Hypermarkets, Bots, & Auctions

This topic module concerns three important issues that are related to price. While we have touched on the other 3 P's to one extent or another, here we will examine the power of price and how the Internet has changed the manner in which prices are set and manipulated. While some Internet buyers will tell you the main reason that they shop online is because they can locate those hard to find products, most will probably say they shop online because of better prices. From the Internet seller perspective, however, the driving force behind Internet participation is often access to a wider market. With so many buyers and sellers coming together, the ultimate result is the creation of a market place that never sleeps. However, in order to take full advantage of this cornucopia of free enterprise, new tools needed to be developed and some very old business practices needed to be updated.

The readings associated with these topics provide a general overview of how the Internet has affected certain aspects of customer behavior and competition. The goal of this module is to develop an understanding of dynamic pricing (as opposed to static pricing) and how pricing may affect future purchasing decisions and existing transaction relationships.