It also suggests that, to the extent permitted by legislators, manufacturers should form consortia for Web retailing. This would avoid loss of control to retailers with a significant information advantage. However, a broad consortium is needed since online markets reward scope and breadth. Intermediaries may effectively buy market share through pricing low, enabling them to pursue informed relationship pricing over time. Likewise, they may use loss leaders to increase traffic through their Web sites, selling other items to consumers interested in a complete bundle.
Systems play many roles in chain markets.
Intermediaries will use them for branding, to attract customers and for informed relationship pricing and service. Likewise, manufacturers will use the Internet for branding, so limiting price pressure from online retailers. However, efficient markets still place significant price pressure on retailers, ensuring the role of systems for logistics and other forms of cost control. Likewise, manufacturers and service providers will use the Web for their own cost control. FBI denies racism in Web host raid Lexmark accused of false advertising Justice Dept.