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Associate professor Margarita Todorova, PhD

Associate professor Margarita Todorova, PhD. Head of Computer Systems and Technologies Department E-mail: marga_get@abv.bg. “St.Cyril and St Methodius” Veliko Turnovo University. Academic Staff.

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Associate professor Margarita Todorova, PhD

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  1. Associate professor Margarita Todorova, PhD Head of Computer Systems and Technologies Department E-mail: marga_get@abv.bg Finland-IP-04-2008

  2. “St.Cyril and St Methodius” Veliko Turnovo University Finland-IP-04-2008

  3. Academic Staff The University of Veliko Turnovo employs 916 professors and assistant professors. 66% of whom are full-time. 34 % are guest lecturers from other universities and academic institutions, including lecturers from Albania, Austria China, Germany, Italy, Japan, Poland, Romania, Spain, The UK, the USA and others. 42% of the teachers are professors (professors and associate professors). In June 2004 Veliko Turnovo was certified with ISO 9001 Finland-IP-04-2008

  4. Principal Units of VTU • The Faculty of Philology; • The Faculty of History and Jurisprudence; • The Faculty of Business; • The Faculty of Fine Arts; • The Faculty of Education (Pedagogy); • The Faculty of Philosophy; • The Faculty of Bulgarian OrthodoxTheology; • College of Pedagogy – Pleven; • College of Pedagogy – Vratsa. Finland-IP-04-2008

  5. E-business 1. The Impact of Internet on Business 2. The e-Commerce in Europe 3. ClassificationSchema 4. Main Directions of Investigation 5. Some Resultsof investigation CONCLUSIONS . Finland-IP-04-2008

  6. The Impact of Internet on Business • Power Shift to the Customer(the customer becomes the totally informed client); • GlobalSalesChannel; • Reduced Costs of Buying and Selling; • Always Open for Business; • Reduced Time-to-Market; • IndividualizationandAdaptation; • Self-Service; • Expansion of the Internet User Demographics; • PhysicalDistribution; Finland-IP-04-2008

  7. The e-Commerce in Europe Finland-IP-04-2008

  8. In 2005 the volume of e-Commerce in USA was fifteen time larger than that in Europe USA are the obvious leader in the filed of e-Commerce. But the last 2 years we could say that there is great development of e-Commerce in Europe as well Finland-IP-04-2008

  9. What is the situation in Bulgaria?Thanks to:-existence of serious achievements in Europe,- closenessofBulgariatoEuropeinrespectofeconomy, legalregulations, users' behavior, etc., - steps of Bulgaria toward full integration with Europe,it would be useful to get acquainted withthe situation in Europe Finland-IP-04-2008

  10. Consumers' Problems • General Observations At that moment in Europe consumers still preferred shopping in the traditional way, despite the proven advantages of e-C. 2. Main Consumers' Problems • novelty of the proceduresin Internet; • the excessive dynamicsof the procedures; • theexistenceofsomesiteswithstillnotveryuser-friendlyinterface Finland-IP-04-2008

  11. Consumers' Problems - the lack of transparency about the suppliers; the delivery terms and costs are not always acceptable; - the terms for returning goods and the respective costs involved, are also problematic areas - generally in contrast with the traditional commerce; Finland-IP-04-2008

  12. Consumers' Problems paymentisanessentialproblem – buyersaresuspicioustowardspaymentsecurityandconfidentiality;some supplyers still do not offer enough guaranty and even information on this issue; thelackofa "real"shoppingatmosphereand advice; the still highcostofcommunication for using Internet. Finland-IP-04-2008

  13. 3. ClassificationSchema Two main groups: - goods: - services. Finland-IP-04-2008

  14. Goods: Books; Audio/video (mainly CDs and films); Clothing (clothes, shoes, accessories); Home and garden; Computer (hardware and software, games); Sports and games (apparatus, sports clothes etc.); Gifts and jewelry; Food and drink; Health (nutrition supplements, cosmetics, body care products); Telecommunications. Finland-IP-04-2008

  15. Services - Package holidays; - Last minute holidays; - Flights; - Hotel reservations; - Car hire; - Concert tickets and ticket booking; - Gift services (flowers and greeting cards); - Delivery services; - Betting on lottery; - Agency services. Finland-IP-04-2008

  16. Main Directions of Investigation Ordering/reserving Receipt of goods/confirmation of service Returning/canceling Finland-IP-04-2008

  17. MainQuestions - Howdoesonelookforaspecificproductandhoweasy/difficultisittoeffectthe complete transaction? - How long does it take to place an order? - How is the graphic presentation rated? - How good are the textual descriptions (if there are any)? - What information is the customer given regarding the supplier? - Are the general terms and conditions of business given? - What methods of payment are offered? - Are delivery times stated? - Is it possible to return goods if not satisfied? What charges are incurred when a service order is cancelled? Finland-IP-04-2008

  18. MainQuestions - Is the customer informed about the additional charges which have to be met and how much they amount to? - Is there a special security system protecting the payment procedure? - Is the customer given a confirmation of the order? - When is the order delivered? - When do customs duties and import turnover taxes have to be paid, and how much do they amount to? - Were there any problems when returning goods? Finland-IP-04-2008

  19. Some Resultsof Investigation Finland-IP-04-2008

  20. 1. Distribution of orders placed with domestic and foreign suppliers Approximately 2/3 of all orders have been placed with domestic suppliers and the rest - with foreign Finland-IP-04-2008

  21. 2. Languagechoice - Forsomeoftheordersmorethanonlanguagehasbeenused, butineverycountryinvestigated 100% haveusedtheirlocallanguage, too. - In UK English has been the only language always used, which is, by the way, quite natural. - In Germany always German has been used, but in 17.4% of the cases English has been also used, as well as French and Spanish in 6.4% of the cases. Finland-IP-04-2008

  22. 3. Worldwide delivery Worldwide delivery of goods has been offered in 45.1% of the 435 transactions evaluated. For the purposes of the research, however, "worldwide" does not mean that goods are actually delivered to every country in the world, but merely that they are delivered to many countries and several continents. Finland-IP-04-2008

  23. Provision of Information This information is systemized in the following groups: Finland-IP-04-2008

  24. 1. Delivery times In 56.8% of all cases such information has been supplied, but with substantial difference between the various countries. Here are the extremes: 100% for UK an Sweden, 12.5% for Italy. Finland-IP-04-2008

  25. 2. Terms for returning goods This information has been supplied for 39.6% of all transactions, namely: - in 62% of them it has been specified that no returning of the good had been possible in case the customer did not like it; - in 5.1% - returning possible if only the good was defective; - in 32.8% no indication of all has been provided. Conclusion – electronic suppliers are not very much inclined to accept back the good already sold. Finland-IP-04-2008

  26. 3. Deadlines for returning goods. In 27.7% of all cases no deadline has been indicated for returning the good if not satisfied. The remaining 72.3% are broken down as follows: - under 7 days: 0%; - 7 to14 days: 25%; - 15 to 31 days: 44.6%; - over 1 month: 2.7% - only for orders from USA Finland-IP-04-2008

  27. Additional costs as % of the overall cost of the order Cases % No additional costs 8.3% Up to 10% 8.3% 10 to 20% 11.4% Over 20% 72.0% The following table shows the ratio of delivery cost to good’s value. Finland-IP-04-2008

  28. Purchaser’s registration It has been established that a registration had been required in 26.5% of all cases – most often in Sweden (80%), very rarely in Germany (17.4%) and Italy (12.5%). This is one of the most difficult decisions merchants have to take. On the one hand customer’s registration means collection of important information that could in future help to keep the customer for a long period. On the other hand people are irritated when they are requested more information than strictly necessary. Finland-IP-04-2008

  29. Order confirmation Merchants have realized that purchasers insist on getting confirmation their order has been accepted and will be completed. That is why 80% of them have acknowledged orders’ receipt. Finland-IP-04-2008

  30. Ordering procedure duration Distribution Up to 10 minutes 64.7% 11to 20 minutes 20.9% 21 to 45 minutes 11.5% 45 to 60 minutes 1.5% Over one hour 1.4% Duration of ordering procedure Finland-IP-04-2008

  31. Payment method Distribution Cash on delivery 10.1% Check 36.0% Credit card total 97.8% Credit card online 93.5% Credit cardoffline 37.4% Installments 1.4% Other (special cards) 21.6% Payment methods offered Finland-IP-04-2008

  32. Paymentmethodchosen It has been proven that purchasers chose the simplest and fastest method – by credit card online (89.1%). At the time of the study exceptions have been Germany, Sweden the Netherlands and Portugal, but today the situation is hardly the same Finland-IP-04-2008

  33. Correctness of the invoice Generally the invoice has been practically always (87.3%) correct. In the rest of the cases one or another element has proved to be incorrect. Finland-IP-04-2008

  34. Security measures with the payment In 87% the merchants have informed their customers about the security measures undertaken. Today this percentage is probably even more higher, taking into account purchasers’ sensibility to this issue and the really high level of security and confidentiality reached Finland-IP-04-2008

  35. Refund on returned goods In 43.7% the full amount has been returned (in 3 cases even including the post and package costs), 52.3% have received a reduced refund, in some case no refund has been given. It the latter case most often (88.6%) the merchant has not given explanations Finland-IP-04-2008

  36. Have the goods been delivered In 80.9% of all cases the purchase has reached the customer, in 18.6% - it has not. With the creation of traditions on the e-market, most probably the non-delivery will practically disappear. Finland-IP-04-2008

  37. Correctnessofdelivery Adeliveryisconsideredtobecorrectincaseitisexact(whathadbeenordered - hasarrived), it is complete (everything ordered has been delivered) and intact.Thishasbeenobservedin 93.9% ofalllocalcasesandin 96.5% ofthecaseswithordersfromabroad Finland-IP-04-2008

  38. Country Local average delivery time (days) Average delivery time from abroad Germany 9.2 15.7 Belgium 12.3 11.5 France 15.5 9.2 UK 4.1 11.8 Spain 7.2 15.3 Netherlands 14.1 27.6 Sweden 13.6 16.3 Italy 15.7 10.4 Portugal 11.5 13.8 Deliverytime Finland-IP-04-2008

  39. Internet penetration for Bulgaria In absolute expression the Internet users, during 2005, will be about 1 200 000, that is 16% of the country population. Finland-IP-04-2008

  40. From: To: Evolution PC-centric models (tethered) Person-centric models (mobile) Evolution of E-business Finland-IP-04-2008

  41. THANK YOU FOR ATTANTION !You are welcome to Veliko Turnovo University! Finland-IP-04-2008

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