Digital economy
- Created by: bethany_george
- Created on: 29-05-17 19:42
View mindmap
- 2.1.4
- Market info in the digital economy
- Price comparison sites
- Increases consumer knowledge about prices of goods
- Reduces asymmetric information
- Increases consumer knowledge about prices of goods
- Social media
- Viral marketing
- Causes viewers to promote the firms promotions by sharing it with friends
- Social media
- Causes viewers to promote the firms promotions by sharing it with friends
- Price comparison sites
- Supply-side
- Micro-marketing
- Where firms advertise to a small group of consumers. Associated with 'e-commerce'
- Online retailing & distribution
- Examples include: Amazon, Ebay & ASOS.
- Recruiting & training staff with digital skills
- Micro-marketing
- Demand-side
- Satisfying consumers with a long tail
- (Consumers gets a wider choice with online retailing)
- Wider geographical markets
- Costs of production & distribution are low for online retailing.
- Not restricted by physical space, e.g. shops
- Satisfying consumers with a long tail
- Impact on markets & firms
- Costs, prices, profits & loss.
- Improvements in efficiency & productivity can lower COP.
- Quality & quantity of goods may also develop
- Firm destruction - development of new products / markets which destroys exiting markets.
- Firm creation - opening up new opportunities for firms & new markets to create more profits
- Costs, prices, profits & loss.
- Market info in the digital economy
Similar Economics resources:
Teacher recommended
Comments
No comments have yet been made