Framework for benchmarking online retailing performance using fuzzy AHP and TOPSIS method

Golam Kabir,M Ahsan Akhtar Hasin

doi:10.5267/j.ijiec.2012.03.003

Golam Kabir, M Ahsan Akhtar Hasin

Open Access

https://doi.org/10.5267/j.ijiec.2012.03.003

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Abstract

Article history: Received 25 October 2011 Received in revised form November, 2, 2011 Accepted March, 5 2012 Available online 7 March 2012 Due to increasing penetration of internet connectivity, on-line retail is growing from the pioneer phase to increasing integration within people's lives and companies' normal business practices. In the increasingly competitive environment, on-line retail service providers require systematic and structured approach to have cutting edge over the rival. Thus, the use of benchmarking has become indispensable to accomplish superior performance to support the on-line retail service providers. This paper uses the fuzzy analytic hierarchy process (FAHP) approach to support a generic on-line retail benchmarking process. Critical success factors for on-line retail service have been identified from a structured questionnaire and literature and prioritized using fuzzy AHP. Using these critical success factors, performance levels of the ORENET an on-line retail service provider is benchmarked along with four other on-line service providers using TOPSIS method. Based on the benchmark, their relative ranking has also been illustrated. © 2012 Growing Science Ltd. All rights reserved

Highlights

The Internet has been evolved from a basic tool of communications into a vast and interactive market of products and services involving over 240 million users worldwide (Guo & Shao, 2005)
The various on-line retail service providers have been evaluated with reference to the identified critical success factors for necessary benchmarking
On-line retail service providers may improve upon their weak area of performance while the users may use the benchmarking process to identify the potential on-line retail service providers and to optimize their requirements

Summary

Introduction

The Internet has been evolved from a basic tool of communications into a vast and interactive market of products and services involving over 240 million users worldwide (Guo & Shao, 2005). The Internet has the potential to market products and services to customers, to communicate information to a global community, to provide an electronic forum for communications and to process business transactions such as orders and payments. On-line retailing is no longer just an option but a necessity for enterprises aiming for better performance (Hsieh et al, 2008). This growth in nonstore shopping and new trends in technology have facilitated the introduction of electronic marketing and promise to provide new ways of impacting and serving consumers in the future (Balasubramanian et al, 2002; Sivanad et al, 2004). Electronics retail chains have focused on expanding their online retail segment (Fenech & O’Cass, 2001)

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