The Internet Gives Consumers An Edge In Buying
Peter Coy is ignoring the full picture in his description of companies fine-tuning their price strategies ("The power of smart pricing" Economics, Apr. 10). In this dot-com vs. bricks-and-mortar price war, price models must be calculated as revenue models to make a difference in the bottom line. It's time to realize that all vendors--those of the traditional and those of the "e" nature--must look to alternative revenue sources other than the consumer purchase price. It's time to get creative, because Internet technology gave consumers an edge in their buying power.
Alternative revenue models--for example, in the areas of advertising, e-coupons, and e-vouchers--are out there, and it will be the successful vendor who grabs them.