申論題

2. One of the key concepts of electronic commerce is digital markets. That is, clectronic commerce establishes digital markets in which consumers (can be businesses) transact with their suppliers online.

(b) Some research studies indicate that "in a digital market, the switching cost (i.e..the cost of switching from one supplier to another supplier) of consumers can either be increased or be decreased, depending on the nature of the product or service being sold." Please identify the characteristics of products/services that will have higher consumers' switching costs in the digital markets than in the traditional markets. Please also identify the characteristics of products/services whose consumers' switching costs will decrease when these products/services are sold in digital markets. (12%)