Digital Business Models (6013B0504Y)
Summary of all articles and lectures covered by Ross Gardner and Balazs Szatmari for the end term exam (i.e., articles 16-30,
presentation by Dennise Yeh, supply-side of the Canvas Business Model)
16. Customer loyalty in e-commerce: an exploration of its antecedents and consequences (Srinivasan et al., 2002) 2
17. Consumer feelings and behaviours towards well designed websites (Vila & Kuster, 2011) 3
18. Modeling online consumer behavior: Preeminence of emotions and moderating influences of need for cognition and optimal
stimulation level (Richard & Chebat, 2016) 4
19. Modeling and testing consumer trust dimensions in e-commerce (Oliveira et al., 2017) 5
20. The rise of the platform economy (Kenney & Zysman, 2016) 6
Guest Lecturer: Dennise Yeh – Launch your (coffee) brand on digital channels 7
Alexander Osterwalder: The Business Model Canvas (0:00 – 3:33) 8
Alexander Osterwalder: Tools for Business Model Generation (0:00 – 30:15) 9
21. The effects of process characteristics on the value of B2B e-procurement (Subramaniam & Shaw, 2004) 10
22. Assessing the impact of e- business on supply chain dynamics (Disney et al., 2004) 11
23. E-commerce Logistics in Supply Chain Management: Practice Perspective (Yu et al., 2016) 12
24. An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-
commerce (Ramanathan & Ramakrishnan, 2011) 13
25. Which Kind of Collaboration is Right for You? (Pisano & Verganti, 2008) 14
26. The Internet of Things: Making Sense of the Next Mega-Trend (Goldman Sachs Report, 2014) 15
27. The Internet of Things Business Index: Transformation in Motion (The Economist Intelligence Unit, 2020) 16
28. The Internet of Things and new business opportunities (Krotov, 2017) 17
29. Blockchain (Nofer et al., 2017) 18
30. Social and ethical behavior in the Internet of Things (Berman & Cerf, 2017) 19
,16. Customer loyalty in e-commerce: an exploration of its antecedents and consequences (Srinivasan et al., 2002)
• This paper investigates the antecedents and consequences of customer loyalty in an online B2C context.
• We identify eight factors (the 8Cs) potentially impact e-loyalty and develop scales to measure these factors.
• Data collected from 1,211 online customers demonstrate that all these factors, except convenience, impact e-loyalty.
• Customer loyalty
o Early views of brand loyalty focused on repeat purchase behaviour.
§ Some researchers have suggested that a behavioural definition is insufficient because it does not
distinguish between true loyalty and spurious loyalty that may result, for example, from a lack of
available alternatives for the consumer.
o In response to these criticisms, researchers have proposed measuring loyalty by means of an attitudinal
dimension in addition to a behavioural dimension.
o E-loyalty: a customer’s favourable attitude toward the e-retailer that results in repeat buying behaviour.
• The antecedents of e-loyalty à the 8Cs
o Based on in-depth interviews we identified eight e-business factors that appeared to impact e-loyalty.
• (1) Customisation à significant impact on e-loyalty
o The ability of an e-retailer to tailor products, services, and transactional environment to individual customers.
§ The extent to which an e-retailer’s web site can recognize a customer and then tailor the choice of
products, services, and shopping experience for that customer.
• (2) Contact interactivity à significant impact on e-loyalty
o The dynamic nature of the engagement that occurs between an e-retailer and customers through its website.
§ The availability and effectiveness of customer support tools on a website, and the degree to which
two-way communication with customers is facilitated.
• (3) Cultivation à significant impact on e-loyalty
o The extent to which an e-retailer provides relevant information and incentives to its customers to extend the
breadth and depth of their purchases over time.
§ The frequency of desired information and cross-selling offers that an e-retailer provides to customers.
• (4) Care à significant impact on e-loyalty
o The attention that an e-retailer pays to all the pre- and post-purchase customer interface activities designed
to facilitate both immediate transactions and long-term customer relationships.
§ The extent to which a customer is kept informed about availability of preferred products and status
of orders, and the level of efforts expended to minimize disruptions in providing desired services.
o Customer care is reflected in both the attention that the e-retailer pays to detail in order to ensure that there
is no breakdown in service, and the concern that it shows in promptly resolving any breakdowns that do occur.
• (5) Community à significant impact on e-loyalty
o An online social entity comprised of existing and potential customers that is organised and maintained by an
e-retailer to facilitate the exchange of opinions and information regarding offered products and services.
o The extent to which customers are provided with the opportunity and ability to share opinions among
themselves through comment links, buying circles, and chat rooms sponsored by the e-retailer.
• (6) Choice à significant impact on e-loyalty
o Compared with a conventional retailer, an e-retailer is typically able to offer a wider range of product
categories and a greater variety of products within any given category.
§ A store in a mall is constrained by the availability and cost of floor space, whereas its online
counterpart does not have such limitations.
§ E-retailers can form alliances with other virtual suppliers to provide customers with greater choice.
• (7) Convenience à no significant impact on e-loyalty
o The extent to which a customer feels that the website is simple, intuitive, and user friendly.
§ Accessibility of information and simplicity of the transaction processes are important antecedents to
the successful completion of transactions.
• (8) Character à significant impact on e-loyalty
o An overall image or personality that the e-retailer projects to consumers using inputs such as text, style,
graphics, colours, logos, and slogans or themes on the website.
§ Creative website design can help an e-retailer build a positive reputation and characterisation for
itself in the minds of consumers.
• Behavioural consequences of e-loyalty:
• The e-loyalty of customers will be negatively related to their search for alternatives (H2a) à weakly supported
o Loyal customers have lower price elasticities than non-loyal customers and they are willing to pay a premium
to continue doing business with their preferred retailers rather than incur additional search costs.
§ Elastic à a price change causes a substantial change in demand or supply.
§ Inelastic à a price change does not cause demand or supply to change very much.
• The e-loyalty of customers will be positively related to their (1) word-of-mouth behaviour, and (2) willingness to pay
more (H2b) à supported
o Positive WOM: the extent to which an individual says positive things about the e-retailer to others.
, 17. Consumer feelings and behaviours towards well designed websites (Vila & Kuster, 2011)
• We analysed the effect of a well-designed website in terms of five indicators: purchase intention, positive attitudes,
trust, satisfaction and perceived risk.
• This website was compared with four less-well designed websites.
o These websites were created by modifying the well-designed website by removing one of the four major
constructs [web security; customer service; amount and quality of information provided; and usability].
• Key variables in a well-designed website
o (1) System usability-related factors: speed and ease of use
§ Provide good online engineering performance; involves ease
of access, speed (waiting time + website delay), navigability.
o (2) Content-related factors: amount and quality of information
§ Information provided by the online service is precise,
updated, comprehensive, relevant to the user, flexible, and
periodically extended or renewed.
o (3) Service-related factors: pre-purchase, during, and post-purchase
§ Should include the effects of pre-, during-, and post-purchase
service that may enhance the user’s perceived quality.
o (4) Web security factors for a well-designed website
§ A consumer will not be happy to provide personal details on
websites that do not provide web security.
• Determining factors for website success
H1 creates increased purchase intention …than one with less Rejected
H2 produces a positive attitude usability, information Rejected
A good
H3 provides greater satisfaction content, customer Accepted
website…
H4 builds more online trust service and perceived Rejected
H5 causes the potential customer to experience less perceived risk security. Accepted
• ‘‘Website success’’ is conceived of as a 21-item concept measured on a 7-point Likert scale.
o Developed instrument to evaluate website using 21 items; five websites were analysed.
• Website design
o The good website à LOW RISK, SATISFACTION (ACTION + SHORT TERM SATISFACTION)
§ Designers created a well-designed fictitious website for a non-existent clothing company: Resaka.
§ Most associated with low perceived risk and with satisfaction à accept H3 and H5
• The well website does stand out in satisfaction and has a lower level of perceived risk.
o Low usability website: slow and untidy à MIXED EFFECTS (INTERSECTION)
§ The number of clicks was increased from ‘‘4’’ on the well website to ‘‘9’’ on the low usability website.
§ The ease of use was altered by changing the position of the navigation bar and eliminating the menu.
§ The non-usable website is associated with a mix of items.
• It offers positive attitudes, it is perceived low risk; with purchase intention and satisfaction.
o The non-usable website does not emphasise any property, although it is the one
which comes closest to the majority of them (not online trust).
o Low security website à ONLINE TRUST (FEELING + SHORT TERM SATISFACTION)
§ The logos and references to Verisign and Visa from all the Resaka sections were removed.
§ Most associated with online trust (feelings) à reject H4
• In relative terms the well website does not have the greatest online trust
o Low informative content website à POSITIVE ATTITUDES (FEELING + LONG TERM PLEASURE)
§ The section of the product catalogue (including how the garments look in real scenarios, possible
combinations, and recommended contexts) was removed.
§ Price, material colour etc. information was removed from certain sections.
§ Only one image and one colour were shown for each garment and it was not possible to enlarge,
rotate or see how it would look in other colours.
§ Most associated with positive attitudes (long term pleasure) à reject H2
• In relative terms the well website does not produce the most positive attitudes.
o Low service level website à BUYING INTENTION (ACTION + LONG TERM PLEASURE)
§ The ‘‘customer service’’ link was completely removed from the home page.
§ This removed the suggestions box, Resaka members club, the explanation on exchanges and refunds
and the section, your purchases.
§ ‘‘Contact’’ and related information was also removed from the main menu and other pages.
§ Most associated with a high purchase intention (actions) à reject H1
• A website could increase purchase intention even when low customer services are offered.
• The well website does not have the greatest purchase intention in relative terms.
