Added Value and Pricing with Information Technology

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dc.contributor.authorNault, Barrie R
dc.contributor.authorDexter, Albert S.
dc.date.accessioned2015-05-27T20:01:17Z
dc.date.available2015-05-27T20:01:17Z
dc.date.issued1995-12
dc.description*MIS Quarterly: published article can be posted to DSpace 5 years after official publication date. Record should acknowledge source, link to publisher version [http://www.jstor.org.ezproxy.lib.ucalgary.ca/stable/249628?pq-origsite=summon&seq=1#page_scan_tab_contents] MIS Quarterly retains copyright of article. Article deposited according to Publisher's policy 05/25/2015.en_US
dc.description.abstractThe extent to which the added value to customers from a supplier's application of information technology is manifested through premium prices of a traded good is evaluated. It is demonstrated that IT can add value to an otherwise undifferentiated good, and it is shown how these benefits accrue to customers from the adoption of IT. Analyzing a case in which the traded good is a homogeneous commodity - commercial fueling - it is shown that the critical impacts of IT are convenience and control - that is, convenience that provides improved access to fuel and control that reduces problems of delegating purchasing authority for the customer. The value of this additional service is exhibited in premium prices customers are willing to pay for the IT-enhanced traded good, relative to the same good without IT. Compared to the price without IT, statistical analysis of the supplier's pricing history demonstrates that the application of IT to commercial fuel yielded price premiums of between 5% and 12% of the retail fuel price.en_US
dc.identifier.citationNault, B.R. and A.S. Dexter, "Added Value and Pricing with Information Technology," MIS Quarterly, 19, 4 (December 1995) 449-463.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/28786
dc.identifier.issn02767783
dc.identifier.urihttp://hdl.handle.net/1880/50461
dc.language.isoenen_US
dc.publisherMIS Quarterlyen_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.subjectValue addeden_US
dc.subjectStudiesen_US
dc.subjectStatistical analysisen_US
dc.subjectPricing policiesen_US
dc.subjectInformation technologyen_US
dc.subjectFuelsen_US
dc.subjectEconomic impacten_US
dc.titleAdded Value and Pricing with Information Technologyen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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