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Gerald L.

Lohse and Peter Spiller

Electronic
Shopping
Designing online stores with effective customer interfaces
has a critical influence on traffic and sales.

T
he global electronic market will have want an item in an online retail store if it is not sell-
a profound impact on commerce in ing. Nor should they conclude that a poor response
the 21st Century. While current U.S. to a given store design is due to the merchandising
sales in cyberspace ($1 billion in mix. It is important to look at the relationship
1995) are small in comparison to between sales and user interface design. Limited
total U.S. retail sales ($1.7 trillion in menus, poorly designed navigation, and the diffi-
1995) [3], U.S. cybersales projections for the year culty in comparing multiple products on the same
2000 range from $7 to $117 billion [9]. More screen all have adverse effects on electronic shopping
importantly, most experts predict a radical shift in [2]. Can customers find what they want in the stores?
how business will be conducted in the next century. Are customers aware of what products are available?
This shift not only has businesses scrambling to meet After all, diligence in browsing a store is not a virtue
this new marketing reality, but also raises many retailers should expect from its online customers.
important research questions about business strategy, We review online retail store attributes such as the
technical infrastructure, government policies, the number of links into the store, image sizes, number
electronic market demographics as well as how peo- of products, and store navigation features. By review-
ple will use the technology. ing the user interface features in the context of elec-
Issues of technology usage become critical as busi- tronic shopping, we hope to facilitate the process of
nesses and retailers attempt to exploit the boom in designing and evaluating alternative storefronts by
electronic marketing. There are large differences identifying key features that impact traffic and sales.
between a physical store and its electronic counter- While this article specifically addresses user inter-
part. A help button on the home page of the Web face design issues for electronic shopping, user inter-
shopping site replaces the sales clerk’s friendly advice face design is an important component of all software
and service. The familiar layout of the physical store development [10] with important implications for
becomes a maze of pull-down menus, product productivity [5]. Unfortunately, Web information
indices, and search features. Now more than ever, the systems (WIS) designers sometimes do not heed the
promise of electronic commerce and online shopping importance of the message advocated by user inter-
will depend to a great extent upon the interface and face design pundits such as Jakob Nielsen [11] and
how people interact with the computer. Vincent Flanders (www.webpagesthatsuck.com).
Account managers, production staff, and mer- Many of the lessons learned from online stores also
chant partners should not assume customers do not apply to WIS applications.

COMMUNICATIONS OF THE ACM July 1998/Vol. 41, No. 7 81


Online Retail Store Attributes the products they seek in larger stores.
Electronic shopping incorporates many of the same As with paper catalogs, customers cannot interact
characteristics as real shopping. The marketing liter- with the product (for example, touch the fabric, try
ature identifies attributes that shoppers consider on the clothes for size, hear the sound quality of a pair
when patronizing a retail store. Based on a compila- of speakers, among others). Internet catalogs can offer
tion from 26 researchers in the field, Lindquist [6] hyperlinks to more extensive product information
categorized store components into four groups: mer- such as product testimonials (book reviews at
chandise, service, promotion, and convenience. www.amazon.com) and product demonstrations
Arnold et al. [1] extended the convenience attributes (software downloads).
to include a fast checkout and the ease of navigating However, most merchants do not even take
through the store. advantage of adding rich product descriptions. Over
Recent studies also examined electronic shop- 50% of the stores surveyed by Spiller and Lohse had
ping. Jarvenpaa and Todd [4] surveyed consumer less than three lines of text describing each product
reactions to Web-based stores using a sample of [12]. This may reflect a transfer of paper catalogs
220 shoppers. They offer insights about factors directly onto the Web without redesigning content
known to affect consumer to take advantage of the lower

[
behavior and suggest cost of delivering text and
ways to improve retail images via the Web.
Web sites. Spiller and
Lohse surveyed 35 attrib-
Moving text has an While a picture is worth a
thousand words, small pictures
utes of 137 Internet retail overpowering effect are often poor quality and fuzzy.
stores to provide a classi- on the human Large pictures take too much
fication of the strategies time to download. Less than 8%
pursued in Web-based
peripheral vision of the total screen area contained
marketing [12]. Many of making it difficult to images, which is much lower
the descriptive statistics process information than a typical paper catalog.
of retail store features in
the Spiller and Lohse elsewhere on Service. Staff responsiveness to
study resonate with the the page. the customer service link is crit-
consumer reactions noted ical. The customer wants care-
by Jarvenpaa and Todd. ful, continuous, useful
Lohse and Spiller [8] communication, across geo-
measured 32 interface features for 28 online retail graphic barriers (worldwide shipping, multilingual
stores in August 1996 and identified store design sites), 24 hours a day, 365 days per year. Service
features that influence online store traffic and sales. includes sales clerk service for merchandise selection,
Based on these studies, we describe attributes that answers to frequently asked questions (FAQs) and
influence store traffic and sales for the following six credit, return, and payment policies. Most retail sites
categories: provide a pittance of service information. Almost one-
third did not provide any information on the compa-
Merchandise. Consumers infer information about ny’s history, policies, or background; 80% had less
quantity, quality, and variety of products from the than 10 lines of information [12]. This is a surprising
brand names or reputation of the physical store. Unfor- number since customers want to know who they are
tunately, not all products available in the merchant’s dealing with and to whom they are sending credit
catalog or real store are available online [4]. This leads card information. This is especially important for new
to disappointment as noted by this customer: “…the virtual companies solely operating on the Internet.
last thing I expected to see from LL Bean was to see Consumers want help with product selection
only one model of Swiss Army knife.” Customers pre- (such as size, color, fabrics), gift services, contact
fer a large product selection. However, only 5% of the information for sales representatives, a FAQ section
Internet stores had more than 500 products and 62% for speedy answers, information about the security of
had less than 50 products [12]. The number of prod- their transactions, company return, payment and
ucts in a store explains 17% of all variance in store traf- credit policies, information about shipping and han-
fic but had no effect on sales [8]. This implies big stores dling costs, guarantees, and statements about prod-
are less effective than small stores at converting traffic uct quality. In the survey by Spiller and Lohse, 95%
into sales perhaps because consumers are not finding of the stores did not have hyperlinks among related

82 July 1998/Vol. 41, No. 7 COMMUNICATIONS OF THE ACM


Figure 1. End product page with consistent navigation buttons and icons

products, only 25% had help for product-size selec- Promotion. Additional store visits and sales are
tion, less than 9% of the sites had an FAQ section, generated by promotion. Each hour of promotion on
and 47% did not offer interactive email. Eighty per- the electronic shopping mall entrance screen
cent of the participants in the Jarvenpaa and Todd explained 4% of the variance in sales and 1.4% of the
study had at least one negative comment about variance in store traffic [8]. Promotions involve sales,
Internet customer service [4]. Stores that offer a FAQ advertising, and appetizer features that attract cus-
section had more visits than those without such a tomers. While it is easy to spot the discount signs in
section [8]. Stores with a feedback section for cus- the local department store, comments such as “you
tomers to obtain help had increased sales. never get a sale,” “shopping is more fun in the real
Users are unwilling to tolerate delays associated store,” and “you never get to see head-to-head com-
with delivering audio, animation, graphics, and petition that you see in the mall” suggest that online
video. Some browsers do not handle Java, sound, ani- stores have a long way to go [4]. Spiller and Lohse
mations, and the like. The flood of consumer email noted that only 6% of the sites offered a ‘What’s
can create a customer relations disaster when compa- new’ section and 76% did not offer incentives or
nies do not respond quickly. To reduce the barrage of appetizers to attract and retain customers. Appetiz-
email, many companies use a FAQ section. One com- ers not only for getting customers to return but also
pany burdened consumers with separate forms for increase the enjoyment of shopping online.
each question posed to the service department. Store promotions include frequent buyer schemes,

COMMUNICATIONS OF THE ACM July 1998/Vol. 41, No. 7 83


magazines with product-related articles, glossaries, mentation. Help also includes information about
travel or other product-related tips, lottery games, the store’s navigation or the use of ordering features
links to other sites, and auctions. Interestingly, few like a shopping cart function. Only 12% of the
stores link between appetizer and product pages or stores in the Spiller and Lohse survey had a help
among different product pages. One exception, the function.
Spiegel site (www.spiegel.com), features links to Convenience features also help manage customer
associated products elsewhere in the store. The LL expectations. For example, sometimes it is difficult
Bean site (www.llbean.com) offers information about to determine the status of a process (such as down-
the U.S. national and state parks. The park informa- loading a large image file). Stores should include sta-
tion provides an opportunity to link to the store’s tus indicators (such as percent-done bars, hourglass,
outdoor gear. and so on) to avoid losing customers during delays.
Advertising has many forms on the Web. Banner Only 10% of users scroll beyond the first screen of
ads are small rectangular ads on the top or bottom of information on a Web page [11]. Long pages are dif-
a Web page that link to a target site or product. ficult to scroll and take longer to load. To help the
Spotlight ads at the store entrance feature icons or reader find information, Nielsen recommends that
images that link directly to designers be succinct, keep the text
products. Featured products short, aid scanability using infor-

[
are analogous to store window mative headlines, make judicious
displays and aisle products use of white space, and use multi-
with links to an individual ple levels of headings, highlight-
product. Figure 1 shows an Links must ing, and color text as visual cues.
end product page with navi- be active.
gation buttons. The browse Nothing will Checkout. The checkout process is
forward and browse back but- more complicated than necessary
tons allow customers to navi- drive away [4]. If the checkout process is too
gate from product to product. customers like long, customers balk and sales are
Without such buttons, the lost. For example, the checkout
consumer cannot look at mer-
a site full of process is different for every store.
chandise adjacent to this pro- dead links. This confuses the customer. Uni-
motion item nor access versally adopted standards would
information about the compa- alleviate this concern. Also, con-
ny’s reputation, returns poli- sumers enter a lot of repetitive
cies, and so forth. information such as name, address,
Web ads often use animation, scrolling text, and and credit card information. Ideally, this could be
other special effects to capture your attention. As entered once and allow the customer to checkout
noted by Nielsen [11], moving text has an overpow- once even though purchases are from multiple stores.
ering effect on the human peripheral vision making Thus, Web designers can use the interface to
it difficult to process information elsewhere on the improve the existing process.
page. The position of an ad on the page or a product The most common checkout method uses the
in a list has a large effect on consumer choice, even shopping cart metaphor [12]. At a real department
though the position says nothing informative about store, it is easy to undo a purchase during checkout.
the business [7]. Serial position matters because peo- Just tell the clerk that you have changed your mind
ple scan ads on a page sequentially and their scan- and only want the pants, but not the shirt. On the
ning is not exhaustive. As a result, people never read Internet, the undo button for one store emptied the
certain ads or product listings. entire shopping cart leaving the customer to start
over. Inconsistent menus do not allow customers to
Convenience. Store layout, organization features, as review the contents of the shopping cart from any
well as ease of use, all fall under the convenience page in the store. Often there is no access to the
umbrella. Comments from consumers such as “this is shopping cart unless a purchase is made.
not for computer illiterate people,” and “I had places Some order forms do not provide customers with
I wanted to go but couldn’t understand how” illus- important information such as when the order will
trate these convenience issues [4]. be shipped or whether an item is out-of-stock. For
General help functions might assist users in error example, to make returns or cancel an order, an order
recovery or find a particular function in the docu- number must often be provided. An electronic mail

84 July 1998/Vol. 41, No. 7 COMMUNICATIONS OF THE ACM


confirmation should provide such information auto-
matically. Order forms should clearly indicate if
prices include shipping and handling. Finally, a real
salesclerk provides service at checkout, asking, for
example, if you found everything you wanted. There
is no analogue online suggesting an opportunity to
develop such a feature in the future.

Store navigation. Product search functions, site


maps, product indices, and the overall site design
and organization, are the features of store navigation.
Such features are essential for large stores. Only 4%
of the sites had a site index, 6% offered a product
search function, and only 22% offered buttons on
the end product pages to facilitate browsing [12]. Figure 2. Scrolling menu showing a basic product list
Shoppers frequently use multiple links to locate a
particular store. Additional links from other loca- naming convention making them nearly impossible
tions can be viewed as additional store entrances. to use as site navigation aids. Search features aid the
Hyperlinks aid the discovery of new and useful navigation tools but do not eliminate their need.
information and allow users to drill down into more Marketers should clearly communicate the struc-
details as needed. The links should be as context spe- ture of the site on the home page (master index)
cific as possible (such as the sale of a Walkman CD and link to the master index from every page on
player should have a link to buy batteries). Links the site.
reduce the effort of browsing by directing customers Current systems restrict consumer comparison of
to related items. However, links must be active. products by attribute because it is difficult to com-
Nothing will drive away customers like a site full of pare products simultaneously [2]. Product lists often
dead links. present information in a confusing or unfamiliar for-
Every Web page must have consistent navigation mat. An alphabetic product list might show binocu-
links to move around on the site. Not every person lars under “N” for “Nikon binoculars.” Sometimes
will come in the front door! Product searches often customers can not tell what the function or product
link directly to an end product page. If there are no is from the icon or its name. Cute or humorous
navigation buttons on the end product page, cus- department names do not provide cues as to where
tomers will not be able to browse the rest of the store products are located. Elaborate graphics with realis-
to find other items they might purchase. The browse tic detail often leave the customer wondering where
forward and browse back buttons in Figure 1 allow to click to start shopping. Consumers also find it dif-
the customer to turn pages without returning to a ficult to remember where something was in the
product list screen. online store whereas the real store has many physical
Improving navigation of product lists, product cues (second floor near appliances). This is especially
search, and increasing the use of hyperlinks within a true for stores using frames since the back button
store is the primary area of opportunity. Product list does not always go back and bookmarks often point
navigation explained nearly 61% of sales and 7% of to another frameset within the site.
the traffic [8]. A pull-down menu or list of products Each retail store has its own search engine tailored
(Figure 2) typically provides only a name. Few pur- to its store. These are different from popular Internet
chase decisions are made based on name alone. search engines such as www.infoseek.com and
Including additional information in the product list www.altavista.digital.com. Consumers must learn
such as price, an image, and a product description the nuances of each new search engine. As one con-
increases sales by facilitating purchase decision mak- sumer lamented, “the search function kept giving
ing at the point consumers initially view the prod- me ridiculous matches that had nothing to do with
uct. We view the streamlined product list navigation what I had in mind” [4]. Furthermore, most in-
using a one-click-to-purchase approach of Ama- house search engines cannot search across multiple
zon.com and 1-800-Flowers (www.1800flowers. stores (for an exception, see www.bestbargains.com).
com) as recognition that every additional mouse Manually indexed sites (such as www.yahoo.com) are
click reduces the possibility of a purchase. attractive alternatives to search engines because they
Complex URLs follow a completely foreign cluster products into meaningful groups.

COMMUNICATIONS OF THE ACM July 1998/Vol. 41, No. 7 85


Web Information Systems Web page must have consistent navigation links
Many user interface design issues for electronic shop- (such as site map or index) to move around on the
ping environments also apply to WISs. Compared to site. Clearly communicate the site structure on the
traditional information systems, WIS users have home page and link to the master index from every
much more control of the user interaction, yet they page.
are often unable to find sites they know exist or Do not waste opportunities to link to related
become disoriented and lost in a maze of hyperlinks. areas. Hyperlinks aid the discovery of new and use-
Search engines should be mandatory for all large ful information and allow the user to bore down into
Web sites. Ideally, the search engine would go more details as needed. The links should be as con-
beyond Boolean keyword searches by incorporating text specific as possible. Hyperlinks are the essence
category pick lists, radio buttons, and other features of the Internet—use them!
that facilitate search. The user interface is an essential link between the
Search engines direct users to specific pages customer and the retail store in Web-based shopping
within a site without ever going through the home environments. It is our belief the growth of Internet
page, making it difficult for designers to anticipate retail sales will depend, at least partially, on these
a user’s navigation path through the site. Thus, every interface design issues. c

Mediating Electronic Product Catalogs


David-Michael Lincke and Beat Schmid

The information superhigh- Unfortunately, electronic most systems offered today are
way in its incarnation as the shopping systems have had rel- proprietary structures that
Internet has the inherent atively limited success to date lack interoperability and cross
potential of enabling a global in supplanting or even aug- navigation. Despite the grow-
marketplace. Electronic prod- menting traditional physical ing number of companies that
uct catalogs (EPCs) form the and catalog shopping. Besides present their products on the
Web-based front end to this problems with basic usability Internet, a global search for
rapidly evolving marketplace. as Lohse and Spiller discuss, products and comparative
analysis of their features is
Figure 1. A federation of intelligent and mediating electronic product catalogs impeded by semantic differ-
ences between the EPCs. Thus,
even though buyers enjoy
WWW WWW broad access to different ven-
Client Client
Query
dors’ product specifications,
integration and evaluation of
WWW MEPC Query MEPC WWW product information still has
Server Server
to be performed manually. The
Differentiation Services
impediments to an effective
and efficient use of the Inter-
WWW net as a global marketplace at
Server
MEPC
the stage of product identifi-
Integration Services cation can be summarized as
DB
follows:
MEPC

• Buyers must acquire and


Product Database
Services maintain the relevant
intell. intell. intell.
EPC EPC EPC addresses of suppliers of a
product.
WWW WWW
Server
DB
Server
DB DB • Typically, products are pre-
sented by each company in
a different semantic con-

86 July 1998/Vol. 41, No. 7 COMMUNICATIONS OF THE ACM


9. Meeker, M. and Pearson, S. The Internet Retailing Report. Morgan Stan-
References ley, New York, 1997; www.ms.com/misc/
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3. Direct Marketing Association 1995–96 Statistical Fact Book. Direct Mar-
keting Association, New York, NY, 1997. Gerald L. Lohse (lohse@wharton.upenn.edu) is Assistant Pro-
4. Jarvenpaa, S.L. and Todd, P. A. Consumer reactions to electronic shop- fessor of Operations and Information Management at The Wharton
ping on the World Wide Web. Intern. J. Electronic Commerce 1, 2 (1977) School of the University of Pennsylvania in Philadelphia.
59–88. Peter Spiller (Peter_Spiller@mckinsey.com) is a consultant at
5. Landauer, T.K. The Trouble With Computers : Usefulness, Usability, and
McKinsey and Co., Duesseldorf, Germany.
Productivity. MIT Press, Cambridge, Mass., 1996.
6. Lindquist, J.D. Meaning of image. J. Retailing 50, 4 (Winter
1974–1975), 29–38. Permission to make digital or hard copies of all or part of this work for personal or class-
7. Lohse, G.L. Consumer eye movement patterns on Yellow Pages adver- room use is granted without fee provided that copies are not made or distributed for
profit or commercial advantage and that copies bear this notice and the full citation on
tising. J. Adv. 26, 1 (1997) 1–13.
the first page. To copy otherwise, to republish, to post on servers or to redistribute to
8. Lohse, G.L. and Spiller, P. Quantifying the effect of user interface lists, requires prior specific permission and/or a fee.
design features on cyberstore traffic and sales. In CHI’98 Conference Pro-
ceedings. (Los Angeles, April 18–23, 1998). ACM Press, Los Alamitos,
Calif. © 1998 ACM 0002-0782/98/0700 $5.00

text. Buyers have to trans- for the specification of prod- of an arbitrary number of cat-
late those semantics manu- uct information is needed. alog modules structured in a
ally. Especially in a global Based on such a language a recursive manner. The basic
environment as diverse as Mediating Electronic Product building blocks are intelligent
the Internet, where people Catalog (MEPC) [1, 2] can be EPCs, which are catalogs that
from many different cul- constructed. Under the term are augmented by a semantic
tural backgrounds meet and MEPC we understand a catalog layer (see Figure 2). Such a
a wide variety of languages that semantically integrates layer is necessary in order to
is in use, the issue of trans- several individual EPCs or allow for the classification
lation between and integra- other MEPCs into a federated and evaluation of the contents
tion of different system (see Figure 1), and of catalogs queried and to
vocabularies is exacerbated provides the following facilitate the semantic inte-
even further. The search functionality: gration of heterogeneous cat-
engines available on the alogs. Besides Q-Calculus [3]
Internet today are of little • Transparent search over (used in our implementation)
help as they are practically several EPCs in a distributed other methods and languages
all based on classic models environment for the formal representation
of information retrieval that • Support for multilingual of product information have
work on a strictly syntactic query resolution and been proposed by Kimbrough
basis. national differences (conver- [4] and Keller [5], who has
• Vendors tend to employ the sion of measurements, sizes, applied KQML to the modeling
user interface design of or currencies, for example) of EPCs.
their EPCs as a means of dif- • Inference mechanisms for Drawing from the informa-
ferentiation. Thus, cus- the evaluation of integrated tion repositories of MEPCs, dif-
tomers are continuously information ferentiation services can be
forced to get accustomed to • Interfaces to additional mar- established. Such services
new ways of interaction. ket services (such as pay- focus on niche markets by
ment or logistics services) extracting specialized areas of
In order to overcome these product information from cat-
problems a common language A MEPC federation is composed alog intermediaries, subse-

COMMUNICATIONS OF THE ACM July 1998/Vol. 41, No. 7 87


quently enriching them with • Cross integration: The pro- models for MEPC intermedi-
additional related information posed MEPC’s true potential, aries are viable and success-
and services to create added however, is only realized ful in the setting of the
value for their customers and through integration of cata- tourism industry. c
build focused virtual commu- logs of complementary
nities. goods or services. For exam- References
A wide variety of business ple, by integrating hotel 1. Lincke, D.-M., Schmid, B. Architecture and
business potential of mediating electronic
scenarios for the application of booking, ticket and flight product catalogs. In Proceedings of the AIS ‘97
MEPC technology can be envi- reservation systems, auto- Conference, Indianapolis, August 1997.
2. Lincke, D.-M., Schmid, B., and Stanoevska-
sioned ranging from the sup- matic creation of travel Slabeva, K. Mediating electronic product cat-
port of purchasing and sales arrangements individually alogs. In Proceedings of the 7th Mini EURO
operations to the streamlining configured according to Conference, Bruges, Belgium, March 1997.
3. Schmid, B., Geyer, G., Wolff, W., Schmid,
and optimization of sourcing each customer’s needs can
processes of resellers and large
organizations. On the customer
side, the introduction of new
Generic
intermediaries into the usage User Presentation Layer Market
process of EPCs can offer sig- Services
nificant added value to end (payment,
users; while on the sides of logistics,
vendors and intermediaries etc.)
Agent/Query Semantic Layer
new business opportunities are
arising and new business mod-
els are becoming viable (see
Tenenbaum in this issue).
In trying to create added Transactional IS Relational Model
value for their customers,
maintainers of MEPCs can
adopt one or a combination of
three different generic busi-
Figure 2. Logical architecture of an intelligent EPC
ness models:
R., and Stanoevska-Slabeva, K. Representation
and Automatic Evaluation of Empirical, Especially
• Horizontal integration: Sev- be offered. Thus, maintain- Quantitative Knowledge. Final Report of the
eral catalogs covering vari- ers of MEPCs are not limited SNF Project #5003-034372, 1996.
ous different kinds of to a role as pure information 4. Kimbrough, S.O. Sketch of a basic theory for
a formal language for business communica-
product families are inte- brokers, but can enter the tion. In Proceedings of the 31st HICSS Conference,
grated under a common user market as suppliers of com- Hawaii, Jan. 1998.
5. Keller, A. Smart catalogs and virtual catalogs.
interface offering multilin- bined product solutions. Stanford University, 1995; www-db.stan-
gual support to users. This Their businesses are trans- ford.edu/pub/keller/1995/virtual-catalogs.ps
scenario corresponds to the formed into virtual enter-
model of a traditional shop- prises that flexibly make use
ping mall. of other companies’ services. David-Michael Lincke
(David-Michael.Lincke@ mcm.unisg.ch)
• Vertical integration: By is a research assistant and Ph.D.
integrating catalogs cover- A first commercial MEPC candidate in the Institute for Media and
ing homogeneous product implementation is currently Communications Management at the
categories the search scope under way in cooperation with University of St. Gallen, Switzerland.
Beat Schmid (Beat.Schmid@mcm.
of users’ queries can be a number of companies in the unisg.ch) is a professor and the head of the
vastly expanded. In addi- Swiss tourism industry and Institute for Media and Communications
tion to an immensely funded by the Swiss Commis- Management at the University of St.
increased supply and vari- sion for Technology and Inno- Gallen, Switzerland.
ety of products, compara- vation. The results of this
tive shopping can be project will provide further
efficiently performed. insight as to what business © 1998 ACM 0002-0782/98/0700 $5.00

88 July 1998/Vol. 41, No. 7 COMMUNICATIONS OF THE ACM

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