community level socio-economic impacts of electronic commerce

8/20/2019 Community Level Socio-Economic Impacts of Electronic Commerce

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Community Level Socio-Economic Impacts of Electronic Commerce

1. Charles Steinfield1,*,

2. Pamela Whitten2

Article first published online: 23 J! 2""#

$%&: 1".1111'(.1")3#1"1.1+++.tb""33).

Journal of Computer-Mediated Communication

Volume 5, Issue 2, page 0,ecem!er "###

http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full

$!stract

As electronic commerce -ros, an important socioeconomic side effect ill be increased

competition ith the traditional businesses in an/ -i0en local communit/. %ur research

su--ests that local merchants t/picall/ -o online in order to better access distant marets,

but are often unprepared to cater to remote customers and hence do not fare ell. &n this

paper, e su--est that it is important to consider no ho electronic commerce ma/

influence the health of local economies. $espite the rhetoric that electronic commerce is

free from the constraints of -eo-raph/, e ar-ue that there are -ood reasons to reconsider

the role of ph/sical location in main- ecommerce policies. We sho that usin- transaction

cost and competiti0e ad0anta-e approaches, supplemented b/ perspecti0es from research

on social netors and trust, it is possible to de0elop locall/ sensiti0e Web strate-ies for

businesses in a -i0en communit/. We hi-hli-ht -eneric strate-ies that local businesses can

use to le0era-e their ph/sical presence in a maret ith electronic commerce in order to

better compete ith distant Webbased companies.

Introduction

&n the -reat ecitement -enerated b/ the &nternets potential to -lobalie commerce,

researchers ha0e 0irtuall/ i-nored ho electronic commerce ill impact local businesses

and their communities. A primar/ emphasis in most discussions of electronic commerce is

theglobal nature of electronic marets, and the loer costs of reachin- consumers

throu-hout the orld 4e.-., Amaon.com, a firm that did not e0en eist a couple of /ears

http://onlinelibrary.wiley.com/doi/10.1111/jcmc.1999.5.issue-2/issuetochttp://onlinelibrary.wiley.com/doi/10.1111/jcmc.1999.5.issue-2/issuetochttp://onlinelibrary.wiley.com/doi/10.1111/jcmc.1999.5.issue-2/issuetochttp://onlinelibrary.wiley.com/doi/10.1111/jcmc.1999.5.issue-2/issuetochttp://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/fullhttp://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/fullhttp://onlinelibrary.wiley.com/doi/10.1111/jcmc.1999.5.issue-2/issuetoc


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a-o, no sells boos in more than 15" countries6. 7hrou-h electronic commerce,

companies are no ithin reach of an/one ith &nternet access, enablin- them to compete

ith traditional businesses in an/ -i0en communit/ ithout ha0in- to mae the in0estments

in 8brics and mortar9 and ithout an epensi0e pri0ate -lobal telecommunications netor.

7he Web theoreticall/ loers transaction costs that formerl/ ser0ed as a barrier to entr/ in

local marets, enablin- consumers to become aare of and transact ith electronic retailers

located an/here.

7he rhetoric su--estin- that electronic commerce fosters -lobal marets is con0incin-, and

eerts a poerful influence on the business strate-ies of companies -oin- online 4Steinfield

;lein, 1+++6. &ndeed, an article in the


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businesses use and are impacted b/ electronic commerce. A small eplorator/ stud/ of

local business use of the Web in one communit/ illustrates the -eneral tendenc/ to focus on

distant, rather than local marets. We then sho that transaction cost and competiti0e

ad0anta-e approaches, supplemented b/ perspecti0es from research on social netors

and trust, enable the de0elopment of locall/ sensiti0e Web strate-ies for businesses in a

-i0en communit/. We hi-hli-ht -eneric strate-ies that local businesses can use to le0era-e

their ph/sical presence in a maret ith electronic commerce in order to better compete

ith distant Webbased companies. 7he paper closes ith a discussion of the polic/

implications from a communit/ perspecti0e and an outline of research issues.

E-Commerce and Local %usinesses

7ransactioncosts economics, emphasiin- the costsa0in-s afforded b/ netorbased

communication, is -enerall/ used to eplain the rise of -lobal electronic marets 4Ben(amin

Wi-and, 1++5 alone, Dates Ben(amin, 1+)? iller, Clemons Go, 1++3 Wildman

HuerinCal0ert, 1++"6. !etors reduce the constraints imposed b/ distance b/ permittin-

the rapid echan-e of information beteen distant bu/ers and sellers and can more

effecti0el/ lin bu/ers ith sellers hile a0oidin- costl/ search efforts 4alone et al., 1+)?

Wildman HuerinCal0ert, 1++"6. !ot onl/ does electronic commerce support the pro0ision

of -oods and ser0ices at a loer cost, but it can potentiall/ enable -reater customiation to

the needs of indi0idual bu/ers 4Choi et al., 1++# ;alaota Whinston, 1++#6. As the

ar-ument t/picall/ -oes, distance becomes irrele0ant for -oods and ser0ices that can be

produced an/here and either deli0ered electronicall/ or ph/sicall/ b/ courier to bu/ers.


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• I Better economies of scale arisin- from a lar-er customer base, and conse=uent

0olume discounts on inputs.1

• I Abilit/ to set up facilities near important factors of production, hich ould not be

a0ailable to an 8offline9 ph/sical business in a -i0en communit/.

• I oer costs due to the abilit/ to b/pass man/ of the intermediaries in the retail

distribution 0alue chain 4Wi-and Ben(amin, 1++5Wi-and, 1++?6.2

• I A hi-her de-ree of transaction automation, leadin- to impro0ed ser0ice and loer labor

costs.

• I Abilit/ to rapidl/ respond to chan-es in the maret, throu-h price ad(ustments hich

can be almost in real time 4Baile/, 1++)6, and ell as chan-es in product mi and maretin-

approach.

• I Abilit/ to easil/ capture and use maret rele0ant data -enerated durin- routine

interactions ith customers 4Steinfield et al., 1++36. an/ smaller local businesses are unliel/

to ha0e e=ui0alent capabilities.

• I Abilit/ to add 0alue to products and ser0ices b/ offerin- lins to complementar/

producers 4Steinfield et al., 1++36.

• I Abilit/ to offer ? da/ b/ 2@ hour access ith little additional cost.

• I !o limitation on the depth of information pro0ided to customers, hich can aid in

product selection and potentiall/ reduce return rates 4!e Dor 7imes, Au-ust 23, 1+++6.

7hese economies can potentiall/ enable Webbased retailers to easil/ undercut the prices

of local retailers ho formerl/ faced little or no competition. $espite some empirical

e0idence to the contrar/ 4Baile/ Br/n(olfsson, 1++? Palmer, 1++?63, there is a -eneral

epectation that prices ill be loer on the Web.

sin- transaction cost theor/, e can conclude that electronic commerce implies ne

competition for local retailers, particularl/ those offerin- products that are readil/ obtainable

from other sources, and that are easil/ transported. @ %f course, local merchants mi-ht

respond b/ establishin- their on Web presence, main- up an/ business lost to Web

based competitors b/ epandin- into ne -eo-raphic marets themsel0es. Eoe0er, there

are -ood reasons to be septical about the liel/ success of this strate-/ for man/ smaller

local retailers 4Steinfield et al., 1+++6. Web startup firms face si-nificant barriers in their

attempts to attract customers. 7he sheer number of ne Web businesses reduces the

lielihood that people ill chance upon a Web store, necessitatin- lar-e maretin- and

ad0ertisin- ependitures to -et noticed. Smaller local retailers also ma/ not ha0e the

business s/stems in place to ade=uatel/ ser0e distant customers, e0en if the/ do attract

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them. 7he abilit/ to process electronic orders, 0erif/ pa/ments, ship to distant customers,

properl/ appl/ sales ta re-imes, handle returns, and man/ other sills need to be ac=uired.

oreo0er, despite the increasin- sales acti0it/ on the Web, lac of trust remains a stron-

inhibitor. nnon 0irtual Web stores are more liel/ to eperience problems due to lac of

trust than established brand names, fa0orin- the lar-er, nationall/non compan/. &n fact,

at least one sur0e/ of Web users has shon that lac of a local ph/sical presence inhibits

purchases 4HL Center, 1++?6.5 %ther sur0e/s su--est that problems ith unreliable

products and difficulties returnin- -oods ha0e dissuaded &nternet shoppers from bein-

repeat bu/ers 4Coates, 1++)6. Gecentl/, one &nternet maret research firm reported that

nearl/ to thirds of all online customers still do not trust Web sites ith pri0ate information,

despite the use of prominentl/ featured pri0ac/ policies 4Jupiter Communications, 1+++6.

And, probabl/ most importantl/, smaller local firms are unliel/ to ha0e the resources or

sills to create the inds of sophisticated, hi-hl/ interacti0e Web sites that no populate theWeb 4!e Dor 7imes, Jul/ 2#, 1+++6.


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7he rub is, hoe0er, that despite an/ potential relati0e ad0anta-e to focusin- on the local

maret, the e0idence su--ests that local businesses are more liel/ to direct their Web

commerce at distant marets 4Steinfield et al., 1+++a6 rather than their on local communit/.

Studies seem to indicate that the ma(orit/ of local businesses are dran to the almost

infinite audience no on the &nternet, and focus on the Web as a tool to -ro sales rather

than pro0ide better ser0ices to their home maret. Au-er Hallau-her 41++?6, for eample,

compared the moti0ations to establish an online presence amon- small and lar-e Web

based businesses. 7he/ found that smaller and mediumsied firms -o online to increase

sales outside their -eo-raphic re-ion, rather than to impro0e business in their local

maret. Steinfield et al., 41+++a6 found little e0idence of a locall/oriented Web strate-/

amon- 25" businesses that had established Web sites in one mediumsied idestern

cit/. And, as e sho belo in a folloup stud/ of almost 1"" businesses in the same

communit/ a /ear later, there remains relati0el/ limited local focus on the Web sites of thosethat had de0eloped an online presence.

$n E&ploratory Study

&n an attempt to understand if and ho businesses located in a specific local area are usin-

the &nternet to support and'or supplement their local compan/, e conducted a stud/ of

local businesses in ansin-, ichi-an. We applied to datacollection strate-ies to -ather

this preliminar/ data. &n the first step, e randoml/ selected businesses from the ansin-

area business hite pa-es and called them to determine hich ones had a Web site. %ur

-oal as to randoml/ identif/ 25 local businesses ith a Web site for further anal/sis. Wehad to call +@ local businesses before reachin- our -oal of identif/in- 25 businesses ith

Web sites. All +@ businesses ere ased basic demo-raphic =uestions, but those ith Web

sites ere ased additional openended =uestions to ascertain their Webrelated uses and

-oals. For the second phase of data collection, e 0isited each of the Web sites and

conducted a content anal/sis based on 12 predefined 0ariables hich identif/ strate-ies on

the Web tar-eted for local customers. %f the 25 businesses that reported ha0in- a Web site,

onl/ 2" ere actuall/ accessible durin- the datacollection phase of this stud/.

7he results of this eplorator/ stud/ appear to support our h/pothesis that fe businesses

ere actuall/ appl/in- strate-ies on their Web site to tae ad0anta-e of their local

presence. For those companies ith a Web site, the ma(orit/ report the pro0ision of

information as a function of their site ith 3?M pro0idin- compan/ information and 1+M

pro0idin- product information. &n addition, 1?M reported that customers can communicate

directl/ ith the compan/ 0ia the Web site and +M reported that a transaction can be

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conducted 0ia their Web site. When ased hether their Web site tar-ets people specificall/

in ansin- or elsehere, 2)M reported ansin-, @)M reported elsehere and 1#M reported

both. Just o0er one third of the respondents feel that the/ ha0e competition from other

compan/s Web sites that offer similar ser0ices. 7hirt/si percent of the respondents

reported that the/ are doin- some form of businesstobusiness transaction 0ia the Web

such as purchasin- products or ser0ices needed b/ their compan/. %ne=uarter of the

businesses report that the/ ha0e traced a difference in their customer base since puttin- a

site online ith most reportin- ne international clients. Sit/ percent of the respondents

ha0e plans to increase their use of the &nternet to deli0er products and ser0ices o0er the

net fe /ears. Almost all the businesses felt the &nternet can help them be more

competiti0e b/ enhancin- their 0isibilit/ and client access to their products and ser0ices.

Eoe0er, our data did not tell us hether this enhanced 0isibilit/ and access ould be on a

local or -lobal le0el. &nterestin-l/ almost 5"M feel that it is important to ha0e a ph/sicaloffice 4or a local office6 in a communit/ to compliment a Web site because of the need for

personalied ser0ice and relationships and those products'ser0ices hich cannot be

deli0ered 0ia the &nternet. Finall/, #"M of the businesses report membership in local

or-aniations ith the Chamber of Commerce bein- the most common membership.

7he results from the first phase of data collection point to some interestin- indications. First,

these businesses are not currentl/ usin- their Web sites to deli0er sophisticated ser0ices

and less than half are tain- ad0anta-e of the &nternet for products and ser0ices the/ need

to run their business.


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&n summar/, in this section e ha0e identified to interrelated forces stemmin- from the

-roth of electronic commerce that collecti0el/ threaten the health of local communities.

First, ne competitors ho offer -oods and ser0ices to a local maret 0ia the Web are liel/

to siphon aa/ business that formerl/ ent to local ph/sical pro0iders. Con0ersel/, the

read/ access to ne suppliers of -oods and ser0ices ho ere formall/ unnon,

una0ailable or too costl/ to reach, ill shift the purchasin- habits of both local businesses

and consumers. Second, local pro0iders attracted b/ the allure of the seemin-l/ unlimited

sie of the &nternet maret, are more liel/ to deemphasie their -eo-raphic location and

ph/sical establishment hen the/ do -o on the Web.


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some necessar/ fleibilit/.


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that capitalie on complementarities beteen the Web and their ph/sical presence, and @6

local noled-e.

'rust and Em!eddedness

A commonl/ cited impediment to online shoppin- is consumers lac of trust in the

le-itimac/ of the Webbased store 4Bollier, 1++5Coates, 1++)6. &ndeed, the emer-indi-ital

certificate infrastructure appears to be moti0ated b/ a desire to demonstrate to potential

consumers that merchants are not merel/ criminals mas=ueradin- as a business in order to

obtain credit card numbers. Consumers ho reco-nie the Web store as an etension of an

eistin- business ma/ percei0e it to be more le-itimate, and ha0e more trust in the store.

7his is not onl/ liel/ to be a local phenomenon, but certainl/ influences perceptions of

national brands as ell. !onetheless, e epect that consumers in an/ particular local

maret ill ha0e more confidence in a Web business if the/ can associate it ith a particular

ph/sical store that the/ ha0e 0isited or seen in their communit/. &t also ma/ be the case thatdistant consumers ill percei0e a Web business to be more le-itimate if the/ are made

aare that it has been a successful ph/sical business.


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Consumers ha0e a 0ariet/ of needs and preferences that influence their shoppin-

beha0iors. Eere e mention onl/ a fe possible consumer needs and shoppin- preferences

that ma/ offer a competiti0e ad0anta-e to a local merchant ho also establishes a locall/

oriented Web presence. %ur -oal is to illustrate those cases here the combination of Web

plus ph/sical presence ould ha0e a -reater chance of capturin- business than a Webonl/

presence.

With a locall/ a0ailable ph/sical store, consumers percei0ed riss in en-a-in- in online

shoppin- are potentiall/ reduced. As noted abo0e, problems associated ith the return of

fault/ merchandise are a ma(or reason for lac of repeat online purchases 4Coates, 1++)6. A

local ph/sical presence reduces such riss b/ pro0idin- a lo cost means for returnin-

flaed -oods, or seein- technical assistance ith a particular product. People ma/ also

learn about products at the Web site, but confirm product =ualit/ b/ 0isitin- the store to

ph/sicall/ inspect the -oods prior to purchase. Such prepurchase and aftersales ser0ices

not onl/ reduce ris, and thereb/ loer consumer transaction costs, the/ can further build

trust in the Web store.

Shoppers are not homo-eneous, and ma/ ha0e different preferences that influence their

use of both re-ular and Webbased stores. Larious maret se-mentation approaches, such

as SG&s Lalues and ifest/les 4LAs6 and &nternet LAs 4iLAs6 are eamples of mareters

attempts to understand di0erse consumer preferences that affect purchasin- beha0iors. ? &t

has been su--ested, for eample that the Web ecels in NsearchO -oods, for hich there are

particular product features that enable e0aluation b/ consumers prior to use. 7he Webfacilitates search alloin- consumers to more easil/ locate desired products 4;lein,

1++)6. ;lein 41++)6 ar-ues that the Web e0en turns NeperienceO -oods, hich are thou-ht of

as products that can onl/ be e0aluated after tr/in- them, into search -oods, b/ usin-

multimedia capabilities of the Web to permit online eperience. ) Coupled ith a purchasin-

st/le characteried b/ etensi0e research prior to actual purchase, the Web can be a

poerful complement sa0in- consumers on the hi-h search costs associated ith such

information -atherin-. %thers su--est that man/ consumers prefer the social and personal

eperience of shoppin-, en-a-in- in interaction ith others in the maretplace as the/ shop

4Sarar et al., 1++56. With both a Web and ph/sical store, such di0erse preferences can be

addressed. 7here are liel/ to be shoppers ho ehibit h/brid patterns, such as preference

for -atherin- information online, but main- actual purchases in a store. Some ma/ prefer

the con0enience afforded b/ the Web, and use it to locate desired products, but due to the

lac of trust in the securit/ of the Web, prefer to mae actual transactions in person.

Perhaps most important are the consumers ho desire immediate -ratification, and do not

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ant to ait for products to be shipped. 7he/ ma/ identif/ products online, but cater to their

desires for immediate -ratification b/ picin- up the product at the local store. 7hese are all

eamples here the ph/sical store ould capture purchases that otherise ould not ha0e

been made ith onl/ a Webbased store.

Complementarities %et(een +e! and ,*ysical ,resence

7he Web store and the ph/sical store can support each other in man/ different a/s,

capitaliin- on natural complementarities 4Steinfield et al., 1+++6. 7hese include cross

promotions, (ointser0ice pro0isions, and 0alueadded ser0ices. Cross promotions are

perhaps the most strai-htforard eample of a natural complementarit/. Web stores ma/

pro0ide the bar-ains that people ma/ epect hen shoppin- on the &nternet, but also offer

coupons for instore purchases. areters are accustomed to the use of NlossleadersO as an

approach to increasin- store traffic, and realie that once in the store, other purchases for

nondiscounted merchandise are more liel/. A ph/sical store can use its Web site tohi-hli-ht local e0ents, such as a readin- or performance at the store, helpin- to brin- in

traffic. 7he Web store ma/ also pro0ide information about additional ser0ices that are

a0ailable at the store that add 0alue to products purchased online. A compan/ mi-ht use

electronic mail for direct maretin-, not onl/ to ad0ertise the Web site, but also to pro0ide

information about instore products and ser0ices. Some ser0ices mi-ht be pro0ided (ointl/,

le0era-in- the in0estment in ph/sical and Web presence. A -ood eample ould be hen a

computer store offers a product online, but pro0ides installation and repair ser0ices at their

premises for customers purchasin- from their Web site. Finall/, the Web store ma/ function

as a source of 0alueadded ser0ices for customers ho ha0e purchased or plan to purchase

-oods at the ph/sical store. A purchaser of a musical instrument, for eample, ma/ find

additional sheet music at the stores Web site. Also, Eeiill, ;allio, Saarinen 7uunainen

41++)6 describe the emer-ence of Webbased -rocer/ sites, here customers -ain

con0enience b/ shoppin- online. A local -rocer/ store then deli0ers the chosen items.

Finall/, a number of stores ha0e initiated instore Web ioss as a means of loerin- costs

and impro0in- ser0ice 4!e Dor 7imes, Au-ust 1#, 1+++.6 &nstore shoppers -ained the

abilit/ to search for products not on displa/, -ather indepth information ithout tain- up

the salespersons time, and e0en purchase or pa/ for products for immediate or subse=uentdeli0er/. 7hese 0arious complementar/ approaches represent a samplin- of strate-ies a

retailer mi-ht use to le0era-e their in0estment in ph/sical and Web distribution channels. &n

man/ cases, the natural complementarities offer a distinct ad0anta-e o0er Webonl/ stores

that mi-ht re=uire shippin- a product bac for additional ser0ice or installation or.

Local no(ledge

http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b32http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b14http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b14http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b14http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b32http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b14http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b14


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ocal merchants ho tar-et a local maret should be able to capitalie on their local

noled-e to compete effecti0el/ a-ainst distant 0irtual stores. Bouman 41+++6 for

eample, points out that in man/ parts of the orld, there are local or re-ional lan-ua-e

differences that can be captured in the Web content to increase the appeal of the site. ocal

customs, tastes and product preferences ill be non b/ local merchants, but not

necessaril/ distant 0irtual sellers. Prominent local citiens ho offer endorsements,

reference to local landmars, aareness of important local e0ents that ma/ influence

purchase patterns, and man/ other local content strate-ies should help mae a merchants

Web site more meanin-ful and appealin- to the local tar-et maret. &t ould be difficult for

-loball/oriented Web businesses to capture the same de-ree of local rele0ance.

&n summar/, e ha0e outlined four cate-ories hich offer strate-ic ad0anta-es to

merchants ho uses the Web to compliment their ph/sical business in a local communit/.

Whether the/ build upon preestablished relationships to tae ad0anta-e of trust, facilitatetheir clients abilit/ to use the Web to access those ser0ices hich the/ ould rather obtain

remotel/, or tae ad0anta-e of local inside information to de0elop promotional strate-ies,

the local merchant ho supplements his business ith a sophisticated Web site ould

appear to ha0e the upper hand o0er some remote onlineonl/ companies. Eoe0er, there is

a -reat deal e ha0e /et to understand to help us pinpoint the economic and social

ad0anta-es held b/ the local merchant. 7he final section of our paper outlines a research

a-enda hich can be used in the lon-term de0elopment of polic/ to maimie appropriate

commerce practices o0er the &nternet.

'o(ards a .esearc* $genda

We su--est that there are indications, -i0en the &nternet maret research cited earlier and

our preliminar/ studies o0er the past /ear, that there is cause for concern at the local

communit/ le0el. %ur discussion is lar-el/ speculati0e, hoe0er, and there is no a need

for more formal social and economic research to inform polic/ maers and -i0e -uidance to

communit/ leaders. Gesearch in se0eral areas no appears arranted.

First, there is clearl/ a need to de0elop a ri-orous and per0asi0e s/stem of monitorin- the

flos of electronic commerce acti0it/, all the a/ don to the indi0idual and firm le0el of

anal/sis. S/stems for measurin- on and offline purchasin- acti0it/, that not onl/ measures

bu/er location, but also seller location, are essential. Hi0en that eistin- $!S con0entions

mae it difficult to identif/ the location of bu/ers and sellers, alternati0e methods need to be

de0eloped 4%


14/19

inter0als b/ indi0idual consumers and businesses, perhaps throu-h such mechanisms as

the S Census. At the a/ 1+++ $i-ital


15/19

• 2

Eoe0er, Sarar, Butler Steinfield 41++5 1++)6 present ar-uments for increasin-, rather than

decreasin- numbers of intermediaries in the electronic commerce en0ironment.

• 3

Baile/ and Br/n(olfsson 41++?6 report, for eample, that in their empirical anal/ses the prices of

boos, C$s and softare ere hi-her on a0era-e on the Web than in Boston area

stores. Palmer 41++?6 found no si-nificant difference beteen instore prices and prices in Web

stores, catalo-s and cable 7L shoppin- channels across a 0ariet/ of products. %ne plausible

eplanation is that Webmerchants ere simpl/ usin- a price discrimination approach that

alloed them to find bu/ers illin- to pa/ etra for the added con0enience of Web shoppin-.

• @

!ote that this is e0en more true for information products that can be deli0ered electronicall/ 0ia

the &nternet.• 5

&n a 1++? HL sur0e/ 4HL Center, 1++?6, more than half of all respondents re=uired or

preferred an offline presence before shoppin- on the &nternet. Gesults can be found on the Web

at http:''.cc.-atech.edu'-0u'userRsur0e/s'sur0e/1++?

1"'-raphs'0endor'%fflineRPresence.html .

• #

Consider for eample, the inefficiencies resultin- from a producer bu/in- needed inputs from a

famil/ member rather than a loer cost competin- supplier.

• ?

&nformation on LAs and iLAs can be obtained from their Web site

at http:''future.sri.com'0als'0alsinde.html .

• )

For eample, music is normall/ thou-ht to be an eperience -ood. Web sites such as C$!o,

hoe0er, allo consumers to search b/ artist or -enre, and hear a short pre0ie prior to

purchasin- music.

.eferences

• Au-er, P., Hallau-her, J. 41++?6. Factors affectin- the adoption of an &nternetbased

sales presence for small businesses. The Information Society, ", p. 55?@.

o CrossGef

http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b30http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b3http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b28http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b13http://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10/graphs/vendor/Offline_Presence.htmlhttp://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10/graphs/vendor/Offline_Presence.htmlhttp://future.sri.com/vals/valsindex.htmlhttp://onlinelibrary.wiley.com/resolve/reference/XREF?id=10.1080/019722497129287http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b30http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b3http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b28http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.1999.tb00338.x/full#b13http://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10/graphs/vendor/Offline_Presence.htmlhttp://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10/graphs/vendor/Offline_Presence.htmlhttp://future.sri.com/vals/valsindex.htmlhttp://onlinelibrary.wiley.com/resolve/reference/XREF?id=10.1080/019722497129287


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• Baile/, J. 41++)6. &nternet price discrimination: Selfre-ulation, public polic/, and -lobal

electronic commerce. Paper presented to the 7elecommunications Polic/ Gesearch

Conference, Washin-ton $.C. , September.

• Baile/, J., Br/n(olfsson,


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Communications 4Au-ust 1?, 1+++6. #@ percent of online consumers are unliel/ to trust

a Web site. %nline at http:''.(up.com'(upiter'press'releases'1+++'")1?.html .

• ;alaota, G., Whinston, A. 41++?6. Electronic commerce: A manager's guide. Geadin- ,

A : AddisonWesle/.

o Web of ScienceT 7imes Cited: 2?

• ;lein, . 41++)6.


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• %


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• Wi-and, G., Ben(amin, G. 41++56.

community level socio-economic impacts of electronic commerce

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