Online prices are on average 10% lower than offline prices

Preliminary research shows online prices are, on average, 10% lower than their offline counterparts as a result of the price transparency that search tools offer. The economic surplus captured by consumers from web services alone ranges from $18 a month per user in Germany to $28 in the UK.

The value of the surplus accruing to users of the Internet varies between $18 and $28 per user per month in each country:


SOURCE: McKinsey study (with Internet Advisory Board); Yankee; McKinsey analysis

1 All in the same currency based on Organisation for Economic Co-operation and Development exchange rates.

RELATED ARTICLESExplain
London Conference on Cyberspace
Thematic debates
Economic growth and development
Economic benefits
Empowered consumers
Online prices are on average 10% lower than offline prices
Buyers are less dependent on intermediaries
Creates an effective secondary resale market for consumers
Easier for buyers to compare prices
Easy for buyers to find and compare feedback from other buyers
Makes certain types of products easier to find
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (1)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip