Physical Distribution Service Quality in Internet Retailing: Service Pricing, Transaction Attributes, and Firm Attributes

Journal of Operations Management, Vol. 21, No. 6, pp. 651-672, 2004

Posted: 5 Dec 2006

See all articles by Elliot Rabinovich

Elliot Rabinovich

Arizona State University - W.P. Carey School of Business

Joseph Bailey

University of Maryland

Abstract

This paper develops a theoretical framework and empirically investigates physical distribution service (PDS) quality by Internet retailers in their transactions with consumers. An analysis of data that measure hundreds of electronic commerce transactions along with data at the firm level shows that higher shipping and handling charges are good indicators of better PDS quality. Other transaction-level conditions and firm-level attributes also affect PDS quality, as measured by availability, timeliness, and reliability. Most notably, when the net price of products transacted increases, PDS reliability and availability decline. Furthermore, Internet-retailer size is found to favor PDS availability whereas, surprisingly, newer Internet retailers exhibit a higher level of PDS availability than many of their incumbent competitors.

Keywords: e-Commerce, Logistics/distribution, e-Services, Service operations, MIS/operations interface

Suggested Citation

Rabinovich, Elliot and Bailey, Joseph, Physical Distribution Service Quality in Internet Retailing: Service Pricing, Transaction Attributes, and Firm Attributes. Journal of Operations Management, Vol. 21, No. 6, pp. 651-672, 2004, Available at SSRN: https://ssrn.com/abstract=948802

Elliot Rabinovich (Contact Author)

Arizona State University - W.P. Carey School of Business ( email )

Tempe, AZ 85287-3706
United States

Joseph Bailey

University of Maryland

College Park
College Park, MD 20742
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,349
PlumX Metrics