IT in New Zealand E-Commerce Low Involvement

LOW INVOLVEMENT IN E-COMMERCE (58%)

"The largest segment is the Low Involvement segment for whom Internet sales are less than $25,000, and indeed, the majority are less than $10,000 per annum. Whilst there is a greater proportion of this segment with total gross sales of less than $10,000 per annum (17%), total gross sales amongst this group are also spread right across the spectrum. This group is more likely than other segments to offer retail/wholesale goods (40%).

Low Involvement e-traders are less likely than the other segments to consider the Internet is very important to their business (25%), or to expect Internet sales to increase significantly in importance (11%) in the next year. They did not make a profit from the Internet in the last year (72%) and do not expect a profit from the Internet in the next year (54%).

This segment has the highest incidence of manually processing Internet orders (80%) and tends to deliver physical product to customers (75%). Low Involvement e-traders are the least Internet savvy. They offer the lowest number of website based services to customers and access slightly fewer services themselves, than the other segments. Seventy nine percent of these e-traders are not represented on an Internet shopping mall.

Low involvement e-traders tend to have one website (80%) and most (88%) have a NZ based web server. They have the greatest proportion of NZ only customers (35%) across the segments.

Barriers to further development are both a belief that there is low use of Internet commerce by their customers (39%), and lack of knowledge/skills (36%). Additionally, this group is most likely to have no IT staff (43%). The most frequently mentioned problems maintaining Internet activities relate to:

	E-Commerce & E-Business
	LOW INVOLVEMENT IN E-COMMERCE (58%) "The largest segment is the Low Involvement segment for whom Internet sales are less than $25,000, and indeed, the majority are less than $10,000 per annum. Whilst there is a greater proportion of this segment with total gross sales of less than $10,000 per annum (17%), total gross sales amongst this group are also spread right across the spectrum. This group is more likely than other segments to offer retail/wholesale goods (40%). Low Involvement e-traders are less likely than the other segments to consider the Internet is very important to their business (25%), or to expect Internet sales to increase significantly in importance (11%) in the next year. They did not make a profit from the Internet in the last year (72%) and do not expect a profit from the Internet in the next year (54%). This segment has the highest incidence of manually processing Internet orders (80%) and tends to deliver physical product to customers (75%). Low Involvement e-traders are the least Internet savvy. They offer the lowest number of website based services to customers and access slightly fewer services themselves, than the other segments. Seventy nine percent of these e-traders are not represented on an Internet shopping mall. Low involvement e-traders tend to have one website (80%) and most (88%) have a NZ based web server. They have the greatest proportion of NZ only customers (35%) across the segments. Barriers to further development are both a belief that there is low use of Internet commerce by their customers (39%), and lack of knowledge/skills (36%). Additionally, this group is most likely to have no IT staff (43%). The most frequently mentioned problems maintaining Internet activities relate to: • s updating problems (16%), • s low use of Internet commerce e.g. lack of confidence in it (16%), and • s the cost associated with maintaining Internet activities (13%). Low Involvement e-traders tended to claim they had no tax issues (81%)." 22