Innovation and consumer research

The last decade has witnessed dramatic changes in the business environment in the form of rapid and radical technological developments in computers, telecommunications, and information sciences, combined with the globalisation of business and ever-changing demographics. Given these changes, the available marketing research and modelling approaches are rendered ineffective.

But information technology may prove to be extremely useful in overcoming these factors.  Multimedia and simulation may be used to ''create'' the future environment. And, as virtual reality becomes more economical and easy to use, it may become an important component of all consumer research aimed at assessing likely consumer reactions to breakthrough products and services.

Mass customisation
Database marketing and flexible manufacturing have also ushered in the era of mass customisation. Organisations are no longer searching for the best optimal product, not even for a product line of optimal products (against a target of market segments), but for the development of capabilities to allow customers to customise a desired product from thousands or millions of possible options.

A quick visit to Audi''s or Toyota''s website will allow you to choose from all the possible combinations of upholstery, colour, accessories, on your ''virtual'' car, and see it take shape on your PC, before you decide to buy one!

Having mass customisation delivered over the World Wide Web thus offers customers the opportunities to design their ideal products and services, including the delivery mode, financing, and other service options.

Electronic campaigns
The unique nature of the Internet now allows customised messages to be sent to specific target audiences, across the globe, in a matter of minutes. We have already seen the emergence of profiling systems that let companies know consumer interests, resulting in better targeting of corporate electronic campaigns.  Thanks to such systems, users only receive information on topics of interest to them, and companies save money by using electronic distribution.

In the not-so-distant future, users will also be able to define limits, either in terms of number of messages, or as an expiration date, to avoid spamming (undesired junk mail), along with a host of advanced features.

E-cash and online payments
E-cash is no longer a distant dream. Worldwide, secure systems already exist to help consumers pay on the Net using their credit cards. It is very likely that soon anyone will be able to complete a transaction over the Internet, using credit cards or whatever form of payment emerges as the preferred mode of the future.

PC banking
Electronic banking is yet another application of Internet technologies using which clients can dial in to bank networks, or their websites, to get a host of services directly through their home PCs.

Tomorrow''s banks may very well be devoid of a physical entity, comprising only ATMs and web-based services, facilitated by terrestrial or satellite links. And, as an increasing number of customers get used to anytime-anywhere-anyhow banking, there is no denying the fact that Internet banking will be the face of things to come.

In conclusion, what is needed in today''s ever-changing scenario is a little bit of lateral thinking. Reaping the benefits of electronic commerce does require a rethink of our current knowledge. Success in this arena will come not from posting on-line versions of company brochures on the Net, but by exploiting the Web''s unique merits in the face of pitfalls such as limited screen size and delays in downloading information.

You will know you have arrived when you can no longer tell where business stops and the technology starts.  And the killer app may be nothing but a question of applying your mind to it.