Information technology and industry structure
Buyer power Videotex home shopping services, such as Comp-U-Card, increases buyers’ information. Buyers use their personal computers to browse through electronic catalogs and compare prices and product specifications. Customers can make purchases at any hour at prices typically 25% to 30% below suggested retail levels. Comp-U-Card is growing quickly: revenues have quintupled in two years to $9.5 million and membership is now 15,000. According to some projections, by the mid-1990s, 75% of U.S. households will have access to such services.
Buyer power Shelternet, an electronic information exchange offered by First Boston Corporation, allows real estate brokers to determine quickly and easily what mortgage packages are available and whether the buyer will qualify for financing. This improves the position of both brokers and homebuyers in shopping for mortgages. The parties can make preliminary commitments within 30 minutes.
Substitution Electronic data bases, such as NEXIS, are substituting for library research and consulting firms. NEXIS subscribers can quickly search the full text of any article in 225 periodicals. Users drastically reduce the time spent in literature searches. In addition, the buyer avoids the cost of the journal subscriptions and pays only for the information required.
Information technology and industry structure
Buyer power Videotex home shopping services, such as Comp-U-Card, increases buyers’ information. Buyers use their personal computers to browse through electronic catalogs and compare prices and product specifications. Customers can make purchases at any hour at prices typically 25% to 30% below suggested retail levels. Comp-U-Card is growing quickly: revenues have quintupled in two years to $9.5 million and membership is now 15,000. According to some projections, by the mid-1990s, 75% of U.S. households will have access to such services.
Buyer power Shelternet, an electronic information exchange offered by First Boston Corporation, allows real estate brokers to determine quickly and easily what mortgage packages are available and whether the buyer will qualify for financing. This improves the position of both brokers and homebuyers in shopping for mortgages. The parties can make preliminary commitments within 30 minutes.
Substitution Electronic data bases, such as NEXIS, are substituting for library research and consulting firms. NEXIS subscribers can quickly search the full text of any article in 225 periodicals. Users drastically reduce the time spent in literature searches. In addition, the buyer avoids the cost of the journal subscriptions and pays only for the information required.
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