How Information Changes Consumer Behavior and How Consumer Behavior Determines Corporate Strategy.

Author List: Clemons, Eric K.;
Journal of Management Information Systems, 2008, Volume 25, Issue 2, Page 13-40.
Information availability has increased consumers' informedness, the degree to which they know what is available in the marketplace, with precisely which attributes and at precisely what price. This informedness has altered the demand side of market behavior: customers now discount more heavily when comparable products are available from competitors and when products do not meet their wants, needs, cravings, and longings, but they no longer discount as heavily when purchasing unfamiliar products. Changes in the demand side are producing comparable changes in the supply side: firms earn less than their expectations when competing in traditional mass-market fat spots, while earning far more than previously when entering newly created resonance marketing sweet spots. We trace the impact of hyperdifferentiation and resonance marketing on strategy, with a clear progression from a limited number of fat spots, through reliance on line extensions, and ultimately to fully differentiated market sweet spots.
Keywords: consumer informedness; long tail; marketing strategy; online reviews; resonance marketing; word-of-mouth marketing
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#20 0.478 procurement firms strategy marketing unified customers needs products strategies availability informedness proprietary purchase resonance policies open-source compatible competitors differentiation involve
#62 0.161 price buyers sellers pricing market prices seller offer goods profits buyer two-sided preferences purchase intermediary traditional marketplace decisions intermediaries selling
#199 0.156 reviews product online review products wom consumers consumer ratings sales word-of-mouth impact reviewers word using effect marketing helpfulness electronic commerce
#279 0.089 field work changes new years time change major period year end use past early century half traditional areas established strong
#23 0.076 channel distribution demand channels sales products long travel tail new multichannel available product implications strategy allows internet revenue technologies times