Best Buy Company was a late e-commerce entry, but has developed a strong e-commerce component. The key to Best Buy’s success, according to Barry Judge, vice president of marketing, is, “We do a lot of one-to-one marketing. We’re not overly focused on where the consumers buy.” The Web site carries every product that Best Buy stocks. It uses personalized services, along with convenient pickup and fair return policies to entice consumers to shop. The consumer can purchase items on the Internet and either have them shipped directly to them or pick them up at the closest store. Shoppers can use the Internet to see if Best Buy stocks a particular item, what the item costs, and to gather product information.

What is the advantage to this philosophy?

Access the website at www.bestbuy.com. Evaluate it in terms of ease of use, product information, and then locate the Best Buy closest to you.

Compare it to Best Buy’s site. Select a product, such as a camcorder, to compare the two websites.

Pick one of the following product categories and access the websites of two companies that sell the product.

What types of financial incentives are offered on each company's Web site to encourage you to purchase?

What about the other two types of incentives, greater convenience and added value? What evidence do you see for them?

Compare and contrast the two companies in terms of incentives offered.

a. Contacts or eyeglasses

b. Water skis

c. Jeans

d. Computers

e. Camping supplies