BLOCKCHAIN-BASED DISINTERMEDIATION AND ITS EFFECT IN B2C RELATIONSHIP

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Volume Title

School of Business | Bachelor's thesis

Date

2021

Department

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Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

59

Series

Abstract

Objectives To establish a comprehensive understanding of blockchain-based disintermediation and its effect on B2C relationships, the first critical thing to identify is the promising features of blockchain. Then, the concept and usage of disintermediation are investigated. Afterward, the concept of blockchain-based disintermediation and its benefit in B2C relationship building are explored. Finally, this thesis aims to recognize the challenges of using blockchain to enhance B2C relationships in the current phase of blockchain development. Summary Digitalization and the move toward mass customization have vitalized customer data and its impacts in the value chain, which encourage the growth of data intermediaries. However, the dominance of these intermediaries in the processing of data results in data vulnerability, prevents the value maximization of customer data, and threatens B2C relationships. With its technical properties, namely decentralization, security, transparency, and immutability, blockchain can be an optimal solution for this data dilemma. Through blockchain-based solutions, disintermediation, or removal of unnecessary data intermediaries, is encouraged, which can improve the processing of customer data and strengthen B2C relationships. Conclusions Blockchain-encouraged disintermediation can reduce cost, complexity, and uncertainty associated with data intermediaries’ dominance while also redistributing control, adding trust, and improving B2C relationships. Customers might have complete control in a secured data management process, in which they can monetize their data. Simultaneously, B2C firms can directly communicate to their customers, access more accurate customer data, and encourage customers to co-create value.

Description

Thesis advisor

Grinsted, Susan

Keywords

blockchain, disintermediation, B2C relationship, customer-brand relationship, data intermediaries, data privacy

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