Introduction
As a result of the increasing technology across the world, e-business strategy among individuals and organizations through e-commerce has been found quite useful. As a result of establishment of online communication channels among businesses and their customers, creation and facilitation of business transactions among business organizations and their customers has been enhanced. Considering the recently experienced economic crisis as a result of depression, e-business found its significance among the buyers and the businesses across the world. As it has been revealed, buyers have been finding new and cheaper products easier in the market through researching them online. In this regard therefore, e-business has facilitated the intersection of the society, the currently increasing technology and businesses (King 2010).
Following the recently experienced financial crisis of the year 2008 through 2009, the world’s consumption patterns were highly affected as a result of contraction of liquidity among individuals. More specifically, individuals found themselves in situations requiring strategic planning of their consumption patterns in order to counter the deficits. Throughout the recession period, the e-commerce found its relevance among the people; resulting into acquirement of high utility at the minimum consumption levels. Certainly, this was triggered by the currently experienced globalization and the increased e-commerce strategy by investors (Penn 2009). In this essay, a critical appraisal on how consumption patterns have changed since the on-set of the recession in the year 2008 will be presented.
According to King (2010), the shortages and falls of liquidity among the nations across the world affected a lot of individuals in US; since the crisis seemed more eminent in the United States’ banking systems. As a result of the shortfall of credit facilities among the financial institutions, many people cut down their spending on their domestic expenditures as a result of insufficient funds to cater for their normal consumption rate. The great depression resulted into down stream of various stock markets around the globe as well as evictions and lengthy unemployment level resulting low incomes and revenue cash flows among the people.
With the introduction of e-commerce among businesses and organizations, individuals could easily find their desired commodities easily in order to plan for their expenditure more appropriately. It is important to note that; e-commerce has been a very potential strategy to push markets since creation of new products is finding their way easily through online websites. In this respect therefore, e-commerce strategy among organizations is a very potential vehicle in enhancing pulling of markets as well as pushing them (Korgoankar & Karson 2007).
One of the most important aspects of using e-commerce strategy to shop is that, an individual has a wider access to a variety of commodities in order to compare the prices and qualities. More importantly, the e-commerce strategy offered buyers and consumers with information about the available commodities in the market together with their prevailing prices. This helped individuals to cut traveling costs from their homes to the markets. As a result, normal expenditure levels were cut automatically by reducing their daily activities; resulting into low expenditure levels (Harris & Dennis 2008).
It should be noted that, the depression condition resulting into very low rates of money circulation among the people. As a result, many people found themselves into positions of lacking enough money in liquid form; which meant consumptions had to be cut down as well. More so, bank reserves were contracted and the entire credit flexibility was weakened; as there were low liquidity ratios among banks and their central banks. As it was reported in the year 2006, house bubbles were collapsing at a very high rate due to the values of real estates being tied actual pricing, destroying the global financial institutions. As credits tightened, international trade was found to decline sharply as a result of consumption rates and low productivity among organizations (Penn 2009).
One of the most important things to note is that, equity and liquidity reserves in international monetary institutions ought to be involved in the various transactions taking place among businessmen across the world. Such relationships between financial institutions of the world enhance easy and quick facilitation of credit terms and transactions among individuals and businesses through a process called clearing-house effect. On this regard therefore, the study of how international institutions interrelate in various economic aspects finds its relevance on various investment plans across the world. In this case, e-commerce among businesses was found to be quite important in enhancing for continuity of consumption among the people, regardless of the shortages of money supplies among the people (Harris & Dennis 2008).
As depicted in Zimmermann & Holmes (2010), the internet strategy of marketing commodities and services has been more accurate since the customers are be able to view a variety of the commodities offered online. Due to the fact that, companies and organizations are quite dynamic in nature, the use of e-commerce among the consumers enhanced the pushing of markets. During the time of depression, consumers were entirely looking in the internet on the availability of the commodities which could provide them with the highest utility at the lowest costs. As the commodities displayed over the internet are attractively displayed, many people would really find it more reliable and more desirable to purchase commodities over the internet than to buy them through physical shops.
It should also be noted that, online buying of commodities among individuals was found to draw a lot of importance during the time of depression. Having low income levels and low volumes of available money in circulation, individuals wanted to have their domestic purchases from a specific seller in order to get quantity discounts. In this case, many people engaged in searching favorable sellers through the internet in order to facilitate their desire for cheap and commodities as a result of discounts from buying on large scales and being frequent to certain buyers. Certainly, the use of e-commerce buying saved many people by offering them with access to a number of sites where they could locate sellers with conducive terms to suit their expenditures (Harris & Dennis 2008).
As it has been revealed, e-commerce among individuals and organizations has been very influential strategy in pushing and pulling of markets. This is embedded on the numerous advantages of the e-commerce strategy to firms and organizations. With e-commerce, consumers have been able to reach global markets easily, resulting into a wider variety of commodities fro different sellers. On this basis, the availability of e-commerce during the time of recession in the year 2008 through 2009 found its relevance by opening ways for people to research for the best sellers. As a result, the impacts of low money supply and equity levels among organizations and individuals were effectively resolved by having people adopt for e-commerce.
It has also been observed that, the consumption patterns among individuals have not changed significantly up to date. This has greatly been associated with the fact that, individuals are still in the fear of going short of financial resources even after the recovery period has been realized. As a result, many people have been found to up-hold their consumption patters with reference to the time of recession; when individuals were forced to change their changing patterns as a result of lack of enough financial resources (Zimmermann & Holmes 2010).
Following the currently experienced globalized world, individuals have been involved in specializing in making all their shopping and other financial transactions over the internet. In this case, consumers seem not to have confidence with the current economic conditions. This is on the basis of the previous recession period which popped in without signifying people in advance. As a result, consumers developed an innate fear of unknown in terms of the economic conditions in the contemporary society which is highly interconnected as a result of globalization (King 2010).
Conclusion
As it has been revealed, the recently experienced globalization seemed to impact a lot on the patterns of individuals’ consumption. This was attributed by the lack of enough funds capable of sustaining the previously maintained level of consumption among the individuals. Many people seemed to rely on e-commerce in their search for the commodities to buy from various parts of the world. Due to the internal technicalities in the local market, people got indulged in making their shopping online, in order to acquire cheap commodities to cater for their normal needs.
Further, due to lack of enough funds within the country, the use of credit cards and other online-acceptable financial cards like the VISA, found their importance during that time of economic constraints in America. Certainly, many people engaged in searching for the commodities they want through the internet; where they could get a variety of commodities from a single seller. This enhanced their buying in bulk, in order to get quantity discounts, resulting into cheaper commodities. Many people found it wiser to shop online and cut traveling expenses which could mean more expenses with restrained cash-flows. More importantly, this trend of online shopping has been carried over by individuals even after the economy entered into recovery phase.
Reference list
Harris, A. & Dennis, C. (2008) Marketing the e-business. New York: Routledge Publishers.
King, M. (2010) Mega Monday, the Busiest Online Shopping Day of the Year, The Guardian. Web.
Korgoankar, P. & Karson, J. (2007) The Influence of Perceived Product Risk on Consumers’ e-Tailer Shopping Preferences. Business Psychology, 22(1), pp 55 -64.
Penn, B. (2009) The Worse Things get, the more some Consumers will Shop Online. Web.
Zimmermann, A. & Holmes, E. (2010) “Shopper Splurge Buoys Hopes.” Wall Street Journal. Web.