Unformatted text preview: ility to change prices dynamically based on market conditions. In Dynamic Pricing - The price of a product varies depending on the demand
characteristics of the customer or the supply situation of the seller.
Digital markets may either reduce or increase switching costs, depending on
the nature of the product or services being sold, and they may cause some extra
delay in gratification.
Unlike a physical Market, you can not immediately consume a product such as
clothing purchased over the Web.
clothing KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS
KEY Digital Markets are very flexible and efficient because they operate with :Digital Markets provide many opportunities to sell directly to the Consumer,
bypassing intermediaries , such as distributors or retail outlets.
Eliminating intermediaries in the distribution channel can significantly lower
purchase transaction costs.
To pay for all the steps in a traditional distribution channel , a product may
have to be p...
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- Spring '11
- web sites, Internet business models