ELECTRONIC
COMMERCE
OVERVIEW
In 2000, the OECD reports that 40% of Swiss households had Internet access.
Households with incomes in the first quartile had an Internet access rate
of less than 20%. Households in the fourth income quartile had an access
rate of 50%. This shows a strong correlation between income and access. During
the same period, 60% of all Swiss households had access to a home computer.1 Sending and receiving email was
the most popular Internet activity among the Swiss. Purchasing and ordering
goods and services had a 20% usage rate among the Swiss. The average
price for 20 hours of Internet access 65 PPP dollars with roughly 75 Internet
hosts per 1,000 inhabitants. 2
Internet Activity and Usage Rates 2000
Activity
|
Usage Rate (%)
|
Sending/receiving emails
|
90
|
Finding information
|
10
|
Purchasing/ordering goods and services
|
20
|
Reading/downloading online newspapers/magazines
|
35
|
Playing/downloading games and music
|
10
|
Downloading free software
|
30
|
Using banking services
|
25
|
Job search
|
10
|
Source: Table created from information from
OECD
SLOW ECOMMERCE GROWTH
Switzerland is
well suited to support the diffusion of electronic commerce throughout the
country. However, electronic commerce has not enjoyed the penetration rate
in Switzerland as it has in other countries. According to a study
conducted by the Solothurn University of Applied Sciences Northwestern Switzerland,
the Internet has a very high rate of awareness among the Swiss population.
The study also found that Switzerland was second to only to Sweden in overall
Internet usage in Western Europe. The Swiss have a 56% usage rate with 46%
percent using the Internet within the previous three months. 3
The Swiss have a higher percentage of browsing online rather than making
purchases. Browsing online is also a trend in Europe. Jupiterresearch reports
that “ the Nordic countries as a group tend to exhibit the highest levels
of browsing online for products.” 4 Switzerland’s
lower online purchase rate could be linked to the users’ perception of electronic
commerce. Swiss users may need more security assurances. The Swiss government
is enacting legislation to combat the rise in Internet fraud. Until Swiss
consumers have confidence in the security of their transactions, online
shopping will remain low. The Swiss also tended to have greater Internet
access at work than at home. The location of the access may have an affect
on the usage patterns.
Another hurdle
to the diffusion of online purchasing is the lack of a perceived benefit.
When compared to American’s valued benefits of timesaving and convenience,
the Swiss may not believe there is an advantage to online shopping. The
Internet is not seen as a marketplace, but as a source of information.
The University study found that of those people surveyed” three-fifths do
not acknowledge the necessity and the benefit of online shopping in principle
and therefore do not have any reason to change their behavior.” 5
International
Comparison of Internet Activity 2001
Country
|
Browsing |
Purchasing
|
Australia
|
23%
|
11%
|
Austria
|
21%
|
10%
|
Belgium/Luxembourg
|
9%
|
4%
|
Denmark
|
31%
|
11%
|
Finland
|
22%
|
9%
|
France
|
5%
|
2%
|
Germany
|
18%
|
10%
|
Ireland
|
10%
|
4%
|
Italy
|
6%
|
2%
|
Netherlands
|
18%
|
5%
|
New Zealand
|
23% |
8%
|
Norway
|
23%
|
8%
|
Singapore
|
14%
|
4%
|
Spain
|
5%
|
1%
|
Sweden
|
31%
|
17%
|
Switzerland
|
23%
|
11%
|
UK
|
14%
|
9%
|