The internet, while initially being created by the United States military has changed into a consumer based system creating the most competitive market the world has ever seen (Barbook, 2005). This competitive marketplace introduced has radically changed modern day capitalism with the growth of new and alternative economic models. These models largely being introduced in Web 2.0 and advancing into the current Web 3.0 and Web 4.0 (Aghaei, 2012). The internet has allowed consumers to have more power and knowledge over what they buy and where they buy because consumers are not limited to a single space or local store. The internet has allowed globalisation to come into full effect with the sharing of information and goods while introducing new
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This free economy is an idea that has been around for hundreds of years but has grown in popularity since the advent of the internet. Gillette razors was founded off this idea in the early 20th century by Gillette giving out razors for cheap or giving them out for free to make his company well established and known (Anderson, 2008). In the 21st century while the idea retains the core concept, the method of it has changed as the platform companies use has moved from a physical space to digital one. This free economy or the coined ‘freemium’ model has resulted in consumers having a different outlook on how they consumer a service online. Anderson (2009) discusses how consumers do not want to buy something for $1 or even 5 cents. Selling a product or service that low does not incite consumers anymore, they want the item for free. It is a reason why online piracy is at an all-time high (Crawford, Gregg, Qiu, 2014). Companies such as Facebook and Google understand this and have implemented business methods to create profit, even though both companies offer a free premium service that you would expect to pay for, but do not have to . …show more content…
The like economy is not just indicative of Facebook but to online shopping marketplaces such as eBay. The ratings system eliminates the need to be face to face when buying an item off someone as online shoppers can see the rating of seller, selling the item. This feature has now become a staple part in online shopping and has changed the way buyers perceive buying online. It has allowed consumers to become more engaged and comfortable with buying their items online. Statistics show this as in 2015 7.6 million Australians (40% of the population) bought at least one item every four weeks (Roy Morgan, 2015). This shows a gradual shift from old capitalism where consumers felt the need to meet a seller face to face to judge their trustworthiness for themselves. As now the rating system already shows the trustworthiness and the quality service the seller
This free economy is an idea that has been around for hundreds of years but has grown in popularity since the advent of the internet. Gillette razors was founded off this idea in the early 20th century by Gillette giving out razors for cheap or giving them out for free to make his company well established and known (Anderson, 2008). In the 21st century while the idea retains the core concept, the method of it has changed as the platform companies use has moved from a physical space to digital one. This free economy or the coined ‘freemium’ model has resulted in consumers having a different outlook on how they consumer a service online. Anderson (2009) discusses how consumers do not want to buy something for $1 or even 5 cents. Selling a product or service that low does not incite consumers anymore, they want the item for free. It is a reason why online piracy is at an all-time high (Crawford, Gregg, Qiu, 2014). Companies such as Facebook and Google understand this and have implemented business methods to create profit, even though both companies offer a free premium service that you would expect to pay for, but do not have to . …show more content…
The like economy is not just indicative of Facebook but to online shopping marketplaces such as eBay. The ratings system eliminates the need to be face to face when buying an item off someone as online shoppers can see the rating of seller, selling the item. This feature has now become a staple part in online shopping and has changed the way buyers perceive buying online. It has allowed consumers to become more engaged and comfortable with buying their items online. Statistics show this as in 2015 7.6 million Australians (40% of the population) bought at least one item every four weeks (Roy Morgan, 2015). This shows a gradual shift from old capitalism where consumers felt the need to meet a seller face to face to judge their trustworthiness for themselves. As now the rating system already shows the trustworthiness and the quality service the seller