E-Commerce Commons^™

Competitive Equilibrium In E-Commerce: Pricing And Outsourcing, Parijat Dube, Zhen Liu, Laura Wynter, Cathy Xia

Research Collection School Of Computing and Information Systems

The success of firms engaged in e-commerce depends on their ability to understand and exploit the dynamics of the market. One component of this is the ability to extract maximum profit and minimize costs in the face of the harsh competition that the internet provides. We present a general framework for modeling the competitive equilibrium across two firms, or across a firm and the market as a whole. Within this framework, we study pricing choices and analyze the decision to outsource IT capability. Our framework is novel in that it allows for any number of distributions on usage levels, price–QoS …

Analyzing Service Usage Patterns: Methodology And Simulation, Qianhui (Althea) Liang, Jen-Yao Chung

Research Collection School Of Computing and Information Systems

This paper proposes that service mining technology will power the construction of new business services via both intra- and inter-enterprise service assembly within the Service Oriented Architecture (SOA) framework. We investigate the methodologies of service mining at the component level of service usage. We also demonstrate how mining of service usage patterns is intended to be used to improve different aspects of service composition. Simulation experiments conducted for mining at the component level are analyzed. The processing details within a general service mining deployment are demonstrated.

Follow The Leader? Price Change Timing In Internet-Based Selling, R. J. Kauffman, Charles A. Wood

Research Collection School Of Computing and Information Systems

Internet technologies should lessen information asymmetry, prompting competitive price reactions, but this does not seem to be happening in Internet-based selling. We study empirical regularities of price change timing for music CD vendors and booksellers to assess several theoretical explanations. Our sample includes 123, 680 daily prices for 169 products and 53 firms. Bertrand competition is insufficient to explain our observation that sellers do not shift prices this way. Tacitly collusive responses to competitors' price changes are observed rather than price changes solely in response to demand or cost shifts as would be expected with Bertrand competition. We find evidence …

An Examination Of Online Product Comparison Service: Fit Between Product Type And Disposition Style, Fiona Fui-Hoon Nah, W. Hong, L. Chen, H. Lee

Research Collection School Of Computing and Information Systems

Horizontal and vertical disposition styles are two main formats used in product comparison service on e-commerce websites. In this research, we hypothesize that there is a fit between product type (‘think’ vs. ‘feel’ product) and disposition style (horizontal vs. vertical style), where horizontal disposition style is more appropriate for ‘feel’ products and vertical disposition style is a better fit for ‘think’ products. An experiment will be carried out to test the hypotheses.

Usage-Based Versus Flat Pricing For E-Business Services With Differentiated Qos, Zhen Liu, Laura Wynter, Cathy Xia

Research Collection School Of Computing and Information Systems

Design of e-commerce services that are competitive, in such a quickly responding market, requires the analyses of prices and price structures. We present a general model of an e-commerce market that allows us to analyze optimal price structures, both flat and usage-based. Based on the price structure of a major web hosting provider, we consider both single-tier and two-tier (burst-rate) pricing, and our result suggests that the more complex two-tier structure may not be worth the marketing effort, as the firm?s equilibrium profits will not increase through the use of this structure. An essential feature of our approach is that …

Assessing Organizational Innovation Capability And Its Effect On E-Commerce Initiatives, Ann L. Fruhling, Keng Siau

Research Collection School Of Computing and Information Systems

This research uses a qualitative approach to study the innovative capability of two organizations and the effect of innovation on their E-Commerce initiatives, strategies, and outcomes. The Innovation Strategy Model is used in this research to analyze the innovative capability of two organizations. The case study research methodology was selected and two case studies are presented. The research results show that one organization is more innovative than the other in terms of its innovative capability. A post-study follow-up shows that the organization that was high on innovative capability was very successful in their E-Commerce initiative whereas the other organization was …

Bundling Information Goods: The Case Of E-Journals, Yong Tan

Dissertations and Theses Collection (Open Access)

With the development of the Internet, e-business has become popular. Increasingly, e-journals are being sold via the Internet. E- journals have two main characteristics: one is the low marginal cost associated with access; the other is the large number of items. For the commercially motivated seller, the issue of bundling a large number of low marginal cost items so as to maximize profits needs to be dealt with. In this thesis, a solution by way of an intermediate bundle is proposed. It is found that the profit obtained under the proposed procedure is 4% to 5% higher than that under …

Online Advertising By The Comparison Challenge Approach, Jae Wong Lee, Jae Kyu Lee

Research Collection School Of Computing and Information Systems

To enhance the effectiveness of online comparisons from a manufacturer's point of view, we develop a framework for the comparison challenge approach. To develop the comparison challenge framework, we analyze 12 factors that determine the characteristics of comparison and propose models of valuable comparison challenges using the CompareMe and CompareThem strategies. We demonstrate the approaches with the example of PC selection. To help plan the comparison challenges, we formulate a mathematical programming model that maximizes the total value of comparison under the constraints of comparison opportunity and budgetary limitation. The model is applied to eight comparison scenarios, and its performance …

Service Pattern Discovery Of Web Service Mining In Web Service Registry-Repository, Qianhui Althea Liang, Jen-Yao Chung, Steven M. Miller, Yang Ouyang

Research Collection School Of Computing and Information Systems

This paper presents and elaborates the concept of Web service usage patterns and pattern discovery through service mining. We define three different levels of service usage data: i) user request level, ii) template level and iii) instance level. At each level, we investigate patterns of service usage data and the discovery of these patterns. An algorithm for service pattern discovery at the template level is presented. We show the system architecture of a service-mining enabled service registry repository. Web service patterns, pattern discovery and pattern mining supports the discovery and composition of complex services, which in turn supports the application …

Can Online Reviews Reveal A Product's True Quality? Empirical Findings Analytical Modeling Of Online Word-Of-Mouth Communication, Nan Hu, Paul Pavlou, Jennifer Zhang

Research Collection School Of Computing and Information Systems

As a digital version of word-of-mouth, online review has become a major information source for consumers and has very important implications for a wide range of management activities. While some researchers focus their studies on the impact of online product review on sales, an important assumption remains unexamined, that is, can online product review reveal the true quality of the product? To test the validity of this key assumption, this paper first empirically tests the underlying distribution of online reviews with data from Amazon. The results show that 53% of the products have a bimodal and non-normal distribution. For these …

Modeling Online Art Auction Dynamics Using Functional Data Analysis, Karempudi Srinivas Reddy, Mayukh Dass

Research Collection Lee Kong Chian School Of Business

In this paper, we examine the price dynamics of on-line art auctions of modern Indian art using functional data analysis. The purpose here is not just to understand what determines the final prices of art objects, but also the price movement during the entire auction. We identify several factors, such as artist characteristics (established or emerging artist; prior sales history), art characteristics (size; painting medium—canvas or paper), competition characteristics (current number of bidders; current number of bids) and auction design characteristics (opening bid; position of the lot in the auction), that explain the dynamics of price movement in an on-line …

The Role Of European Governments In The Digital Economy, Arnoud Cyriel Leo De Meyer

Research Collection Lee Kong Chian School Of Business

What is the role of government in the digital economy? It is not our intention to go into an in-depth ideological debate on whether governments should intervene in the business sector. We will try to adopt a pragmatic approach and explore what already happens in practice. It is up to the reader to make a judgment to what extent the governments should be involved in the ICT sector. There is enough indication that, due to network externality effects, governments need to take on an active role in stimulating an e-environment to jump-start the move toward a higher level of e-readiness.In …

Information Search Patterns In E-Commerce Product Comparison Services, Fiona Fui-Hoon Nah, Hong-Hee Lee, Liqiang Chen

Research Collection School Of Computing and Information Systems

The presentation of product information is very important in e-commerce websites. In this research, we study how disposition styles can influence users‟ search patterns in product comparison services of e-commerce websites. Our results show that people are inclined to use feature information paths in vertical disposition style and product information paths in horizontal disposition style. The results also indicate that there are more feature paths than product paths in the earlier stage of product comparison, and more product paths than feature paths in the latter stage of product comparison. Based on Gensch‟s two-stage choice model and the results of our …

Privacy Issues In The Era Of Ubiquitous Commerce, Holtjona Galanxhi, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

The vision of ubiquitous commerce (u-commerce) is realized through the convergence of electronic, mobile, television, voice and silent commerce applications. The ubiquity, universality, uniqueness, and unison of u-commerce will provide two principal benefits for individual users and companies: increased convenience as well as more personalized and customized services. However, u-commerce will also bring new issues such as a greater degree of privacy concerns that will impact individual users, companies, and the society at large. This paper proposes and elaborates on a conceptual framework for privacy in the u-commerce era. It combines Lessig’s macro-level perspective – the four-factor model of privacy …

Privacy Issues In The Era Of Ubiquitous Commerce, Holtjona Galanxhi, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

The vision of ubiquitous commerce (u‐commerce) is realized through the convergence of electronic, mobile, television, voice and silent commerce applications. The ubiquity, universality, uniqueness and unison of u‐commerce will provide two principal benefits for individual users and businesses: increased convenience as well as more personalized and customized services. However, u‐commerce will also bring emerging issues such as a greater degree of privacy concerns that will impact individual users, companies and society at large. This paper proposes and elaborates on a conceptual framework for privacy in the u‐commerce era. This framework is developed based on Lessig's macro‐level perspective and Adams' micro‐level …

How Much You Watch, How Much You Pay, Yongdong Wu, Hwee Hwa Pang, Robert H. Deng

Research Collection School Of Computing and Information Systems

This paper presents a pay-video scheme that manages video stream, key stream and payment stream efficiently. In our scheme, the owner segments a video into fragments and encrypts them with independent keys. The keys are generated with a novel concept called as hash interval, where each hash interval discloses a range of numbers without disclosing any information on numbers outside of the range. The video fragments are then broadcast on one or more channels. A buyer can purchase the keys to decrypt any fragments and, within each fragment, any desired quality level. The accompanying payment protocol is integrated with the …

The Effects Of Shilling On Final Bid Prices In Online Auctions, Robert J. Kauffman, Charles A. Wood

Research Collection School Of Computing and Information Systems

An increasing number of reports of online auction fraud are of growing concern to auction operators and participants. In this research, we discuss reserve price shilling, where a bidder shills in order to avoid paying auction house fees, rather than to drive up the price of the final bid. We examine the effect that premium bids have upon the final selling price, since they are linked with reserve price shill bids. We use 10,260 eBay auctions during April 2001, and identify 919 auctions involving 322 sellers and 1583 bidders involved in concurrent auctions for the exact same item. We find …

Values Of Mobile Commerce To Customers, Keng Siau, H. Sheng, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

This research studies the values of m-commerce using a qualitative means-ends approach, called Value-Focused Thinking. The conceptual foundation for this research is the Work System Framework. By interviewing both current and potential m-commerce users, we captured the values of m-commerce and develop a means-ends objective network to illustrate the relationships among these values. As one of the first empirical research to assess the values of m-commerce, this research contributes to an increased understanding of m-commerce. The means-ends objective network also serves as a theoretical foundation for future research in m-commerce. For practitioners, our findings highlight the concerns and issues of …

U-Commerce: Emerging Trends And Research Issues, H. Galanxhi-Janaqi, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

Ubiquitous commerce or u-commerce is the combination of traditional e-commerce and wireless, television, voice and silent commerce. U-commerce implies ubiquity, universality, uniqueness and unison. It is not a replacement for other types of commerce, but an extension of them. While bringing many benefits, there are challenges and impediments to overcome. Research is needed to assess the value of u-commerce and to address its related issues and challenges. Questions that need to be addressed are: What is the value of u-commerce? What are the ways to maximize the benefits and value of u-commerce? Is it the right technology and what directions …

A Qualitative Investigation On Consumer Trust In Mobile Commerce, Keng Siau, Hong Sheng, Fiona Fui-Hoon Nah, Sidney A. Davis

Research Collection School Of Computing and Information Systems

Mobile commerce represents a significant development in e-commerce, offering accessibility, ubiquity, mobility, and localisation to users. Despite the potential of mobile commerce, trust is a major obstacle in its adoption and development. Many consumers feel uncomfortable with the idea of conducting commerce over wireless, hand-held devices. The focus of this research is to understand trust in mobile commerce and to identify factors that are important for trust development. The research builds on Siau and Shen's framework which depicts two key factors influencing trust in mobile commerce. This research not only validates and expands on the existing framework, but also provides …

Proprietary And Open Systems Adoption In E-Procurement: A Risk-Augmented Transactions Cost Perspective, Robert J. Kauffman, Hamid Mohtadi

Research Collection School Of Computing and Information Systems

We present an economic model that enables the study of incentives for business-to-business (B2B) e-procurement systems investments that permit inventory coordination and improved operational control. We focus on the information technology adoption behavior of firms in the presence of transaction costs, agency costs and information uncertainty. We conclude that it is appropriate to rethink the prior theory and develop an extended transaction-cost theory perspective that incorporates the possibility of shocks. We distinguish among three kinds of B2B e-procurement systems platforms. Proprietary platform procurement systems involve traditional electronic data interchange (EDI) technologies. Open platform procurement systems are associated with e-market Web …

Performance Planning, Quality-Of-Service, And Pricing Under Competition, Corinne Touati, Parijat Dube, Laura Wynter

Research Collection School Of Computing and Information Systems

In this work we model the relationship between the capacity and the Quality of Service (QoS) offered by the firm in a competitive scenario of two firm’s working to maximize their profits. Using simple queueing theoretic models we study the sensitivity of a firm’s market share to price, capacity and market size. Our preliminary studies yield important properties of the equilibrium solution which may further provide important “engineering” guidelines for performance planning and pricing strategies.

An Investigation Of Consumer Online Trust And Purchase-Repurchase Intentions, Dan J. Kim, Donald Ferrin, Raghav Rao

Research Collection Lee Kong Chian School Of Business

There is little research on trust and satisfaction in the electronic commerce from a longitudinal (pre- and postpurchase) perspective. Based on previous frameworks and theories, this study developed a combined model of consumer trust and satisfaction in the context of Internet shopping. From the valance framework and expectation-confirmation theory, several prepurchase and post-purchase factors such as risk, benefit, consumer trust, expectation, confirmation, and satisfaction are investigated as research variables affecting consumer repurchase intention.

The results of the study show that trust is the strongest predictor of the consumer’s purchase intention. In addition, as in traditional consumer satisfaction studies, it holds …

Pricing And Qos Of Information Services In A Competitive Market, Zhen Liu, Laura Wynter, Cathy Xia

Research Collection School Of Computing and Information Systems

Design of e-commerce services that are competitive in a quickly responding market requires the analyses of prices and price structures. We develop a general model of an e-commerce market that allows us to analyze optimal price structures, both flat and usage-based. Based on the price structure of a major web hosting provider, we consider single-tier and two-tier (burst-rate) pricing, and our result suggests that the more complex two-tier structure may not be worth the marketing effort, as the firm's equilibrium profits will not increase through the use of this structure. An essential feature of our approach is that we model …

Interorganizational Systems And Competitive Advantages – Lessons From History, Keng Siau

Research Collection School Of Computing and Information Systems

Global business constantly faces radical transformations stemming from advances in information technology (IT). The concept of gaining competitive advantages by linking information systems across organizations (e.g., supply chain integration) has taken on an overtone of dogma in many business circles. Such electronic linkages are known as Interorganizational Systems (IOS). Lately, the growing importance and easy accessibility of the Internet have propelled IOS to a new height. Undoubtedly, IOS can have a great impact on organizational performance and industry structure. However, IT such as the Internet is readily available to all companies, and most IOS concepts can be easily replicated. Followers …

A Study On Tolerable Waiting Time: How Long Are Web Users Willing To Wait?, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

The WWW has become an important channel for information access, electronic commerce, and publication. With an exponential increase in the number of Web users and the popularity of multimedia technology, users often face a long waiting time for downloading Web pages. Although various technologies and techniques have been implemented to alleviate the situation and to comfort the impatient users, little research has been done to assess what constitutes an acceptable and tolerable waiting time for Web users. This research reviews the literature on computer response time and users’ waiting time, and assesses Web users’ tolerable waiting time in information retrieval. …

Factors Influencing The Adoption Of E-Marketplaces By Small Organizations: An Empirical Investigation, Xin Tan, Fiona Fui-Hoon Nah, Charalambos Iacovou, Jaekyung. Kim

Research Collection School Of Computing and Information Systems

The emergence of mobile computing combined with the increased popularity of the Internet is changing our daily lives. The increasing use of small portable computers, wireless networks and satellites un folds the new technology of mobile computing, which allows transmis sion of data to computers that are not physically linked to a network. As a result, people can communicate on the move. Mobile devices with new input and output methods and form factors are dramatically different from traditional desktop computers (Rodden et al., 1998). These technological changes make increasing demands on both the quality of user interface and the functionality …

Antecedents Of Consumer Trust In B-To-C Electronic Commerce, Dan J. Kim, Donald L. Ferrin, H. Raghav Rao

Research Collection Lee Kong Chian School Of Business

Despite the importance of trust in electronic commerce, there is insufficient theory and evidence concerning the determinants of consumer trust about an Internet vendor’s trustworthiness, and the influence of consumer trust on the consumer’s purchasing intention. The purpose of this study is to: i) develop a theoretical framework identifying the antecedents of a consumer’s trust and purchase intention, ii) test the proposed model using Structural Equation Modeling, analyzing Internet consumer behavior data collected via a Web survey, and iii) provide theoretical and managerial implications. The results of the study show that consumers’ disposition to trust, privacy protection, security protection, consumers’ …

Building Customer Trust In Mobile Commerce, Keng Siau, Zixing Shen

Research Collection School Of Computing and Information Systems

Customer trust, which is crucial for the growth and success of mobile commerce, is discussed. Building customer trust is a complex process that involves technology and business practices as well as movement from initial trust formation to continuous trust development. Gaining customer trust involves consideration of its three components: competence trust, predictability trust and goodwill trust. From a customer's perspective, competence trust in e-commerce is built upon the Internet vendor's skills, expertise and operational abilities.

Competitiveness And Price Convergence On The Internet: Evidence From The Online Dvd Market, Xiaolin Xing, Fang Fang Tang, Zhenlin Yang

Research Collection School Of Economics

We compare the pricing behavior between online branches of traditional retailers (MCR) and pure Internet retailers (Dotcom) in the DVD market. Based on a set of panel data from July 5, 2000 to June 11, 2001, we find that the average price of the MCRs is about 11.2% higher than that of the Dotcoms. Further statistical analyses on the market dynamics of price trends show that the prices of the Dotcoms went up with time much faster than the prices of the MCRs, which points to a possibility that eventually both types of retailers may charge similar prices on average. …