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Influence of adoption factors
and risks on ecommerce and
online marketing




Ciprian Adam, lecturer, PhD
West University of Timisoara, Faculty of Economics and Business Administration
Cluj-Napoca, 2011
Literature review                          Managerial implications


                        Research methodology




  Results
                                                          Conclusions




Topics
Redefining competitive advantage
Ecommerce
fundamentals

                       Rethinking business strategy




               Review traditional models of business and generate revenues



                          Redesigning the organization and website



                             Reinventing customer service
Natural evolution vs. Disruptive revolution




Customization & Strategic value


                                  Online experiences [+] / [—]
Research methodology


                Ecommerce adoption factors
                EAF
                                                   Ecommerce and online                 Ecommerce and online
                                 I1[A1-2;B1-2]     marketing assessment EMA             marketing relationship
                Ecommerce adoption risks
                EAR                                                   I3[A1-3;B1-3]




                EAF               I1A/B1
                                                                      I3A/B1
                                                    EMA                                 EOP
                EAR               I1A/B2                                I3A/B2

                                                                 I3A/B3                 OMI


                                                                                        EOM


                                             Online shops | A   External online consultants | B
H1. There is a positive correlation between risk factors and determinants of
      ecommerce adoption and attitudes towards ecommerce and online marketing

                                 Kauffman & Walden (2001); Chong (2005);
                                 Karakaya & Stahl (2009)




H2. There is a positive correlation attitudes towards ecommerce and online marketing
and the relationship between them

                                    Lager (2009); Williams et al. (2009); Yeo (2010);
                                    Hong (2009); Dillon et al. (2005)
Survey sampling                       pretested 5 online experts & 7 academic researchers
                                      non-probabilistic sampling
                                      two perspectives: internal (127) & external (91), all Romanians
                                      channels used for promotion: professional networks; Romanian
                                      Ecommerce Hall of Fame 2010 website; Liviu Taloi’s ecommerce
                                      Yahoo group; other (Facebook, Twitter, targeted blogs Zelist)




internal perspective (127)
1.   owner/partner/general manager;
2.   marketing/sales/PR/communication/logistics/IT manager;
3.   internal consultant
external perspective (91)
1.   external online consultant/expert/agency;
2.   ecommerce or/and online marketing passionate/blogger/affiliate
Survey sampling




                  Online shops profile
Survey sampling
Online shops profile




Business relationship, no. of employees, market coverage, age of business
Online shops profile [2]




                                                                IT&C
                                                                Fashion
                                                                House&Garden
                                                                Babies, Children&Toys
                                                                Health&Beauty




           Categories of online shops at Romanian Ecommerce Hall of Fame 2010
Online shops profile [3]




     Turnover, market share, net profit, average order value, number of clients evolution
Ecommerce and online marketing perceptions
Ecommerce and online marketing perceptions | online shops




Effective organic search
& PR
Social media
engagement
Customer-centricity,
search & support
facilities
Ecommerce and online marketing perceptions | external consultants




Effective organic search
& PR
Social media
engagement
Customer-centricity,
search & support
facilities
Ecommerce adoption risks
Ecommerce adoption risks | online shops




Competition
Lack of online
marketing specialist
Missed opportunities
(search marketing,
email marketing)
Ecommerce adoption risks | external consultants




Lack of online
marketing specialist
Lack of clear online
objectives
Ecommerce—online marketing relationship
Operational practices in ecommerce | online shops




Customization
opportunities
Use social media
Importance of product
returns&refunds policy
Comments&reviews are
important
Comprehensive&quality
information for clients
Operational practices in ecommerce | external consultants




Customization
opportunities
Importance of product
returns&refunds policy
Comprehensive&quality
information for clients
Customer retention >
attracting customers
Innovation in ecommerce | online shops
Innovation in ecommerce | external consultants
Ecommerce—online marketing | online shops
Ecommerce—online marketing | external consultants
Ecommerce—online marketing relationship | online shops



 Online shops with moderate turnover increases offered customized experiences.
 [χ2 = 80,003; B coefficient = 0,718]



 Online shops with moderate turnover increases confirm an increase in using social media.
 [χ2 = 40,748; B coefficient = 0,593]


       No correlation between increase of social media opportunities (adoption factor) and
       ecommerce platform facilities to implement online marketing decisions. [χ2 = 16,723]

       No correlation between facilities integration and innovation in terms of social media
       and online PR. [χ2 = 29,322]
Ecommerce—online marketing relationship | online shops [2]



      Not having specific online objectives did not influence the turnover decrease or increase.
      [χ2 = 20,555]
Online shops with moderate turnover increases confirmed existence of ecommerce know-how
inside the company. [χ2 = 86,716; B coefficient = 0,730]




Online shops with moderate turnover increases agreed online payments acceptance is an
ecommerce adoption factor. [χ2 = 35,500; B coefficient = 0,567]
       No correlation between the security of online payments (3D Secure, adoption factor) an
       ecommerce platform facilities to implement online marketing decisions. [χ2 = 7,612]
       No correlation between influence of structured experiments (AB, MVT) and turnover
       evolution. [χ2 = 17,422]
Hypothesis testing results

              Hypothesis     Non-standardized   Statistics   Significance level    Result
                                coefficient       value              p
                                    B               t
              I1A1                 .529           5.331            .000           Accepted
              I1A2                 .150           1.714             .091          Rejected
              I1B1                 .585          4.949             .000           Accepted
              I1B2                 .002           .013             .990           Rejected



              Hypothesis     Non-standardized   Statistics   Significance level    Result
                                coefficient       value              p
                                    B               t
              I2A1                 .189           1.614             .112          Rejected
              I2A2                 .837           5.441            .000           Accepted
              I2A3                 .740           4.358            .000           Accepted
              I2B1                 .239           2.131            .039           Accepted
              I2B2                 .585          4.485             .000           Accepted
              I2B3                 .367          2.408             .021           Accepted
Scale reliability




          Construct                                   Code
                                                                 Cronbach’s Alpha        Number of
                                                             online shops | consultans     items
          Ecommerce and online marketing assessment   EMA            .778 | .761            10

          Ecommerce adoption factors                  EAF           .805 | .742             10

          Ecommerce adoption risks                    EAR           .870 | .690              9

          Ecommerce operational practices             EOP           .716 | .638             11

          Online marketing innovation                 OMI           .882 | .829             10

          Ecommerce influence on online marketing     EOM           .891 | .832             8
Validated research model


               EAF         EMA                        OMI


                                                      EOM


                                               Online shops | A




                                                      EOP


               EAF         EMA                        OMI


                                                      EOM


                                 External online consultants | B
Managerial implications. Conclusions.



Lack of a structured approach


Lack of using essential tools and methods for measuring online marketing performance


Low level of professionalization


Addressing online operational marketing decisions without a medium and long-term orientation


Limited innovation in online marketing activities


Inappropriate degree of integration between ecommerce and online marketing
thank you.


ciprian adam


west university of timisoara
ciprian.adam@ebig.biz

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Cluj-Napoca Marketing Conference 2011

  • 1. Influence of adoption factors and risks on ecommerce and online marketing Ciprian Adam, lecturer, PhD West University of Timisoara, Faculty of Economics and Business Administration Cluj-Napoca, 2011
  • 2. Literature review Managerial implications Research methodology Results Conclusions Topics
  • 3. Redefining competitive advantage Ecommerce fundamentals Rethinking business strategy Review traditional models of business and generate revenues Redesigning the organization and website Reinventing customer service
  • 4. Natural evolution vs. Disruptive revolution Customization & Strategic value Online experiences [+] / [—]
  • 5. Research methodology Ecommerce adoption factors EAF Ecommerce and online Ecommerce and online I1[A1-2;B1-2] marketing assessment EMA marketing relationship Ecommerce adoption risks EAR I3[A1-3;B1-3] EAF I1A/B1 I3A/B1 EMA EOP EAR I1A/B2 I3A/B2 I3A/B3 OMI EOM Online shops | A External online consultants | B
  • 6. H1. There is a positive correlation between risk factors and determinants of ecommerce adoption and attitudes towards ecommerce and online marketing Kauffman & Walden (2001); Chong (2005); Karakaya & Stahl (2009) H2. There is a positive correlation attitudes towards ecommerce and online marketing and the relationship between them Lager (2009); Williams et al. (2009); Yeo (2010); Hong (2009); Dillon et al. (2005)
  • 7. Survey sampling pretested 5 online experts & 7 academic researchers non-probabilistic sampling two perspectives: internal (127) & external (91), all Romanians channels used for promotion: professional networks; Romanian Ecommerce Hall of Fame 2010 website; Liviu Taloi’s ecommerce Yahoo group; other (Facebook, Twitter, targeted blogs Zelist) internal perspective (127) 1. owner/partner/general manager; 2. marketing/sales/PR/communication/logistics/IT manager; 3. internal consultant external perspective (91) 1. external online consultant/expert/agency; 2. ecommerce or/and online marketing passionate/blogger/affiliate
  • 8. Survey sampling Online shops profile
  • 10. Online shops profile Business relationship, no. of employees, market coverage, age of business
  • 11. Online shops profile [2] IT&C Fashion House&Garden Babies, Children&Toys Health&Beauty Categories of online shops at Romanian Ecommerce Hall of Fame 2010
  • 12. Online shops profile [3] Turnover, market share, net profit, average order value, number of clients evolution
  • 13. Ecommerce and online marketing perceptions
  • 14. Ecommerce and online marketing perceptions | online shops Effective organic search & PR Social media engagement Customer-centricity, search & support facilities
  • 15. Ecommerce and online marketing perceptions | external consultants Effective organic search & PR Social media engagement Customer-centricity, search & support facilities
  • 17. Ecommerce adoption risks | online shops Competition Lack of online marketing specialist Missed opportunities (search marketing, email marketing)
  • 18. Ecommerce adoption risks | external consultants Lack of online marketing specialist Lack of clear online objectives
  • 20. Operational practices in ecommerce | online shops Customization opportunities Use social media Importance of product returns&refunds policy Comments&reviews are important Comprehensive&quality information for clients
  • 21. Operational practices in ecommerce | external consultants Customization opportunities Importance of product returns&refunds policy Comprehensive&quality information for clients Customer retention > attracting customers
  • 22. Innovation in ecommerce | online shops
  • 23. Innovation in ecommerce | external consultants
  • 25. Ecommerce—online marketing | external consultants
  • 26. Ecommerce—online marketing relationship | online shops Online shops with moderate turnover increases offered customized experiences. [χ2 = 80,003; B coefficient = 0,718] Online shops with moderate turnover increases confirm an increase in using social media. [χ2 = 40,748; B coefficient = 0,593] No correlation between increase of social media opportunities (adoption factor) and ecommerce platform facilities to implement online marketing decisions. [χ2 = 16,723] No correlation between facilities integration and innovation in terms of social media and online PR. [χ2 = 29,322]
  • 27. Ecommerce—online marketing relationship | online shops [2] Not having specific online objectives did not influence the turnover decrease or increase. [χ2 = 20,555] Online shops with moderate turnover increases confirmed existence of ecommerce know-how inside the company. [χ2 = 86,716; B coefficient = 0,730] Online shops with moderate turnover increases agreed online payments acceptance is an ecommerce adoption factor. [χ2 = 35,500; B coefficient = 0,567] No correlation between the security of online payments (3D Secure, adoption factor) an ecommerce platform facilities to implement online marketing decisions. [χ2 = 7,612] No correlation between influence of structured experiments (AB, MVT) and turnover evolution. [χ2 = 17,422]
  • 28. Hypothesis testing results Hypothesis Non-standardized Statistics Significance level Result coefficient value p B t I1A1 .529 5.331 .000 Accepted I1A2 .150 1.714 .091 Rejected I1B1 .585 4.949 .000 Accepted I1B2 .002 .013 .990 Rejected Hypothesis Non-standardized Statistics Significance level Result coefficient value p B t I2A1 .189 1.614 .112 Rejected I2A2 .837 5.441 .000 Accepted I2A3 .740 4.358 .000 Accepted I2B1 .239 2.131 .039 Accepted I2B2 .585 4.485 .000 Accepted I2B3 .367 2.408 .021 Accepted
  • 29. Scale reliability Construct Code Cronbach’s Alpha Number of online shops | consultans items Ecommerce and online marketing assessment EMA .778 | .761 10 Ecommerce adoption factors EAF .805 | .742 10 Ecommerce adoption risks EAR .870 | .690 9 Ecommerce operational practices EOP .716 | .638 11 Online marketing innovation OMI .882 | .829 10 Ecommerce influence on online marketing EOM .891 | .832 8
  • 30. Validated research model EAF EMA OMI EOM Online shops | A EOP EAF EMA OMI EOM External online consultants | B
  • 31. Managerial implications. Conclusions. Lack of a structured approach Lack of using essential tools and methods for measuring online marketing performance Low level of professionalization Addressing online operational marketing decisions without a medium and long-term orientation Limited innovation in online marketing activities Inappropriate degree of integration between ecommerce and online marketing
  • 32. thank you. ciprian adam west university of timisoara ciprian.adam@ebig.biz