1. 1 Chapter 11 Drivers of online-selling diffusion

2. Learning objectives The chapter will discuss the following concepts:  2

3. Introduction  Ecommerce has been on the rise, however, there are still certain pockets where the concept is in its infancy stage  Marketers should know the factors that impact the online sale  This helps in strategizing  Prioritizing their resources  Preparing a roadmap for their products and services  The factors are continuously evolving (Cagliano et al., 2003) and even now generalizable evidence is lacking.  determinants of B2C online-selling require further deliverations  Limitations of online selling should be known 3

4.  sale of information, goods and services through the Internet  interconnecting and interrelating millions of consumers and firms  enables marketing communications to become interactive  the size of the potential market  The behavioural pattern of customers  technological infrastructure  broadband penetration rate  legal framework  degree of involvement of the public authorities in framing legal framework  policies that favor its development  legal, fiscal 4 Driving Factors of B2C online-selling

5. Driving Factors of B2C online-selling..contd..  legal framework..contd...  consumer protection  Privacy policy (information about individuals can be combined and integrated with information obtained from conventional physical channels)  The firm’s business strategy  firm’s internal environment  decision to adopt online-selling as a strategy  consumer empowerment (information on product features, price comparisons, etc.)  identifying the best products to satisfy their needs  evaluating their different purchase options  intervening in the design of the value proposition  online price levels compared to traditional form of sale  product differentiation, brand awareness and reputation from online users reviews 5

6. Driving Factors of B2C online-selling..contd..  The firm’s business strategy..contd..  product information,  website design,  customer service,  reliability and speed of delivery,  brand image,  facilities for making orders,  loyalty programs,  personalization of the communication,  switching costs  benefits of convenience provided  Perception about financial data security (fraudulent use of credit cards)  winning the consumer’s confidence 6

7. Driving Factors of B2C online-selling..contd.. 7

8.  Summary from empirical analysis  influence of a marketing factor from the Internet firms’ competitive environment  legal environment,  their value proposition  the technological infrastructure  adoption of broadband technology  legal framework of consumer protection on the Internet  differentiation strategy  price leadership strategy 8