Chapter 2 Flashcards
Should we use auctions for selling?
A major strategic issue is whether to use auctions as sales channels. Auctions do
have some limitations, and forward auctions may create conflicts with other distribution channels. If a company decides
to use auctions, it needs to select auction mechanisms and determine a pricing strategy. These decisions determine the
success of the auctions and the ability to attract and retain visitors on the selling site. Auctions also require support ser-
vices. Decisions about how to provide these services and to what extent to use business partners are critical to the success
of high-volume auctions.
Should we barter?
Bartering can be an interesting strategy, especially for companies that lack cash, need special material
or machinery, and have surplus resources. However, the valuation of what is bought or sold may be hard to determine, and
the tax implications in some countries are not clear.
How do we select merchant software?
There are many products and vendors on the market. Small businesses should
consider offers from Yahoo! or eBay since the software is combined with hosting and offers exposure to the vendor-
managed e-market. The functionalities of the software as well as the ease of building webstores need to be examined.
How can we use Facebook and other social networks in our business?
The many possibilities are mostly in marketing
and advertising. Any progressive organization should examine and experiment with social networking.
