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Almost all attempts to date to monetize Internet applications targeted at individuals have focused on natural extensions of traditional media or traditional retailing. Most are either some form of consumer-focused advertising or of consumer-focused e-commerce. And yet the Net is far more powerful than traditional media on one hand, and far more liberating and thus inappropriate as an alternative to traditional media on the other. There are numerous potential online business models that are not based on advertising. This paper explores several such areas and divides them into two basic categories, those that sell some product, experience, content, or service and earn revenues from the sale, and those that provide access to consumers and charge for access. It further divides each of these major categories into subcategories, and for each subcategory reviews current experience, places it in the context of the relevant literature in competitive strategy, and uses that theory to make predictions. The paper concludes with strategic recommendations for corporations as well as with suggestions for further research. [ABSTRACT FROM AUTHOR]

The Internet provides an additional channel for manufacturers to provide information about and sell their products. The electronic channel has the advantage of reduced search cost and its reach is increasing, but it has limited capability to provide product information. This paper examines how Internet technology affects a monopoly manufacturer's distribution problem in an environment where product information is important for consumers to identify their ideal product. The model suggests that a manufacturer uses the electronic channel in addition to the physical channel when the product information is very valuable and product information is largely about digital attributes, or when the product information is not valuable. The model also suggests that when the manufacturer chooses to sell through both channels, there is an increase in price competition between the two channels such that the manufacturer need not sell through the electronic retailer with the highest reach. Also, when a large proportion of consumers have access to both channels, the manufacturer may sell through only one channel. The paper also examines the case where the manufacturer operates in the electronic channel and the case where the retailers are integrated. [ABSTRACT FROM AUTHOR]

Although the Web has grown to several billion pages over the past few years, just a few of the Web sites get most of the visits. Such sites, called portals, attract visitors and advertisers and provide a lot of valuable content at no charge to the visitors. The portals attract a disproportionate amount of the Internet advertising dollars and have the ability to influence the success of new electronic commerce ventures. Using monthly audience data, we examine relative market shares of Web sites in search engines, travel, financial, news, and other categories. We find clear evidence of increasing disparity in page views, with the top Web sites getting an increasing share of the market. Using economic modeling, we show that this disparity is a result of a development externality that exists in this industry: the sites that have more viewers get more revenues; this in turn allows them to develop more content and attract an even greater number of viewers. [ABSTRACT FROM AUTHOR]

Price-comparison engines allow customers to compare product offerings of online sellers and reveal almost complete information on the alternatives, and hence create erosion in store loyalty. Consequently, the competitive dynamics of online sales are affected in markets where price-comparison shopping is diffusing rapidly. We develop a dynamic competitive pricing model that deals with an asymmetric duopolistic market where the segment sizes are determined through a diffusion process. Our diffusion-of-innovations approach allows us to dynamically capture the proportion of informed and uninformed customers in a homogenous goods market. We use this model to analyze how strategic profit-maximization behavior evolves over time. This analysis shows that the increasing numbers of price-comparison shoppers pull prices down, and the rate at which prices decrease is shaped by the diffusion curve and brand preference. Our analysis shows that stores with loyal customers, or with a preference for their brands, can attain higher profits further into the diffusion process. The direct implication is that firms should use their information technology, operations, and marketing capabilities to create, enhance, and cultivate stronger preferences for, and loyalty to, their brand names to survive the inevitable information-rich markets of tomorrow. [ABSTRACT FROM AUTHOR]

The aim of this research is to explore those competencies within the entrepreneurial small firm, (ESF), which will determine if it is to adopt and fully exploit the potential of the Internet in developing and maintaining relationships with its customers. A key relationship, and one that is a major focus of much of the relationship marketing literature, is that between the supplier, in this case the ESF, and the customer or buyer. In this research, using a qualitative methodology, the authors examine the nature and character of the challenges faced by 30 entrepreneurial individuals in their relationship-oriented utilisation of the Internet. As a first stage of a larger research programme it explores the competencies likely to determine the extent of Internet adoption. The paper offers insights to a more complete competency spectrum for Internet marketing in the ESF. [ABSTRACT FROM AUTHOR]

The last decade, specifically the last three years have been difficult for traditional retailers. Increased market fragmentation and both local and global competition characterized the initial period of the decade. In the last three years, the threat of the Internet has increased the competitive pressure that retailers face. Although the bricks versus clicks battle has largely been won by brick stores, and the etailing market (click only) has imploded, the threat to firms from the Internet has not declined. Some traditional retailers (bricks) have created an Internet presence (clicks and bricks) that has led to enhanced interest regarding the Internet by retailers who have not joined the Internet revolution. The central question that this paper seeks to answer is whether the preference or choice of bricks over dicks is due to the consumer's ability to physically examine the merchandise, or is a result of the service salespeople offer. The results suggest that the role of salespeople may be limited in customers' choice of store format. This article discusses strategies to elevate the role of salespeople in stores are then discussed. [ABSTRACT FROM AUTHOR]

Success in cyberspace markets will be influenced by whether firms can develop unique organisational processes as the basis for supporting market performance. This perspective suggests that the adoption of a ‘resource-based’ view of the firm may provide the basis for assessing the ability of an organisation to exploit the Internet as a path through which to enhance market performance. A competency model has been developed to define areas of capability that may influence the execution of an Internet marketing strategy. Proposed competencies include positioning, funding, innovation, workforce management, productivity, service quality and information management. Following qualitative validation of the model, a survey was undertaken amongst small UK manufacturing firms. Results of the survey indicate that the identified competencies within the model are perceived as critical for achieving market performance and that firms which exhibit these key competencies are able to achieve a higher level of sales growth. [ABSTRACT FROM AUTHOR]

The Internet offers a number of opportunities and threats for insurance sales agents. On the one hand, the Internet provides opportunities to communicate with and reach customers. However, it also introduces the risk of losing business to insurance providers or competitors. These opportunities and threats create a need to understand the characteristics that may affect the views of insurance agents regarding the Internet and its impact on their business. This paper compares insurance sales agents' scores on an opinion leadership scale (Flynn, Goldsmith, and Eastman 1996) and subjective knowledge scale (Flynn and Goldsmith 1999) with their attitudes toward the Internet. The results suggest that those insurance sales agents with a higher level of subjective knowledge about the Internet are more likely to be opinion leaders about the Internet. Both opinion leaders and those with higher levels of subjective knowledge have a more positive attitude about the Internet, hut only the relationship with opinion leadership is significant. In addition, those insurance sales agents who are younger (than the approximate mean age of 46 years old) are more likely to be opinion leaders and have a higher level of subjective knowledge of the Internet. The results suggest that perceived knowledge and the willingness to discuss the Internet with others impact one's attitude of it, and that the younger insurance agents will play a leading role in how the Internet will be used. [ABSTRACT FROM AUTHOR]

Advocates of the World Wide Web claim it is a great leveler and that participants have a more equal voice. This flatness of the Web creates a major challenge for many businesses: How do you attract visitors and prospective customers to the firm's Web site? The Web site that can attract more visitors, all other things being equal, is more likely to communicate its message to a wider audience or sell its product to more people. Organizations want to build mountains-or "attractors"-in the otherwise flat landscape of Web-based marketing and advertising. This article classifies existing approaches to creating attractors, identifies four basic types of attractors, and predicts that there will be a move towards creating highly interactive attractors as a device for mass customization. The article also addresses the notion of sustainable attractiveness and presents recommendations for designing an attractor [ABSTRACT FROM AUTHOR]

City networks have been a critical topic in the fields of urban geography and regional economics. Numerous studies have explored city networks, focusing mainly on infrastructure and industrial networks. Unlike traditional urban network of which the major measuring indexes are population sizes and entity industries, online commodity service networks could reflect well the influencing of emerging economies, especially the Internet economy, on city networks. This study analyzes and reveals structural features of China's city networks through online commodity services, providing the internet economic approach on city networks. Results indicate that the core cities of online commodity service networks are mainly concentrated in eastern coastal areas. In addition, spatial polarization and layer structure of network connections are obvious, descending from the centers in eastern China to peripheral cities in central and western China. Online commodity services of different cities show apparent differences and uncertainties in terms of specialization rates of international connection, which presents a tendency toward diversification. Online commodity service networks are not only associated with goods production, supply, and consumption in physical space but also reflect virtual information, capital, and technology flows, thus providing a new empirical approach for understanding city networks in information and internet economic age. [ABSTRACT FROM AUTHOR]

Globalization, liberalization of markets, internationalization and Internet has led to new open visions and business opportunities. Now, large and small businesses may have business relationships all over the world and obtain many important advantages such as: rapid transfer of information, rapid connectivity, diversity, interculturality, finding new knowledge, experiences, and values, and lower costs for communication and collaboration, anytime, anywhere. In a world where many activities are now online, why not the commercial activity to not be online? The Internet, as the newest direct marketing technique, has led to increased sales made online. The customers and the organizations, make purchase and sale online, known as e-commerce. In this article we analyse the role played by the Internet in commerce activities, implementing mathematical modeling and simulation to show their implication in commercial activities and to show there is a direct and positive relation between the Internet and the commercial activities. [ABSTRACT FROM AUTHOR]

Today, internet has developed to a highly competitive market. The size of e-commerce market in India is worth around Rs 9,500 crore, out of which the pure play online shopping market is worth Rs 1,300 crore. While online shopping globally is growing at around 8-10%, in India the growth rate is upwards of 30%. With the growing importance of the online retail industry in India, it becomes imperative for Eretailers and internet marketers to understand the determinants of online purchase behaviour of customers to understand what is important to the Indian online customer. Purpose: The main purpose of the research is to understand the behavior of customer while purchasing online and to analyze the impact of various demographic factors that affect the behaviour of online shoppers in India. Design/methodology/approach: A broad range of published works in the field of online retail industry especially in India have been reviewed to analyze the factors behind increase in growth of the industry. The author also conducted an empirical study which uses primary data collected through survey of 220 online shoppers. A structured-non-disguised questionnaire has been employed for collecting the information from the respondents about their demographics, security and privacy concerns, technological familiarity, past online shopping experiences and intentions to buy various types of products through internet in future. The collected data was analyzed with the help of Statistical Package for Social Sciences (SPSS18.0) for windows. Practical Implications: Study findings entail interesting implications for the marketers. They need to give adequate attention to consumer characteristics while designing their e-marketing strategies. Online marketers should target their products to young and more educated customers earning higher income and ensure about the high security of personal information of customers and financial transactions along with providing good experience of online shopping so that customer may continue purchasing online in future also. Major findings: The findings of the study indicate that customer online purchase behaviour is significantly related to their gender, education, age, and income. It is found that both the gender are likely to purchase goods/services online with same frequency. People who have higher income are more engaged in purchasing goods over internet. As per the results of the study, it is found that convenience, perceived usefulness of medium, internet expertise; product risk, security risk, convenience risk, non-delivery risk and return/shipment policy are the factors which influenced the decision of customers while purchasing online. Originality/value: The framework of the research enhances understanding of the factors affecting customer online shopping behaviour, helps in profiling typical Indian online shoppers and may help e-marketers developing more specific marketing strategies to increase e-commerce sales. [ABSTRACT FROM AUTHOR]

The continue changes in today's market have made companies to seek new ways to attract and retain customers. More and more, the Internet becomes an important tool for conducting business transactions, which is known by called electronic commerce. This study sought to understand consumer behavior and buying decision process in the Internet environment as well as the use of elements of influence in this process. For this, a search was conducted using a descriptive qualitative method of analysis. The instruments for collecting data used were interview, using a script unstructured and carried out with six individuals randomly selected, and the questionnaire, applied to five groups, totaling 105 questionnaires. For the analysis were used the technique of content analysis (BARDIN, 2004) and the technique of Tree Similarities analysis via CHIC (COUTURIER; BODIN, GRAS, 2003). The results show that the process of purchasing decisions in the Internet environment is very similar to the process that occurs for purchase in physical stores. Moreover, consumers are influenced by various elements to perform the purchase, mentioning reference group and personality. [ABSTRACT FROM AUTHOR]

Just as it happens in the traditional or physical context, virtual world today is used to perform a number of contractual transactions. It is very possible that in a future the digital procedure will become the customary manner of contracting and personal contracting will be a not very frequently used method. In order to encourage the electronic commerce, the legal system promotes that, based on the private autonomy, agents interacting within this world approve certain figures for such a purpose, such as the ones called trust marks. In the Spanish law many documents on which these logotypes are grounded are not as guarantors as the legal norms. In this way, it can be considered that they represent an unfair commercial practice. [ABSTRACT FROM AUTHOR]

Information technology has influenced business activities change to such extent that today we speak about new kind of economy, so called digital economy. Digital economy enforces new standards for doing business both on micro and macro, i.e. on global level. In this context, answering seemingly simple question regarding prospects of developing countries competitiveness in digital economy in comparison to traditional economy appears to be exceptionally interesting and even controversial in relation to classical economic theory. Cheap technology and rapid internet expansion offer new opportunity for developing countries to enter easily in global digital trends. In this regard, deliberate policy is required to foster development of infrastructure, education and entrepreneurship along with increasing use of information and communications technology. Th rough example of national internet domain .ME internationalization, thereinaft er is illustration how in Montenegro we recognized and utilized that opportunity. [ABSTRACT FROM AUTHOR]

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The data used in the paper and the sources of information studied, show regaining of the positions and the role of travel agencies in the distribution system of tourism. The main trends and special features of the European on-line tourist market have been analyzed, as well as the state of the electronic commerce in travel agencies in Bulgaria. Alternatives and values-generating strategies for the intermediary business through efficient use of the advantages of ?-commerce have been pointed out. [ABSTRACT FROM AUTHOR]

The chapter covers generic forces of change as well as those specific to e-commerce and c-business. [ABSTRACT FROM AUTHOR]

Purpose - The internet driven information revolution is frequently cited as one of the key drivers (re-)shaping contemporary consumption. In particular, the internet has been seen as disrupting established conventions in professional services. Popularly, it has been viewed as a liberating medium, a mechanism by which consumers and citizens have been able to challenge the authority of the professional establishment. Yet for consumers, the internet can equally be viewed as generating new uncertainties and challenges in terms of negotiating a new settlement with professionals and reconfiguring the service encounter. The purpose of this paper is to explore experiences of consumers with the use of internet derived information in respect of complex professional services and the impact of such information utilisation on the format of the service encounter. Design/methodology/approach - Empirical data is generated through interviews with professionals (n = 24) and consumer focus groups (n = 10/53). Findings - The paper argues that the multi-faceted nature of the internet creates informational "spaces" which present both opportunities and threats to consumers in renegotiating the service encounter. Balancing the paradoxes created by these informational spaces is at the core of the challenge confronting contemporary service consumers. Irrespective of the nature of that space, the effect is to create a driver for change, challenging the established practices of both consumer and professional to reshape the service encounter. Research limitations/implications - Focus group research does not enable a judgement about the prevalence or distribution of behaviours among consumers. Nevertheless, this paper advances understanding of contemporary consumption practices and provides a new perspective on nature of consumer utilisation of information within the consumption process. Practical implications - It is inevitable that professionals and service organisations will be required to respond to a complex and rapidly evolving set of consumer behaviours and rethink approaches to the delivery of professional services. Originality/value - The paper addresses an emergent phenomenon and provides unique insights into the changing dynamics of consumption practices in the contemporary knowledge economy. [ABSTRACT FROM AUTHOR]

The progress of the informatics and communication technology, especially the development of the Internet infrastructure, make possible the complete electronical and even partially automatized support of the business field. If an electronic market is suplimentary used as a meeting place for the offerors and customers, it is an indirect form of e-commerce. In the case of the totally electronic commerce (direct electronic commerce), the goods to be sold are exposed to the public, are digitalised. These goods can be directly distributed via the Internet.The role of the e-commerce is that of a mediator among the producers, distribution networks, other facilitators and the consumers.The e-commerce can contribute to the diminishing of a certain offeror's costs by a series of mechanisms, thus it can increase the capacity of competitionof a firm.Using the Internet there can be done comparisons and price analyses, while the costs for the changing of an offeror who has more attractive prices are more diminished. As it can be noticed according to the eProcurement development, the increases of the efficiency can be obtained by diminishing the aquisition costs. Important costs are to be seen in the development of the sale process, as well as in the marketing sector.The Internet technology offers various possibilities of saving money. Advertising is easy to be accessed today, so that the clients may benefit of information immediately, while the offeror saves money with multiplication and dispatch [ABSTRACT FROM AUTHOR]

This paper deals with the development and application of the digital economy and e-business in the modern enterprise. Global networking and the development of the Internet have made great changes in economy and efficiency of the world economy. The progress of information and communication technology (ICT) and the advantages of the new economy are increasingly affecting the business organization in financial services and other economic sectors. The „Theory of Transaction costs‟ as a means of analysis of specific transactions in financial services, using the theoretical foundations of digital/new institutional economics, has just been given in this paper. This theory argues that transaction costs can be determined and used for comparison of various business procedures. In addition, these costs allow the explanation of why some of the selected technologies, of which the form is the basis of the transaction, become widely accepted despite their not having become the prevailing ones. The paper documents and interprets the current trends in the digital economy sector on one hand, and anticipates its future development, on the other hand. [ABSTRACT FROM AUTHOR]

In this study of online shopping the influences of consumers' beliefs and perceived values on attitude, trust, and approach behavior were examined. The moderating effects of personality traits were taken into account. Twenty cosmetics and 20 hotel websites were selected for participants to randomly link to and read, and the students were then asked to fill in a 48-item questionnaire via the internet. It was found that when consumers have higher levels of agreeableness and conscientiousness, central route website contents would be more favorable for eliciting utilitarian shopping value; whereas when consumers have higher levels of emotional stability, openness, and extraversion, peripheral route website contents would be more critical in facilitating experiential and hedonic shopping value. [ABSTRACT FROM AUTHOR]

The paper analyses from an evolutionary perspective how retailers respond and adapt to business-to-customer e-commerce. As such, the paper explores the diverse behavior of retailers with respect to the adoption of e-commerce. In particular, it empirically examines the extent to which the adoption of Internet strategies is affected by firm-specific features (eg habit of entrepreneur, routines of firms), network relationships, and geographical proximity. Logistic regression analyses of 643 independent retailers in the Netherlands suggest that geography matters, when other factors are controlled for. That is, the probability of having an Internet strategy increases significantly (a) when more relevant knowledge is locally available; (b) the more demanding local customers are; and (c) the less rivalry is present locally. [ABSTRACT FROM AUTHOR]

The incorporated Internet to social and organizational life has changed the managers' traditional role; the activities have change because of e-business and on-line organizations. This brings some questions: Do we count situational status of the e-business? Which are the characteristics of a manager of this kind of business? If we read organizational literature, it is believable to think in a festive situation. However, when you review the actual organizations status, most of the firms have just developed on-line-catalogs. The minority of companies have done something about front-office transactions. It has to bring out that many firms are moving to integrated transactions. Probably, the view will get complications from the dot comspeculative-bubble financial collapse effects, few years ago in USA. With this rehearse, the author seeks to raise on the phenomenon caused to the managers' performance because of the electronic rising tide. He brings some understanding between the sustained control in an electronic net and the imposed need of change of the electronic markets and businesses. In summary, the winner businesses will be those capable of establishing a proper mix of very good virtual possibilities and physical faculties. [ABSTRACT FROM AUTHOR]

Small and medium-sized enterprises (SMEs) are adopting Internet Business Solutions (IBS) internationally to improve their performance. What is the net impact of these solutions for SMEs? This paper presents the results of survey research involving 1,666 organizations in Europe and North America. The research found that IBS adoption mattered resulting in tangible financial benefits for SMEs in all the nations studied. However, these benefits were not evenly distributed across regions, industries, technologies, or size categories. The results suggest that SME managers should adopt a staged approach to IBS adoption in order to maximize performance gains. [ABSTRACT FROM AUTHOR]