NEws on Netmarket:
Monday July 14 12:04 PM EDT
Company Press Release
CUC International launches netMarket
STAMFORD, Conn.--(BUSINESS WIRE)--July 14, 1997--
Membership-based Commerce Super-Site Offers Deep Discounts on
More Than a Million Consumer Products and Services
CUC International (NYSE:CU), the leading membership-based consumer-services company, today launched its comprehensive, consumer-commerce web site, netMarket (http://www.netmarket.com). More than an online mall, netMarket is a membership-based, value-oriented consumer site spanning major areas of consumer spending, including travel and auto services. By leveraging the buying power of CUC's more than 68 million members, netMarket is able to offer significant savings on a broad array of products and services.
At netMarket, consumers are able to purchase a wide selection of products ranging from consumer electronics and travel packages to automotive accessories, compact discs and books. While anyone can access and shop at netMarket, members receive additional cash back on purchases, special discounts and privileges. Shoppers may join netMarket on a three-month trial basis for $1.00 and receive members-only discounts and privileges. After the trial period, consumers pay $69.00 for an annual membership, which is backed by a 100% money-back guarantee of the current year's fee during the entire membership period.
``For 20 years CUC's mission has been to provide an extensive range of consumer services at low prices and from the convenience of the consumer's home,'' said Walter Forbes, founder, chairman and chief executive officer of CUC International. ``The Internet offers a better way for CUC to deliver our membership benefits than our traditional phone-based services because it gives consumers direct access to our comprehensive database. Consumers are now able to see firsthand the depth and breadth of our product and service offerings.''
The netMarket Shopping Experience
With a simple graphical interface and sophisticated functionality, netMarket is designed to be quick and easy to use. netMarket brings together several existing CUC consumer-commerce sites including AutoVantage, Travelers Advantage, Shoppers Advantage, Musicspot, Book Stacks, and others. Features include:
Extensive Offering of Products and Services
netMarket includes a vast selection of more than a million products and services in the following categories: travel, books, music, computer hardware and software, electronics and cameras, home furnishings, home improvement, kitchen appliances, luggage and travel gear, office products, personal care and fitness, sporting goods, toys and video games.
Comprehensive Search Engines
Quick Search, Detail Search or Search By Brand options allow consumers to browse by product types (e.g. TVs, VCRs, blenders), as well as by brand, title, and author. Feature Search allows consumers to browse by product feature. For example, a shopper interested in buying a television can search by monitor size, remote control features or brand and receive a list of products specific to their needs.
Personalized Shopping Services
Shoppers can customize their netMarket shopping experience by using the following special services:
- Gift Finder suggests appropriate gift ideas for special people or occasions. For example, a hand-held television may be suggested for a teenager's birthday.
- Date Reminder can be programmed to remind shoppers of important dates such as Mother's Day, birthdays or anniversaries.
- Bargain Finder matches consumers' preferences with appropriate netMarket products and services and sends email notifications on upcoming deals.
- Auction Alert and Flea Market Notice inform shoppers of items that are coming soon.
- Trip Alert features current travel specials.
Fun and Entertaining Areas
netMarket has many fun and entertaining areas to make shopping enjoyable.
- Live Auction - Participants bid interactively in real time at regularly scheduled auctions on a variety of items such as home furnishings, computer equipment and vacation packages. Bidders are also able to ``chat'' with each other.
- Silent Auction - Throughout the week participants bid on
merchandise and services.
- Games and Prizes - Winners of games such as bingo, darts, bowling and trivia receive discounts and coupons on netMarket products and services.
- Flea Market - Consumers can shop for unusual or close-out items.
netMarket will continue to greatly broaden its coverage of products and services, while also expanding its savings opportunities.
netMarket Membership Benefits
netMarket is a membership-based online service, but non-members are free to browse and purchase products or services at the site. By becoming a member of netMarket, consumers receive additional benefits and savings including:
- 5% or more cash back on purchases;
- Travel discounts up to 50% off the regular published room rates at participating hotels and up to 25% off the regular rates on vacation packages and car rentals;
- Car care discounts up to 20% off regular car care prices at over 23,000 service center locations nationwide;
- Low price guarantee on purchases made at netMarket;
- Automatic two-year extended warranty on purchases that come with a manufacturer's warranty;
- 30 day money-back guarantee on all purchases made through netMarket;
- Members-only specials on selected products and services;
- Access to auctions and flea market specials;
- Additional coupons awarded to winners of netMarket games and
sweepstakes, as well as participants in on-going promotions;
- netMarket security guarantee on all credit card transactions
CUC's Membership Business Model
Unlike most commerce sites, netMarket's revenue is derived primarily from membership, rather than transaction fees. Consequently, netMarket keeps the price of merchandise and services low, sometimes at or even below cost.
``Commerce sites that rely on transaction fees and product margins will find it difficult to compete with netMarket's prices,'' said Scot Melland, vice president of business development for interactive services at CUC International. ``Our success to date proves that both telephone and online-based consumers find memberships compelling when
presented with significant savings and selection.'' According to Melland, CUC's interactive members use the services even more frequently than phone-based members, renew at higher rates, and cost less to service.
CUC's Track Record
CUC has spent 20 years building a successful, membership-based consumer services company, with more than 68 million members worldwide. CUC leverages its vast infrastructure, extensive database of millions of customers, and strong alliances with established vendors to provide value to netMarket consumers. Through its relationships and distribution agreements, CUC eliminates the high cost of maintaining product inventory, resulting in lower prices for
its members. CUC has been marketing consumer services through America Online, Compuserve and Prodigy for over a decade, and more recently through its own web sites. CUC currently services over 350,000 online members.
netMarket Guarantees Security
netMarket employs a number of security measures to ensure safe, secure electronic commerce for its customers. netMarket provides a money-back security guarantee to protect members against fraud. If a member's credit card number is stolen while making a purchase, netMarket will reimburse all of the charges not covered by his or her credit card issuer. For shoppers making online credit card transactions, netMarket uses Secure Socket Layer (SSL) and Private Communications Technology (PCT) standards. Consumers can also provide credit information through a toll-free number. netMarket plans to comply with the Secure Electronic Transaction (SET) protocol when it is implemented later this year.
About CUC
CUC, the leading membership-based, consumer-services company, currently provides access to travel, shopping, auto, dining, timeshare exchange, financial, and other services to more than 68 million consumers worldwide through its more than 20 membership programs, including Shoppers Advantage, Travelers Advantage, Entertainment, AutoVantage and other brands. CUC works in partnership with leading banks, retailers, oil companies, credit unions, charities and other organizations to offer consumers convenience and significant savings
when purchasing a wide array of high-quality goods and services. CUC is also the leading educational and entertainment software publishers, through its Davidson & Associates, Sierra On-Line, Knowledge Adventure, and Blizzard Entertainment subsidiaries. In addition, the company is among the largest interactive retailers in the world.
In May 1997, CUC announced a definitive agreement to merge with HFS Incorporated, which reaches 100 million consumers annually as a leading franchiser of brand-name hotels, residential real estate, and car rental operations, with such well-known brands as Avis, Days Inn, Resort Condominiums International, Ramada, Coldwell Banker and Century 21.
CUC also has entered into an agreement with AOL to market CUC's major services and netMarket to AOL's more than eight million subscribers. |
