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The Data Storage Report - May 1996 Volume 11, Issue 5


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MAKE IT SIMPLE

The key to the widespread adoption of electronic commerce is to make the services as simple and useful as possible, said Raymond R. Burke, Associate Professor, Harvard Business School, Boston, Mass. Burke says Television caught on because designers made it simple—with one knob for volume and another for channels.

Even the simplest form of electronic commerce, the automatic teller machine is too complicated for many consumers, Burke asserts. He says about 30% of customers use the machines for most of their banking, while a larger 40% do not use the machines at all.

This could explain why electronic commerce accounts for only a small fraction of U.S. retail sales so far. Total U.S. retail sales are about $2.1 trillion, with only about $60 billion of that through catalog and television and direct mail, Burke said. Electronic retailing is $3 billion, just 0.14 percent of total. About 45% of Americans have purchased items through catalogs, but only 7% through television.

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