Welfare Effects
Use of ICTs at Planet Skin has generated tangible welfare gains that should flow through to be captured in national productivity and welfare indicators. However, the full effect of these gains will not be visible immediately, as to date, increased returns have been reinvested into growing the business. As the business moves from its growth phase into consolidation, following the initial expenses of system implementation and staff training, the benefits should begin to accrue as actual profits, which will result in higher measured GDP for the same level of inputs. The system implementation has also resulted in real, but unmeasured, welfare gains to customers, who are also saving time per consultation and product purchase due to the more efficient booking, cash handling and stock management features of the system. Targeted marketing also ensures that customers receive information directly about products and services in which they are interested or value, without having to expend time searching (e.g. receiving discount vouchers through the post rather than having to search newspapers and clip coupons). Whilst small per customer, the value of these is significant in the aggregate.
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