The manufacturer may provide information about the product directly to the customer to support the distributor or internet dealer in the sale of the product. The manufacturer can contract with third party maintenance or service providers, paying them for the actual services they perform, instead of providing a margin to the distributor or dealer to provide these services. The internet may enable the manufacturer to customize products more efficiently with lower inventory costs by batching customized orders in one place and producing customized products at one time. The internet enables the customer to disclose its preferences and allow the manufacturer with this real time information to modify the product to meet the demand. Reduced inventory costs of components and finished goods.
Longer production runs with less risk of excess inventory.
Information obtained from the customer through an internet transaction can be stored, and analyzed to promote future sales through targeted advertising or to modify the product based on online market surveys. Enables manufacturer or distributor to solicit sales knowing what the customer wants. Permits informed market analysis across customers for the introduction of new products. Communication technologies also become information processing technologies, thereby reducing transaction costs. The internet creates network effects among its users, thereby increasing the product s value to all users of the product.