Online Business Model Research Articles

Sustainable Development of Online Group-Buying Websites: An Integrated Perspective of ECM and Relationship Marketing

Online group buying (OGB) is a unique, innovative, and interesting online business model that seems to have a bright future. However, many group buying websites (GBWs) have not stood the test of time. Different from traditional e-commerce websites, GBWs create a rich value experience for consumers, but no research has explored how these benefits help GBWs achieve sustainable development. In this study, the expectation confirmation model (ECM) and relationship marketing are integrated to explore how these multi-dimensional perceived values influence relationship quality (satisfaction and relationship commitment) and ultimately shape loyalty (continuous intention and positive electronic word of mouth (eWOM)). The research model and hypotheses are empirically tested with 278 valid responses using partial least squares-structural equation modeling (PLS-SEM). The results show that satisfaction (SAT) and relationship commitment (RC) are primary antecedents of continuous intention (CI) and positive eWOM (PE). We found interesting differences in the effects of multi-dimensional perceived values on relationship quality and loyalty. Hedonic value can help GBWs improve relationship quality and directly promote the spread of PE, thus attracting new users. Utilitarian value can only increase satisfaction and directly affect CI, helping GBW retain existing users. Social value cannot improve user satisfaction, but it can help GBW develop long-term emotional connections with users and indirectly shape user loyalty. Finally, the implication, limitations, and future research directions are described.

The use of online business models

The environmental challenges and the digital transformation processes require a complete review of the business models of companies. New technologies are transforming business operations causing the emergence of online business models alongside traditional business models. The research analyzes the use of online business models in practice. Classifications of online business models in the literature are shown. An appropriate, closed framework defining ten online business models is chosen for the analysis. The research is done by manual analysis of two databases which include websites and mobile applications. The sample size is 700 in total. The purpose is to show which types of online business models are used in practice and which are the most commonly used models of them. The results show that the Intellectual Property Landlord online business model is used in the majority in the databases of websites and mobile applications. The research highlights a difference in the use of online business models in the case of free and paid mobile applications. The results are useful for companies entering the online market and developing their own online business model.

Research on Decision-Making Behavior of Social E-Commerce Marketing Subject

As a new value-added online business model in the field of e-commerce, understanding consumer behaviour in the interactive social e-commerce environment provides new opportunities for businesses to develop marketing strategies to increase profits. Aiming at the bounded rational behaviour of participants in social e-commerce, an evolutionary game model is constructed, this paper analyses the behaviour interaction and strategy selection mechanism between merchant’s choice of opinion leader, product recommendation and consumer’s purchase decision by evolutionary game theory, and further discusses it with numerical simulation. The results show that the bigger or smaller the proportion of the transaction, the smaller the recommendation cost and the bigger the psychological effect of the consumer, the faster the players reach the equilibrium.

Growth Strategy of a Rural Business School: Sustainable Implementation of Online Studies

This case study, which uses interventionist action research methodology, first describes key elements of the online business model which was implemented at a business school in Arctic Norway. The aim of the business model intervention was to create a growth in student influx. Next, the study examines the actual impact of the intervention in terms of number of online applicants over the last decade. The findings show that the online courses hit a “nerve” in the Norwegian market for higher education as now more than a thousand students, scattered all over the country, apply for admission. Thereafter, the study investigates why students choose to study online. The results disclose that the main motive for choosing online studies is that they better meet students’ needs for different types of study flexibility. Finally, this research explores whether online studies cannibalizes the traditional campus model in a non-sustainable way. The findings show that online and traditional campus studies do not compete, but instead complement each other as they attract different target groups of students. Online studies serve as an essential channel for lifelong learning as the students were mainly well-educated women who worked full-time or part-time. Finally, strategic insights from the process of launching sustainable online studies by a rural business school are discussed.

Distributed pool mining and digital inequalities, From cryptocurrency to scientific research

Purpose This paper aims to look at shifts in internet-related content and services economies, from audience labour economies to Web 2.0 user-generated content, and the emerging model of user computing power utilisation, powered by blockchain technologies. The authors look at and test three models of user computing power utilisation based on distributed computing (Coinhive, Cryptotab and Gridcoin) two of which use cryptocurrency mining through distributed pool mining techniques, while the third is based on distributed computing of calculations for scientific research. The three models promise benefits to their users, which the authors discuss throughout the paper, studying how they interplay with the three levels of the digital divide. Design/methodology/approach The goal of this article is twofold as follows: first to discuss how using the mining hype may reduce digital inequalities, and secondly to demonstrate how these services offer a new business model based on value rewarding in exchange for computational power, which would allow more online opportunities for people, and thus reduce digital inequalities. Finally, this contribution discusses and proposes a method for a fair revenue model for content and online service providers that uses user device computing resources or computational power, rather than their data and attention. The method is represented by a model that allows for consensual use of user computing resources in exchange for accessing content and using software tools and services, acting essentially as an alternative online business model. Findings Allowing users to convert their devices’ computational power into value, whether through access to services or content or receiving cryptocurrency and payments in return for providing services or content or direct computational powers, contributes to bridging digital divides, even at fairly small levels. Secondly, the advent of blockchain technologies is shifting power relations between end-users and content developers and service providers and is a necessity for the decentralisation of internet and internet services. Originality/value The article studies the effect of services that rely on distributed computing and mining on digital inequalities, by looking at three different case studies – Coinhive, Gridcoin and Cryptotab – that promise to provide value in return for using computing resources. The article discusses how these services may reduce digital inequalities by affecting the three levels of the digital divide, namely, access to information and communication technologies (ICTs) (first level), skills and motivations in using ICTs (second level) and capacities in using ICTs to get concrete benefits (third level).

Online Sales and Business Model Innovation in Art Markets: A Case Study

Every year online sales represent a higher percentage of the sales total in nearly all sectors of the economy, and the art markets are no exception. However, there are few empirical studies showing how online sales and digital technologies are transforming the art markets at a micro-level. This study is based on the detailed examination of the financial performance of one of the two largest Portuguese auction houses, Cabral Moncada Leilões (CML), over a period of twelve years (2007–2018), complemented with interviews with its top-managers. It analyses a set of financial indicators (e.g., EBIT, ROA, EQUITY, sales volume, net results, etc.), along with some markers that are specific to the auction sector (e.g., average lot value, number of auctions per year, etc.). From this analysis it is possible to conclude that the deterioration of this company’s financial performance was the driving force that led it to explore the potential of digital economy. In the process, its business model changed dramatically, leading the company to a different market position and to the enlargement of its national and international customer base.

Promotional pricing and online business model choice in the presence of retail competition

Online promotional channels provided by competitive conventional reselling or novel agency selling e-tailers are widely used by firms to stimulate significant sales in retail. Compared with reselling, agency selling gives firms the power to directly control prices, but it involves costly platform fees. Given the unique features of the reselling and agency selling business models, we develop game theoretic models to explore how the firm and e-tailers, under consideration of retail competition, should strategically use these two business models in promotion. Our analysis generates several insights. We demonstrate that the agency selling model might lead to a higher price than the reselling model, a result contrary to the double marginalization. We also present that without retail competition, there exists a “win-win” promotional strategy, which is also a Pareto-optimal situation for the firm and e-tailer. Specifically, this situation occurs when the e-tailer is in the reselling model under a moderate inventory level or in the agency selling model with a moderate platform fee under a high inventory level. However, under conditions of competitive e-tailers, both e-tailers being in the reselling model is no longer a “win-win” promotional strategy, while the hybrid selling model, i.e., one in the reselling model and the other in the agency selling model, can generate a Pareto improvement. In addition, low platform fees, customers’ high price sensitivities, increased selling costs or decreased competitive intensities will drive supply chain participants to seek direct pricing power in the agency selling model.

Business model patterns for 3D printer manufacturers

PurposeThe purpose of this paper is to analyze the business models that 3D printer manufacturers apply to commercialize their technologies. The authors investigate these business models and analyze whether there are business model patterns. The paper describes the gestalt of the business model patterns and discusses differences and similarities.Design/methodology/approachThe authors review the literatures on business models and 3D printing technology. The authors apply a componential business model approach and carry out an in-depth analysis of the business models of 48 3D printer manufacturers in Europe and North America. The authors develop a framework focusing on value proposition, value creation and value capture components. Cluster analysis is used to identify business model patterns.FindingsThe results indicate that there are two distinct business model patterns in the industry. The authors termed these patterns the “low-cost online business model” and the “technology expert business model.” The results demonstrate that there is a relationship between business model and technology. The identified patterns are independent of age, company size and country of origin.Research limitations/implicationsThe empirical results complement and extend existing literature on business models. The authors contribute to the discussion on business models in the context of novel technology. The technology seems to influence the gestalt of the business model. The sample is limited to European and North American companies and the analysis is based on secondary data.Originality/valueThis is the first empirical study on the business models of 3D printer manufacturers. The authors apply an original mixed-methods approach and develop a framework that can function as a starting point for future research. 3D printer manufacturers can use the identified business model patterns as blueprints to reduce the risk of failure or as a starting point for business model innovation.

INFLUENCE OF INTERNET MARKETING STRATEGIES ON THE MARKET SHARE OF ONLINE SHOPS IN NAIROBI COUNTY IN KENYA.

Purpose: The online shopping sector in Kenya is still not well developed and online commercial activities contribute to just over 1% of Kenya’s GDP. Kenya’s rate of online shopping is 23% and currently lags behind the global rate of online shopping which is 59%. The different level of development in online shopping between Kenya and other developed economies shows that the sector still has a long way to go in Kenya. Online shops face competition from the conventional ‘brick-and-mortar’ stores and supermarkets. In order to deal with the competition most online shops market their products using internet marketing, which is defined as advertising of a company’s products or services over the internet with the view of increasing profits or market share. Market share is the percentage of an industry acquired by a company during a certain period of time. This study aimed to establish the influence of internet marketing strategies on the market share of online shops in Kenya. The specific objectives of the study were: to determine the influence of website design strategies on the market share of online shops in Nairobi County in Kenya; to establish the influence of content marketing strategies on the market share of online shops in Nairobi County in Kenya; to assess the influence of affiliate marketing strategies on the market share of online shops in Nairobi County in Kenya and to establish the influence of social media marketing strategies on the market share of online shops in Nairobi County in Kenya. 
 Methodology: This study adopted descriptive research design. The study covered 68 respondents drawn from a population of 34 online shops operating within Nairobi County, with an average of 2 respondents selected per organization. The study relied on data collected using a questionnaire comprising of both open-ended and close-ended questions, structured to meet the objectives of the study. The data was analyzed using inferential statistics by means of Statistical Packages for Social Sciences version 20. 
 Results: The results indicated a P-value of 0.0002, which is less than 0.05 against all the variables in the study. This indicated that website design marketing strategies, content marketing strategies, affiliate marketing strategies and social media marketing strategies had a significant influence on the market share of online shops in Nairobi County. The study revealed a positive correlation between website design and market share with a correlation coefficient of 0.015, a positive correlation between content marketing and market share with a correlation coefficient of 0.163, a positive correlation between affiliate marketing and market share with a correlation coefficient of 0.057, and a positive correlation between social media marketing and market share with a correlation coefficient of 0.923. The study concluded that social media marketing strategies contributed the most to the overall market share of online shops in Nairobi, followed by content marketing strategies, affiliate marketing strategies and finally website design marketing strategies. 
 Unique Contribution to Theory and Practice: The study recommended that online shops needed to come up with an internet marketing mix that incorporated all the different strategies given that the respondents gave varied views on which internet marketing strategies were more influential. The County governments were encouraged to look into ways of making internet connectivity more affordable since most online shops indicated unreliable and expensive internet as a challenge when trying to conduct internet marketing. The ‘brick-and-mortar’ shops that were not making a profit were also urged to consider the online business model. Retail customers were advised to be willing to accept change and embrace online shopping.
 Keywords: Website design strategies Content marketing strategies, Affiliate marketing strategies, Social media marketing strategies and Market share.

Digital trust and institutional assurance in the sharing economy from consumer and intermediary view

The sharing economy is a new peer-to-peer online business model, where an order is made online and fulfilled offline. It involves only the transfer of usage rights, not property rights. The above characteristics lead to higher uncertainty and new risks. It is essential to create and ensure a trusted transactional context to reduce the risk of participating in the sharing economy. This study focuses on the factors influencing consumer's trust in the platform. The model is examined with 267 valid consumer samples. The results show that the trustworthiness of the platform is strongly related to consumer's trust in the platform. The institutional assurance has a direct impact on the trustworthiness of the platform and has a direct and indirect impact on consumer's trust in the platform. There is a strong trust transfer from trust in the platform to trust in suppliers which further promotes consumer's participation intention.

Digital trust and institutional assurance in the sharing economy from consumer and intermediary view

The sharing economy is a new peer-to-peer online business model, where an order is made online and fulfilled offline. It involves only the transfer of usage rights, not property rights. The above characteristics lead to higher uncertainty and new risks. It is essential to create and ensure a trusted transactional context to reduce the risk of participating in the sharing economy. This study focuses on the factors influencing consumer's trust in the platform. The model is examined with 267 valid consumer samples. The results show that the trustworthiness of the platform is strongly related to consumer's trust in the platform. The institutional assurance has a direct impact on the trustworthiness of the platform and has a direct and indirect impact on consumer's trust in the platform. There is a strong trust transfer from trust in the platform to trust in suppliers which further promotes consumer's participation intention.

ANALISIS GLOBAL POSITIONING INFRASTRUKTUR DAN JARINGAN SOSIAL MEDIA DALAM BISNIS APLIKASI TRANSPORTASI DARAT ONLINE DI JAKARTA

Online transportation, the kind of transportation that lately makes people in the world feel eased in terms of transportation. With enough gadgets and applications, we can order a convenient and cheaper transportation. In fact, online transportation is willing to pick us up at home without us having to hitchhike down the highway and wait for the shuttles. Really very pampered with this online transport. However, the success of online transport in this world, not necessarily free of problems. The application of online transport business growth rate dashed quickly with facilities facilities are quite promising. With an online business model using consumer positioning maps can easily see and align to their needs. Transactions via the Internet is better known by the name of e-commerce and e-business. In general e-commerce is defined as any form of trade transactions of goods or services (trade of goods and services) by using electronic media / computer. Essentially, if there is a physical resource or business process that can currently be digitized, then that is where the e-business concept can be implemented.

Effect of the internet in improving business transactions with online market methods

The purpose of this study is to determine the effect of the Internet on improving business transactions in its use as an online business medium. The method used in this research was descriptive analysis method supported by qualitative data in order to analyze online business and its effect on the increasing business transaction. The data collection techniques are observations and case studies. In this research, we take an online case study of big online shop company in Indonesia. The results of this study are expected to improve online business model so that entrepreneurs who are pioneering his business began to start online media as marketing.

Commercial pressures in Spanish newsrooms

The crisis affecting news organisations, along with their struggle to find a sustainable online business model, have challenged journalists’ professional autonomy, as economic and commercial pressures find their way into journalists’ daily practice. This research explores the perceived influence of commercial pressures on Spanish newsrooms, paying special attention to how journalists resolve and manage those conflicts within the limits of the media organisation. Through 50 in-depth, semi-structured interviews with Spanish journalists and editors, the findings emphasise the usual, while normalised prevalence of commercial pressures. The study argues that the newspaper crisis has weakened news organisations’ independence from advertisers, as big corporations that concentrate most of the market share have very significant structural influence. The article identifies the most common typologies of commercial pressures according to the producing source (internal or external), and addresses their main effects for journalism practice, specifically for journalists’ autonomy and newspapers agenda setting. It concludes that in order to decrease advertisers’ bargaining power, a more diverse organisational news media landscape needs to be enhanced and therefore, policymakers should accommodate shifts towards subscription and ensure a viable future for entrepreneurial journalism start-ups.

Debunking the Myth of “Not My Bad”: Sexual Images, Consent, and Online Host Responsibilities in Canada

Non-consensual distribution of intimate images has been a crime in Canada since 2015. This article argues that it is time to consider how online platforms, hosts, and fora that allow users to post sexual images either directly engage in criminal acts or incur responsibility to help suppress this illegal activity. Methods for holding businesses responsible for participating in promoting or facilitating this type of wrongdoing by users should vary according to the level of involvement and risk that attaches to a particular online business model. One method applies to businesses that specifically traffic in illegal materials; for these specific “revenge porn” businesses, we should impose direct liability, as we do in other contexts. Another method applies where the nature of the business places it at high risk for facilitating customer illegal activity and where the business profits from that wrongdoing and so faces disincentives to discourage it. The online amateur porn industry more generally falls into this category. In these cases, obligations to assist in rooting out the illegal behaviour of customers via a consent verification system is appropriate. A third method applies to all businesses that host user-generated content where unfettered user activity is less expensive than addressing complaints about content and, thus, constitutes a structural disincentive to respond. Here, mandated response to complaints about non-consensual pornography is appropriate. The article argues that while freedom of sexual expression, policies protecting intermediary immunity, and online anonymity are important and complicate solutions to this lucrative traffic in sexual images, finding principled solutions is not impossible.

Omnichannel businesses in the publishing and retailing industries: Synergies and tensions between coexisting online and offline business models

Since the emergence of the Internet, many brick-and-mortar companies from various industries have established an online business model (BM) alongside their traditional offline BM. Despite the increasing coexistence of online and offline BMs within a single company, however, most prior research has focused on studying online and offline BMs in isolation. Consequently, still little is known about the interplay of dual BMs in omnichannel businesses. We address this research gap through an empirical investigation of the synergies and tensions that arise from coexisting online and offline BMs as well as the factors that influence the emergence of such synergies and tensions. Drawing on a series of six case studies with three publishers and three retailers, we identify an extended set of BM synergies and tensions, which concern all major BM dimensions. In addition, our case analysis reveals that companies are able to exploit different synergies, but also face different tensions between their online and offline BMs. The observed differences can be traced back to the level of online-offline BM integration, online-offline product distinctions (e.g., in terms of product content and publication cycles), and general organization context factors (e.g., offline brand strength, organization structure). By uncovering both the benefits and the complexity of running online and offline BMs in parallel, our study contributes to the theoretical understanding of omnichannel businesses, and provides managers with practical guidance on how to design, integrate, and manage their dual BMs successfully.

Case Analysis of “Pin Hao Huo”—A New Business O2O Model of Fruit and Perishable Supply

With the rapid development of “internet +” and consumers’ increasing need for good bargains, more challenges are brought forward for the daily consumptions. Thus emerges the new online business model for perishables and fruits. Pin Hao Huo is one of the typical successful online fruit suppliers. From the Pin Hao Huo’s operation model, this paper analyses the perishable providers’ possibility of expanding their business through O2O business model and gives advice for their further development.

Right to Privacy Meets Online Platforms: Exploring Privacy Complaints against Facebook and Google

ABSTRACTThe paper explores the conflict between users' right to privacy and data protection and the practices of online platforms such as Google and Facebook. Based on the collection of a data set of 13 complaints against the two companies in the period 2011 to 2016, the authors provide an overview of the field and a critical look at the current systems of privacy and data protection in the US and Europe, including the new General Data Protection Regulation (GDPR). The paper argues that whereas the two systems differ on a number of accounts neither of them critically engage with the online business model that lie beneath these platforms, including its incentive for maximising data collection.

Framing human rights: exploring storytelling within internet companies

ABSTRACTThis article explores human rights storytelling within two of the dominant internet companies, Google and Facebook. Based on interview with company staff as well as analysis of publicly available statements, the article examines how human rights are framed, made sense of and translated into company norms, products, and governance structures. The paper argues that the companies’ framing in many respects resembles that of the United States’ online freedom agenda, celebrating the liberating power of the internet and perceiving human rights as primarily safeguards against repressive governments. The companies see freedom of expression as part of their DNA and do not perceive any contradiction between this standard and business practices that may impact negatively on users’ freedom of expression, such as terms of service enforcement. Likewise, there is no sense of conflict between the online business model and their users’ right to privacy.

집단지성 콘텐츠에 적합한 저작권 인증 기법

The wisdom contents consists of an ordinary person's ideas and experience. The Wisdom Market [1] is an online business model where wisdom contents are traded. Thus, the general public could do business activities in the Wisdom Market at ease. As the wisdom contents are themselves the thought of persons, there exists many similar or duplicated contents. Existing copyright protection schemes mainly focus on the primary author's right. Thus, it's not appropriate for protecting the contents of Collective Intelligence that requires to protect the rights of collaborators. There should exist a new method to be dynamic capable of combining and deleting rights of select collaborators. In this study, we propose collective copyright authentication scheme suitable for the contents of Collective Intelligence. The proposed scheme consists of collective copyright registration, addition and verification protocols. It could be applied to various business models that require to combine multiple rights of similar contents or to represent multiple authorships on the same contents.