Balancing Expenditures on Advertising and Information Technology
نویسندگان
چکیده
This study investigates a critical issue for E-retailers: balancing their spending on information technology and advertising. E-retailers often over-spend on advertisement to attract customers, but fail to support them due to inadequate spending on technology infrastructure. In this study we show that the demand generation and site capacity must be synchronized. E-retailers should place a higher priority on keeping current customers satisfied, rather than attracting excess demand for under-capacitated servers.
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