Utility and Flexibility Functions for Potential Customers in B2B E-Commerce Transactions

Boris Stavrovski
InSITE 2002  •  Volume 2  •  2002
One of the most evident premises for successful E-Commerce transaction should lie in as much detailed recognition of personal customers’ differentiation as it becomes possible through the usage of multiple data resources available over the Internet. The methodical basis for the evaluation and subsequent utilization of all available data may be formed under the well known concepts of the utility theory. A new quantitative measure of the personal readiness for acceptable concessions in E-Commerce transaction (when the item under the consideration have been already chosen) is proposed in a form of so called flexibility functions for potential customers. Flexibility functions are shown to be useful also as a measure of the personal readiness for changes in a scale of attractiveness for all admissible items. The simple algorithms for the derivation of flexibility functions alongside with the particular examples from the commercial real estate field are further discussed.
E-Commerce B2B transactions, flexibility functions, commercial real estate, utility theory
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