B2C Firms Research Articles

A credibility-based fuzzy location model with Hurwicz criteria for the design of distribution systems in B2C e-commerce

Facility location problem is one of the most critical elements in the design of distribution systems, and numerous studies have focused on this issue. However, facility location theory and guidelines for B2C firms are sparse. In this paper, with regard to the customer characteristics peculiar to B2C e-commerce and the turbulence of the competitive market, a new fuzzy location model is proposed to optimize the distribution system design in B2C e-commerce. The model adopts a hierarchical agglomerative clustering method to classify customers and estimate the fuzzy delivery cost. At the same time, due to the turbulence of competitive market, both market supply and customer demand are treated as fuzzy variables in the model. Afterward, the credibility measure and Hurwicz criterion are introduced to convert the model into a crisp one which has NP-hard complexity. In order to solve the crisp model, an improved genetic algorithm with particle swarm optimization is developed. Finally, the computational results of some numerical examples are used to illustrate the application and performance of the proposed model and algorithm.

Dance with the one that brought you? Venture capital firms and the retention of founder‐CEOs

AbstractWe consider how a venture capital firm's perceived uncertainty in new and uncertain industry environments affects its decisions to retain founder‐CEOs at companies they take public. We further consider how the human capital of the founder‐CEO, the overall experience of the venture capital firm (VCF), and the VCF's specific experience with the new industry moderate the relationship between industry‐based uncertainty and founder‐CEO retention. We explore these issues in the context of 340 venture capital firm investments in Internet sector start‐ups that went public from 1995 to 2000. We find evidence that industry‐based uncertainty decreases the likelihood of founder‐CEO retention, that founder‐CEO human capital and VCF Internet‐sector experience decreases the effects of these uncertainties on founder‐CEO retention for business‐to‐business (B2B) firms, but increases them for business‐to consumer (B2C) firms, and that VCF age further decreases the likelihood that the founder‐CEOs of B2C firms will be retained. Copyright © 2009 Strategic Management Society.

The Impact of E-Commerce Customer Relationship Management in Business-to-Consumer E-Commerce

The growth of business-to-consumer (B2C) e-commerce has gained a lot of attention among SMEs. Most B2C firms are turning their attention on how to retain new customers and are left in a situation to compete with larger firms. This paper aims to examine the impact of E-Commerce Customer Relationship Management (ECCRM) in a small business firm that engages in B2C e-commerce. Drawing upon the theories of customer relationship management, e-commerce, trust and loyalty, we develop an integrated framework of ECCRM model to illustrate the impact of the hard and soft factors that reflect the level of transactional and relational components of communication thereby impacting the customers shopping time lifecycle experiences. We develop a number of hypotheses to facilitate testing of the framework via an exploratory case study. We then discuss the findings of the integrated framework leading to theoretical and practical implications of this study and directions for future research.

A SWOT Analysis for B2C E-Commerce

A key challenge for e-commerce firms is how to attract customers in business-to-consumer (B2C) e-commerce. Forrester research predicts that the growth of B2C e-commerce in the U.S. will grow from $95.7 billion in 2003 to $229.9 billion in the year 2008. Although the overall growth of B2C e-commerce has been promising, its full potential has not been fully realized. This case examines factors that impact of strengths, weaknesses, opportunities, and threats (SWOT) of Amazon.com a giant online book retailer. We first discuss the rationale for applying the SWOT analysis followed by the growth of Amazon.com. We then provide an in depth description of the background information of Amazon.com. While serving as a valuable teaching case, this study contributes to the theory of B2C e-commerce as we discuss factors that impact the SWOT framework. The practical significance is derived from the lessons learned from Amazon.com thereby contributing to strategic vision as it increases the awareness for other B2C firms.

B2C Failures

This article uses concepts derived from the investigation of product and services innovation failures to develop a strategic market framework to help understand why so many Internet-based business-to-consumer (B2C) companies failed to fulfill their initial promise. B2C crashes, viewed collectively, may be seen as representing an initial wave of failure of an entirely new class of technology-driven services. Such services sought to inform, promote, sell, and deliver B2C items in radically unfamiliar ways. Research shows B2C firms failed because they did not follow time-tested business precepts, but does not tell us why. In addressing this question, this article argues that unsuccessful B2C firms failed to realize they were marketing innovative services. It focuses on the difficulty of marketing innovative services by developing an integrated framework using the continuum of need-solution context, in conjunction with the notion that seller/buyer perceptions about the scope of innovations are not necessarily concordant. Matched perceptions lead to success, but not always because sellers and buyers can both misjudge the nature and scope of an innovation. Using secondary sources, the article illustrates the explanatory power of the framework and contributes to e-commerce management issues by clarifying why, despite resource availability, most B2C firms failed in the initial round.

Usage and effectiveness of online marketing tools among Business-to-Consumer (B2C) firms in Singapore

This study seeks to identify the extent of usage and perceived effectiveness of various online marketing tools among Business-to-Consumer (B2C) firms in Singapore. The findings reveal that there are some significant differences between the extent to which websites utilize the various online marketing tools and the perceived effectiveness of such tools. Implications of the results are discussed and the results should be useful in helping B2C firms decide on the appropriate marketing tools to implement.

Factors for web mining adoption of B2C firms: Taiwan experience

This paper focuses on the web mining adoption of small and medium size enterprises (SMEs) in terms of organizational innovation theories. It first examines the current literature of information systems studies and suggests that the context of web mining adoption needs to be taken into account. This paper proposes an analytical model employing a number of internal, external factors, and the stages of web mining adoption. The model explores the relationships influencing the stages of web mining adoption. Empirical testing is based on a sample of 68 B2C firms from Taiwanese SMEs. The results show that firm's Internet strategy, internationalized strategy, and business complexity along with competitive pressure influence on the stage of web mining adoption. The implications of findings for the management of web mining adoption and suggestions for the future study are discussed.

Lowballing for 'Pop': The Case of Internet IPO Underpricing

Three explanations are commonly offered for the unprecedented levels of underpricing in recent IPOs by Internet firms: (1) media hype drives underpricing; (2) Internet firms leave money on the table to be able to follow up underpriced IPOs with follow on financing offers; and (3) underpricing is a branding event designed to increase consumer awareness of the Internet company. We examine the relation between the extent of Internet IPO underpricing and proxies to test the three explanations. We measure media hype as the extent of media exposure pre IPO. The desire to return to the market is proxied by the rate at which the firm burns through its IPO offer proceeds on operating and investing activities. Proxies for branding include whether the firm is a Business to Consumer company (B2C) and the extent of revenue increase post IPO. Results indicate that media hype and the desire to return to the capital market are strongly associated with Internet IPO underpricing. Although underpricing is higher for B2C firms, sales increases post IPO are not significantly related to the extent of underpricing. Finally, there is at best weak evidence to suggest that post offer return performance is worse for Internet IPOs with greater underpricing.