MEDIUM INVOLVEMENT IN E-COMMERCE (26%)

"This segment is characterized by having Internet sales of $10,001 to $100,000 per annum (86%). These e-traders place considerable importance on the Internet and claim their Internet sales will increase in importance significantly (40%) in the next 12 months.

Just over half the Medium Involvement segment made a profit from the Internet in the last 12 months (56%); and most (79%) expect profit from Internet sales in the next 12 months. The Medium Involvement segment’s customers are predominantly consumers (77%). This segment has the highest incidence across all segments of having customers outside NZ (66%) and indeed 17% have between three quarters and all of their customers outside NZ.

Their customers generally pay by credit card (50%), reflecting their high consumer orientation, and this segment generally processes orders manually (72%).

The Medium Involvement segment has an average incidence of use of a web hosting service (70%); some are on an Internet shopping mall (18%) and most have an NZ computer server (88%). Slightly more than average have multiple websites (38%).

They see the cost of implementation (52%) as the main barrier to further Internet development, but also cite inexperience/lack of knowledge (16%) or lack of skilled developers (11%) as problems maintaining Internet business activities. They currently have between one and five IT staff (55%).

This segment is slightly more likely to offer business services and hospitality services than the Low Involvement segment." 22