ABSTRACT
A Comparative research on the consumer's Characteristics
in E-Commerce and T-Commerce
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Hong, Chang Kee
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Major in Multimedia Advertising
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Graduate School of Advertising &
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Public Relations
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Hong-Ik University
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With the introduction of digital broadcasting inside and outside
of the country, T-commerce has become the center of attention these
days. T-commerce, which is the abbreviated word for Television commerce,
is defined as the convergence of e-commerce technologies and interactive
television. If E-commerce has brought a refreshing change to the
established commercial transaction in which lead the marketing trend
for the past 5 years, then T-commerce has been recognized as the
new commerce model, which has been popularizing the electronic commercial
transactions and the flow of information. Ever since the United
States of America has started the digital telecommunications satellite
in 1994 and England has started digital broadcasting in 1998, the
development of T-commerce service has been rapidly increasing in
the US and Europe. In Korea, the digital telecommunications satellite
was introduced last March, which has been discussed and viewed as
a profitable model. Lots of broadcasting, home shopping, and Internet
shopping associates are examining the possible profitability of
T-commerce. However, the preparation stage is only at its beginning
The profit model is not clearly designed due to its lack of information
such as marketing analysis or the lack of infrastructures. This
thesis focuses on the media and the customer's characteristics of
T-commerce and compares it with the characteristics of E-commerce.
Specifically, this thesis will examine the TV viewers, who are the
future target of the T-commerce, in greater details from the main
consumer's point of view and try to analyze their interest and concern
on T-commerce in an attempt to understand the marketing trowth possibility
of T-commerce in Korea.
According to the research studies, the characteristics of the customers
of E-commerce and T-commerce differs from their base usage of mass
media. Internet usage, which is the foundation of E-commerce, is
most prominent for people less than 32 years of age and decreases
substantially as the age increases. However, TV viewing, which is
the foundation of T-commerce, become the standard of living for
all ages. The existence of TV viewers is the main reason why TV
home shopping became popular nowadays. By using this valid information,
T-commerce approaches people who were incapable of accessing information
on E-commerce due to their lack of knowledge of computer based technologies.
The main targets of T-commerce are housewives, or people in their
middle age, since most of them spend majority of their time at home
watching TV. If we reinforce the effective transmission of information
on merchandise, which is considered as the strong point of TV home
shopping, and successfully transmit the contents on merchandises
and purchasing information to the users with a simple interface,
then it is likely that most TV home shoppers will become the buyer
of T-commerce are limited to housewives or people in their middle
age. If T-commerce becomes capable of providing interactivity or
search options such as the conveniences of the Internet through
simple operations on the remote control, the users who have been
using E-commerce on a regular basis will definitely be interested
in switching to this type of service.
Thus, T-commerce has strong points such as two-way communications
and the freedom of electronic commercial transactions via the Internet.
If we add the characteristics of the TV, such as the familiarity
to public, simple usage methods, and effective information transmission,
to the aforementioned strong points, the intention of using the
T-commerce by people of all age can be enhanced substantially. However,
differences in the usage of T-commerce existed between generations.
The younger generation showed more interested in interactive advertisements
based on entertainment elements, while the older generation, who
has not used the E-commerce frequently, was more attracted to simple
services such as E-mail.
On the other hand, if T-commerce is a viewer of digital TV, conscientiously
or unconscientiously, one will get pulled into the orbit of T-commerce
by watching its programs of advertisements. Compared to the E-commerce,
where obvious differences among generations or groups are present,
T-commerce has a larger advantage of attracting attention from people
of all kinds.
Although people responded that the functions of services concerned
with T-commerce would be convenient conceptually, transferring this
conceptual convenience to practical convenience will require a great
amount of time and effort. In addition. issues such as quality of
the contents, reliance and recognition of the consumer, replenishment
of digital equipment, and improvement of market efficiency based
on standardization will needed to be solved
It is predicted that T-commerce using the digital satellite broadcasting
will be introduced in Korea starting the year of 2003. It is forecasted
that Digital broadcasting will become an international competition
within the near future. In order for us to stay within the competition,
we should start spreading the T-commerce within the country and
activate and expand the electronic commercial transactions with
the combination of T-commerce and E-commerce
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