| Over time, the role of electronic commerce (EC) has continuously evolved from simple automation of transactions to a more innovative and strategic one, although it has predominantly dealt only with transactions involving sale and business of physical products. This dissertation contributes to the theoretical, methodological and implementation issues in electronic commerce, in particular for digital products. Digital product firms include software companies, electronic publishing houses, entertainment industries, educational services and other products and services that can be stored and delivered in a digitized form. Most of the firms engaging in digital product EC have been using the electronic networks such as the Internet and associated technologies as simply a medium of delivery, thus not fully utilizing digital product characteristics such as their ability to be mass-customized.; The first part introduces digital products and provides a framework for their classification based on user value. In addition the magnification of the complexity of providing warranty and customer service for digital products is analyzed with suitable examples. The holistic theme of value chain activities provides the basis for re-designing activities such as manufacturing, inventory control, marketing, etc. The theory of complementarity is used to derive a greater value by rightly combining technology, processes and incentives associated with the above activities. A vendor needs to market his product, and often through intermediaries such as retail stores, malls, etc. This essay illustrates the creation of one such electronic intermediary, the Electronic Mall Environment (EME) complete with store-fronts, digital warehouses and a payment system. While the technical details of the implementation are provided in detail in the appendix, the essay itself sheds light on the role of the mall owner and mechanisms for creating a greater value for the vendors and consumers. The analysis offers new ways of interpreting quality and the complementary nature of product arrangement and pricing.; Very little is known about techniques and methodologies to validate theories in the electronic commerce world. A unique methodology for an empirical study is introduced. By conducting a quasi-naturally occurring experiment, conditions are created where subjects behave as they would in a real world. The role of incentives in such a methodology is illustrated with empirical evidence. The experiment comprises of students playing the role of vendors and consumers in a digital product market. The payment mechanisms and mall environment discussed in essay 3 serves as the platform. A sufficiently rigorous data analysis is used to support the hypotheses put forth. |
