Enhancing e-platform business by customer service systems: a multi-methodological case study on Ali Wangwang instant message’s impacts on TaoBao

Abstract

E-commerce is very popular nowadays and e-platforms like TaoBao are crucially important. Ali Wangwang, as a subsidiary of TaoBao, is providing important functions to the e-customer services. Motivated by the importance of the e-customer service in managing customer relations and enhancing sales, this paper aims to investigate how to enhance e-platform business operations by improving e-customer service systems. Specifically, we adopt a multi-methodological case study approach to examine Ali Wangwang instant message (an e-customer service) and explore its impacts on the e-platform TaoBao. Our empirical research via surveys shows that Ali Wangwang plays an important role in customers’ online purchase decision making; moreover, the response time and communication efficiency are the two critical factors that need to be improved for Ali Wangwang. Based on our empirical findings, we then develop an analytical model to study the optimal response time and communication convenience level of an e-platform seller under both the exogenous and endogenous price cases. Finally, we propose three recommendations, including facilitating the communication channel, improving existing functions and developing new functions, and enhancing operations by setting appropriate response time and communication convenience level, for the e-platform to improve its e-customer service systems. We believe this paper will help the e-platform provide better customer service, which will further help build a successful e-commerce business.