Firm Behavior in E-Commerce

Project Start:12/2016
Researchers:Franz Hackl, Rudolf Winter-Ebmer, Christine Zulehner
Category: Law and Finance
Funded by:LOEWE

The choice of an appropriate e-Commerce strategy is crucial for the surviving or dying of online stores in the B2C-e-Commerce business. We use a comprehensive dataset from the Austrian price search engine to identify successful e-Commerce strategies. We define an e-Commerce strategy as a set of choices focusing on the listing decision, the availability decision , as well as the decision on price and shipping cost. By applying k-means clustering analysis we identify different strategies which have been applied by online retailers. Using various success measures as revenues, clicks, market shares or the survival of firms as dependents in regressions analysis we present empirical evidence on the success of different e-Commerce strategies.