E-service: The revenue expansion path to e-commerce profitability

The chapter presents an overview of the present and future of e-service. E-service emphasizes the use of e-commerce to drive customer satisfaction and revenue expansion, rather than just efficiency and cost reduction. The historical reasons for the rise of e-service are explored and the two paths to profitability are elucidated. With the emerging importance of agents and other virtual entities, customers are increasingly delegating tasks, including brand choice, to these virtual entities. A customer-centric market view necessitates that firms learn the customer laws of the virtual world to retain and enhance their market share. The chapter identifies the key e-service issues in today's business environment and summarizes possible solutions and implementation mechanisms in the framework of the new marketing paradigm. © 2005 Elsevier Inc. All rights reserved.