SMG IS 223 Lecture Notes - Lecture 8: Delayed Gratification, Disintermediation, Dynamic Pricing
21 Jun 2018
School
Department
Course
Professor
E- Commerce: Digital Markets and Digital Goods in a Global Marketplace
oInternet and digital markets have changed the way companies conduct business
oInformation asymmetry reduced
oMenu costs, search and transaction costs reduced
oDynamic pricing enabled
oSwitching costs
oDelayed gratification
oDisintermediation
The Benefits of Disintermediations to the Consumer
oReduces prices to consumers
oManufactures earn more promit by eliminating the middle man
oManfuacuers keep distribution partners and channels because they need them
(walmart is needed by p&g to sell soap)
Digital Goods
oGoods that can be delivered over a digital network
oCost of producing first unit is almost entire cost of product
oCosts of delivery over the internet very low
oMarketing costs remain the same; pricing higly variable
Types of E Commerce
oThree major types
Business to consumer
Barnes and noble
Business to Business
Chemconnect
Consumer to consumer
Ebay
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
E- commerce: digital markets and digital goods in a global marketplace o o. Internet and digital markets have changed the way companies conduct business. Information asymmetry reduced: menu costs, search and transaction costs reduced, dynamic pricing enabled, switching costs, delayed gratification, disintermediation. The benefits of disintermediations to the consumer: reduces prices to consumers, manufactures earn more promit by eliminating the middle man, manfuacuers keep distribution partners and channels because they need them (walmart is needed by p&g to sell soap) Types of e commerce: three major types.
