On-line businesses need to take account of changes in the way consumers use and perceive the internet, according to market analysts Forrester Research. Today's consumers spend less time on-line than they did in the late 1990s and confidence in on-line security has waned.
Consumers have come to expect integrated multi-channel experiences incorporating on- and off-line channels, says Forrester. Its advice to retailers is therefore that they should integrate marketing and merchandising efforts, connecting catalogue, retail, and on-line operations.

One clear change is that more consumers are interested in price rather than the branding of the products they buy. Forrester says that if companies cannot compete on price then they should try to differentiate themselves in service, product quality, and overall shopping experience by implementing loyalty programs and store technologies that enhance consumers' overall shopping experience.

Confidence in on-line security has fallen from its peak in 2001, and shows no sign of recovery, according to the study of the last six years. Forrester says that close to one-third of on-line shoppers are technology pessimists, compared with 16% in 1998, being those who are less trusting of credit card transactions.

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