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Ajala_Olabisi_MIS 677_SP09_Asg01 - Olabisi Ajala MIS 677...

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Olabisi Ajala MIS 677 – E-Commerce Assignment I – REI.com Case Study Spring 2009 1. One of the reasons for REI.com’s success is the technique it uses to attract consumers. REI requests a $20 one-time membership fee of $20 that entitles them to an annual dividend which equals to about 10% of their annual purchases. REI offered three different channels of services. Retail stores, the web and kiosks in every store allowed customers to access products at REI’s two major sites. REI.com and REI-Outlet.com. This attraction increased REI.com’s awareness and increased profit. Another major factor of REIs success came from the fact that they implemented a technology platform designed by IBM called pSeries and iSeries servers that link the Web sites and stores to backend legacy databases which in turn store product and customer information. This system has help REI improve on customer relationships and increase growth in new customers.
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