Role of Internet

Critically evaluate the role of the Internet in enabling the consumer to be 'more proactive and sophisticated in their relationship with organisations.

Introduction

This paper is about role the Internet has played in making consumers to be proactive and sophisticated in their relationship with organizations. It would be appropriate to begin the discussion with some background of the Internet growth in the recent years. Internet penetration has been phenomenal in the industrialized countries with the U.S. having the highest growth. Yet, there are not much studies on how consumers are benefited by the Internet. Consumers are slow to get used to any new technology and Internet is no exception. Hence, the manner of usage of Internet by the consumers changes overtime with newer consumers continually entering the field of Internet adding to the mix of skills and demands among the users. To encourage usage of Internet which can be useful for the ordinary consumers, new business models have emerged. The innovatory models currently in use are different from what they were five or ten years ago. The business models aim at selling products, services, or information, people are on the lookout for, to buy or access online (Morton, 2006)..

Internet growth

Percentage of Americans accessing the Internet has grown from 7 % in 1995 to 67 % in 2005 with 75 % of them owning e-mail addresses. Originally, Internet access had been through time-consuming dial-up modem not conducive to shopping transactions. Broadband (high speed) Internet access which had increased to 55 % in homes and 80 % in business places by 2005, must have increased even more by now. In 2004 alone, the growth was 36 %.. Please see table below. The pace of growth shows how enthusiastic (proactive) the consumers are in absorbing the new technology.

Potential of the Internet can be exploited for the benefit of the consumer by what is known as complementary innovation through business models that facilitate...