Internet market and Web-design strategies in e-commerce

The Internet has created a new type of market for customers and organizations, and has become a serious alternative to traditional markets. While businesses rush into the Internet market, the successful operation of this medium requires selecting an appropriate strategy and designing an effective website.; In the first part of this dissertation, we explore Internet market strategy. We differentiate between the Internet and traditional markets and define two fundamental Internet market strategies, replacement and complementary. Based on the models of competition in microeconomic theory and resource-based theory, we propose the Internet Market Strategy Model. We test the proposed model using a combination of primary and secondary data sources from three different datasets. Our results from testing the Internet Market Strategy Model point out that companies operating exclusively in the Internet market should have a competitive pricing policy.; Since websites are the main interface between online merchants and their customers in the Internet market, a company's website should reflect its policies and strategy. The effective adoption and implementation of policies on websites require an understanding regarding how the website elements may influence customers' beliefs and behavior. The second part of this dissertation examines the way web-design elements may influence customers' behavior. In this part, we categorize the web-design elements based on their possible influence on customers' belief systems. Then, synthesizing the theory of planned behavior and interpersonal influence, we develop a theoretical framework for the process by which the web-design elements may influence customers' intended behavior. The model called the Belief Reinforcement Model, posits that web-design elements reinforce customers' beliefs. The reinforced beliefs, in turn, influence customers' purchase intentions through changes in their attitude, subjective norms, perceived behavioral controls.; In testing the Belief reinforcement Model, we undertake an extensive literature search and adopt a comprehensive approach to develop a survey instrument. The research methodology makes use of laboratory experiments with a full experimental design and involves the development of 32 websites. The analysis of the results provides evidence for the postulated influence of web-design elements on customers' belief systems. Furthermore, our research indicates that the reinforcement of customers' beliefs could influence their purchase intentions. Hence, the Belief Reinforcement Model provides, for the-first time, a scientific basis for developing and testing the efficacy of websites. This model could be used as a vehicle for gaining a deeper understanding of the impact of various technologies involved in developing websites.; Our two proposed models (the Internet Market Strategy and the Belief Reinforcement Model) provide an early attempt to create an integrated approach to strategy and implementation for operating in the Internet market. The first model identifies the salient factors associated with the choice of a market strategy, and the second model explains the process by which the web-design elements intended for implementation of policies could influence the behavior of online customers. Both models together highlight the importance of pricing policy and the web-design elements to implement the policy. Furthermore, the Belief Reinforcement Model identifies additional categories of web-design elements that should be considered further in developing and implementing business strategies. We believe that an integrated approach to strategy and its implementation creates a sound scientific basis for business decision-making in the increasingly competitive world of the Internet.