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In the last several years, the increased diffusion of computer and telecommunications technologies in businesses and homes has produced new ways for organizations to connect with their customers. These computer mediated environments (CMEs) such as the World Wide Web raise new research questions. In this paper, we examine the potential research issues associated with CMEs in five areas: (1) decision processes, (2) advertising and communications, (3) brand choice, (4) brand communities, and (5) pricing.

In the last several years, the world of the marketing has changed dramatically with the rapid diffusion of computer and information technologies throughout businesses and homes. The two most notable changes that have increased potential of linking buyers and sellers are the number of households owning personal computers (over 33% in the U.S.) and the exponential growth of applications of the Internet, most notably the World Wide Web (WWW).

With increased penetration of computers, particularly multi-media computers equipped with CD-ROM drives and modems, subscription-based services such as America Online (AOL), Prodigy, and Compuserve, where consumers are able to check airline flight schedules and make reservations, purchase a wide variety of products, and discuss product performance with other consumers, are becoming very popular. Households in Chicago and San Francisco can purchase groceries from home using computer software marketed by Peapod, Inc. This latter service allows consumers to search within a product category using attributes such as price, calories, sugar content, and package size. Car manufacturers such as BMW regularly mail CD-ROMs to potential customers with video shots of the cars and data both about the cars and their competitors. Durable goods can be purchased through CUC International’s Shopper’s Advantage membership-based service (www.cuc.com). “Virtual” shopping...