Services exchange model has  links in the  internet economy

Vannesco Christolim,  2301900536

Services exchange model has  links in the  internet economy

Services exchange models are  linked in  the internet economy. Internet economy   itself  is  an  economy based  on  digital  technology or  business  conducted    through  the  Internet  or world wide web  (WWW). The Internet economy  provides Internet Features Affecting Consumer Power Internet enabling information to be everywhere. Information about the Web can generally be accessed anytime and anywhere. Traditional trade-offs between wealth and information reach no longer exist, which helps reduce information asymmetry. The Internet has the potential  to transform quality experiences, which consumers can usually only evaluate after purchase (Darby &Karni, 1973; Nelson, 1970), into search quality, which can be assessed before purchase (Klein, 1998). According to Lindbeck and Wikstrom (1999), the increasing level of consumer information in the Internet age has three main implications for their market forces: (a) Comparative price information  that  allows Households to make price savings  and increase price competition among companies; (b)  Households  will know more about how well the variety of products available according to their individual preferences; (c) The level of information about the actual quality of the product will drive the market success of high-quality products and encourage manufacturers  to  make  low-quality products out of the market in the  longrun. Where  with the internet economy  has  several  features  that  can  improve customer service experience  and of course become an   important  element  in the  Services exchange model

Services exchange model in  the Internet economy  is   currently  very  widely  used  by  some  countries such as countries with post-industrial economy such as USA, France, Spain.  Developing  economies whose scope of services and industries have important roles such as   japan  and  Germany. As well, countries  with   specialty industi  from the economy such as Russia, India, China. Where  some countries in the  world  have considered  the development of the internet economy  has become its  own  new  form  of  the e-commerce  sector. The development of  the internet economy in Indonesia is also growing  rapidly  where  according to the   2019 e-Conomy SEA report by Google, Temasek, and Bain & Company predicts  that Indonesia’s  digital economy will reach 40 billion US dollars  by  the end  of  2019 and  will  reach  135 billion dollars. billions of   U.S.  dollars  by  2025.

Reference:

Carlson, J. and O’Cass, A., 2018. The Service Exchange Model: a framework for understanding Service Quality in Africa.        Namibia Business School, University of Namibia,[online] pp.5-8.

Rezabakhsh, B., Bornemann, D., Hansen, U., & Schrader, U. (2006). Consumer Power: A Comparison of the Old Economy and the Internet Economy. Journal of Consumer Policy, 29(1), 3–36. doi:10.1007/s10603-005-3307-7.

Sukhodolov, A. P., Popkova, E. G., & Kuzlaeva, I.M. (2017). Perspectives of Internet Economy Creation. Studies in Computational Intelligence, 23–41. doi:10.1007/978-3-319-60273-8_3.