Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 1

Chapter 2
E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
True-False Questions
1. The functions and efficiency of an e-market are the same as that of a physical marketplace.
Answer: False i!!icult": East #a$e %e!erence: &&
AACS': Reflective thinking skills
2. The emergence of electronic marketplaces has resulted in lower information search costs for
uyers and lower transaction and distriution costs for sellers.
Answer: True i!!icult": !edium #a$e %e!erence: &&, &(
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". #lthough oth marketplaces and marketspaces can sell physical products$ the marketspace
also can sell digital products$ which are goods that can e transformed to digital format and
delivered instantly over the %nternet.
Answer: True i!!icult": !edium #a$e %e!erence: &(
AACS': &se of information technology
'. Front end refers to the activities that support online order fulfillment$ inventory management$
purchasing from suppliers$ payment processing$ packaging$ and delivery.
Answer: False i!!icult": !edium #a$e %e!erence: &(
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(. %n marketing$ an intermediary is a third party that operates etween sellers and uyers.
%ntermediaries of all kinds offer their services on the )e.
Answer: True i!!icult": !edium #a$e %e!erence: &(
AACS': &se of information technology
2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
*. )e!+$ which is the largest &.,. medical services company$ is known mainly for its
webmd.com consumer portal$ ut its core usiness is eing an e-intermediary.

Answer: True i!!icult": Easy #a$e %e!erence: &)
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-. The ma.or /2/ e-marketplaces are electronic storefronts$ %nternet malls$ and e0changes.
Answer: False i!!icult": Easy #a$e %e!erence: &*
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1. # portal is an information gateway that attempts to address information overload y enaling
people to search and access relevant information from disparate %T systems and the %nternet$
using advanced search and inde0ing techni2ues$ such as 3oogle4s desktop.
Answer: True i!!icult": !edium #a$e %e!erence: &+
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5. %ntermediaries are human or electronic agents that play an important role in E6 y providing
value-added services such as making payment arrangements to uyers and sellers.
Answer: True i!!icult": !edium #a$e %e!erence: (,
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17. Travelers using airline )e sites to ook their flights directly without the use of travel agents
is resulting in the reintermediation of travel agents.
Answer: False i!!icult": 8ard #a$e %e!erence: (-
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11. ,earch engines not only 9search and match$: ut also have capailities that can e used to
perform routine tasks that re2uire intelligence.
Answer: False i!!icult": Easy #a$e %e!erence: (*
AACS': &se of information technology
Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
12. #n electronic shopping cart is an order-processing technology that allows customers to
accumulate items they wish to uy while they continue to shop.
Answer: True i!!icult": Easy #a$e %e!erence: (.
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1". ,hopping carts for /2/ are fairly simple$ ut a shopping cart for /26 may e more comple0.
Answer: False i!!icult": !edium #a$e %e!erence: (+
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1'. #n auction is a competitive process and market mechanism that uses a competitive process
y which a seller solicits consecutive ids from uyers or a uyer solicits ids from sellers.
Answer: True i!!icult": Easy #a$e %e!erence: (+
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1(. ;egotiation and argaining are two types of auctions where prices are not fi0ed$ ut rather
are allowed to fluctuate as market supply and demand change.
Answer: False i!!icult": !edium #a$e %e!erence: )/
AACS': &se of information technology
1*. Reverse auctions are idding or tendering systems in which the uyer places an item for id
on a re2uest for 2uote <RF=> system? then potential suppliers id on the .o$ with the price
reducing se2uentially$ and the lowest id wins.
Answer: True i!!icult": !edium #a$e %e!erence: ),
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1-. E-auctions are ecoming less important selling and uying channels for companies and
individuals.
Answer: False i!!icult": Easy #a$e %e!erence: )2
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! E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
11. The ma.or limitations of e-auctions are insufficient security$ risk of fraud$ and a limited pool
of participants.
Answer: True i!!icult": !edium #a$e %e!erence: )2
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15. # limitation of e-artering for usinesses is that e0cess capacity items such as office space$
storage$ factory space? idle facilities? and laor cannot e artered.
Answer: False i!!icult": !edium #a$e %e!erence: )&
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27. @nline negotiation can e facilitated y computer technology for the negotiation process and
software agents for searches and comparisons.
Answer: True i!!icult": Easy #a$e %e!erence: )&
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21. +ue to the lack of hurdles$ the adoption and growth of m-commerce has een widespread.
Answer: False i!!icult": !edium #a$e %e!erence: ))
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22. The %nternet economy4s low arriers to entry are oth an opportunity and a threat to
usinesses.
Answer: True i!!icult": Easy #a$e %e!erence: ).
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2". ,trong competition for commodity-type products$ such as toys and 6+s$ was a ma.or
contriutor to the collapse of many dot-com companies$ which suggests that a company
needs to use innovative strategies to survive and prosper in the %nternet economy.
Answer: True i!!icult": !edium #a$e %e!erence: ).
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts "
2'. /ecause the strength of each of Aorter4s five forces varies consideraly from industry to
industry$ it would e a mistake to draw general conclusions aout the impact of the %nternet
on long-term industry profitaility.
Answer: True i!!icult": !edium #a$e %e!erence: */
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2(. /ecause of intense competition on the )e$ new companies cannot estalish good corporate
images 2uickly as #maBon.com had done when it had few online competitors.
Answer: False i!!icult": !edium #a$e %e!erence: *-
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Multiple Choice Questions
2*. Fundamentally$ the success of the pure-play .ewelry e-tailer /lue ;ile was due to the
company4s use of %nternet technologies to:
a. go pulic
. provide 2uality ratings
c. eliminate intermediaries
d. offer lower prices than competitors
Answer: + i!!icult": !edium #a$e %e!erence: &-
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2-. Traditional and electronic markets have three main functions$ which include each of the
following EC6EAT:
a. transforming raw materials into finished products.
. matching buyers and sellers.
c. facilitating the e0change of information$ goods$ services$ and payments associated with
market transactions.
d. providing an institutional infrastructure, such as a legal and regulatory framework that
enables the efficient functioning of the market.
Answer: # i!!icult": Easy #a$e %e!erence: &&
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# E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
21. Digital products have different cost curves than those of regular products because:
a. in digitiBation$ most of the costs are variale and fi0ed costs are low.
. in digitiBation$ most of the costs are fi0ed$ and variale costs are very low.
c. in digitiBation$ most of the costs are fi0ed$ ut variale costs are high.
d. in digitiBation$ all of the costs are variale.
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25. The portion of an e-seller4s usiness processes through which customers interact$ including
the seller4s portal$ electronic catalogs$ a shopping cart$ a search engine$ and a payment
gateway is referred to as the DDDDDDDDDDDDD of the usiness.
a. front end
. ack end
c. infrastructure
d. intermediary
Answer: # i!!icult": !edium #a$e %e!erence: &(
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"7. #ll the activities that are related to order aggregation and fulfillment$ inventory management$
purchasing from suppliers$ accounting and finance$ insurance$ payment processing$
packaging$ and delivery are done in what is termed theDDDDDDD of the usiness.
a. front end
. ack end
c. infrastructure
d. intermediary
Answer: / i!!icult": !edium #a$e %e!erence: &(
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"1. The ma.or DDDDDDDDDD e-marketplaces are storefronts and %nternet malls.
a. /2/
. 62/
c. /2/26
d. B2C
Answer: + i!!icult": !edium #a$e %e!erence: &*
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts $
"2. #n electronic storefront includes several mechanisms that are necessary for conducting the
sale. The most common mechanisms include each of the following EC6EAT:
a. an electronic catalog?
. a search engine
c. a supply chain
d. a payment gateway
Answer: 6 i!!icult": Easy #a$e %e!erence: &*
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"". DDDDDDDDDDDDDDD are online markets owned and operated y a single company and may e
either sell-side or uy-side.
a. Arivate e-marketplaces
. 6ommercial portals
c. E-malls
d. /2/ marketplaces
Answer: # i!!icult": Easy #a$e %e!erence: &.
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"'. An! """"""""""""" is a single point of access through a #eb browser to help users find
relevant and accurate business information and reduce information overload.
a. intermediary
. search engine
c. information portal
d. rowser
Answer: 6 i!!icult": Easy #a$e %e!erence: &+
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"(. Finding relevant and accurate information is often time-consuming and re2uires access to
multiple systems causing organiBations to lose a lot of productive employee time. @ne
solution to this prolem is the use of:
a. portals.
. intermediaries.
c. rowsers.
d. intranets.
Answer: # i!!icult": !edium #a$e %e!erence: &+
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% E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
"*. # type of roker that helps consumers compare different stores is a:
a. virtual mall.
. search agent.
c. shopping facilitator.
d. metamediary.
Answer: 6 i!!icult": !edium #a$e %e!erence: (2
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"-. 8uman or electronic intermediaries attempt to address each of the following limitations of
direct interaction EC6EAT:
a. search costs.
. lack of privacy for those wanting to remain anonymous.
c. contract risk.
d. product distriution.
Answer: + i!!icult": !edium #a$e %e!erence: (2
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"1. The elimination of various types of agents that mediate etween uyers and sellers$ such as
travel and insurance agents$ is referred to as:
a. remediation
. disintermediation
c. e-distriution
d. automation
Answer: / i!!icult": !edium #a$e %e!erence: (-
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"5.
A mode is purchasing where prices are negotiated or discounted is """""""""""""""", which
refers to nonfi$ed prices, such as those in auctions or stock markets.
a. dynamic pricing
. commodity pricing
c. pre-shopping
d. negotiation
Answer: # i!!icult": !edium #a$e %e!erence: (&
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts &
'7. #lthough used occasionally in /26 commerce$ customi'ed catalo(s are especially useful in
/2/ e-commerce for each of the following reasons EC6EAT:
a. e-catalogs can show only the items that the employees in a specific organiBation are
allowed to purchase.
. %ntranets$ in particular$ can deliver customiBed catalogs to different usiness customers.
c. e-catalogs can show the uyer%s &D number for the item, model, or '() number rather than
the seller%s &D numbers.
d. *+catalogs can be customi,ed to show the same item to different customers at different prices,
reflecting discounts or purchase+contract agreements.
Answer: / i!!icult": !edium #a$e %e!erence: ()
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'1. To e successful and useful$ large e-catalogs need a<n> DDDDDDDDDDDDDDDDDD.
a. search engine
. directory
c. data mining technology
d. enhanced viewing capaility
Answer: # i!!icult": !edium #a$e %e!erence: (*
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'2. # DDDDDDDDDDDD has capailities that can e used to perform routine tasks that re2uire
intelligence such as providing customers with assistance ased on their movements on a )e
site.
a. search engine
. intelligent engine
c. software agent
d. software engine
Answer: 6 i!!icult": !edium #a$e %e!erence: (.
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'". Aopular search engines include all of the following EC6EAT:
a. 3oogle
. !,;
c. #ltaEista
d. Fycos
Answer: / i!!icult": Easy #a$e %e!erence: (.
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1) E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
''. #<n> DDDDDDDDDDDD is an order-processing technology that allows customers to accumulate
items they wish to uy while they continue to shop.
a. intelligent agent
. e-fulfillment agent
c. electronic shopping cart
d. merchant server
Answer: 6 i!!icult": !edium #a$e %e!erence: (.
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'(. The most common and traditional form of auctions in which one seller entertains ids from
many uyers is referred to as:
a. forward auctions
. reverse auctions.
c. doule auction.
d. e-auctions.
Answer: # i!!icult": !edium #a$e %e!erence: ),
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'*. #n auction in which there is one uyer and many potential sellers? or in which a uyer places
an item for id on an RF= system and the lowest id wins is referred to as all of the
following EC6EAT:
a. reverse auctions.
. forward auctions.
c. idding system.
d. tendering system.
Answer: / i!!icult": !edium #a$e %e!erence: ),
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'-. )hat is a enefit of e-auctions to sellersG
a. 6onvenience since the idding can occur anywhere and any time.
. 8igh stickiness to the )e site.
c. #nonymity.
d. The optimal price is determined y the market.
Answer: + i!!icult": 8ard #a$e %e!erence: )2
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 11
'1. @rganiBations are emracing moiliBed computing technologies for several reasons
EC6EAT:
a. %t improves the productivity of workers in the field.
. )ireless telecom support for moility is growing 2uickly.
c. )ireless security prolems have een solved with encryption.
d. The prices of noteook computers$ wireless handhelds$ and smart phones continue to fall
and their capailities continue to increase.
Answer: 6 i!!icult": !edium #a$e %e!erence: )(
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'5. E6 competition is very intense ecause online transactions enale each of the following
EC6EAT:
a. For uyer$ e-markets reduce the cost of searching for product information? e.g.$ sellers$
models$ prices$ fre2uently to Bero.
. 8igher prices ecause of a greater numer of potential uyers.
c. ,etting up a )e site is relatively easy and ine0pensive$ and doing so reduces the need
for a sales force and rick-and-mortar stores.
d. Aroduct or service differentiation and personaliBation.
Answer: / i!!icult": !edium #a$e %e!erence: ).
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(7. )hich of the following statements aout differentiation and personaliBation is not correctG
a. Aroducts must e differentiated for perfect competition.
. 6onsumers like differentiation and personaliBation and are fre2uently willing to pay
more for them.
c. +ifferentiation reduces the sustitutaility etween products$ enefiting sellers who use
this strategy.
d. Arice cutting in differentiated markets does not impact market share very much:
Answer: # i!!icult": !edium #a$e %e!erence: ).
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12 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
(1. %t can e said that competition etween companies is eing replaced y competition etween
DDDDDDDDDDD .
a. industries
. digital products and services
c. differentiated products and services
d. networks
Answer: + i!!icult": !edium #a$e %e!erence: )+
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(2. The %nternet has influenced industry structures in each of the following ways EC6EAT:
a. # flood of new entrants has come into many industries ecause of reduced arriers to
entry.
. %ncreases differences among competitors whose offerings are kept proprietary.
c. There has een a shift in argaining and uyer power to end users.
d. %ndustries are more efficient overall.
Answer: / i!!icult": !edium #a$e %e!erence: */
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(". %mpacts of e-marketplaces on /26 direct marketing include all of the following EC6EAT:
a. The e0istence of e-marketplaces has increased the promotion of products and services
through direct marketing.
. The administrative work related to physical delivery$ especially across international
orders$ can e reduced significantly$ cutting the cycle time y more than 57 percent.
c. /rand images for new companies have ecome more difficult to estalish.
d. E6 enales customiBation of products and services$ which is changing marketing and
sales activities oth in /26 and in /2/.
Answer: 6 i!!icult": !edium #a$e %e!erence: *-
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('. @ne of the ma.or enefits of e-markets is the improvement in supply chains with the creation
of a<n> DDDDDDDDDDDDDDDDDDDDD.
a. hub+based chain
. customiBed chain
c. support chain
d. logistics chain
Answer: # i!!icult": !edium #a$e %e!erence: *)
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 1
((. """""""""""""" provides customers with e$actly what they want, when and where they want it.
*ffective communication between the supply chain and the factory floor is needed to make it
happen
a. Eirtual manufacturing
. +emand-driven manufacturing
c. /uild-to-order manufacturing
d. Real-time manufacturing
Answer: / i!!icult": !edium #a$e %e!erence: *.
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Fill In the 'lanks
(*. #n e-marketplace is a virtual marketplace in which sellers and uyers meet and conduct
different types of transactions.
i!!icult": Easy #a$e %e!erence: &&
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(-. # marketspace is a marketplace in which sellers and uyers e0change goods and services for
money or for other goods and services$ ut do so electronically.
i!!icult": !edium #a$e %e!erence: &(
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(1. #ll the activities that are related to order aggregation and fulfillment$ inventory management$
purchasing from suppliers$ accounting and finance$ insurance$ payment processing$
packaging$ and delivery are done in what is termed the back end of the usiness.
i!!icult": !edium #a$e %e!erence: &(
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(5. %n marketing$ an intermediary is typically a third party that operates etween sellers and
uyers.
i!!icult": Easy #a$e %e!erence: &(
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1! E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
*7. The front end is the portion of an e-seller4s usiness processes through which customers
interact$ including the seller4s portal$ electronic catalogs$ a shopping cart$ a search engine$
and a payment gateway.
i!!icult": !edium #a$e %e!erence: &(
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*1. #n electronic or )e storefront refers to a single company4s )e site where products and
services are sold.
i!!icult": Easy #a$e %e!erence: &*
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*2. To attract users to shopping malls$ vendors use rich media called virtual reality to relate the
content via digital representation to potential uyers.
i!!icult": !edium #a$e %e!erence: &*
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*". Private e-marketplaces are online markets owned and operated y a single company.
i!!icult": Easy #a$e %e!erence: &.
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*'. #n information portal is a single point of access through a )e rowser to critical usiness
information located inside and outside of an organiBation.
i!!icult": !edium #a$e %e!erence: &+
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*(. Commercial (public) portals are portals that offer fairly routine content for road audiences
and are the most popular portals on the %nternet? e.g.$ yahoo.com$ aol.com$ and msn.com.
i!!icult": !edium #a$e %e!erence: &+
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**. E-marketplaces$ especially for /2/ and mega /26 such as #maBon.com may e plagued y
information overload.
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 1"
*-. %n cyerspace$ there are intermediaries that provide andHor control information flow. These
electronic intermediaries are known as infomediaries.
i!!icult": !edium #a$e %e!erence: (,, (2

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*1. # broker is a company that facilitates transactions etween uyers and sellers.
i!!icult": Easy #a$e %e!erence: (,
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*5. # special type of intermediary in e-commerce is the /2/ e-distributor which connect
manufacturers with usiness uyers$ such as retailers or resellers in the computer industry.
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-7. Disintermediation is the elimination of intermediaries etween sellers and uyers.
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-1. # search engine is a computer program that can access dataases of %nternet resources$
search for specific information or keywords$ and report the results.
i!!icult": Easy #a$e %e!erence: (*
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-2. #n electronic shopping cart is an order-processing technology that allows customers to
accumulate items they wish to uy while they continue to shop.
i!!icult": !edium #a$e %e!erence: (+
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-". Dynamic pricing refers to prices that are not fi0ed$ ut that are allowed to fluctuate as supply
and demand in a market change.
i!!icult": Easy #a$e %e!erence: )/
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1# E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
-'. Ariceline.com pioneered the name-your-own-price model. %n this 62/ model$ a potential
uyer specifies the price or other terms that he or she is willing to pay to any willing and ale
seller.
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-(. Mobile commerce refers to the conduct of e-commerce via wireless devices or from portale
devices.
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-*. ocation-based commerce is an m-commerce application targeted to a customer whose
preferences and needs and location <e.g.$ using 3A,> are known in real time.
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--. /ecause of these interrelationships$ the usiness model of the %nternet economy has een
called the !nternet ecosystem.
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-1. Differentiation involves providing a product or service that is uni2ue and not availale
elsewhere.
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-5. The competitive forces model is a model devised y Aorter that says that five ma.or forces of
competition determine industry structure and how economic value is divided among the
industry players in an industry? analysis of these forces helps companies develop their
competitive strategy.
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Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 1$
17. "-learning systems offer two-way video$ on-the-fly interaction$ and application sharing.
,uch systems provide for interactive remote instruction systems$ which link sites over a high-
speed intranet.
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Essa" Questions
11. *rie+l, describe how electronic marketplaces ha-e chan(ed the processes used in tradin(
and suppl, chains.
3reater information richness of the transactional and relational environment.
Fower information search costs for uyers.
+iminished information asymmetry etween sellers and uyers.
3reater temporal separation etween time of purchase and time of possession of physical products
purchased in the e-marketplace.
3reater temporal pro0imity etween time of purchase and time of possession of digital products
purchased in the e-marketplace.
The aility of uyers and sellers to e in different locations.
i!!icult": 8ard #a$e %e!erence: ''
12. .hat are in+ormation portals/ 0ist and identi+, ma1or t,pes o+ portals.
#n information portal is a single point of access through a )e rowser to critical usiness
information located inside and outside of an organiBation. !any information portals can e
personaliBed for the users.
6ommercial <pulic> portals. These portals offer content for diverse communities and are the most
popular portals on the %nternet. #lthough they can e customiBed y the user$ they are still intended for
road audiences and offer fairly routine content$ some in real time
6orporate portals. 6orporate portals provide organiBed access to rich content within relatively narrow
corporate and partners4 communities.
Aulishing portals. These portals are intended for communities with specific interests. These portals
involve relatively little customiBation of content$ ut they provide e0tensive online search features and
some interactive capailities.
!oile portals are portals that are accessile from moile devices
Inowledge portals. Inowledge portals enale access to knowledge y knowledge workers and
facilitate collaoration.
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1% E-Marketplaces: Structure, Mechanisms, Economics, and Impacts
1". Identi+, and brie+l, discuss the roles and -alue o+ intermediaries in e-marketplaces.
%ntermediaries <rokers> play an important role in commerce y providing value-added activities and
services to uyers and sellers. )e sites that gather and organiBe large amounts of data and act as
intermediaries etween those who want the information and those who supply the information are one
type of infomediary. @ne type offers consumers a place to gather information aout specific products
and companies efore they make purchasing decisions. %t is a third-party provider of uniased
information? it does not promote or try to sell specific products in preference over other products or act
on ehalf of any vendors
There are many types of intermediaries. %n cyerspace$ there are intermediaries that provide andHor
control information flow. These electronic intermediaries are known as infomediaries. The
information flows to and from uyers and sellers via infomediaries. Fre2uently$ intermediaries
aggregate information and sell it to others. @nline intermediaries are companies that facilitate
transactions etween uyers and sellers and receive a percentage of the transaction4s value.
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1'. 0ist and brie+l, discuss three reasons wh, EC competition is e2tremel, intense.
0ower search costs !or 1u"ers2 E-markets reduce the cost of searching for product information <e.g.$
sellers$ models$ prices$ etc.>$ fre2uently to Bero. This can significantly impact competition$ enaling
customers to find cheaper <or etter> products and forcing sellers$ in turn$ to reduce prices andHor
improve customer service. ,ellers that provide information to uyers can e0ploit the %nternet to gain a
consideraly larger market share.
Speed" comparisons2 ;ot only can customers find ine0pensive products online$ ut they also can find
them 2uickly. For e0ample$ a customer does not have to go to several ookstores to find the est price
for a particular ook.
0ower prices. 6ompanies can offer low prices due to their low costs of operation <no physical
facilities$ minimum inventories$ etc.>.
Customer ser3ice2 ,uch service is an e0tremely important competitive factor.
'arriers to entr" are reduced2 ,etting up a )e site is relatively easy and ine0pensive$ and doing so
reduces the need for a sales force and rick-and-mortar stores.
4irtual partnerships multipl"2 )ith access to a )e of e0pertise and the aility to share production
and sales information easily$ the aility of a firm to create a virtual team to e0ploit an E6 opportunity
increases dramatically. The %nternet reducing interaction costs$ the time and money e0pended when
people and companies e0change goods$ services$ and idea.
i!!icult": Easy #a$e %e!erence: *1
Chapter 2 E-Marketplaces: Structure, Mechanisms, Economics, and Impacts 1&
1(. 0ist and discuss +our impacts o+ e-marketplaces on *2C direct marketin(:
#roduct promotion2 The e0istence of e-marketplaces has increased the promotion of products and
services through direct marketing.
5ew sales channel2 /ecause of the direct reach to customers and the idirectional nature of
communications in E6$ a new distriution channel for e0isting products has een created.
irect sa3in$s2 The cost of delivering information to customers over the %nternet results in sustantial
savings to senders of messages. !a.or savings are realiBed in delivering digitiBed products such as
music and software rather than physical ones.
%educed c"cle time2 The delivery time of digitiBed products and services can e reduced to seconds.
6ycle time can e reduced through improvements along the supply chain y using RF%+.
Impro3ed customer ser3ice. 6ustomer service can e greatly enhanced y enaling customers to find
detailed information online.
'rand or corporate ima$e. @n the )e$ newcomers can estalish corporate images very 2uickly. #
good corporate image facilitates trust$ which is necessary for direct sales.
Customi6ation. E6 enales customiBation of products and services.. %f done properly$ a company can
achieve mass customiBation that provides a competitive advantage and increases the overall demand
for certain products and services.
Ad3ertisin$2 +irect advertising creates a fundamental change in the manner in which advertising is
conducted$ not only for online transactions ut also for products and services that are ordered and
shipped in traditional ways.
Accessibility. -he ability to access a market anytime from any place, especially with wireless
devices, enhances direct e+marketing.
i!!icult": !edium #a$e %e!erence: -"