shop online and those who don't.

A REQUIREMENT FOR BUSINESS

Cunningham explains that technology has leveled the playing field for big and small companies. While smaller organizations took the lead in using Internet technology, larger companies were quickly pressured into establishing a web presence. "There's an expectation now for all credible companies to be on the World Wide Web," Cunningham says. "Just like in the 1980s, businesses had to have an 800-number because consumers expected it. Today they must have their own domain name."

COMPONENTS OF A HOT SITE

Tracy adds that simply having a domain and web presence isn't enough. Instead companies who really want to maximize their usage of the Internet must incorporate several components into their site design:

1. SECURITY ASSURANCE

"People want to know that it's safe to shop at a site," Tracy explains. Businesses are offering consistent reminders that their site is secure and that customer order information will be encrypted, transmitted and stored properly.

"Consumers also like the idea of getting some sort of receipt," he adds. Many companies are accommodating this need with follow-up electronic messages to the consumer's e-mail box.

White says the issue of security has been overplayed. "Remember 10- 15 years ago it was unheard of to give your credit card number over the telephone. Now that's very common," he says. Tracy says security remains an issue in the minds of consumers but they have greater trust in their credit card companies who will usually back them in case of credit card fraud.

2. EASY NAVIGATION AND PURCHASING TECHNIQUES

Like any shopping experience, online businesses must be customer-oriented. This happens most evidently with the design and structure of the site. Easy-to-read menus, site maps and search mechanisms guide consumers to the products they want. Tracy explains that most consumer sites are now offering a "shopping basket" feature that encourages browsing and additional purchases. "Shoppers don't have to keep up with what they buy," he explains. "They simply add it to their shopping basket, then when they are finished they can 'check out'."

"Convenience and simplicity are imperative," White says. The Internet gives the consumer both. Additionally, online shoppers can now do quicker searches to compare products and prices. "In essence, the Internet has made price even more important," White adds.

3. VIVID AND INTERACTIVE PRESENTATION

Competing with other media, businesses who use the Internet may capitalize on the web's ability to provide vivid and interactive presentations of products and services. "From spinning a piece of clothing 380- degrees to changing colors with a click of the mouse, online shoppers have something they can't do with a catalog," Tracy says. Admittedly the vividness of the presentation is limited by the consumer's computer equipment. Neverthe-less, the individual is usually in control of what they want.

Cunningham says, "Marketing loves the idea of interacting with consumers. The web makes it possible for businesses to get immediate feedback from customers and potential customers." This interactivity is most frequently coming in the form of person-alization, according to Tracy. For example, amazon.com, one of the top web advertisers, provides consumers with books, music and video products. Using cookies (information stored on the user's computer), Amazon tracks the customer information and is able to personalize return visits to its site with a unique greeting and recommendations based upon previous purchases. Tracy explains this is one way businesses are starting to develop relationships with consumers.

"This is only the beginning," Cunningham says. "In 20 years we'll see the Internet take the idea of segmentation to the nth degree. Everything will be customized. Consumers will see ads specifically tailored to their demographic makeup and lifestyle."

WHAT'S AHEAD?

Cunningham says that the cost of doing business has not decreased with the emergence of the Internet. "Companies are still printing catalogs," he explains. "Now they are being used in conjunction with their web site."

He further comments that there are still "kinks" to work out of the electronic marketplace. "Companies have to figure out how to do business online profitably," he says. For examples, amazon.com is just breaking even because they stock everything. Cunningham predicts that in the future, consumers will be able to order more directly from the manufacturer.

As the Internet continues to grow at a phenomenal rate, consumers and businesses can anticipate new doors opening at the click of the mouse.