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The Value of Internet Commerce to the Customer


  • Ralph L. Keeney

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


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.

Suggested Citation

  • Ralph L. Keeney, 1999. "The Value of Internet Commerce to the Customer," Management Science, INFORMS, vol. 45(4), pages 533-542, April.
  • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:4:p:533-542

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    Cited by:

    1. Yuanchun Jiang & Jennifer Shang & Chris F. Kemerer & Yezheng Liu, 2011. "Optimizing E-tailer Profits and Customer Savings: Pricing Multistage Customized Online Bundles," Marketing Science, INFORMS, vol. 30(4), pages 737-752, July.
    2. René Riedl & Harald Kindermann & Andreas Auinger & Andrija Javor, 2012. "Technostress from a Neurobiological Perspective," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(2), pages 61-69, April.
    3. 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.
    4. 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.
    5. Wu, Jih-Hwa & Wu, Chih-Wen & Lee, Chin-Tarn & Lee, Hsiao-Jung, 2015. "Green purchase intentions: An exploratory study of the Taiwanese electric motorcycle market," Journal of Business Research, Elsevier, vol. 68(4), pages 829-833.
    6. 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.
    7. 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 I 302, University of Konstanz, Department of Economics.
    8. Sérgio Nunes, 2012. "Information Security Value In E-Entrepreneurship," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 107-131.
    9. Miguens, Maria Jesús López & González-Vázquez, Encarnación & Turnes, Paloma Bernal, 2014. "Escala multinível e multidimensional para confiança on-line," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(2), March.
    10. Lea Sonderegger-Wakolbinger & Christian Stummer, 2015. "An agent-based simulation of customer multi-channel choice behavior," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 459-477, June.
    11. 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.
    12. Jaeki Song & Fatemeh Mariam Zahedi, 2005. "A Theoretical Approach to Web Design in E-Commerce: A Belief Reinforcement Model," Management Science, INFORMS, vol. 51(8), pages 1219-1235, August.
    13. Rajiv D. Banker & Robert J. Kauffman, 2004. "50th Anniversary Article: The Evolution of Research on Information Systems: A Fiftieth-Year Survey of the Literature in Management Science," Management Science, INFORMS, vol. 50(3), pages 281-298, March.
    14. 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.
    15. 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.
    16. 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, April.
    17. 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.
    18. Christophe Bezes, 2009. "E-Commerce Website Evaluation: A Critical Review," Working Papers hal-00611008, HAL.
    19. Alireza Abroud & Yap Choong & Saravanan Muthaiyah & David Fie, 2015. "Adopting e-finance: decomposing the technology acceptance model for investors," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 161-182, March.
    20. Silvina Santana & Sandra Loureiro, 2010. "Assessing Benefits And Risks Of Online Shopping In Spain And Scotland," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 161-172.


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