The Internet and the price-value-loyalty chain

The Internet and associated technology (including the World Wide Web (WWW)) are fast changing the conceptualization and determinants of value to the customer. One primary reason behind the change is that the transparency of price information over the Internet enables closure of the traditional information asymmetry that exists between the buyer and the seller and brings down the ability of marketers to differentiate solely on the basis of price. Marketers would, thus, have to explore what constitutes value for the consumer and determine newer ways to create and deliver such value to the customer. We develop a series of propositions to demonstrate how the Internet affects price and nonprice factors contributing to value. Given certain key behavioral characteristics of consumer online shopping, we then note the challenges that marketers would face in attracting and retaining loyal customers.