Managing Electronic Commerce Transaction Costs for Customer Value

Decision Support Systems, Vol. 42, No. 2, pp. 898-914, November 2006

Posted: 23 Jan 2007

See all articles by Alina Chircu

Alina Chircu

University of Texas at Austin - Red McCombs School of Business - IROM Department

Vijay Mahajan

University of Texas at Austin - Department of Information, Risk and Operations Management

Abstract

We investigate how electronic commerce (EC) retailers, or e-tailers, manage transaction costs and generate customer value. We integrate information systems and marketing theories in a framework for transaction cost management based on four contingency factors: channel, customer, product and shopping occasion characteristics. We build the framework using archival case studies and validate it with customer interviews. We show that trying to minimize the entire cost of retail transactions is either unsustainable or devalues the customer shopping experience. Instead, looking at transactions as a series of atomic steps enables e-tailers to better understand and manage what really matters for consumers.

Keywords: Customer value, Electronic commerce, Internet, E-tailers, Retailers, Transaction costs

Suggested Citation

Chircu, Alina and Mahajan, Vijay, Managing Electronic Commerce Transaction Costs for Customer Value. Decision Support Systems, Vol. 42, No. 2, pp. 898-914, November 2006, Available at SSRN: https://ssrn.com/abstract=958856

Alina Chircu

University of Texas at Austin - Red McCombs School of Business - IROM Department ( email )

Austin, TX 78712
United States

Vijay Mahajan (Contact Author)

University of Texas at Austin - Department of Information, Risk and Operations Management ( email )

Red McCombs School of Business
2100 Speedway, #B6600
Austin, TX 78712
United States

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

Paper statistics

Abstract Views
1,534
PlumX Metrics