The document discusses the rise of e-commerce and its impact on businesses. It covers topics like how e-commerce is influencing purchases, the increasing consumer spending online, and how companies are responding to e-commerce through distribution strategies and competing against online retailers. Personalization and acquisition costs are important factors for e-commerce businesses. The pace of e-commerce is increasing as online shopping offers benefits like lower prices, greater selection, and convenience compared to traditional retail.

1. Internet Marketing E-Commerce

6. E-Commerce Takes Off Consumer spending online is on the rise! Fig 12.3a

7. E-Commerce Takes Off Breakdown of 1998 Online Consumer Spending Fig 12.3b $13.5 - Researched online, ordered and paid for offline $10.8 – Ordered online, paid for offline $16.3 - Researched online, ordered and paid for offline $11.0 – Paid for online $4.7 – Ordered online, paid for offline BIG TICKET ITEMS SMALL TICKET ITEMS

14. E-Commerce Takes Off This suggests that auto insurance, loans and leasing plans are highly desirable partners for both new and used car dealers Figure 12.7

16. E-Commerce Takes Off Table 12.3: Steps for Online Auto Buying

17. E-Commerce Takes Off Table 12.3 continued Stage Service Providers Growth Drivers Consumer Participation (millions of households) 1998 2003

19. The Pace of E-Commerce For e-commerce to continue to grow as quickly as forecasters expect, online selling must excel on the fundamentals that drive buyers Price Online buying is cheaper than traditional methods Assortment The range of products better matches buyer desires Convenience The timing, location and buying process are superior Entertainment Buying online is more fun than alternatives

26. Distribution Strategies Figure 12.14 Likelihood of Channel Conflict