A comprehensive study of service providers in New Zealand suggests that Internet marketing tends to be used for tactical, communication purposes, with few firms adopting a strategic approach. Although many top performers claim that information technology is a source of competitive advantage, relatively few firms appear to be using it to lower transaction costs or enhance customer relationships. Possible barriers to adopting more strategic Internet marketing practices include concerns by senior managers that the technology is still too slow, that customers are not ready and/or that customers perceive that electronic services should be cheaper, causing profitability concerns.
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Deans et al. (2003) studied this question.