Essays on e -tailing dynamics
Abstract
The study consists of two essays investigating different aspects of e-tailing dynamics. The first one uses archival data from public sources on 335 online retailers. Business characteristics covered are order of market entry, single-channel e-tailer, and e-tailer age. After controlling for other effects, the findings do not show any order of entry impact. Single-channel e-tailers are more vulnerable than multi-channel retailers. The results also indicate an increasing exit hazard as e-tailers become older. Industry characteristics included in the study are market expectations reflected by NASDAQ, digital products, and competitive density. E-tailers that start operations during periods of high NASDAQ stock prices encounter the highest risk of failure. E-tailers selling digital products such as books, music, videos, and software have higher survival rates versus other e-tailers. Further, as categories become more crowded, the probability of failure increases. The second essay looks at factors that can drive traffic to an e-tailer's site. The study uses unique data on 81 top e-tailers. Findings indicate that early entry assures greater awareness resulting in more traffic to a web site. Also, an e-tailer's name presence in the media is the biggest driver of site visits. E-tailers with more product categories or e-tailers in the digital categories attract more traffic overall. Within categories, relative consumer preference is the biggest predictor of web site traffic. The study concludes with a discussion of the results and managerial implications.
Degree
Ph.D.
Advisors
Robinson, Purdue University.
Subject Area
Marketing
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