When Ignorance Can Be Bliss: Organizational Structure and Coordination in Electronic Retailing

2018 | Information Systems Research | Citations: 3

Authors: Liu, Dengpan; Tan, Yong; Mookerjee, Vijay

Abstract: This study examines coordination issues that occur between the marketing departm ... Expand

Abstract: This study examines coordination issues that occur between the marketing department and the information technology (IT) department in electronic retail settings. We consider a marketing department that is responsible for choosing the level of advertising to generate traffic to the firm’s website and an IT department that is responsible for choosing IT capacity to provide web visitors a satisfactory experience. The focus here is to examine how duopolistic advertising competition among firms can affect the organizational structure (centralized or decentralized) within each firm. In essence, our interest lies in the question: How does the presence of interfirm competition affect intra-firm coordination (i.e., organizational structure)? As a benchmark, we develop and solve a centralized decision model wherein the levels of advertising and IT capacity are jointly chosen in each firm to maximize profit. This is compared with a decentralized decision model in which the marketing department could potentially advertise suboptimally because its assessment of IT factors (the served traffic rate) is inaccurate. We find that competition can lead to a decentralized equilibrium in which both firms choose not to coordinate among their internal departments. More importantly, we find that when marketing moderately underestimates IT service quality, coordination results in a prisoners’ dilemma (PD) equilibrium for each firm whereas decentralization is socially optimal but with an off-equilibrium outcome (resulting in higher profits for each firm). That is, the conventional wisdom that “more coordination is good” could push firms toward a PD equilibrium when they can both be better off by not coordinating internally in the face of competition. This result also implies that if marketing tends to underestimate the capabilities of the IT department, it may be better to encourage such firms to coordinate less rather than encouraging them to coordinate more.The online appendix is available at https://doi-org.tudelft.idm.oclc.org/10.1287/isre.2017.0725. Collapse

Topics: marketing management advertising management IS service quality organization structure duopoly

Methods: robustness check literature study

Consumer Value in Electronic Retailing: A Laboratory Experiment in Buying Cloths

2007 | European Conference On Information Systems | Citations: 0

Authors: Kurki, Suvi; Tuunainen, Virpi Kristiina; Oorni, Ansii

Abstract: Electronic retailing is expected to affect consumer behaviour many ways through ... Expand

Abstract: Electronic retailing is expected to affect consumer behaviour many ways through creating new consumer value. In this paper, we adopt a mixed value approach to the consumer value problem in the context of electronic retailing of clothing. We attempt to discover the dominant value patterns that best characterize the underlying consumer value patterns motivating consumers in their purchase situation. In order to do so, we designed a laboratory experiment with 28 participants. Our findings suggest that even in a relatively simple laboratory setting such as ours, consumers are motivated by a number of drivers, not all of which are covered by the concept of economic rationality. They tend to factor multiple value components into their purchase decisions, yet a relatively limited set of value categories of economic, instrumental, and hedonic value goes a long way towards explaining consumer purchase decisions in electronic retailing. Collapse

Topics: electronic commerce value creation internet technology electronic market

Methods: experiment survey laboratory experiment cross sectional research

Information Technology and Pricing Decisions: Price Adjustments in Online Computer Markets

2006 | Management Information Systems Quarterly | Citations: 0

Authors: Wonseok Oh; Lucas Jr., Henry C.

Abstract: Determining prices is a key management task for a merchant. IT-enabled electroni ... Expand

Abstract: Determining prices is a key management task for a merchant. IT-enabled electronic markets facilitate price discovery by both buyers and sellers compared to traditional, physical markets. Recent research on electronic markets has revealed that IT has increased market transparency due to increased accessibility and availability of market information. However, what online sellers do in terms of strategic pricing decisions, in particular price adjustment behavior over time, has not been fully investigated. Due to the ease of making price changes, electronic sellers can execute a number of different pricing strategies, including setting the frequency and amount of price changes. We investigate the "opaque" side of electronic markets by exploring online sellers' price adjustment patterns over time. More specifically, we identify four questions related to pricing decisions, which lead to hypotheses about how managers determine prices in electronic markets. The paper tests the hypotheses with data from the online computer commodity market. We found, through a simulation analysis, that this market exhibits synchronized price changes, not random changes that are frequently found in traditional markets. Interestingly, small price increases occur more frequently than decreases, while the frequency of price adjustment is significantly associated with a product's price dispersion. A ranking analysis suggests that online sellers change their price strategies frequently, which makes it difficult for consumers to respond appropriately. The paper discusses the implications of our findings for management and for future research on market transparency and strategic pricing in electronic markets. Collapse

Topics: electronic market price management price dispersion internet technology electronic commerce

Methods: descriptive statistic simulation longitudinal research longitudinal survey correlation analysis

A MULTI-AGENT SYSTEM FOR MULTIMEDIA INFORMATION RETRIEVAL IN ELECTRONIC RETAILING

2002 | Americas Conference on Information Systems | Citations: 0

Authors: Gangopadhyay, Aryya

Abstract: The purpose of this paper is to describe a multi-agent system for collaborative ... Expand

Abstract: The purpose of this paper is to describe a multi-agent system for collaborative multimedia information retrieval in an electronic retailing application. We use content-based information (CBIR) retrieval for multimedia data including full-texts and images. Content-based image retrieval deals with retrieving data based on automatic content analysis as opposed to manual annotations, such as metadata specifications. While both collaborative agent technology and content-based information retrieval have been developed in previous research, few papers have attempted to combine both technologies in the same problem area. In this paper we describe a collaborative multi-agent system for multimedia information retrieval in an electronic commerce application. Collapse

Topics: electronic commerce conversational agent information retrieval

Dynamic Recommendations in Internet Retailing

2001 | European Conference On Information Systems | Citations: 0

Authors: Prassas, George; Pramataris, Katherine C; Papaemmanouil, Olga

Abstract: With current projections regarding the growth of Internet sales, online retailin ... Expand

Abstract: With current projections regarding the growth of Internet sales, online retailing raises many questions about how to market on the Net. While convenience impels consumers to purchase items on the web, quality remains a significant factor in deciding where to shop online. The competition is increasing and personalization is considered to be the competitive advantage that will determine the winners in the market of online shopping in the following years. Recommender systems are a means of personalizing a site and a solution to the customer’s information overload problem. As such, many e-commerce sites already use them to facilitate the buying process. In this paper we study the application of recommender systems for electronic retail sites, focusing on the peculiar characteristics and requirements of this environment. We also introduce a hybrid model supporting dynamic recommendations, which eliminates the problems the underlying techniques have when applied solely. We then discuss the application of the proposed solution in the case of an innovative research project on electronic retailing funded by the European Commission and conclude with some ideas for further development and research in this area. Collapse

Topics: recommender system collaborative filtering electronic commerce internet technology advertising management

Methods: machine learning design artifact

Editorial

2000 | Journal of Information Technology | Citations: 0

Authors: Seddon, Peter; Shanks, Graeme

Abstract: Editorial. Presents overviews of articles in the 2000 issue of the periodical ' ... Expand

Abstract: Editorial. Presents overviews of articles in the 2000 issue of the periodical 'Journal of Information Technology'. Challenges brought by knowledge creation to information systems academics; Combination of research and innovation by Michel Avital and Betty Vandenbosch; Interfirm relationships in the context of electronic commerce by Makoto Nakayama. Collapse

Topics: electronic commerce

An Empirical Evidence of Winner's Curse in Electronic Auctions

1999 | International Conference on Information Systems | Citations: 5

Authors: Mehta, Kumar; Lee, Byungtae

Abstract: Winner’s curse theories in case of (almost) common-value auctions have long been ... Expand

Abstract: Winner’s curse theories in case of (almost) common-value auctions have long been in existence and fiercely debated in the economic literature. The implications of this theory are far reaching for the fast emerging electronic auction markets. Businesses can make strategic uses of the auction markets ranging from estimation of demand curve for their products to achieving individual price discrimination and liquidating their inventory at the highest possible price. However, the implications of the possible existence of winner’s curse are far reaching for both businesses and consumers. In this paper, we seek to investigate the existence of winner’s curse and establish its determinants. Collapse

Topics: online auction business-to-consumer internet technology computer hardware electronic market

Methods: general multivariate regression model regression analysis method literature study

Theories: lemon market theory transaction cost economics

Is there a place for department stores on the Internet? Lessons from an abandoned pilot

1999 | Journal of Information Technology | Citations: 8

Authors: Sauer, Chris; Burton, Suzan

Abstract: The potential of Internet retailing is widely promoted yet some retailers have b ... Expand

Abstract: The potential of Internet retailing is widely promoted yet some retailers have been slow to embrace the technology. Department stores typically have only an information presence on the World Wide Web. This paper describes a pilot project by one of Australia's leading department stores. The case is used to describe certain lessons about Internet retailing and the use of pilot projects. Department stores' decisions whether to adopt electronic retailing are analysed in terms of the opportunities and threats that face them and the capabilities required for success. The conclusion is reached that, as yet, there is no obvious place for established department stores on the Internet. Collapse

Topics: electronic commerce internet technology competitive advantage electronic payment marketing management

Methods: design artifact case study

Is Electronic Retailing the Glorified Catalog of Tomorrow?

1998 | Americas Conference on Information Systems | Citations: 0

Authors: Johnson, Grace; Ambrose, Paul

Abstract: In spite of all the glamour and hype surrounding it, it could be argued that ele ... Expand

Abstract: In spite of all the glamour and hype surrounding it, it could be argued that electronic retailing is nothing more than glorified catalog selling. While this may appear to be so at present, we argue emphatically that it will not remain this way. Using a socio-technical framework, we analyze the enormous potential that electronic retailing has to alter the very way we think about retailing and the benefits accruing for customers and sellers. Collapse

Topics: electronic commerce network technology