Perceptions About Internet Commerce

Abstract

Internet commerce is growing at a rapid rate. However, consumer participation may not be growing as rapidly as company participation. This study attempts to measure consumer participation and willingness to participate in various types of Internet commerce. Respondents were asked how willing they were to participate in various types of transactions using Internet commerce. This initial research indicated unwillingness on the part of most respondents to participate in Internet commerce. In addition, demographic variables were considered in an attempt to determine why the rate of participation in Internet commerce is not higher. Additional research is needed to determine why consumers are hesitant to become involved in financial transactions and whether this attitude is changing or static.     

The Market Orientation of Internet Support Companies

ABSTRACT

Several studies have expanded the work by Jaworski and Kohli (1993) by using their market orientation framework model and applying it to a variety of industries. The results of recent studies have uncovered moderate to strong relationships between the concepts of market orientation and organizational performance. Although there is a large body of research on the topic of market orientation, there is a gap pertaining to market orientation across organizations that comprise fast-paced environments such as those that exist within the Internet commerce environment. This study explores market orientation in the context of Web Hosting and Internet service providers to understand the impact market orientation can have on new and emerging industries. The study results indicate that market orientation is positively related to performance. Implications for theory construction and managerial practice are discussed.     

Community Banks and Internet Commerce

ABSTRACT

This study examines the factors affecting a community bank's decision to develop Internet-based applications using survey data from representative community banks and secondary data regarding the financial institution's financial performance data (Call Reports). The results from a logistic regression show that there is a significant size effect in developing web and Internet commerce applications. Other factors determining Internet commerce activities include IT costs, use of PC-banking options, and the perceived competition in the local commercial loan markets.     

Ethical Issues in Credit Card Solicitation of College Students – The Responsibilities of Credit Card Issuers,Higher Education,and Students

Credit card companies aggressively solicit college students, without regardfor the consequences of high credit car debt for these customers. Theethical conflict of the sale of easy credit to college students too oftenresults in hazardous outcomes akin to the solicitation of youth by cigarettecompanies. This paper will investigate the dangers that credit card use presents to theyoung customer, the unethical manner in which the companies that issue these cards promote their products to this audience, and the role of institutions of higher education. A majority of students are not only using credit unwisely (average balances of over $1000 regardless of who reports the data) but are payingexorbitant interest (18%–22%). The credit card companies call this``responsible' use. They are collecting enough interest and fees to morethan cover losses resulting from bankruptcy. They use a variety ofmarketing techniques to lure college students – glitzy `MTV' type shows,free prizes and gifts, special interest rate offers, and now they can pretendthrough `educational services' to explain to college students why credit cards are important.This paper investigates the ethical considerations of credit card solicitationof college students as a result of research into factors that influence thenumber of credit cards held by these students. Current solicitation policiesof colleges and universities are also presented.     

The Impact of Wireless Application Protocol (WAP) on M-Commerce Security

Abstract

Mobile commerce (m-commerce) is providing commercial services that are accessible using mobile devices, typically a mobile phone. The main advantage of such services is their high availability, independent of physical location and time. Yet the move to create a wireless version of the Internet means a new set of problems. As with the existing fixed Internet, the biggest problem is security. Despite the fact that operators are announcing or rolling out Wireless Applications Protocol (WAP)-based information and transaction services, the platform has gaping security holes. Because security is the most important feature to the success of m-commerce, this paper studies the security concerns on wireless commercial Internet and presents the features and solutions of WAP to the security of electronic transactions. Most importantly, this paper intends to draw corporate executives' attention to the strong impact of WAP on m-commerce security and the associated benefits to their companies.     

Credit Card Use and Compulsive Buying Behavior

ABSTRACT

Compulsive buying behavior is a negative form of behavior that leads to overspending. In the current study, the author examines the applicability of a compulsive buying behavior scale developed by Valence et al. (1988) with Indian consumers. Compulsive buyers are likely to relate money to power, success, and status. Compulsive buyers perceive their purchases as a way of overcoming negative self-esteem and anxiety. The influence of consumers’ attitude toward credit cards, demographic factors, and credit card use on compulsive buying was studied. The findings suggest the compulsive behavior scale should be modified in the Indian context. Age, income, education, and marital status influence compulsive buying. Consumers’ attitude toward credit cards did not affect compulsive buying.     

Teenagers on the Net

ABSTRACT

Both in business and in academic research, the Internet and electronic commerce grow exponentially. Attention has predominately been directed to developing the companies' capabilities and systems, while the consumers' perspective in contrast has received much less attention. This paper takes this perspective and focuses on online behavior of specifically 16- to 18-year-old teenagers. This particular segment tends to open to new things and know a great deal about using computers and the Internet. A questionnaire conducted among students in a high school in southern Finland showed that the overwhelming majority had computer and Internet access at home. Most of the young respondents had already used the Internet for various purposes and intend to do so even more in the future. For the young, information search and communication were the main purposes of using the Internet, and lower-value products related to mobile phones were the main products being bought online. At the same time they had different concerns that influence their behavior and, somewhat surprisingly, reported a slightly negative attitude towards electronic commerce. In line with previous studies, privacy and security issues were the primary concerns for the young Internet users. Gender aspects also emerged from the data since there were several differences in Internet usage and online purchasing between girls and boys. Based on the findings, the paper ends with implications and recommendations for companies attempting to approach teenagers in order to build relationships with them.     

Forecasting Internet Penetration in China: The Effect on E-Commerce

ABSTRACT

It can be seen that the Internet penetration rate in China has undergone a dramatic increase in the past three years. Beginning in June 2002 China became the third largest user of the Internet in the world following the U.S. and Japan. The Internet penetration rate in China has increased 61.0 percent from June 2001. This study provides a language comparison of Chinese versus non-English speaking Internet users by comparing Chinese Internet usage to: Spanish, Japanese, German, French, Scandinavian, Italian, Dutch, Korean and Portuguese. The four forecasting models to predict future Internet penetration in this study are: the Linear Trend Model, the Quadratic Trend Model, the Exponential Trend Model, and the S-Curve Trend Model. The study provides various forecasts of Internet penetration in China including dial-up and leased line Internet users. The forecasted results indicate that the Chinese speaking Internet user population will be the largest population by the end of year 2005 among all of the selected ten non-English speaking language Internet users' populations. The forecast of nearly 16 million leased line users reveals the necessity involved with choosing the correct leased line connection in China. These forecasts should be useful with respect to conducting electronic commerce with the China Internet market. The design of multi-language Web sites in order to conduct international Internet commerce is also analyzed.     

Pick a card: Price ranges and gift card choice

Gift cards are wildly popular with consumers. Vast assortments of gift cards are available at many regional and national retail stores (e.g., grocery, convenience, home improvement). The present research examines consumer reactions to price range amounts displayed on gift cards (e.g., $20-$100; $25-$250). Commonly affixed to gift cards to convey possible purchase loads, price ranges appear to serve as contextual information for a desired purchase load as a gift that can affect beliefs about the recipient's views of the gift card i.e., metaperceptions. Specifically, these metaperceptions tend to be more negative for a gift card displaying a price range when the desired purchase load is the lower bound rather than the upper bound. These beliefs can, in turn, affect gift card choice, but only when social risk is applicable. Four studies provide support for the theory.     

Electronic Commerce

Abstract

Africa has been beset with a plethora of problems stemming from the legacy of colonialism and the current political conflicts across the continent. These developments have made it difficult to strengthen the telecommunication infrastructure, the bloodline of commercial activity. Electronic commerce (EC) has become one of the most popular topics of conversation in the commercial sector. EC, which is a technological framework bolstered by the ubiquitous Internet, has given commercial enterprises an opportunity to increase the flow of transactions, overcoming the barriers of time and distance. This paper examines EC strategies and suggests that its implementation is possible in Africa by analyzing several variables to determine appropriateness of both the technical framework and the execution of strategies.     

Impact of Organizational Characteristics and Information Technology Maturity on Internet Business Application: A Taiwan Survey

ABSTRACT

The Internet and World Wide Web (WWW) have provided unprecedented opportunities and challenges for conducting business online today. The growing trend of the Internet in Asia will cause companies to go on online quickly and the Internet will reinforce a speedy recovery and drive the globalization of the region. The spread of the Internet with decrease in cost should remove hidden barriers to free commerce and boost the economy in Asia. A cross-sectional survey of the manufacturing industry in Taiwan was conducted. On the basis of concerning value chain, organization and information management, this study examines the impact of organizational characteristics and information technology (IT) maturity on the Internet business application, and on the benefit of improving competitive advantages. It is found that firm type, organizational characteristics and IT maturity influence firms' Internet application in the value chain. Organizational characteristics and IT maturity influence the Internet business application, and the firms' improvement in competitive advantage varies. Overall, the firms with innovation-oriented or high level of IT maturity in Taiwan have higher implementation rate of the Internet and more widespread of application in the value chain. Hence, these firms are usually able to further integrate different value creation activities in the value chain to gain more competitive advantages     

Antecedents to Online Purchasing–An Exploratory Comparison of Anglo versus Hispanic Consumers in the United States

ABSTRACT

This exploratory research investigates whether or not Anglo versus Hispanic consumers in the United States (US) differ with respect to purchase behavior on the Internet. As a new, ground-breaking innovation, the Internet represents an entirely new medium of exchange. In this study, we address whether or not the Internet has been adopted to the same extent and in the same way(s) among Anglo and Hispanic US consumers. Anglos and Hispanics represent the two largest segments of the US population and, curiously, little if any marketing research has compared and contrasted these two groups with respect to using the Internet to make commercial purchases. Extant theory and research in electronic commerce provide a basis to suggest that there may, in fact, be differences across these two US sub-cultures. Our findings reveal that the two groups do actually differ in this regard; the data also offer insights into these differences.     

The digital divide experienced by older consumers in smart environments

The continuing transition of the Internet from wired to mobile has facilitated changes in Internet use. By focusing on older consumers as a potentially disadvantaged group, this study examines whether smart environments have the potential to bridge the digital divide. Data were derived from an analysis of the 2013 South Korean Information Divide data set (n = 2386 for those 60 years and older; n = 5841 for those under 60 years). The existence of a digital divide in the smart environment was verified by comparing younger and older South Koreans; this showed that continuing consumer education is needed to enhance older people's experience and skills regarding information and in its use of communication technology. The digital divide was measured based on three aspects: accessibility, competence, and usage. In smart environments, gaps in accessibility and competence between the age groups increased whereas the gap in information usage decreased. Compared with the personal computer‐based environment, members of both groups in the smart environment exhibited increased usage levels with regard to social relationship services, while the gap between the groups with regard to use of convenience services was reduced.     

From the Guest Editors: About this Journal of Promotion Management “Down Under” Special Issue

Abstract

The Internet is rapidly becoming an accepted communication/promotion medium for all types and sizes of businesses. It is especially significant in reference to the major marketing functions of advertising and sales. Individual Internet users are rapidly moving from the upper income/educational demographic to a more median level. Needs exist for clearer understanding of the terminology developing around this medium, as well as for a system of advertising effectiveness measurement as related to measuring traditional advertising effectiveness.     

Retailer credit cards and direct marketing—a question of synergy

In this article the author examines the link between personalised retailer credit cards and the use of direct marketing by retailers to foster the concept of the “privileged customer” with their cardholders, as well as boosting sales. Using the example of Debenhams, the growth of both credit cards and direct marketing is examined and the synergy between the two explored. Detail is given about the credit card data base held by Debenhams and suggestions are made as to how this information could be translated into effective direct marketing communication. The results of Debenhams direct marketing are used to demonstrate the effective use of this particular vehicle and finally consideration is given to the future in the United Kingdom for both retailer credit cards and direct marketing by retailers.     

International Web Development

Abstract

Throughout the world, use of the Internet is growing exponentially and bringing mankind closer together. The Internet has become a powerful force in people's lives bringing information from around the globe to the tip of one's fingertips, changing the way the world purchases products and services, and creating new means of communication and media. The possibilities created by the Internet would seem limitless. Unique to each region of the world though is the degree to which the Internet has been adopted and is being utilized. The progression of Internet development has been shown to occur in three stages: acquisition of Web literacy, Web use as an information medium, and Web use for purchasing goods and services. In each of the following geographical regions, North America, South America, Africa, Europe, Middle East, Asia and Oceania, countries can be described as existing in one of these stages. A sampling of the countries within each region analyzes how and to what degree the people of that nation utilize the Internet and who provides the services offered, what services are offered, and obstacles presented in offering those services. Furthermore, the role the Internet plays in commerce, and the extent to which the government of that country has taken in regards to its polices in either regulating and/or promoting the Internet is examined. The factors have been shown to be important in Web development. Today the United States is at the forefront of Internet use and technology; however, it will not be long before that position is challenged by Japan and other countries in Europe and Asia as the Internet becomes more pervasive across the globe.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

A Smart Card Based Internet Micropayment Infrastructure: Technical Development and User Adoption

As online shopping services proliferate, the need for a secure and convenient payment infrastructure becomes critical. While credit card payment has become common for online purchases, a payment solution has not yet been developed that can be used to support transactions involving a monetary value in the range of a few dollars or even cents. In this study, the authors report their experience in developing a smart card based micropayment infrastructure in collaboration with a major bank. The infrastructure makes use of Mondex, a cash card standard adopted by major financial institutions worldwide. The infrastructure provides a platform to support online transfer of Mondex value over the Internet. Unlike other cash card products, Mondex is the only standard that can support card-to-card transfer without a mediating party. The transactions are immediate and anonymous. This article outlines the technical approach used in the development of the infrastructure and presents a behavioral adoption model to identify and assess factors that may affect its adoption. The findings indicate that the use of the adoption model in the early stages of product development can provide valuable insights to a development team. Theoretical contributions and practical implications specific to the Mondex Internet micropayment infrastructure are also discussed.