By C. Standing
This booklet examines the advancements in digital markets on the subject of 3 key components: on-line retailing, digital collaboration and digital marketplaces. each one bankruptcy is authored through leaders of their box supplying leading edge views on the best way to make the most of digital markets.
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Extra resources for Electronic Markets: Benefits, Costs and Risks
Horizontal product differentiation 20 Bela Florenthal and Aviv Shoham strategies can be practiced in ‘product’ or ‘information’ space (Murthi & Sarkar, 2003; Varadarajan & Yadav, 2002). , existing vs. alpha version of a product). , 2004). Capitalizing on this, e-tailers can outperform e-manufacturers by offering a larger variety of high-risk, higher performance alternatives to Groups 2 and 4 (more involved customers), and low-risk, lower performance alternatives to Groups 1 and 3 (less involved).
Perceive price as • A price promotion a loss and savings bundle (discounted as a gain price): present (b) Product separate savings perceptions and not an – customers aggregate saving of perceive product the bundle. quality based (b) Product on product perceptions – combinations when offered (c) Three-stage price promotion evaluation bundles process – customers might • Scanning – perceive the determine which quality of the product products in the alternatives are bundle as low. included in the (c) Three-stage bundle evaluation • Anchor process – offer selection – select bundles of same a product quality products alternative that is as the anchoring most important and adjusting for the evaluation stage can devalue • Anchoring and the quality of adjusting – other a bundle with alternatives are various levels of evaluated quality.
2003). An agent’s diagnosticity is of particular importance to customers when unfamiliar products are recommended. , 2001). , 2003). Customers also evaluate agents on how much cognitive effort the agents can save them. When searching for product information, customers usually make trade-offs between the cognitive effort they exercise and the accuracy of the information they receive (Bechwati & Xia, 2003). Therefore, customers will be more satisfied with an agent that saves them significant cognitive effort without compromising on the quality of the information (Bechwati & Xia, 2003).