ITM 102 Lecture : Chapter 13.doc
Document Summary
E-commerce refers to the use of the internet and the web to transact business. Market space-a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. Transaction costs- the costs of participating in a market. Global reach- permits commercial transactions to cross cultural and national boundaries. Market entry costs- the cost merchants must pay simply to bring their goods to market. Search costs- the effort required to find suitable products. Richness- refers to the complexity and content of a message. Information density-the total amount and quality of info available to all market participants, consumers, and merchants alike. Price transparency refers to the ease with which consumers can find out the variety of prices in a market. Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products. Price discrimination- selling the same goods or nearly the same goods, to different targeted groups at different prices.