Competing Across Technology-Differentiated Channels Case Study
Article 1: Competing Across Technology-Differentiated Channels: The Impact of Network Externalities and Switching Costs
Technology driven markets have features that distinguish them from traditional markets and give firms a new way to think of new opportunities of how businesses can be conducted. Customization, interactivity and global access are just a few characteristics that distinguish the internet from regular stores. Furthermore, transferability of information is very cheap and there are real time transactions that take place. These advancements in technology have a direct impact on businesses making them competitive not only in the existing marketplace but across multiple networks. To distinguish themselves from one another, firms now …show more content…
On the other hand not all browsers are buyers, negative views can be formed but with the increasing number of online users these are not difficult to overcome. The paper aims to examine the determinants of shopping preferences and actual shopping behaviour. A few of these determinants include the vendor characteristics, web designs and demand factors. Furthermore, lack of privacy and security are one of the risks circling online buyers for instance the SEC gets 500 e-mails per day concerning online fraud. On the other hand people who focus less on prices, and prefer convenience and time saving prefer to shop …show more content…
Through e – commerce, life has been made easier for customers with services and products being provided at the customer’s door step.
The internet has brought together all competitors at one place providing the same product through the same channel; the difference being they are competing on price. The total e – commerce sales (2011) were at Euro 690 million which was an increase of 20% as compared to the previous year. Finding products online is the most optimum way to save time and money as there are no restrictions. It is also used as a medium to compare the different features available in different products.
A survey conducted by the researcher showed that there was also a difference in the spending of adult online shoppers and young ones. Adults have the experience to not go for a product if they think something is wrong whereas young online shoppers lack the maturity and do not spend
Technology driven markets have features that distinguish them from traditional markets and give firms a new way to think of new opportunities of how businesses can be conducted. Customization, interactivity and global access are just a few characteristics that distinguish the internet from regular stores. Furthermore, transferability of information is very cheap and there are real time transactions that take place. These advancements in technology have a direct impact on businesses making them competitive not only in the existing marketplace but across multiple networks. To distinguish themselves from one another, firms now …show more content…
On the other hand not all browsers are buyers, negative views can be formed but with the increasing number of online users these are not difficult to overcome. The paper aims to examine the determinants of shopping preferences and actual shopping behaviour. A few of these determinants include the vendor characteristics, web designs and demand factors. Furthermore, lack of privacy and security are one of the risks circling online buyers for instance the SEC gets 500 e-mails per day concerning online fraud. On the other hand people who focus less on prices, and prefer convenience and time saving prefer to shop …show more content…
Through e – commerce, life has been made easier for customers with services and products being provided at the customer’s door step.
The internet has brought together all competitors at one place providing the same product through the same channel; the difference being they are competing on price. The total e – commerce sales (2011) were at Euro 690 million which was an increase of 20% as compared to the previous year. Finding products online is the most optimum way to save time and money as there are no restrictions. It is also used as a medium to compare the different features available in different products.
A survey conducted by the researcher showed that there was also a difference in the spending of adult online shoppers and young ones. Adults have the experience to not go for a product if they think something is wrong whereas young online shoppers lack the maturity and do not spend