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Case
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Reference no. 9-397-016
Authors: John J Sviokla
Published by: Harvard Business Publishing
Published in: 1996

Abstract

Describes a firm that publishes an automobile price guide in books (600, 000 units per year) and over the Internet (16,000 users a day and growing). The site can be visited at www.edmunds.com. In the marketplace, they make their money selling books. In the marketspace, they make their money on referrals--referring customers to Auto-By-Tel, a car shopping service and GEICO, an auto insurer, among others.; 1) To show how a trusted intermediary can reconfigure the demand patterns of individual shoppers. 2) To examine the potential price and channel pressure this type of new intermediary may have on the largest industry in the world--autos.

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Abstract

Describes a firm that publishes an automobile price guide in books (600, 000 units per year) and over the Internet (16,000 users a day and growing). The site can be visited at www.edmunds.com. In the marketplace, they make their money selling books. In the marketspace, they make their money on referrals--referring customers to Auto-By-Tel, a car shopping service and GEICO, an auto insurer, among others.; 1) To show how a trusted intermediary can reconfigure the demand patterns of individual shoppers. 2) To examine the potential price and channel pressure this type of new intermediary may have on the largest industry in the world--autos.

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