Beyond Online Search: The Road To Profitability

by Ming Zeng, Werner Reinartz


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Abstract

The Internet brings three potential benefits to consumers: increased search efficiency, better product evaluation, and enhanced transaction convenience. However, actual benefits can vary a great deal across different product categories. In particular, difficulties in performing evaluation online have significantly reduced the volume of online transaction in a number of important product categories. Ignoring the differentiated impact of the Internet at different stages of the consumer decision-making process is a major reason for the failure of many previous online initiatives. The article identifies five e-business models that best utilize the inherent advantages of the Internet at different stages and matches what the Internet can offer with what customers truly value.

California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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