Formal manufacturing and service firms in Africa that use the Internet and have websites

The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies. The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies.

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Formal manufacturing and service firms in Africa that use the Internet

Africa’s Development Dynamics 2020 ◽

10.1787/692005d1-en ◽

2021 ◽

Keyword(s):

The Internet ◽

Service Firms

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Technology and marketing: a multidisciplinary outlook

Operations Management Research ◽

10.51697/omr.12.4.3 ◽

2020 ◽

pp. 1-11

Author(s):

Billi Sam

Keyword(s):

Social Media ◽

Autonomous Vehicles ◽

Recommendation System ◽

New Technologies ◽

Cost Savings ◽

Personalized Recommendation ◽

The Internet ◽

Service Firms ◽

Labor Costs ◽

Ride Sharing

New technologies have revolutionized nearly every aspect of human existence, including the ways that firms market products and services to consumers. Along with now familiar innovations like the Internet, greater computing capacity, mobile devices and applications, and social media, more radical innovations are emerging. Related to artificial intelligence (AI) (Davenport 2018), the Internet of things (IoT) (Hoffman and Novak 2018), and robotics (Mende et al. 2019), these technological advances are exerting profound effects on the practice of marketing. Thus, it should come as no surprise that firms across nearly every business sector (e.g., retailing, manufacturing, healthcare, financial) keep steadily increasing their technology spending, driven to reach various objectives. For example, many manufacturing firms seek cost savings through mechanized and robotic production processes, which both limit labor costs and increase production efficiencies. Retailers and service firms devote more spending to online, mobile, and social media platforms in attempts to better communicate and connect with customers (both current and potential), thereby increasing their revenues. Early adopters of each new technology change the rules of the game (e.g., Grewal 2019). Consider Amazon as an example: It leads the pack in adopting a host of technological innovations. Its fulfillment centers feature robotic technologies to assist workers, increase efficiencies, and drive down costs. Amazon is actively experimenting with drone delivery (a service it calls Prime Air). Furthermore, it is known for its predictive analytic capabilities, uses AI to establish and maintain its sophisticated personalized recommendation system, and has developed an innovative, patented, one-click ordering system. Ride-sharing firms like Uber and Lyft similarly have revolutionized traditional taxi and limousine industries, as well as providing novel work opportunities and greater customer control over their rides. Such groundbreaking shifts also depend heavily on the available technology, including geofencing and social media ratings capabilities. Newer options, such as autonomous vehicles, are on the horizon and likely to shake up the ride-sharing industry and ultimately the entire transportation industry. Waymo (Google’s self-driving vehicle), Tesla, and Volvo are all racing to introduce the first driverless test vehicles to create value for consumers and business customers.

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Displacement and Reinforcement Effects of the Internet and Other Media as Sources of Advertising Information

Journal of Advertising Research ◽

10.1017/s0021849904040073 ◽

2004 ◽

Vol 44 (1) ◽

pp. 126-142 ◽

Cited By ~ 26

Author(s):

JAMES C. TSAO ◽

STANLEY D. SIBLEY

Keyword(s):

The Internet ◽

Advertising Information

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A hitchhiker’s guide to microscopy and microanalysis using telecommunications, e-mail, and the Internet

Proceedings, annual meeting, Electron Microscopy Society of America ◽

10.1017/s0424820100169687 ◽

1994 ◽

Vol 52 ◽

pp. 390-391 ◽

Cited By ~ 1

Author(s):

Nestor J. Zaluzec

Keyword(s):

The Internet ◽

Information Superhighway ◽

The World ◽

Exchange Information ◽

On Line ◽

Computer Based ◽

Software And Hardware ◽

Communication Software ◽

Basic Ideas ◽

E Mail

The Information SuperHighway, Email, The Internet, FTP, BBS, Modems, : all buzz words which are becoming more and more routine in our daily life. Confusing terminology? Hopefully it won't be in a few minutes, all you need is to have a handle on a few basic concepts and terms and you will be on-line with the rest of the "telecommunication experts". These terms all refer to some type or aspect of tools associated with a range of computer-based communication software and hardware. They are in fact far less complex than the instruments we use on a day to day basis as microscopist's and microanalyst's. The key is for each of us to know what each is and how to make use of the wealth of information which they can make available to us for the asking. Basically all of these items relate to mechanisms and protocols by which we as scientists can easily exchange information rapidly and efficiently to colleagues in the office down the hall, or half-way around the world using computers and various communications media. The purpose of this tutorial/paper is to outline and demonstrate the basic ideas of some of the major information systems available to all of us today. For the sake of simplicity we will break this presentation down into two distinct (but as we shall see later connected) areas: telecommunications over conventional phone lines, and telecommunications by computer networks. Live tutorial/demonstrations of both procedures will be presented in the Computer Workshop/Software Exchange during the course of the meeting.

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