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A study of Korean service firms found that the level of information technology use is significantly related to the performance of the marketing function. Support was lacking only for the categories of “use of outside database” and “networking between mainframe computer and PCs.” In addition, the form of information technology use is significant in its contribution to the performance of the marketing function. This study supports the argument that benefits of information technology investment can be identified. Furthermore, there is evidence of a time lag in the payoffs from information technology, because the benefits of connectivity have not yet been realized.

The purchase of business services is a growing activity among firms but with little appreciation that the purchase of a service requires a modification of the decision process developed for the purchase of material goods. A taxonomy for purchasing business services is developed to create a matrix with importance of service and focus of service as dimensions. Business services are classified according to their focus on three aspects of the firm: property, people, and process. A number of propositions are formulated based on insights derived from this taxonomy. The taxonomy results in six business service cells: facility support, equipment support, employee support, employee development, facilitator, and professional. Implications for managers considering a purchase in each category are explored. The paper concludes with a research agenda to test the propositions and validity of the taxonomy for purchasing business services.