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B2C eCommerce Strategy and Market Structure: The Survey Based Approach

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Author Info
Stefan W. Schmitz (ICE, Austrian Academy of Sciences)
Peter Paul Sint (ICE, Austrian Academy of Sciences)

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Abstract

This 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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Publisher Info
Paper provided by EconWPA in its series Industrial Organization with number 0301012.

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Date of creation: 28 Jan 2003
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Handle: RePEc:wpa:wuwpio:0301012

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Web page: http://129.3.20.41

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Related research
Keywords: B2C eCommerce; empirical evidence; success factors; endogenous sunk costs; market structure;

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Find related papers by JEL classification:
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

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References listed on IDEAS
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.:
  1. Kathy Baylis & Jeffrey Perloff, 2001. "Price Dispersion on the Internet: Good Firms and Bad Firms," Institute for Research on Labor and Employment, Working Paper Series 1019, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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  2. Severin Borenstein & Garth Saloner, 2001. "Economics and Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 3-12, Winter. [Downloadable!] (restricted)
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