The Role of the Internet in Enhancing Service and Reducing Cost
Description
Is delivering service (both internal and external) facilitated by the Internet a zero sum game in which costs associated with delivering superior service must always be passed on to customers in the form of higher prices? Does the quantity and type of service required by customers affect the economics of an Internet firm (or the Internet arm of a bricks and mortar firm)? What role will differentiated service play in delivering competitive advantage for organizations using the Internet to facilitate internal and external service delivery?
This research is generating hypotheses designed to help managers frame these questions so that they can be answered in the context of their organizations. To date, two frameworks have emerged, illustrating how service affects the economics, and ability to sustain competitive advantage of Internet businesses ('The Scalability Continuum'), and exploring how improving certain service components can lower the cost of others ('The Economic Links among the Elements of the Customer Experience Cycle in e-Commerce').