Product, Marketing and Web Site Attributes Discrimanating Between Successful and Failed Internet Businesses

ABSTRACT

This article is an empirical study of factors deemed significant in the context of e-business success or failure. Drawing upon the literature from the area of new business in brick-and-mortar (B&M) firms and the current e-business literature, an examination of the factors that lead to the success or failure of new B&M businesses is hypothesized in terms of new e-business companies. In an attempt to understand the marketing and managerial implications for the success or failure of an e-business, a total of eight subfactors composed of three main factors are included in the study. The main factors are product factors, marketing factors, and Web site design and efficiency factors. A national survey is used in addition to qualitative data gathered from in-depth interviews of managers and owners of e-businesses to validate the influence of these factors separating winners from losers. The study implications are discussed.

KEYWORDS:

• E-business
• e-Commerce
• e-marketing
• internet failure

Notes

Note. ∗∗Factor 1 = Product characteristics.

Factor 2 = Market acceptance of the product.

Note. ∗∗Factor 1 = Marketing proficiency.

Factor 2 = Marketing information gathering activities.

Factor 3 = Market launch activities.

Note. ∗∗Factor 1 = Web site security and efficiency.

Factor 2 = Web site customer service.

Factor 3 = Web site community.

Note. ∗∗ Chi-square 207.89 with 1 degree of freedom, significant at p < .001 level.

Classification results∗∗.

Note. ∗∗85.7% correctly classified.

Additional information

Notes on contributors

Pradeep Korgaonkar

Pradeep Korgaonkar, PhD, is the InternetCoast Adams Professor of Marketing, Florida Atlantic University, Fort Lauderdale, FL.

Bay O'Leary

Bay O'Leary, PhD, is an Associate Professor of Marketing, Huizenga School of Business, Nova Southeastern University, Fort Lauderdale, FL.