CHAPTER 11· BUSINESS-TO-BUSINESS INTERNET MARKETING
Online communications are not just being used at the initiation and processing stages
of purchasing. Another valuable contribution being made by online communications in
the later stages of the buying process is regardingproduct evaluation and feedback. The
Internet offers opportunities for businesses to improve the quality of customer service
and at the same time reduce costs. Quality of service can be improved by providing
buyers with access to the right answer to their queries in real-time. Using customer
information and diagnostic tools Dell Computers (www.dell.com) analyses the buyer
query, diagnoses the problem and then instantly recommends possible solutions.
Through providing web-based support or buyer-driven question and answer sessions
Cisco has to employ fewer staff to provide the required level of after-sales support (see
Mini Case Study 11.3).Online transactions – e-commerce
E-commerce involves the transaction of goods and services between organisations using
Internet technologies and has the potential to deliver many benefits to an organisation.
According to Croom (2001) the use of Internet-based technologies will affect procure-
ment systems by making them ‘leaner’. Buyers will become more informed with
increased access to product information available on the web. Changes may occur in the
configuration of the buying group: the purchasing function will become more stream-
lined and restructuring of the supply chain will also be possible.More informed buyers
The US-based BuyerZone.com is a leading online marketplace that brings together the pre-
mier Internet-based ‘Request for Quote’ service with its original award-winning purchasing
guides. This research facility serves the needs of small-business owners by providing access
to relevant and timely information. Additionally, BuyerZone.com provides a guided buying
experience that empowers customers to evaluate easily and make quickly the right pur-
chases for all their business needs. It is also important to be aware that a major challengeCisco is a leading e-commerce business with the majority of its business online. The success has been
achieved through e-commerce activities. A particularly interesting part of its online operations is its cus-
tomer service provision.
In the early 1990s Cisco was a relatively small company, but was growing rapidly. This success
caused a problem – a backlog in the area of after-sales support. This problem developed since Cisco’s
electronic components such as routers and hubs need configuration after delivery. The queries that arise
are of a highly technical nature and at the time there were many customer questions. The solution was to
provide online support whereby if possible customers could resolve their own problems; however, highly
specialised engineers were also available to deal with particularly troublesome problems. Susan
Bostrom, head of Cisco’s Internet Solutions Group, said the idea was ‘almost an instant success’: it
became a ‘self-inflating balloon of knowledge’. The expansion of knowledge occurred as customers not
only gleaned information from Cisco’s customer query web site but also shared their experiences with
Cisco and other customers. The support system has continued to be a success and today almost 80%
of customer queries are answered online. Cisco’s sales have increased tenfold while the number of cus-
tomer support staff has only doubled.Source: Adapted from Cisco System web site http://www.cisco.comMini Case Study 11.3 Cisco excels in pre-sales and after-sales service