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The Value of Internet Commerce to the Customer

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Author Info

  • Ralph L. Keeney

    (Center for Telecommunications Management, Marshall School of Business, University of Southern California, Los Angeles, California 90089-0871)

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    Abstract

    Internet commerce has the potential to offer customers a better deal compared to purchases by conventional methods in many situations. To make this potential a reality, businesses must focus on the values of their customers. We interviewed over one-hundred individuals about all the pros and cons of using Internet commerce that they experienced or envisioned. The results were organized into twenty-five categories of objectives that were influenced by Internet purchases. These categories were separated into means objectives and fundamental objectives used to describe the bottom line consequences of concern to customers. These results are applicable to designing an Internet commerce system for a business, creating and redesigning products, and increasing value to customers. The set of fundamental objectives also provides the foundation for developing a quantitative model of customer values.

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    File URL: http://dx.doi.org/10.1287/mnsc.45.4.533
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 45 (1999)
    Issue (Month): 4 (April)
    Pages: 533-542

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    Handle: RePEc:inm:ormnsc:v:45:y:1999:i:4:p:533-542

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    Related research

    Keywords: Internet commerce; customer value; value-focused thinking; value proposition; objectives;

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    Cited by:
    1. Jiang, Yuanchun & Shang, Jennifer & Liu, Yezheng, 2013. "Optimizing shipping-fee schedules to maximize e-tailer profits," International Journal of Production Economics, Elsevier, vol. 146(2), pages 634-645.
    2. Choi, Jayoung & Geistfeld, Loren V., 2004. "A cross-cultural investigation of consumer e-shopping adoption," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 821-838, December.
    3. Stephen K. Callaway, 2011. "Internet banking and performance: The relationship of web site traffic rank and bank performance," American Journal of Business, Emerald Group Publishing, vol. 26(1), pages 12-25.
    4. Fabel, Oliver & Lehmann, Erik E., 2000. "Adverse selection and the economic limits of market substitution: An application to e-commerce and traditional trade in used cars," Discussion Papers, Series 1 302, University of Konstanz, Department of Economics.
    5. Sonja Gensler & Peter Verhoef & Martin Böhm, 2012. "Understanding consumers’ multichannel choices across the different stages of the buying process," Marketing Letters, Springer, vol. 23(4), pages 987-1003, December.
    6. Rotem-Mindali, Orit, 2010. "E-tail versus retail: The effects on shopping related travel empirical evidence from Israel," Transport Policy, Elsevier, vol. 17(5), pages 312-322, September.
    7. Kaplan, Andreas M. & Haenlein, Michael, 2009. "The fairyland of Second Life: Virtual social worlds and how to use them," Business Horizons, Elsevier, vol. 52(6), pages 563-572, November.
    8. René Riedl & Harald Kindermann & Andreas Auinger & Andrija Javor, 2012. "Technostress from a Neurobiological Perspective," Business & Information Systems Engineering, Springer, vol. 4(2), pages 61-69, April.
    9. Caruana, Albert & Ewing, Michael T., 2010. "How corporate reputation, quality, and value influence online loyalty," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1103-1110, September.
    10. Kaili Yieh & Jiun-shan Chen & Maggie Wei, 2012. "The Effects of Technology Readiness on Customer Perceived Value: An Empirical Analysis," Journal of Family and Economic Issues, Springer, vol. 33(2), pages 177-183, June.
    11. Christophe Bezes, 2009. "E-Commerce Website Evaluation: A Critical Review," Working Papers hal-00611008, HAL.

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