Question 3 [25 Marks]

Read the following case study and answer the questions that follow. a) It has been established that a Web site as an interactive medium, combines the best mass production and customisation. As the ultimate tool for mass customisation, the web has the ability to treat millions of customers as though they were unique and one aspect of this being easily achieved is managing intangibility. The four common forms of managing intangibility include: use of the web to provide evidence; use the web site to tangibilise the intangible; sampling in cyberspace and multiplying memories.

You are asked to discuss these four (4) common forms of managing intangibility and where possible use examples. (20 marks)

b) Briefly explain what is meant by Customers make, rather than take prices. You may illustrate by giving an example. (5 marks)