M-Commerce is “Retail in Your Pocket”
Back in Y 1997 at the launch of the Global Mobile Commerce Forum, Kevin Duffey coined the phrase ‘Mobile Commerce” meaning “the delivery of electronic commerce capabilities directly into the consumer’s hand (pocket), anywhere, via wireless technology.”
I took that to mean a retail outlet in your consumer’s pocket.
Today, Mobile Commerce (M-Commerce) is approaching $550-B, and has been forecast to reach $700-B in Y 2017. According to BI Intelligence over 33% of mobile (smartphone) users have made a purchase with their devices.
In December 2012 Walmart (NYSE:WMT) estimated that 40% of all visits to their internet shopping site was from a mobile phone
Bank of America (NYSE:BAC) predicted that $67.1-B in purchases will be made from mobile devices by US and EU shoppers in Y 2015, it beat the number. Mobile retailers in UK (the #1 connected wireless nation in the world), alone are expected to increase C2B revenues up to 50-60% from year 2013/2014 to 2015/2016 (http://www.livetradingnews.com/digital-readiness-singapore-ranks-1-us-5-uae-26th-8663.html#.V4SeDb1RKAA ).
The social interactions of consumers in virtual worlds are often seen in the context of 3D Games, forums, blogs, wikis, chat rooms, instant messaging, and video-conferences.
Internet friendships and participation online communities including businesses tend to complement existing friendships and civic participation rather than replacing or diminishing such interactions hence the development of community and neighborhood shopping.
The technological convergence of the mass media is the result of a long adaptation process of their communicative resources to the evolutionary changes of each historical moment.
Thus, the new media became an extension of the traditional media on cyberspace, allowing to the public access information in a wide range of digital devices including the ubiquitous smartphone.
In other words, it is a cultural virtualization of human reality as a result of the migration from physical to virtual spaces that include shopping, ruled by codes, signs and particular social relationships. (http://www.livetradingnews.com/data-helps-retailers-improve-customer-experiences-8666.html#.V4Sfyr1RKAA)
Now, with the instant ways to communication, interaction and possible quick access to information, in which we are no longer mere senders and receivers, but also producers, reproducers, co-workers, providers and consumers.
New technologies help to connect people and businesses from different cultures outside the virtual space, what was unthinkable even 20 years ago.
In this giant relationships Network, people can mutually absorb each other’s beliefs, customs, values, laws and habits, cultural legacies perpetuated by a physical-virtual dynamics in constant metamorphosis.
In this sense, Professor Doctor Marcelo Mendonça Teixeira created, in Y 2014, a new model of communication to the virtual universe (The Communication Model of Virtual Universe), based on Claude Elwood Shannon’s article “A Mathematical Theory of Communication” (1948).
The Virtual Economy is the emergent property of the interaction between participants in a virtual world.
While the designers have a great deal of control over the economy, it is nonetheless the actions of consumers that define the economic conditions of a virtual world.
The Mobile Commerce economy arises as a result of the choices that consumers make under the scarcity of real and virtual resources such as time or currency.
People seem to have a limited time in the virtual world, as in the real world, which they must divide between task such as collecting resources, practicing trade skills, or engaging in less productive fun play.
The choices they make in their interaction with the virtual world, along with the mechanics of trade and wealth acquisition, dictate the relative values of items in the economy.
The economy in virtual worlds is typically driven by needs such as equipment, food, or trade goods.
Virtual economies, however, are almost entirely player-produced with very little link to in-game needs. While the relevance of virtual world economics to physical world economics has been shown the users of virtual worlds respond to economic stimuli such as the law of supply and demand) in the same way that people do in the physical world. And there are direct corollaries between physical world economic decisions and virtual world economic decisions. That is when, why and how to buy based on demographics
Virtual worlds offer advertisers the potential for virtual advertisements and product placements in entertainment media.
A number of virtual worlds have incorporated systems for sale of goods through virtual interfaces and using virtual currencies and coupons.
I am always on the lookout for new products and application that disrupt and enhance the growing Mobile Commerce experience aka “retail in your pocket.”
Have a terrific week.
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