COMMERCE 2KA3 Chapter Notes - Chapter 10: Portable Audio Player, Digital Goods, E-Commerce
2 Oct 2017
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Document Summary
Maketspace: - a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. Transaction costs: - costs incurred when a firm buys on the marketplace what it cannot make itself. Market entry costs: - the cost merchants must pay simply to bring their goods to market. Search costs: - the time and money spent locating a suitable product and determining the best price for that product. Information richness: - measurement of the depth and detail of information that a business can supply to the customer as well as information the business collects about the customer. Information density: - the total amount and quality of information available to all market participants, consumers, and merchants. Price transparency: - the ease with which consumers can find out the variety of prices in a market. Cost transparency: - the ability of consumers to discover the actual costs merchants pay for products.
