Michael Wolff, in his book Burn Rate, states, No products have disappeared off America s supermarket shelves because of the Internet. It is no doubt that the Internet has increased the velocity of information. Wolff states there are 500 new pages of information added to the Internet per second. According to economists such as Milton Friedman, as the velocity of information increases, prices in the marketplace will decrease. There is considerable evidence that the Internet has resulted in increased velocity of information and lower prices.
Informed consumers expect greater value.
Although final purchases may not be done throughout the Internet itself, many consumers search the Internet for the best value forcing even retail outlets to lower their prices in order to be competitive. In addition, the Internet will continue to increase its value as an educational tool. Consumer education through the Internet will keep consumers abreast of new product development and services. This too will lead to a shorter introductory cycle. One must be forced to conclude that if direct sales is going to continue to thrive and grow it must be able to compete in the growth and maturity stages of the product life cycle by offering greater value.