Text 3 "When a customer enters my store, forget me. He is king," decreed John Wanamaker, who in 1876 turned an abandoned railway depot in Philadelphia into one of the world’ s first department stores. This revolutionary concept changed the face of retailing and led to the development of advertising and marketing as we know it today. But compelling as that slogan was, in truth the shopper was cheated of the crown. Although manufacturing efficiency boosted the variety of goods and lowered prices, advertising provided most information about products. Through much of the past century, ads spoke to a captive audience confined to just a few radio or television channels or a limited number of publications. Now media choice has exploded too, and consumers select what they want from a far greater variety of sources--especially with a few clicks of a computer mouse. Thanks to the internet, the consumer is finally seizing power. As our survey in this issue shows, consumer power has profound implications for companies, because it is changing the way the world shops. Many firms already claim to be "customer-driven" or "consumer-centric". Now their claims will be tested as never before. Trading on shoppers’ ignorance will no longer be possible: people will know-- and soon tell others, even those without the internet--that prices in the next town are cheaper or that certain goods are inferior. The internet is working wonders in raising standards. Good and honest firms should benefit most. But it is also intensifying competition. Today, window shopping takes place online. People can compare products, prices and reputations. They can read what companies say about products in far greater detail, but also how that tallies with the opinions of others, and--most importantly of all--discover what previous buyers have to say. Newsgroups and websites constantly review products and services. This is changing the nature of consumer decision. Until recently, consumers usually learned about a product and made their choice at the same time. People would often visit a department store or dealership to seek advice from a salesman, look at his recommendations and then buy. Now, for many, each of these steps is separate. For instance, Ford is finding that eight out of ten of its customers have already used the internet to decide what car they want to buy--and what they are willing to pay--even before they arrive at a show room.
Text 3 "When a customer enters my store, forget me. He is king," decreed John Wanamaker, who in 1876 turned an abandoned railway depot in Philadelphia into one of the world’ s first department stores. This revolutionary concept changed the face of retailing and led to the development of advertising and marketing as we know it today. But compelling as that slogan was, in truth the shopper was cheated of the crown. Although manufacturing efficiency boosted the variety of goods and lowered prices, advertising provided most information about products. Through much of the past century, ads spoke to a captive audience confined to just a few radio or television channels or a limited number of publications. Now media choice has exploded too, and consumers select what they want from a far greater variety of sources--especially with a few clicks of a computer mouse. Thanks to the internet, the consumer is finally seizing power. As our survey in this issue shows, consumer power has profound implications for companies, because it is changing the way the world shops. Many firms already claim to be "customer-driven" or "consumer-centric". Now their claims will be tested as never before. Trading on shoppers’ ignorance will no longer be possible: people will know-- and soon tell others, even those without the internet--that prices in the next town are cheaper or that certain goods are inferior. The internet is working wonders in raising standards. Good and honest firms should benefit most. But it is also intensifying competition. Today, window shopping takes place online. People can compare products, prices and reputations. They can read what companies say about products in far greater detail, but also how that tallies with the opinions of others, and--most importantly of all--discover what previous buyers have to say. Newsgroups and websites constantly review products and services. This is changing the nature of consumer decision. Until recently, consumers usually learned about a product and made their choice at the same time. People would often visit a department store or dealership to seek advice from a salesman, look at his recommendations and then buy. Now, for many, each of these steps is separate. For instance, Ford is finding that eight out of ten of its customers have already used the internet to decide what car they want to buy--and what they are willing to pay--even before they arrive at a show room.
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