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Unformatted text preview: Customization’’. (Changing the
delivered product or services based on a user’s preferences or prior
Given the interactive nature of e-commerce technology, much information
about the consumer can gathered in the marketplace at the moment of
With the increase in Information Density, a great deal of information
about the consumer’s past purchases and behaviour can be stored and
used by online merchants. KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS
KEY The Internet has greatly reduced the cost of obtaining and distributing
information, and created a digital marketplace where millions of people are
able to exchange massive amounts of information directly, instantly, and free.
As a result, Internet has changed the way companies conduct business.
The Internet shrinks Information Asymmetry.
Information Asymmetry exists when one party in a transaction has more
information that is important for the transaction than the other party.
That information helps determine t...
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- Spring '11