 Effects of consumer online purchase costs on online and traditional retailersRuiliang Yan and John Wang International Journal of Business and Systems Research, 2009, vol. 3, issue 3, 351-371 Abstract: Our research provides a useful framework to help business marketers identify the effect of consumer online purchase costs on firm performances in online and traditional channel competition. A game theory model is developed to determine the optimal strategies for online and traditional retailers. We demonstrate that consumer online purchase costs always have a valuable impact on firm profits, and further show that consumer online purchase costs always have a much more valuable impact on firm profits whenever the traditional retail transaction costs and the product web-fit change. We also find that consumer online purchase costs have a greater impact on the retailer's profits in a Stackelberg competitive system than in a Bertrand competitive system. Based on our results, managerial implications are discussed and probable paths of future research are identified. Keywords: online consumers; online purchase costs; distribution channels; game theory; marketing strategies; online retailing; e-tailing; online shopping; online purchasing; profits; e-shopping; electronic shopping; e-purchasing; electronic purchasing. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:3:y:2009:i:3:p:351-371 Access Statistics for this article More articles in International Journal of Business and Systems Research from Inderscience Enterprises Ltd |
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