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PEST analysis (reasons a consumer may choose to shop in a contemporary…
PEST analysis (reasons a consumer may choose to shop in a contemporary market over a traditional market)
Technological
As technology improves and new devices become connected to the internet it will provide customers with different ways to shop online
Younger generations that are growing up with technology will soon become consumers and will most likely use their technology literacy to shop online.
More people becoming connected to the internet increases the number of potential customers that can shop via e-commerce.
Economic
Internet prices are often lower than in shops, so customers can save money.
There are a range of payment option in terms of card, payment, paypal and even crypto currencies in contemporary markets. This is convenient for customers but also great for business as the option mean that the business receives payment at the time of purchase but also one click payment on websites makes the process simple for the customer.
Economic efficiency in contemporary market:
A business using e-commerce can get ahead of its rivals.
Increased sales, leading to increase profit.
Low-cost technological infrastructure and communications
Savings on expensive showrooms.
Low global information sharing and reduced advertising costs.
Speedier and more economic electronic transactions with suppliers.
Increased sales leads to economic of scale.
Cheaper customer service alternatives.
Social and Health
Customers can shop from the comfort of their own home '24/7' in contemporary markets, while traditional markets are closed at a specific time.
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Customers no need to head out, shop in store, wait in line, and then journey back home when they can access a greater product variety at a lower price from the comfort of home. (shopping online provides massive time saving to consumer)
On the other hand, some customers love traditional market because they can help the poor people who sells their goods and interact with the sellers.
Nonetheless, the traditional market is not without its detractors. Indeed, there are several sellers who sell their goods at the side of the road. If we think in terms of health, the foods which are sold on the roadside are definitely subject to more health risks than those sold in a contemporary market.
Political
The government gets involved in the market place to protect the interests of the society and to promote real competition such as regulate and prohibit monopolistic, restritive and unfair trade practices.
The government also ensuring a solid ICT infrastructure (information communications technology), providing educational programs and building up awareness using different means such as media and education institutions.
The government’s role in developing countries is an important one as it facilitates the essential requirements for the development of contemporary market such as providing robust secure on-line payment options.
I think the government should serve people well who still visiting traditional market. The government should open their eyes and ear so they can fix and preserve traditional market which is already become our characteristic.