Role of Information Systems in Business ◾ 45
Impact of the Internet and the Web on the Bargaining Power of Customers
e web increases the bargaining power of customers by making it easier to nd suppliers.
Want a hotel in Vancouver, Canada? Hotels.com shows 216 of them. One is sure to meet
your needs.
Without the web, travelers would choose a hotel that their travel agent knows of, that
advertises in their local newspapers, or that’s in their guidebooks. In theory, they could
check a Vancouver phone book or a complete hotel directory, but few travelers would.
Companies can reduce customer bargaining power by increasing switching costs.
Consider shipping packages. If you register as a FedEx customer and ship a package to a
client, her name ...