E-Commerce Consumer applications

•People needs entertainment on demand including video, games, news on-demand, electronic retailing via catalogs etc.

•Currently now we are taking the video on-demand.

•Why most companies betting heavily on this?

•93 million homes have television

•Americans spend nearly half their free time watching television

•Every evening, more than one-third of the population is in front of a television

4. sight, sound, and motion combine to make television a powerful means of marketing

Consumer Applications and Social Interaction:

•Lessons from history indicate that the most successful technologies are those that make their mark social

•In 1945, in U.S no one had TV. By 1960 about 86percent of households did

•Now contrast with Telephone. Bell invented the telephone in 1876 and by1940, 40% of U.S. households and by 1980 about 95-98 percent of households connected

•Penetration was slower for Telephone than for TV because of the effort needed to set up the wiring infrastructure

§The impact of both was good on business, social, consumer behavior and entertainment habits

§Radio began in 1960, and by 1989, almost 3 decades later, just 319 radio stations followed the news format

§In 1994, their number exceeded 1000

What do Consumers Really want?

§They want quality and cost of service

§If a new system requires more steps to do essentially the same things, consumers may resist it

§Some people fit that mold, but most of public prefers to lay back and just watch television and let someone else do the work of figuring out the sequence of television programming

What are Consumers willing to spend?

§According to the video on-demand, consumers get the cable bill at basic charge they will buy

§If it is doubled they will not buy and at the service provider economics will increased then network operators might look to advertises to fill the gap

Delivering products to Consumers

§Packing and distribution must be considered

§Blockbuster video collects the information and shows the typical consumer

§Spends $12 a month on home video expenditures

§Go to video store to select video on limited budget and has time to kill

§ Only periodically expends a large sum of money

Consumer Research and E-Commerce

Consumer opinion about interactive television is

§46% be willing to pay

§39% want video phone calls

§63% would pay for movies on-demand

§57% would pay for Television shows on-demand

§78% said their worry about it is that they will pay for something that they previously received free of charge

§64% are think it make it harder for viewers to protect privacy

41% are tell that it is too confusing to use