A new algorithm for the 0-1 knapsack problem
Management Science
The logic of electronic markets
Harvard Business Review
Sustaining IT advantage: the role of structural differences
MIS Quarterly - Special issue on the strategic use of information systems
A strategic analysis of electronic marketplaces
MIS Quarterly - Special issue on the strategic use of information systems
Electronic markets and electronic hierarchies
Communications of the ACM
Do electronic marketplaces lower the price of goods?
Communications of the ACM
The emerging role of electronic marketplaces on the Internet
Communications of the ACM
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Computing Partitions with Applications to the Knapsack Problem
Journal of the ACM (JACM)
Reengineering the Dutch Flower Auctions: a Framework for Analyzing Exchange Organizations
Information Systems Research
When and How is the Internet Likely to Decrease Price Competition?
Marketing Science
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Rosenbluth international: strategic transformation of a successful enterprise
Journal of Management Information Systems - Special section: Strategic and competitive information systems
International Journal of Electronic Commerce
International Journal of Electronic Commerce
Online retail loyalty strategies
International Journal of Information Technology and Management
Designing online selling mechanisms: Transparency levels and prices
Decision Support Systems
Selling or Advertising: Strategies for Providing Digital Media Online
Journal of Management Information Systems
Journal of Management Information Systems
An Economic Analysis of Policies for the Protection and Reuse of Noncopyrightable Database Contents
Journal of Management Information Systems
A proximate dynamics model for data mining
Expert Systems with Applications: An International Journal
Auctioning Vertically Integrated Online Services: Computational Approaches for Real-Time Allocation
Journal of Management Information Systems
Advertising strategies for peer-supported content services
Proceedings of the 11th International Conference on Electronic Commerce
Pricing strategies for tied digital contents and devices
Decision Support Systems
Online and Offline Demand and Price Elasticities: Evidence from the Air Travel Industry
Information Systems Research
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As products on the Web are continually enhanced through "free" Web-based services that add to the product purchase experience, it is important to understand how these free services may affect pricing and customer retention strategies of an online vendor. This paper argues that product competition on the Web is not for generic products but, rather, for expected and augmented product bundles. Our findings point out that even in the absence of price premiums, variance in the ability to offer online services can affect pricing strategies and possibly contribute to online price dispersion. We then go on to suggest that online services affect a vendor's customer retention strategy as they influence the design of the augmented product. We characterize an online vendor's selection of augmenting services as a knapsack problem, and recommend that the online vendor should not only periodically reevaluate the set of services offered to satisfy the expected product requirements, but also assess the customer retention ability of his augmented product. A service does not contribute to customer retention when it has either lost its value to the customer or become required as a part of the expected product. Our solution recommends that a vendor should include new services based on the cost-to-value ratio of each service so as to remain above the loyalty threshold of a consumer. The results from our model partially explain the variety in product offerings of many online vendors, whose competency in providing Web-based services allows them to vary the generic product.