1.The Adaptation of Services to the Internet
The way that services are offered to consumers is changing drastically because of the impact of the Internet. Select one of the following industries and discuss the impact of technological and what changes were made.
Banking – Go to the US Bank homepage [http://www.usbank.com] and select internet banking from the homepage. Take at look at Citibank [http://www.citibank.com], eMortgages.com [http://www.emortgages.com], and Lending Tree [http://www.lendingtree.com].
Healthcare – Visit one of the following prescription drug sites: Lipitor [http://www.lipitor.com], Rogaine [http://www.rogaine.com], or Prozac [http://www.prozac.com]. Try one of these sites: Dentists.com [http://www.dentists.com], Healthline [http://www.healthline.com], or WebMD.com [http://www.webmd.com].
Insurance – Log on to Best Quote US [http://www.bestquoteus.com/] and/or Instant Quote [http://www.instantquote.com]. How does this compare to the “old” way of buying insurance? Visit and explore some of the links.
Travel – Visit one of the following travel sites: Cheaptickets.com [http://www.cheaptickets.com], Travelocity.com [http://www.travelocity.com], Expedia [http://www.expedia.com]. How have the growth of these online reservation sites affected the travel agencies? What role do Travel agencies now play in the marketplace?
2.One of the easiest places to see the impact of the Internet on marketing is by looking at its effect on pricing decisions and consumer’s perceptions of prices. Since its inception, the World Wide Web (WWW) has developed the reputation as being the place to shop to get the lowest prices.
Why has this reputation developed?
Why might it be possible to charge lower prices online?
Are products really cheaper?
To answer this last question, choose two products and find them for sale online (books, CD’s, and software work very well). Calculate the total price that would be charged to your credit card, then go to a “brick and mortar” retailer and find prices for the same product there. Make your comparisons.
Where is the cheapest place to buy the products that you have selected?
What costs go into determining which place you buy your product?
Are there any non-financial costs to shopping online? To off-line shopping?
Part 2 assignment
Read Case 20 – Schwinn Bicycles and answer the 6 questions that follow (page 508)
Please use this strategy when you analyze a case:
Identify and write the main issues found discussed in the case (who, what, how, where and when (the critical facts in a case).
List all indicators (including stated “problems”) that something is not as expected or as desired.
Briefly analyze the issue with theories found in your textbook or other academic materials. Decide which ideas, models, and theories seem useful. Apply these conceptual tools to the situation. As new information is revealed, cycle back to sub steps a and b.
Identify the areas that need improvement (use theories from your textbook)
Specify and prioritize the criteria used to choose action alternatives.
Discover or invent feasible action alternatives.
Examine the probable consequences of action alternatives.
Select a course of action.
Design and implementation plan/schedule.
Create a plan for assessing the action to be implemented.
Conclusion (every paper should end with a strong conclusion or summary)
Sample Solution
