All businesses aim to cater and accommodate their customers’ needs and wants so they will purchase the businesses’ products and services. Will be discussing the different features in an online and physical business with regards to start-up cost, marketing advertising and customers’ convenience. In the early years, businesses’ has started from as a baa rater where exchange of commodities by coincidence of wants takes place rather than by the use money.
Economically, in the modern world, moneys existence as a medium of exchange in the market has increasingly opened up inundations of outlets and stores, and even plantations for businesses to sell their products and services to their customers. This is also known as ‘physical businesses. It does take a lot of costs to open up a physical business, and there are significant number of factors to be considered, such as, location, the establishment of their products and services to the customers, rent, utility expenses, hiring and training employees, and so on.
In contrast to this, online businesses retail their goods and services via e-commerce which does not involve in setting up a physical store, where customers can purchase reduces or services via online. Online businesses also tend to face lower operational costs from lower utility expenses, as well as fewer employees to be employed. Moreover, physical businesses rely on multiple advertisement methods which include leaflets, flyers, billboards, newspapers, and so on, as a medium form of communication to inform the customers about their products or services that they are offering.
Contrasting to this, online businesses implement recent technologies that allow virtual competition between businesses. This is another way of advertising method to advertise their products and services via online. Online businesses also has established e-commerce through social media such as Faceable, Twitter, or even in Instating as a way to keep in touch with its consumers and also to attract more new customers through their posts in social media. That is one of the ways in which online businesses can build a customer base.
Furthermore, in today’s world, consumers tend to lead to busy lives and it is time-consuming for them to drive from one place to another just to purchase products. Instead, they would rather spend their time behind the computers to research and do online shopping from websites since it is more fast and convenient for them. They could also refer to other customers’ online comments and reviews in order to assure themselves that the products they want to purchase online are safe and trustworthy.
In addition, price comparison enables them to be confident about their decisions in buying the products as well. Unfortunately, online customers are unable to physically touch the products unlike customers in physical business. Subsequently, some consumers do prefer to go to physical store so they can be immersed in shopping experience and engage with the sales associates to learn more about the products. Both physical businesses and online share the ability to ay using credit cards, although cash payment cannot be made via online.
Conclusively, online and physical businesses have their own lists of benefits and drawbacks felt by both the businesses and consumers. It is arguable that different customers have their own views as some would like to visit the shop so they could physically see the product, while others lead busier life and have no time to visit the retail shops, and therefore may find online shopping more efficient and convenient. In the end, while the features between both business types diverge considerably, they still have the common aim of establishing customers’ loyalty.