1. T AKING C ARE OF B USINESS N OTE 6 Introduction to Business BBI2O1

2. T AKING CARE OF BUSINESS Not only do businesses take care of the three basic survival needs of consumers: food, shelter and clothing … they also sell many consumer wants from luxury cars to chewing gum Deciding which goods and services to offer takes a great deal of thought but also risk-taking Businesses must make many decisions so they are both: Successful Provide for the needs and wants of consumers

3. B USINESS R ESPONDS TO C ONSUMERS By studying consumer behaviour, businesses try to create an environment to promote sales and increase profit Three factors help determine when customers buy: Time Spent in Store Contact Time Waiting Time Table 2.1 Time Spent in Store Type of StoreBuyerNon-buyer Electronic Store9 min. 29 sec.5 min. 6 sec. Toy Store17 min.10 min.

4. T IME S PENT IN S TORE The time spent in the store is the most important factor in determining whether or not a customer will buy What things have stores done to increase the time customers spend in stores?

5. C ONTACT TIME Contact time or [Interception time] is the amount of time a customer spends with a store employee As contact time increases… the chances of a customer buying increases In what ways do stores try to increase – contact time?

6. W AITING TIME Waiting time is amount of time a customer is able to enter the store and leave it Lineups discourage customers from buying and being able to pay for their goods and services What ways have business responded to decrease waiting times?

7. S ETTING U P A N E B USINESS In developing an eBusiness you will neet: A domain name A website Web Pages An online payment method A distribution system Measures of your online success include: Online sales The number of Web site hits The number of referrals in social media

8. I NTERNET S HOPPERS IN C ANADA Source: Statistics Canada CANSIM Table 358-0135 www.statcan.gc.cawww.statcan.gc.ca

9. F REQUENCY OF I NTERNET P URCHASES Source: Statistics Canada CANSIM Table 358-0136 www.statcan.gc.cawww.statcan.gc.ca

10. I NTERNET COMMERCE BY S OURCE Electronic orders by Source in Canada -2009 CanadaElsewhere Number of orders54,043,70041,625,800 Average Number of Orders5.13.9 Value of Orders in Canadian $$9,082,034,000$5,989,028,400 Average value of Order per person in Canadian $855.80564.30 Source: Statistics Canada CANSIM Table 358-0137 www.statcan.gc.cawww.statcan.gc.ca

11. I NTERNET C OMMERCE IN C ANADA 2009 Source: Statistics Canada CANSIM Table 358-0138 www.statcan.gc.cawww.statcan.gc.ca

12. T OP 5 R EASONS W HY PEOPLE H ESITATE TO BUY ONLINE Reasons why People Hesitate to Buy Online 81%Worry about unreliable or dishonest retailers 72%Don’t want to deal with the HASSLE to return goods 69%Worry about credit card number misuse 63%Don’t want to deal with follow up junk mail 62%Want to see and touch the goods they buy

13. T ASK Go to the following site and answer the questions at the bottom of the page. https://sites.google.com/site/misskingonlineshoppi ng/is-shopping-online-a-good-thing/advantages- and-disadvantages-for-the