Reducing customer search costs

Just because customers can search more widely, compare more readily and eliminate some of their transaction costs on the internet doesn't mean they will actually defect. Indeed only four percent of B2B firms saw this factor as a major threat, while 10 percent said it was a major opportunity. More than a third saw neither threat not opportunity - in deference to the reality that most customers don't actually search very much.

Firms in B2B markets appear to believe they can turn the reduction in customer search costs to their advantage. These suppliers appear to believe that customers they don't currently serve will be able to find them more readily, and then they have a good chance of being chosen on their merits. At the same time they have confidence their current customers will stay with them even after they have considered new sources.

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