unblock the cost-benefit perception

Source: Allegra Strategies (2005)

UK population by using a store-based model whereas ASDA, which offers less product lines, has based its model on the classical warehouse model. However, it is equally important to remember that the lack of a suitable infrastructure can be limiting in how the technology can be used (see Chapter 11).

Marketing and sales can be used in customer-centric value creation strategies in the form of interactive marketing communications strategies (see Chapter 4 for a detailed discussion) and revenue streams. Indeed according to Dennis et al. (2004), there are four revenue stream business models, which in turn are based on advertising, merchandising and sales, transaction fees and subscriptions.

Strategic implications for retailers wishing to be successful online are far reaching and require a retailer to develop a carefully informed strategy, which is guided by a business model that can satisfy corporate objectives through the deriving value from corporate capabilities whilst effectively meeting the expectations of the online consumer. The target market and the product category can have a significant influence on success. Now read Mini Case Study 10.5 and consider the offline impact of online marketing.

Mini Case Study 10.5

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