At home, in office, shop where you are: Interactive shopping through electronic retailing and the case of QVC Network Deanna Liu COM 597 December 01,2003

Concept –Interactive Shopping Combining Internet, other online services, television homes shopping, CD-ROM catalogs and conventional catalog.

Concept –Interactive Shopping Interactivity is as a continuous construct capturing the quality of two-way communication between two parties. In the case of interactive shopping, the two parties include buyer and seller. reference by : Hoffman and Novak, “Marketing in Hypermedia Computer-Mediated Environments”, Journal of Marketing,60(Winter),50-68

Concept– Electronic Retailing Interactive shopping involves electronic communication, thus, the main medium of interactive shopping is electronic retailing.

Concept– Electronic Retailing Electronic retailing is likely to occur a result of the convenience, efficiency, low-cost benefits that can be achieved by customers and service firms alike. Reference: Kotabe and Murray,2001 Electronic retailing can easily reach two-way communication between customer and retailer through interactive technology.

Case of QVC– Business Status QVC= “Quality, Value, Convenience” Business catalog: electronic retailing Founded by Joesph Segel in 1985 A 24-hours cable shopping channel reaching over 85 million American homes

Case of QVC– Business Status By far the largest shopping channel with first-quarter revenue of $1.06 billion and more than 60% of the home shopping market. By Amy Braunschweiger. Wall Street Journal. New York, May 21, QVC is co-owned by Comcast Corp. and Liberty Media Corp.

Case of QVC– Sales channel Cable TV Reach U.S— Approximately 85 million American homes U.K— Over 11 million homes through a joint venture with Sky TV Germany—34 million homes in Germany Japan—Over 8 million homes in Japan. QVC channel in Seattle (AT&T) Comcast Cable Communications channel 16 Dish Network channel 226 DirecTV channel 317

Case of QVC– Sales channel Interactive TV (iTV) Launched in U.K. System provider: Sky TV Digital and Telewest Active QVC UK launches the Buy Now and Search buttons on both Sky TV and Telewest Active. These new services from QVC Active enable viewers to order product in real time using their remote control.

Case of QVC– Sales channel Internet Launched on September 1,

Case of QVC– Competition In electronic retailing division Cable TV shopping channel (e.g., Home Shopping Network) Internet retailer (e.g., Amazon. COM) Here comes one more………

Case of QVC– Competition InterActiveCorp Chief Executive Barry Diller outlined a five-year plan to create the largest, most-profitable interactive-commerce company in the world: InterActiveCorp. Properties include Expedia, Hotels.com, Ticketmaster and Home Shopping Network, said its goal for 2008 is to post net income of $1.9 billion, on revenue of $9.6 billion. The Wall Street Journal (Eastern edition). New York, N.Y.: Nov 12, p. 1

Future– Further Study Consumer attitude investigation How do consumers really think about interactive technology application? Are they satisfied with it? Do they have any disability while using it? Is any thing that service provider should enhance?

Future– Further Study Interactive technology discussion how does interactive technology application affect the consumer behavior? What is the technology solution for consumer disability, or, to enhance the accessibility?

Future– Further Study E-retailing marketing research What kind of strategy should e-retailer adopt to improve the relationship with consumer by applying interactive technology? What is the role that interactive technology play in the marketplace? Does interactive technology really advantage retailer? If so, should it be encouraged for all retailers in marketplace to adopt ?