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A Model for Evaluating E-Commerce Based on Cost/Benefit and Customer Satisfaction

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  • Jie Lu

    (University of Technology, Sydney)

Abstract

Today's business managers face increased pressures to make sure that E-commerce (EC) investment has certain paybacks. They are attempting to find which investment will contribute effectively to their business benefits, thus determining whether money should be spent on these results. This paper develops a conceptual framework for evaluating web-based business-to-customer EC applications. The framework includes EC cost/benefit, EC functionality and customer satisfaction categories, each consisting of a set of factors. This paper then critically examines the inter-dependent and interrelated relationships among these factors through a group testing of hypotheses. The research is conducted based on a web exploration and two respective surveys: customer-oriented and company (supplier)-oriented. Through data analysis, findings are expressed into a factor-relationship model. The model shows how business organisations can use web-based EC applications to obtain further benefits by determining how EC investments can improve customer satisfaction in different ways.

Suggested Citation

  • Jie Lu, 2003. "A Model for Evaluating E-Commerce Based on Cost/Benefit and Customer Satisfaction," Information Systems Frontiers, Springer, vol. 5(3), pages 265-277, September.
    • Handle: RePEc:spr:infosf:v:5:y:2003:i:3:d:10.1023_a:1025645210350
    DOI: 10.1023/A:1025645210350
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    References listed on IDEAS

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    1. Oecd, 2001. "The Internet and Business Performance," OECD Digital Economy Papers 57, OECD Publishing.
    2. Jonathan B. Woodroof & George M. Kasper, 1998. "A Conceptual Development of Process and Outcome User Satisfaction," Information Resources Management Journal (IRMJ), IGI Global, vol. 11(2), pages 37-43, April.
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    Cited by:

    1. Ong, Chorng-Shyong & Chang, Shu-Chen & Lee, Shwn-Meei, 2015. "Development of WebHapp: Factors in predicting user perceptions of website-related happiness," Journal of Business Research, Elsevier, vol. 68(3), pages 591-598.
    2. Eleonora Lorenzini, 2012. "Innovation and e-commerce in clusters of small firms: The case of a regional e-marketplace," DEM Working Papers Series 003, University of Pavia, Department of Economics and Management.
    3. Corlane Barclay, 2008. "Towards an integrated measurement of IS project performance: The project performance scorecard," Information Systems Frontiers, Springer, vol. 10(3), pages 331-345, July.
    4. Eleonora Lorenzini, 2014. "Innovation and e-commerce in clusters of small firms: The case of a regional e-marketplace," Local Economy, London South Bank University, vol. 29(8), pages 771-794, December.

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