The authors examine the implications of electronic shopping for consumers, retailers, and manufacturers. They assume that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings. They examine these advantages as a function of typical consumer goals and the types of products and services being sought and offer conclusions regarding consumer incentives and disincentives to purchase through interactive home shopping vis-à-vis traditional retail formats. The authors discuss implications for industry structure as they pertain to competition among retailers, competition among manufacturers, and retailer-manufacturer relationships.

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An impediment to Web-based retail sales is the impersonal nature of Web-based shopping. A solution to this problem is to use an avatar to deliver product information. An avatar is a graphic representation that can be animated by means of computer technology. Study 1 shows that using an avatar sales agent leads to more satisfaction with the retailer, a more positive attitude toward the product, and a greater purchase intention. Study 2 shows that an attractive avatar is a more effective sales agent at moderate levels of product involvement, but an expert avatar is a more effective sales agent at high levels of product involvement.

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