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[MUSIC] So now we're going to a delve a little bit
into the world of academic research. One thing I really want to do as we go
through our discussion is to share with you some of the interesting findings that
myself and some of my other colleagues, not just at
the Wharton School but throughout universities
around North America and indeed around the world, have found
out about how the virtual world of the Internet and
the real world that we all live in still
interacts. So let me share with you two interesting
research findings. The first
has to do with content. So remember I said earlier when you live
in a bigger town, content becomes more important because
there's more things for you to do. Furthermore, as the town gets larger, more
and more websites and apps start to spring up to deliver content
that is purely local. So one of my colleagues at the University
of Pennsylvania did a very, very interesting
piece of research where he found in the United States for
every additional million residents that we have
in a city there are at least another 50 or 60
websites devoted just to things to do in that city.
So in my own city, for example, that would be something like Philly To Do.
In a bigger town, more of those things are springing up because
there's more information to be told and there's more things going on.
The second result I want to share with you from the same study is also very, very
interesting. This is relating to product as opposed to
information. So again, the further
you live from the physical store, the more likely you are to buy from a virtual
store. Now, that makes good sense, doesn't it?
If you live right next door to a drug store,
perhaps you can just step in there and buy your diapers.
By drug store, I mean a pharmacy if you living in, different parts of the world.
I'm just using American nomenclature, even though
I'm not yet an American citizen myself. I thought I should clarify that.
So the further you live from a real store, the
more likely you are to shop in a virtual store, and
for every mile of distance that increases, the probability that you
go onto a website and buy those same products increases also.
So those are two very interesting findings from academic research.
Now just to summarize, I'd like to show you or share with you just a couple of
different things that show the real benefits and
real advantages of what the virtual world offers you.
So number one, the virtual world offers you potentially lower prices and
lower search costs. Fantastic.
You can find out where all the great deals are and you can do it
all from the convenience of your own home or from your tablet or your mobile phone.
Secondly, if you wanted to transact with somebody in some other part of the
country or even other part of the world, you can do that more efficiently.
Think of a business like eBay is essentially allowing markets
to be matched whereas previously that would not be possible.
The third thing that the virtual world does to improve your life
in the physical world is it gives you very specific information about local
stuff that's going on, so you're more able to find that
great comedy club to go to. You've got better information about that
restaurant in the center of your town in terms of the quality of service and the
dishes and so on. And then the fourth thing, the fourth
point is also, you have much greater or improved
consumer convenience. You can do the shopping 24/7.
Everything is transacted seamlessly via an app or via a website.
So, those are the four things that the virtual world is
really doing for you to improve your experience in the physical world.
[MUSIC]