B2C eCommerce Strategy and Market Structure: The Survey Based Approach
AbstractThis paper follows two objectives: (i) It demonstrates the merits of the survey based approach to B2C eCommerce characteristics and company strategy, and (ii) it presents empirical evidence of the crucial importance of size and marketing investment in B2C eCommerce markets. It presents econometric estimates of the effects of company characteristics and company strategies on the performance of Viennese B2C eCommerce companies in 2001. We provide econometric analysis of three dependent variables in turn: (i) number of B2C eCommerce customers in 2000, (ii) number of B2C eCommerce employees in January 2001 and (iii) revenue growth rate in 2001. The models do explain the data quite well: Size as well as endogenous sunk costs emerge as the main success factors. Furthermore, the results of nonparametric tests are presented. They mostly confirm the econometric evidence. We also show that the quantitative results are consistent with the qualitative results of the surveys. Finally, we argue that the survey based approach to B2C eCommerce is a method that provides reliable and consistent data, and that it complements the approach based on prices and consumer behavior commonly applied.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0301012.
Date of creation: 28 Jan 2003
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B2C eCommerce; empirical evidence; success factors; endogenous sunk costs; market structure;
Other versions of this item:
- Stefan W. Schmitz & Paul Peter Sint, 2003. "B2C eCommerce Strategy and Market Structure: The Survey Based Approach," Discussion Papers of DIW Berlin 323, DIW Berlin, German Institute for Economic Research.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-03 (All new papers)
- NEP-COM-2003-02-03 (Industrial Competition)
- NEP-IND-2003-02-03 (Industrial Organization)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Severin Borenstein & Garth Saloner, 2001. "Economics and Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 3-12, Winter.
- Yannis Bakos, 2001. "The Emerging Landscape for Retail E-Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 69-80, Winter.
- Baylis, Kathy & Perloff, Jeffrey M., 2001.
"Price Dispersion on the Internet: Good Firms and Bad Firms,"
Institute for Research on Labor and Employment, Working Paper Series
qt2t0770rn, Institute of Industrial Relations, UC Berkeley.
- Kathy Baylis & Jeffrey Perloff, 2002. "Price Dispersion on the Internet: Good Firms and Bad Firms," Review of Industrial Organization, Springer, vol. 21(3), pages 305-324, November.
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