Title

Authors

Xuemei Su, Lifang Wu & Xiaohang Yue

Abstract

In recent years selling directly to customers via internet has become an enticing marketing option to many manufacturers who traditionally use retailer-based distribution network for serving customers. Although employing both channels (direct and retailer-intermediated) may help the manufacturer achieve greater market penetration and better profit performance, it also comes with controversial issues such as channel conflicts. We construct a supply chain model in this paper that captures key attributes of the relationship between a manufacturer and a retailer and present thorough analysis to understand how different cost and channel characteristics influence the supply chain equilibrium behaviors. Our analysis confirms what has been reported in the existing literature that adding a direct channel does not necessarily create channel conflicts. More importantly, we specifically show under what conditions that each party is better off or worse off in a dual-channel distribution system. Based on that, our results illustrate when channel conflicts do exist, when they are solvable and when they are not. The managerial insights gained from this study can serve as practical guidelines for supply chain firms as the dual channel approach is particularly effective in improving distribution performance when the companies harness the advantages of both conventional and direct channels and understand how to create the system synergy.

Keywords

E-commerce; Dual channel distribution; Supply chain management; Decision making.

Tentative schedule

Vol. 8, No. 2

Title

Authors

Leighann C. Neilson, Judith Madill & George H. Haines, Jr.

Abstract

The global wine industry has undergone considerable change in the last decade. This paper reports on empirical research focused on how small and medium size wineries utilize their web sites to provide information, facilitate online purchase of product and create relationships with consumers. Based on a content analysis of the web sites of a randomly selected sample of Canadian, American, French, Australian and Chilean wineries, this research found that a high proportion of SME wineries utilize web sites to provide information to consumers. Across the sample, a range of purchase facilitation models were found and the wineries varied widely in terms of whether they allowed all or part of a purchase to be completed online. Differences were also found across countries in the proportion of wineries that utilize their web sites for creating and developing relationships with consumers. Implications for wineries are discussed and avenues for future research are explored.

Keywords

small and medium size enterprises, SMEs, wine industry, web site usability, e-commerce, relationship marketing

Tentative schedule

Vol. 8, No. 2

Title

Authors

Dongsong Zhang & Prabodh Shrestha

Abstract

Avatar-based 3D virtual worlds provide an unprecedented environment for e-Commerce that enables online shoppers to have potentially similar shopping experience as in a physical store. The ability to buy and sell items, own virtual property, and convert earnings into real money in 3D virtual worlds suggests that such environment could become a platform for real-life e-Commerce. Many existing 3D virtual worlds are lack of critical components for successful e-Commerce. Second Life (Secondlife.com) is the only 3D platform that allows a user to operate a virtual business with real earnings. However, the current virtual economy in Second Life is limited to selling virtual items only. In this paper, we analyze the Second Life platform and demonstrate that current 3D virtual worlds need significant improvement in order to propel a prosperous e-business. We propose a conceptual framework for the Second Life 3D e-Commerce platform and discuss the possibility of adapting the traditional 2D e-Commerce architecture to the 3D virtual world.

Keywords

Second Life, 3D e-Commerce, Virtual World.

Tentative schedule

Vol. 8, No. 2

Title

Authors

Craig A. Depken, II & Brandon Gregorius

Abstract

We analyze auctions from eBay to determine whether seller reputation, auction timing, and auction aesthetics influence closing prices. Using a large sample of Apple iPhone auctions, we find that closing prices are influenced by the level of seller reputation and sellers with no reputation at stake suffer a substantial loss in closing prices. Moreover, during the sample period investigated there were small arbitrage opportunities in deciding when the auction would end, and in certain aesthetics of the auction, such as using bold fonts and including pictures of the product for sale. These arbitrage opportunities were somewhat reduced when eBay increased the prices it charged for these aesthetic upgrades six months after the sample period investigated.

Keywords

seller reputation, auction timing, electronic commerce, arbitrage.

Tentative schedule

Vol. 8, No. 2

Title

Authors

Pedro Cruz, Jari Salo, Pablo Muñoz-Gallego & Tommi Laukkanen

Abstract

Insights into experiential marketing in a predominantly goal-directed service like internet banking are provided. A model is proposed that combines two complementary approaches in the analysis of experience: a cognitive approach based on quality and an affective approach based on emotions. 754 valid observations have been collected through an online survey among heavy users of internet banking. Latent scores were used to compare consumers’ perceptions, differences in demographics and usage variables. The results show that both perceived quality and flow state are major determinants of satisfaction (measured as a cognitive state) and positive emotions (measured as enjoyment). Intrinsic motivation stands out as a major input of the model, discriminating the levels of all constructs and revealing a segmentation tool in electronic contexts. The study provides academics and Customer Experience Management (CEM) practitioners in banking industry a better understanding of experience management. The article contributes to electronic business by examining the relationships between consumer motivation, service quality, satisfaction, flow experiences and behavioural variables.

Keywords

customer experience management, experiential marketing, consumer behaviour, flow, intrinsic motivation, cognitive, affective, service quality, internet banking.

Tentative schedule

Vol. 8, No. 2