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MBA 861 Final Exam on E-Commerce and Social Media

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Matthew Aiken

on 27 April 2010

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Transcript of MBA 861 Final Exam on E-Commerce and Social Media

Why do American consumers no longer appreciate their purchases? Two Reasons
Purchasing has become to easy
We no longer make our products & Outsourcing 20 years ago, American consumers demanded companies to lower prices, so they did. But how did they do it? Outsourcing They have more in common then you think! I will demonstrate.... Companies like Nike answered the call of consumers, prices were lowered by outsourcing. Why was Nike not happy? In return for answering consumer demands for lower prices....media issues occured for Nike's brand and still exist 15 years later Now prices are lowered, now customers want ease of purchase Large corporations, the traditonal brick and mortar outfits like Wal-Mart respond with
www.wal-mart.com and other businesses are born like www.Ebay.com and www.amazon.com Now I can purchase and recieve advice on my purchase from my home Have consumers really got what they wanted over the past 15-20 years?
Websites have higher cost for companies, therefore costs go up
Does those costs offset the savings on outsourcing production and supply
Extra fees on websites sometimes exist
However, your purchases are easier now....... Now we will take a walk through the consumers desired purchasing experience..... The consumer is watching TV A Nike Commerical for their new shoes is advertised The consumer goes to his computer and visits www.nike.com Finds the shoes he likes....... Then to www.google.com to search all retailers Now he has 2 companies and an individual seller on ebay to choose from for his purchase After 20 minutes of searching....the consumer decides to play on www.youtube.com before deciding on the purchase. The consumer just happens to run up on this video on Youtube which changes their almost certain purchase from the ebay seller. www.ebay.com www.zappos.com www.macys.com The consumer decides now to purchase from zappos.com

We will walk through the purchase process So who is the happiest out of the supply chain of the purchase?
A) The government: who recieved no sales tax on the purchase
B) Nike: who manufactured, advertised, and sold a pair of shoes they in return get criticized for
C) Zappos.com who just made a sale
D) The consumer
E) The individual working in the sweatshop by either choice or force Should the American consumer really be happy with their purchases?
I don't have the answer but I am sure you can find answers in blogs
and groups on facebook if you want to research a little further! The End
Full transcript