E-Commerce Shift Towards Personalization, Dynamic Pricing, and M-Commerce

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Over the last few years the rapid expansion of the internet has lead to many technological, business and social shift. Examples of such shifts are the increased demand for greater internet bandwidth, the movement from physical shops to online shops and the social acceptance and trust in using the internet for financial transactions. As the internet and E-Commerce become more integrated into our lives they continuingly drive changes in how we work and live as mentioned above. The future of E-Commerce promises to bring further changes in our lives as the internet continues to expand and it is these possible future shifts which I will discuss in further detail.

The first shift which is already being implemented is the increased personalisation on websites. The purpose of website customisation and personalisation is to give the customers a sense of a relationship between the website and the customer (see introduction, Fung, Dec 2008). In the past customisation was limited to only have your own user account which held your personal information and eliminated the need to enter your information every time you wished to purchase a good. More recent advances in consumer monitoring technologies such as data mining and the use of cookies (Saxe, R. 2004), now allow websites such as Amazon to make recommendations of items customers may like. This is done by analysing products the consumer has purchased or looked at in the past and then listing possible alternatives for similar products (Weiss, R. and Mehrotra, A. 2001). Websites Such as Facebook provide the ability to totally customise your own page as well as add your own applications. The ability to customise websites in this way has been made possible due to the advances in website devel...

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...ltureCode=en, Date Accessed 12/02/09

Moffatt, M. (Jan 2008) ‘Real-Life Price Discrimination’ http://economics.about.com/b/2008/01/02/real-life-price-discrimination-an-example.htm, Date Accessed 11/02/09

Ramasastry, A. (2005), Web sites change prices based on customers' habits, http://edition.cnn.com/2005/LAW/06/24/ramasastry.website.prices/, Date Accessed 11/02/09

Saxe, R. (2004), Website Personalization using Data Mining and Active Database Techniques, http://www.rh.edu/~rhb/cs_seminar_2004/SessionF2/saxe.pdf

Selvaretnam, S.V. (February 2009) ‘Contactless Payments and Mobile Commerce the Next Big Thing?’ http://www.sda-asia.com/sda/features/psecom,id,2050,nodeid,1,_language,Singapore.html, Date Accessed 14/02/09

Streitfeld, D. (Jan 2007), ‘Amazon mystery: pricing of books’, http://articles.latimes.com/2007/jan/02/business/fi-amazon2, Date Accessed 14/02/09

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