Traditional Businesses vs. Dot Com Companies

Essay by GIgirlmelUniversity, Bachelor'sA-, July 2004

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There are several advantages that traditional businesses in Europe have over online companies in America. Such things as strong business to customer relationships and personal customer service are some of the many benefits Europeans are not willing to give up.

In many countries, the majority of a company's business is based on relationships. People prefer to deal with others that they know and trust. Lack of trust is the main reason why e-commerce is not growing in Europe as others thought it would (Marc). One in ten Europeans believes that they have a high level of protection when shopping from sites based in another European country (Richardson). In general, Europeans are more concerned about privacy, security, and online payment issues than Americans. They are more protective of their privacy and are more reluctant to give away personal data (Tony). The Internet is very public and many people hesitate to send personal data where it might be intercepted by a third party ("E-commerce-Advantages and Disadvantages").

Research from the European Consumer Centre Network showed that trust is not the only obstacle. Six in ten Europeans do not shop online because they don't have access to the Internet while half said they preferred to visit shops (Richardson). They prefer going to shops because it is more personal. They can actually see the quality of the product before they choose to purchase it. Consumer tests showed that researchers revealed that of the purchases made online in Europe during a specific time period, one in three goods never arrived while a third of the good returned were never reimbursed. Because of this, Europeans choose to visit local shops. If they need to return something or speak to someone they can go back directly to the shop they purchased the product from and solve the...