This paper presents a framework illustrating how different elements in a customer's service encounter with non-information-intensive Internet services affect one another. The framework suggests that improving service quality inspecific elements results in cost reductions in others, creating a virtuous cycle. The paper also posits that some elements of the service encounter provide superior sources of competitive advantage than others because of the difficulty competitors have replicating them. Both findings haveimplications for organizations and managers involved in the provision of non-information-intensive services over the Internet.