Choice Of Online Channels By Firms In The Internet Environment

From the 20th century 1990s, incorporating the Internet to operation business activities in firms is becoming one of representations in economic globalization and knowledge economics. The ability of E-marketing is a key role of competition capability for a firm. Also, it is a powerful to enable elevation of traditional firms and improvement of technologies.In order to adapt the adjustment of world market globalization and economic structure, more and more traditional firms are considering the development strategy in internet environment carefully, redesigning marketing tactics which help to adapt the global market, and exploring the development ways which fit their online marketing. Several of online marketing channels followed by online marketing patterns become the central issue of the means in transforming traditional marketing.As the sub-project of National Nature Science Foundation of China Project "The Research on World Market Virtualization and Development Strategy of China's E-commerce" (70973079) and Ministry of Commerce of the People's Republic of China Project "E-Commerce Statistic Survey Project", this dissertation studies two issues. First, why do the traditional firms choose various different marketing channels in internet environment? Second, how do the intensity of chosen channels adoption affects the performances of firms?From firms' management strategy and market orientation, this dissertation following the thoughts of system science, applying comprehensive combination method, combining the management, marketing, economics, statistics and information management organically, integrating theoretical analysis, literature reviews, deep interviews, questionnaires, uses empirical tools such as factor analysis, logistic regression, multiple regression analysis, discuses the choice of online marketing channels and performances based on influence factors. Five aspects are involved below:(1) Various angles and objects of traditional and virtual market in scholar study are reviewed. The basic theory and the major seven types and thirteen concrete manifestations of online marketing channels are summarized. Aiming at how to conceptualize and measure the adoption of online marketing channels, this research divides the online marketing channels into online informational channel and online transactional channel from the angle that whether the functions of firms'website includes online sale or not and the adoption of online channels, and also presents the two dimensions concept of online marketing adoption.(2) Aiming at the choices of different channels, based on transaction cost theory, new institution theory, contingency theory and TOE model, this dissertation studies the choice mechanism of firms' online marketing channels comprehensively from the exterior market activities such as competition environment, market environment volatility, market diversity, e-readiness and internal influencing factors such as firms' resources and marketing strategies, so that this paper establishes the concept model of firms' choice of online marketing channels, screens the possible antecedents of firms' choice of online marketing channels and provides a wider angle for firms'choice of online marketing channels.(3) Based on the conceptual model, our paper provides research propositions and hypotheses and investigate both internal and extent 23 sub-dimensions. Before engaging in a pilot study, we invite 12 experts from China and America. Their feedback on the extent to which each indicator of a construct purportedly measures what the construct is supposed to be as evident from the construct definition. And then we do the pilot study for 21 firms to test the validity and reliability of these measures. Above processes help us revise measures and get final questionnaire about CHOICE OF INTERNET CHANNEL BY TRADITIONAL FIRMS IN THE INTERNET ENVIRONMENT. This questionnaire helps us to study the factors that contribute to specific types of websites (transactional versus merely informational) used by traditional firms in China.(4) We apply logistic regression model which focus on solving dichotomous variable problem as empirical study method for the question about choice of online channel. For extent environment factors, Competitive Intensity and Volatility of Market negatively affect the choice of online channel. Competitive Imitation, Diversity of Market, Market Forces e-Readiness and Supporting Industries e-Readiness positively affect the choice of online channel. For internal organizations factors, Transaction Specificity of Assets, Company Size and Synergy Capacity positively affect the choice of online channel. Control variable such as Product Strategy, Positioning, Cross-Channel Promotion Strategy have relationship with the choice of online channel. While some factors as Government e-Readiness in extent environment, The Direct Channel Experience in internal organization and Price Transparency of control variable don't have relationship with the choice of online channel. Finally, we get the related internal and extent factors which have positive or negative relationship with online channel choice.(5) After getting the antecedents of different online channel choice, this paper also analyze and measure the performance of online channel choice. We divide online informational channel into three adoption intensities and online transactional channel into four adoption intensities. We indicate efficiency, sales performance, customer satisfaction and relationship development as performance. Then we use eight estimate models to operation multi-regression. The results indicate that for most of traditional firms the adoption of online transactional channel is still in initial stage. Firms are able to perceive the outcome of adoption online transactional channel when it continues capitalization.The innovation of this paper includes following four points:(1) Innovation of Cognition. Analyzing of some firms from China and America, our paper explores different opinions from known cognitions:Online informational channel is able to become final choice in operational stages of E-commerce. Thus, it is not a middle stage. Either online informational channel or online transactional channel has strength and weakness. Based on multi-aspects considerations, firm is able to capitalize one as their optimized channel. There are no obvious extent comparisons between these two channels. Some firms have also invested substantially on capitalizing on the online informational channel. The different online channels comparisons of intensive adoption are thus, expressing in insider of each channel namely intensive adoption of online informational channel and intensive adoption of online transactional channel. Our paper classifies adoption of intensity for each channel.(2) We exlplore external factors which are able to be as the substantive power in online channel choice. Differenting from literatures which indicate internal factors are the most important issues, we highlights the drives of external power in choice process. This conclusion explores the firms which would like to survive in the virtual market must turn itself into more open environment otherwise there will be more the external pressures.(3) Quantizing marketing strategy factors. As the marketing strategy factors are hard to quantize. Therefore, there are little research about that. This paper explore the four aspects:product strategy, price transparency strategy, positioning strategy and cross-channel promotion strategy into the conceptual model. The results indicate that search products and experiencel products are able to incorporate with online transactional channel, experience2 products are able to incorporate with both online informational and transactional channel, and credence products are able to incorporate with online informational channel. High quality positioning and low price/ discount positioning are not able to incorporate with online informational channel. There is no relationship between price transparency and channel choice. Cross channel promotion are able to effect on channel choice.(4) Aiming at the choices of different channels, based on transaction cost theory, new institution theory, contingency theory and TOE model, this dissertation studies the choice mechanism of firms'online marketing channels comprehensively from the exterior market activities such as competition environment, market environment volatility, market diversity, e-readiness and internal influencing factors such as firms' resources and marketing strategies, so that this paper establishes the concept model of firms'choice of online marketing channels, screens the possible antecedents of firms' choice of online marketing channels and provides a wider angle for firms'choice of online marketing channels.