scholarly journals The Impact of the Internet on Experience Services and the Cost of Information: An Updated Conceptual Model of Innovation vs. Imitation and Firm Performance in Services.

Author(s):  
Tammy R. Parker ◽  
Brandon Griffin

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.

2020 ◽  
Vol 59 ◽  

The article determines modern marketing methods for promoting the products of domestic manufacturing enterprises. Marketing opportunities on the Internet are significantly higher than in other communication tools. Internet advertising enables domestic manufacturers to expand both the domestic sales market and provides access to foreign markets. An important advantage of the Internet for product promotion is the constant development of Internet technologies and the emergence of modern methods of promotion. Internet marketing has great potential in such parameters as reaching the target audience; questionnaires and surveys of the target audience; efficiency in obtaining results; high level of reliable results. The use of the Internet can significantly reduce the cost of promoting products on the market for domestic feed-producing enterprises, as the cost of advertising on the Internet is lower than in print media. The Internet allows the marketer to determine the profile of the target audience: gender, age, income, education and demands. The analysis of the main methods of promoting feed products on the Internet has been carried out, they are information search using search engines, search using thematic web servers, the practice of exchanging links between servers, marketing research of Internet users and others. A strategy has been developed to promote feed production of KKZ LLC on the Internet through the use of cookie files. Domestic manufacturers can use cookie files in order to avoid imposing the same advertisement on the user, and also allow to track the number of one type advertisements shown to the user. Promotion of feed products of KKZ LLC on the Internet is advisable to carry out using its own website; its optimization will increase the number of visitors from both highly specialized and general thematic social networks.


2016 ◽  
Vol 32 (2) ◽  
pp. 461 ◽  
Author(s):  
Arif Mohammad Arshad ◽  
Jie Wang ◽  
Qin Su

The aim of this paper is to investigate the relationship between total quality management (TQM), service innovation and firm performance in the Pakistan’s service industry. An empirical survey was performed and there were 190 participants from financial service firms in Pakistan. Regression analysis was employed in this study to investigate the tri-dimensional relationship between TQM, service innovation and firm performance. In the context of financial firms, this research examines how TQM practices adopted and managed to boost service innovation and whether and how TQM practices is going to influence the firm performance through the mediating role of service innovation. A research framework and the related hypotheses are suggested. Direct and indirect impact of each construct of TQM practices on organizational performance was determined. Data analysis discloses that, extent of TQM implementation has a positive and significant influence on service innovation as well as on organizational performance. Furthermore, a positive but a weak relationship was observed between service innovation and organizational performance.  The direct relationship between TQM and organizational performance outperforms the indirect relationship of service innovation and organizational performance. It has contributed in the sense that past researchers have not considered the tri-dimensional relationship between TQM, service innovation and firm performance.


2018 ◽  
Vol 4 (1) ◽  
pp. 57
Author(s):  
Yuli Anwar ◽  
Dahlar .

Abstract. One of the advances in information technology that now has changed the outlook and human life, business process and business strategy of an institution is the internet. The internet is a very large networks that connected to computers and serves throughout the world in one centralized network. With the internet we can access data and information anytime and anywhere.    As one provider of high-speed data communications services and the pioneer of the internet network service provider in Indonesia that provides integrated services, as well as one of the pioneer development of internet services that provide extensive services in the building and apply it throughout Indonesia. Indosat ready to seize opportunities for sustainable growth of business spectrum are still sprawling Indonesia.    Therefore, Indosat continues to focus on the development of increased efforts to provide the best service for customers of Indosat. Indosat will continue to develop and expand network coverage and a larger investment that the company will achieve excellence in the field of integrated telecommunications services.    Ranking by region of the IP Providers can be seen by grouping IP Providers, and management over IP Providers prefer to choose providers based on where it orginates as an example for the region of the U.S if it will be preferred providers that come from U.S. providers.With the commencement of the internet network optimization start early in 2008 with the selection of the appropriate IP Upstream Provider criteria, it is up to date according to data obtained from Indosat, seen any significant changes to the cost of purchasing capacity of the IP Upstream.    Based on the data obtained that until Q3 or September 2008, the number of IP Upstream Providers that previously there were 20 to 10 IP Upstream Provider, IP Transit Price total decrease of 11% to the price of IP Transit Price / Mbps there is a decrease of 78%, while from the capacity bandwith an increase of 301% capacity from 2008.


Author(s):  
Matthew Hindman

The Internet was supposed to fragment audiences and make media monopolies impossible. Instead, behemoths like Google and Facebook now dominate the time we spend online—and grab all the profits from the attention economy. This book explains how this happened. It sheds light on the stunning rise of the digital giants and the online struggles of nearly everyone else—and reveals what small players can do to survive in a game that is rigged against them. The book shows how seemingly tiny advantages in attracting users can snowball over time. The Internet has not reduced the cost of reaching audiences—it has merely shifted who pays and how. Challenging some of the most enduring myths of digital life, the book explains why the Internet is not the postindustrial technology that has been sold to the public, how it has become mathematically impossible for grad students in a garage to beat Google, and why net neutrality alone is no guarantee of an open Internet. It also explains why the challenges for local digital news outlets and other small players are worse than they appear and demonstrates what it really takes to grow a digital audience and stay alive in today's online economy. The book shows why, even on the Internet, there is still no such thing as a free audience.


2020 ◽  
Author(s):  
Victoria Kordovski ◽  
Savanna M. Tierney ◽  
Samina Rahman ◽  
Luis D. Medina ◽  
Michelle A. Babicz ◽  
...  

Objective: Searching the Internet for health-related information is a complex and dynamic goal-oriented process that places demands on executive functions, which are higher-order cognitive abilities that are known to deteriorate with older age. This study aimed to examine the effects of older age on electronic health (eHealth) search behavior, and to determine whether executive functions played a mediating role in that regard. Method: Fifty younger adults (≤ 35 years) and 41 older adults (≥50 years) completed naturalistic eHealth search tasks involving fact-finding (Fact Search) and symptom diagnosis (Symptom Search), a neurocognitive battery, and a series of questionnaires. Results: Multiple regression models with relevant covariates revealed that older adults were slower and less accurate than younger adults on the eHealth Fact Search task, but not on the eHealth Symptom Search task. Nevertheless, executive functions mediated the relationship between older age and eHealth Fact Search and Symptom Search accuracy. Conclusions: Older adults can experience difficulty searching the Internet for some health-related information, which is at least partly attributable to executive dysfunction. Future studies are needed to determine the benefits of training in the organizational and strategic aspects of Internet search for older adults and whether these findings are applicable to clinical populations with executive dysfunction.


Author(s):  
Ade Imam Muslim ◽  
Doddy Setiawan

Our study aims to investigate how information asymmetry and ownership structure affect cost of equity capital. For that purpose, we collected 246 issuers over 4 years for a total of 984 observations. By using panel data processing, we found that the information asymmetry we proxied through Price non-Synchronization and trading volume had an effect on the cost of equity capital. Our results also confirmed both Agency Theory and Pecking Order Theory. Both theories are in line with the conditions of the stock market in Indonesia. In addition, we found that institutional and foreign ownership structures also had an effect on the cost of equity capital. Furthermore, our results also confirmed Interest Alignment Theory and Entrenchment Theory. Our research is expected to contribute to the debate on the existence of information asymmetry and ownership structures in relation to the cost of equity capital. We also hope that it will be a valuable input for investors in considering their investment. Moreover, from the results of this study, investors can also consider foreign ownership or institutional ownership in determining their investment. In addition, stock market regulators in Indonesia can develop approaches to minimize information asymmetry and encourage foreign investors to invest in Indonesia.


Sign in / Sign up

Export Citation Format

Share Document