Product details

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Published by: Stanford Business School
Originally published in: 2000
Version: 6 October 2000
Length: 25 pages
Data source: Published sources
Notes: This item is part of a free case collection. For terms & conditions go to www.thecasecentre.org/freecaseterms

Abstract

This case study provides numerous on-line examples that either support or challenge the theory that prices on the Internet will decline and brand loyalty will be threatened. As the theory goes, intense competition to try to acquire and retain on-line customers combined with low consumer search costs and the financial markets' tolerance for aggressive spending on customer acquisition will drive on-line prices down to marginal cost. The issue of brand evolution on the net is just as controversial, with some experts predicting increased brand significance as others forecast the demise of product-centric brands and the rise of information-centric brands that focus on understanding and satisfying the consumer's needs. The second perspective is predicted to lead to the rise of a new group of intermediaries that advocate consumers' needs and facilitate transactions by efficiently matching buyers and sellers. The case delves further into pricing and branding issues by looking at Amazon.com, Barnes & Noble, Buy.com, Accompany.com, Priceline.com, MySimon.com and Talus Solutions. This case is part of the Stanford Graduate School of Business free case collection (visit www.thecasecentre.org/stanfordfreecases for more information on the collection).

Time period

The events covered by this case took place in 1999.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Anonymous company no. 1
Industry:
Electronic commerce

About

Abstract

This case study provides numerous on-line examples that either support or challenge the theory that prices on the Internet will decline and brand loyalty will be threatened. As the theory goes, intense competition to try to acquire and retain on-line customers combined with low consumer search costs and the financial markets' tolerance for aggressive spending on customer acquisition will drive on-line prices down to marginal cost. The issue of brand evolution on the net is just as controversial, with some experts predicting increased brand significance as others forecast the demise of product-centric brands and the rise of information-centric brands that focus on understanding and satisfying the consumer's needs. The second perspective is predicted to lead to the rise of a new group of intermediaries that advocate consumers' needs and facilitate transactions by efficiently matching buyers and sellers. The case delves further into pricing and branding issues by looking at Amazon.com, Barnes & Noble, Buy.com, Accompany.com, Priceline.com, MySimon.com and Talus Solutions. This case is part of the Stanford Graduate School of Business free case collection (visit www.thecasecentre.org/stanfordfreecases for more information on the collection).

Settings

Time period

The events covered by this case took place in 1999.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Anonymous company no. 1
Industry:
Electronic commerce

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