Knowledge that Transforms

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Telecommunications and Economic Activity

Journal of Management Information Systems 2001
The pervasive role of telecommunications in contemporary commerce is well documented, and has dramatically increased the demand for services. Across the world, countries are seeking to improve tele...

Retail Bank Services Strategy

Journal of Management Information Systems 2001
Design of a retail banking distribution strategy is an important issue in that industry. This paper shows the effect of new electronic distribution technologies such as PC banking on the choice of ...

Special Section: Economics, Electronic Commerce, and Competitive Strategy

Journal of Management Information Systems 2001 open access
Eric K. Clemons is Professor of Operations and Information Management at The Wharton School of the University of Pennsylvania. He has been a pioneer in the systematic study of the transformational impacts of information on the strategy and practice of business. His research and teaching interests include strategic uses of information systems such as e-commerce, information economics, the changes that information technology enables in the competitive balance between new entrants and established industry participants, transformation of distribution channels, and the impact of information technology on the risks and benefits of outsourcing and strategic alliances. Industries of focus include international securities markets and financial services firms, consumer packaged goods retailing, telecommunications, and travel. He specializes in assessing the competitive implications of information technology and in managing the risks of large-scale implementation efforts. Additionally, Dr. Clemons is the founder and Project Director for the Reginald H. Jones Center's Sponsored Research Project on Information: Industry Structure and Competitive Strategy, founder and area coordinator the School's new major in Information: Strategy, Systems, and Economics, director of the School's new MBA e-commerce major, an active participant in the School's eCommerce Forum research program, and member of the Faculty Council of the SEI Center for Advanced Studies in Management. Dr. Clemons is currently a member of the editorial board of the Journal of Management Information Systems and the International Journal of Electronic Commerce. He has served on the Congressional Office of Technology Assessment study of securities markets and on the Quality of Markets Advisory Board of the London Stock Exchange. He serves on the advisory board of numerous e-commerce start-ups.

Achieving the Optimal Balance Between Investment in Quality and Investment in Self-Promotion for Information Products

Journal of Management Information Systems 2001
When producers of goods (or services) are confronted by a situation in which their offerings no longer perfectly match consumer preferences, they must determine the extent to which the advertised features of the product reflect the product's actual attributes. We find that the two important determinants of sellers' advertising strategy are the Repeg Cost Ratio, and the Repeat Sales Coefficient. The interplay of these two factors gives rise to four possible strategic scenarios. We show that sellers' strategy is clearly explainable in three out of these four scenarios. In the ambiguous fourth scenario, we show that sellers' strategy for information production goods will differ considerably from information consumption goods based on product complexity and cost of product return (borne by the buyer). Finally, we demonstrate that markets are often characterized by self-reinforcing limits on the extent of opportunistic advertising by sellers.