The most basic corporate site will include information on its products and a directory of distributors. Communication will be enabled, either by listing an e-mail address or including a reply form. This basic site typically evolves into a transaction medium where consumers can place orders for products. Their initial findings indicate that online retailers use intermediaries to bring traffic to their sites, but that the existence of intermediaries, which promote price comparison, does not translate into lower profit margins. Intermediaries can also certify some online companies as trustworthy, boosting consumer confidence.
Pricing is an important issue for both buyers and sellers in cyberspace.
The assumptions are that online consumers will be more price sensitive and that the Internet will intensify price competition. This is not the case, according to Venkatesh Shankar, assistant professor of marketing at the Smith School. They found that while the online medium does not increase the importance of price to customers, it does increase the proclivity to undertake a price search. It's also in the unprecedented access the Web provides to customer data. Armed with information on consumer demographics and buying behavior, companies can create competitive advantage.