A Model of Factors Affecting the Growth of Retailing on the Internet

We propose a model that links factors affecting the growth of retailing on the Internet (the Net). Specifically, we examine the roles of the following factors: product-related (risk, efforts, and information intensity); medium-related (interactivity, variety of channels, logical capability, and underlying communication model); consumer-related (preference for home-based shopping, technical orientation, and access to the Net); firm-related (information intensity and expertise in direct marketing), and environment-related (critical mass of consumers and retailers online). We examine how at each stage of the consumption process, Net-based retailing affects value delivery to consumers. Managerial implications of the model are discussed.

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