The Impact of Technology

Chapter 13

One of the most attractive features of the WWW is its ability to assist a company in uncovering new sources of revenue from new and existing customers. One way organizations enhance their revenue stream is by boosting the visibility of the company and its products or services on a global scale. In the instance of a digital product such as software, music the organization may create a payment mechanism and allow an electronic download.

Organizations have recognized this and have established elaborate internet sites to cater to the Web based segment of their target markets. Besides an attractive Web site, many organizations have developed attractive pricing strategies to develop this market segment. The elimination of middlemen and a lower overhead has facilitated this trend. It is estimated that 15% of new-car buyers do their research on the WWW with 2% making their purchases from dealers located on the WWW (Bank 1997).

It has become increasingly visible that manufacturers have began to allocate more of their sales promotion dollars to the WWW. There is a growing proliferation of contests, sweepstakes, coupons, and even premiums on the WWW. From the marketers perspective this is an efficient and effective means of delivering the stimuli in a resource crunched environment. From the consumers perspective, the stimuli is self-selected hence non-intrusive and therefore relevant.

Bank, David (1997), "Microsoft Moves to Rule On-Line Sales," Wall Street Journal, June 5, B1-B4.