How has internet changed retailer and consumer relationship?

Answer 1

Fundamentally, it has opened markets to organisations that would not have been considered in the past. Not forgetting, the potential cost reductions that can be achieved.

To date, there are only a few global organisations (outside of the computer industry) that I believe, have intergrated e-Commerce and the internet into their business that I would call, "Well On The Way".

Large global organisations do not fully understand computer technology at a very senior level, hence the slow uptake of the opportunities that are presented.

This may have a profound affect on their market position overtime as second and third tier competitors can establish themselves on the same platform and can adopt new and innovative competitive strategies in shorter time-frames, where larger organisations take time.

If your question is from a marketing orientation.

Then e-Commerce and the Internet have removed the major functions of what I would call marketing and not simply referring to marking as promotion.

Customers can in some ways be the loser in the technology revolution.

Answer 2

The internet has made the consumer smarter and wiser--they know more about products than ever. Prior to the web 2.0, consumers could get information from web sites, now they can share information and know everything about everything and everyone. The smart business has decided to be in the conversation.

This means protecting your online reputation, "stacking the deck" meaning having your delighted customers post about you and recommend you on line.

The retailer must understand their competitors on line and know everything about them. This is just the basics past that you must know how to develop an awesome relationship with the customer using online and offline tools.