EFFECTS OF THE CREDIT CRUNCH ON ELECTRONIC COMMERCE

Effects of the credit crunch on electronic commerce



Effects of the credit crunch on electronic commerce: the case of luxury handbags in the United-Kingdom

LITERATURE REVIEW

Background

The credit crunch is a double-edged sword for first-time buyers? on the one side you are in the best position possible. People will be looking to sell? and you are in a great place to be able to offer under the asking price? as you have no existing e-commerce to sell? so can offer them a quick sale. You will also find that e-commerces are slowly coming down in price? so you will be able to pick up a bargain. This research would help in identifying the latest affect of the credit crunch is going to put a strain mainly on first time luxury handbag buyers and on first time buyers who are looking to re-handbags. (Foote? 2008)

Coventry Society was next to pull their Handbags luxury handbag from the market on Friday of last week. Colin Franklin? head of sales at Coventry? said that applications for this luxury handbag had dropped to a negligible number and that it was no longer cost effective for Coventry to offer their 100%-plus handbags luxury handbag to borrowers. (Bennett 2009:55-100)

Abbey Handbags and Godiva Handbagss followed suit later on Friday when they stopped offering their 100%-plus luxury handbags. Birmingham Midshires is still offering their 100%-plus handbags luxury handbag? but they say they're considering pulling it this week. Northern Rock also continues to offer their 100%-plus handbags luxury handbag? but they've raised rates on the luxury handbag to a level that is less competitive than it used to be. Analysts believe that once the bank is publicly owned? they will pull the luxury handbag as well due to the sensitivity and controversy associated with this type of handbags. (Hamnett? 2005)

There is little point in holding out and waiting to see if prices come down even more. The property market changes so rapidly that anything can happen in a matter of months? so if you find your ideal luxury handbag? then go for it. It is always best to buy a property in the middle of a fashion luxury crash? as this means it is likely to be a lot cheaper? so either way you should be in pocket.

All is not lost if you are a first-time buyer? you will no doubt hear people telling you it is the wrong time to buy? but in reality? as long as you have the money? and are not already in a lot of debt? there is no better time to buy. E-commerces are coming down in value? and even though there are not as many handbagss on offer? if you can get one? you should take advantage while you can. (Gayo 2006)

Brand Preference

“Customers buying luxury handbags are buying utility, function, and performance as much as image and status”. (Churchill, 2005)Actually, Customer merchandise has implications more than their utilitarian, functional, and commercial significance...