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Markets

As communication capacity expands, an increasing number of markets will gravitate to the social nervous system. For this to happen, computer shopping must be able to offer the consumer a better way of shopping than shopping in malls. Consider first price comparisons. Currently, it is very expensive in terms of time and resources to drive around to several grocery stores to compare the price of a weekly grocery list. In informational society, the home computer would create the grocery shopping list by monitoring household inventory and would dial up the alternative stores and compare prices in their computers. In computer markets price differentials would reflect quality differentials and services offered with the product. I also believe that with broadband communications, consumers shopping through computer networks would have access to better information to make quality comparisons than traveling through stores in a mall or all over town. We will debate this issue in class. Would you buy, for example, clothes through a computer shopping network.

With the increase in computerized markets the number of middlemen will definitely decrease. Many people will buy directly through the social nervous system and take delivery from warehouses (or the factory) without display areas. Because most people like convenience, the 7-Eleven type store will continue. Current malls would evolve towards specialty stores and entertainment.


norman@eco.utexas.edu
Thu Jun 8 16:37:44 CDT 1995