Segmentation of the on-line shopping market using neural networks

The characterization and analysis of on-line customers' needs and expectations, regarding the Internet as a new marketing channel, is considered a prerequisite to the realization of the expected growth of the consumer-oriented electronic commerce market. The aim of the present study is twofold: to carry out an exploratory segmentation of this market that can throw some light upon its structure, and to characterize the on-line shopping adoption process. The Self-Organizing Map (SOM), an unsupervised neural network model devised by Kohonen (Kohonen, T. (1982). Self-organized formation of topologically correct feature maps. Biological Cybernetics, 43(1), 59–69; Kohonen, T., (1995). Self-organizing maps. Berlin: Springer) will be used as part of a tandem approach to segmentation, which involves the factor analysis of the observable variables in the data to be analyzed, prior to clustering. The SOM is shown to be a powerful data visualization tool, able to assist the data analysis, providing supervised methods with useful explanatory capabilities. It is also applied, in a completely unsupervised mode, to discover the clusters or segments that naturally occur in the data. The SOM is proposed as a flexible clustering model able to accommodate both Finer Segmentation and Normative Segmentation approaches. Within the latter, a cluster-partition is proposed and analysed, and high-level customer profiles, of potential interest to on-line marketers, are derived and described in marketing terms.     

Trustworthiness in electronic commerce: the role of privacy, security, and site attributes

While the growth of business-to-consumer electronic commerce seems phenomenal in recent years, several studies suggest that a large number of individuals using the Internet have serious privacy concerns, and that winning public trust is the primary hurdle to continued growth in e-commerce. This research investigated the relative importance, when purchasing goods and services over the Web, of four common trust indices (i.e. (1) third party privacy seals, (2) privacy statements, (3) third party security seals, and (4) security features). The results indicate consumers valued security features significantly more than the three other trust indices. We also investigated the relationship between these trust indices and the consumer's perceptions of a marketer's trustworthiness. The findings indicate that consumers' ratings of trustworthiness of Web merchants did not parallel experts' evaluation of sites' use of the trust indices. This study also examined the extent to which consumers are willing to provide private information to electronic and land merchants. The results revealed that when making the decision to provide private information, consumers rely on their perceptions of trustworthiness irrespective of whether the merchant is electronic only or land and electronic. Finally, we investigated the relative importance of three types of Web attributes: security, privacy and pleasure features (convenience, ease of use, cosmetics). Privacy and security features were of lesser importance than pleasure features when considering consumers' intention to purchase. A discussion of the implications of these results and an agenda for future research are provided.     

Doing their bidding: An empirical examination of factors that affect a buyer’s utility in Internet auctions

What factors make individual bidders pay more or less for the same item in online auctions? We use data on over 55,000 bids over a three-year period collected by a customized Internet software agent. These data are used to perform a within-bidders quasi-experiment, testing bidders who bid on the exact same item at different times during a 30-day period in online auctions. With theories from information systems and consumer behavior as our theoretical lens, we then examine factors that make individuals pay more for the exact same item in online auctions. We find that the same individual will tend to pay more for items sold on a weekend, for items with a picture, and for items sold by experienced sellers. We also find that the same individual is willing to pay more for the same item if others express an interest in that item, exhibiting a type of herd effect. Our results are generalizable to other auctions, and shed light on electronic commerce sales in general, where firms try to sell products for the highest possible price.     

An extension of Trust and TAM model with TPB in the initial adoption of on-line tax: An empirical study

While on-line tax is considered as a special type of e-service, the adoption rate of this service in Taiwan is still relatively low. The initial adoption of on-line tax is the important driving force to further influence the use and continued use of this service. The model of Trust and technology acceptance model (TAM) in Gefen et al. (2003a, MIS Quarterly 27(1), 51–90) has been well studied in on-line shopping and showed that understanding both the Internet technology and trust issue is important in determining behavioral intention to use. Besides, the diffusion of on-line tax could also be influenced by the potential antecedents such as individuals, organizational members, and social system while the issue for innovative technology is well discussed in Rogers (1995, The Diffusion of Innovation, fourth ed. Free Press, New York). Theory of planned behavior (TPB) is the model widely used to discuss the effect of these antecedents in behavioral intention. An extension of Trust and TAM model with TPB would be in more comprehensive manner to understand behavioral intention to use on-line tax. Furthermore, a large sample survey is used to empirically examine this framework.     

Understanding trust in ms-commerce: The roles of reported experience,linguistic style,profile photo,emotional, and cognitive trust

This paper examines what influences trust in mobile social commerce environment. Drawing on trust-based acceptance model (i.e. cognitive and emotional trust) and online review features (i.e. profile photo, linguistic style, and reported experience), we examine how these factors affect trust in mobile social commerce. Hypotheses were tested using survey data. The results of our model showed that there are significant influences of profile photo, reported experience, cognitive, and emotional trust towards trust in ms-commerce. This work contributes to existing literature by examining the roles of previous trust in mobile payments and online reviews on trust in mobile social commerce.     

Towards effective online review systems in the Chinese context: A cross-cultural empirical study

Online reviews, as one kind of quality indicator of products or service, are becoming increasingly important in influencing purchase decisions of prospective consumers on electronic commerce websites. With the fast growth of the Chinese e-commerce industry, it is thus indispensable to design effective online review systems for e-commerce websites in the Chinese context, by taking into account cultural factors. In this paper, we conduct two empirical studies on online reviews. Firstly, we study how culture differences across countries (i.e., China and the USA) impact the way in which consumers provide online reviews. Secondly, we investigate the impact of online reviews on product sales in the Chinese context, and show that directly copying the ideas of successful online review systems in the USA will deteriorate the effectiveness of the systems in China. Finally, we propose several suggestions for the development of effective online review systems in the Chinese context based on the results of our two empirical studies and the findings in previous studies.     

Empirical taxonomy of services and service products in electronic commerce

In this study, we newly classify services and service products in EC into four categories: Mass Services, Interactive Services, Supporting Services, and Professional Services. Five selected variables reflecting the characteristics of the services, and two factorized dimensions, (1) proportion of on-line services, and (2) need of on-line interaction, are utilized for the classification. In addition, the relationships with customer purchase intentions in EC are investigated as a result of the classification. For this purpose, a customer survey was conducted on respondent groups who frequently purchase goods or services by EC and who also had advanced knowledge of the services and EC. Statistical methods of factor analysis, cluster analysis, and analysis of variance were utilized for analysis of the data.     

On-line trust: concepts, evolving themes, a model

Trust is emerging as a key element of success in the on-line environment. Although considerable research on trust in the offline world has been performed, to date empirical study of on-line trust has been limited. This paper examines on-line trust, specifically trust between people and informational or transactional websites. It begins by analysing the definitions of trust in previous offline and on-line research. The relevant dimensions of trust for an on-line context are identified, and a definition of trust between people and informational or transactional websites is presented. We then turn to an examination of the causes of on-line trust. Relevant findings in the human–computer interaction literature are identified. A model of on-line trust between users and websites is presented. The model identifies three perceptual factors that impact on-line trust: perception of credibility, ease of use and risk. The model is discussed in detail and suggestions for future applications of the model are presented.     

The dynamics of trust in B2C e-commerce: a research model and agenda

Trust is a key factor that determines the success of Business to Consumer (B2C) e-commerce transactions. Research has identified several critical factors that influence trust. These have been incorporated into the design of e-commerce web portals; however a vast majority of potential users are still wary of online business transactions. This points to the need for the development of more sophisticated and comprehensive models that can provide additional insights into the true role played by trust in the adoption of e-commerce portals. Here we do so by focusing on trust as it pertains to B2C e-commerce transactions. Pertinent issues addressed are: (1) Is trust the critical factor that makes all the difference between users accepting or rejecting a B2C portal? (2) Are there factors that could play a more critical role in user acceptance/rejection of such portals? (3) If so, what is the relevance of trust relative to these factors? The research model and agenda introduced here enable researchers to view trust in its proper perspective as part of the bigger picture of technology acceptance.     

Empirical research methods for technology validation: Scaling up to practice

Before technology is transferred to the market, it must be validated empirically by simulating future practical use of the technology. Technology prototypes are first investigated in simplified contexts, and these simulations are scaled up to conditions of practice step by step as more becomes known about the technology. This paper discusses empirical research methods for scaling up new requirements engineering (RE) technology.When scaling up to practice, researchers want to generalize from validation studies to future practice. An analysis of scaling up technology in drug research reveals two ways to generalize, namely inductive generalization using statistical inference from samples, and analogic generalization using similarity between cases. Both are supported by abductive inference using mechanistic explanations of phenomena observed in the simulations. Illustrations of these inferences both in drug research and empirical RE research are given. Next, four kinds of methods for empirical RE technology validation are given, namely expert opinion, single-case mechanism experiments, technical action research and statistical difference-making experiments. A series of examples from empirical RE will illustrate the use of these methods, and the role of inductive generalization, analogic generalization, and abductive inference in them. Finally, the four kinds of empirical validation methods are compared with lists of validation methods known from empirical software engineering. The lists are combined to give an overview of some of the methods, instruments and data analysis techniques that may be used in empirical RE.     

Retracted: Ergonomic Techniques for a Mobile E‐Invoice System: Operational Requirements of an Information Management System

The newly developed marketing channel of electronic commerce (EC) is different from traditional channels and has been promoted by the government for a period of time. In EC, integrated information is not only provided to the enterprises involved but the procedures needed for trade are fewer, promoting environmentally friendly practices. It has, however, caused great variation in the business environment. The e‐invoice plays a vital role in keeping track of cash and business information, and its implementation will help to convert the whole supply chain to electronic form and lower overall operational costs. At present, e‐invoices are only used in certain situations such as for online shopping, for electronic purchases by suppliers, in value‐added networks, and so on. They are not applied in daily life or used by the public. However, a mobile e‐invoice system can be designed to connect the e‐invoice to the Web for the ordinary user. In this era of the mobile interactive Internet use, where individual computers interact with one another, this will help in the application of many kinds of network and real‐life services. © 2012 Wiley Periodicals, Inc.     

Social presence,trust, and social commerce purchase intention: An empirical research

Lacking the presence of human and social elements is claimed one major weakness that is hindering the growth of e-commerce. The emergence of social commerce might help ameliorate this situation. Social commerce is a new evolution of e-commerce that combines the commercial and social activities by deploying social technologies into e-commerce sites. Social commerce reintroduces the social aspect of shopping to e-commerce, increasing the degree of social presences in online environment. Drawing upon the social presence theory, this study theorizes the nature of social aspect in online SC marketplace by proposing a set of three social presence variables. These variables are then hypothesized to have positive impacts on trusting beliefs which in turn result in online purchase behaviors. The research model is examined via data collected from a typical e-commerce site in China. Our findings suggest that social presence factors grounded in social technologies contribute significantly to the building of the trustworthy online exchanging relationships. In doing so, this paper confirms the positive role of social aspect in shaping online purchase behaviors, providing a theoretical evidence for the fusion of social and commercial activities. Finally, this paper introduces a new perspective of e-commerce and calls more attention to this new phenomenon of social commerce.     

A critical review of Knowledge-Based Engineering: An identification of research challenges

Knowledge-Based Engineering (KBE) is a research field that studies methodologies and technologies for capture and re-use of product and process engineering knowledge. The objective of KBE is to reduce time and cost of product development, which is primarily achieved through automation of repetitive design tasks while capturing, retaining and re-using design knowledge. Published research on KBE is not very extensive and also quite dispersed; this paper is an effort to collect and review existing literature on KBE. A total of 50 research contributions have been analysed. The main objectives of this analysis are to identify the theoretical foundations of KBE and to identify research issues within KBE, pointing out the challenges and pitfalls that currently prohibit a wider adoption of KBE while suggesting avenues for further research. Key findings include (a) the necessity for improved methodological support and adherence, (b) better transparency and traceability of knowledge, (c) the necessity for a quantitative framework to assess the viability and success of KBE development and implementation projects, and (d) the opportunity to move towards mass customization approaches through distributed deployment of KBE in the extended enterprise.     

Understanding active and passive users: the effects of an active user using normal, hard and unreliable technologies on user assessment of trust in technology and co-user

The aim of this study was to understand how passive users perceive the trustworthiness of active users and technologies under varying technological conditions. An experimental study was designed to vary the functioning of technologies that active users interacted with, while passive users observed these interactions. Active and passive user ratings of technology and partner were collected. Exploratory data analysis suggests that passive users developed perceptions of technologies based on the functioning of the technology and how the active user interacted with the technology. Findings from this research have implications for the design of technologies in environments where active and passive users interact with technologies in different ways. Future work in this area should explore interventions that lead to enhanced affective engagement and trust calibration.     

Knowing when not to use the Internet: Shyness and adolescents’ on-line and off-line interactions with friends

The goal of the study was to explore the content of on-line and off-line peer interactions among shy and non-shy adolescents. Participants were 148 ten-to-eighteen year old adolescents in Rome, Italy (n = 98) and Ottawa, Canada (n = 50). Participants completed self reports of shyness and loneliness and web logs of their interactions with friends both in person and on-line. Among the results, there was little general difference in the general content and emotion expressed during the two modalities of interaction with friends, both of which were used in a wide variety of ways. Importantly, shy participants used the on-line modality more extensively than their non-shy counterparts to express negative emotions and to convey content regarding negative exchanges with peers. Such use of electronic communication may be an important contributor to their loneliness.     

Reading from paper versus screens: a critical review of the empirical literature

The advent of widespread computer use in general and increasing developments in the domain of hypertext in particular have increased awareness of the issue of reading electronic text. To date the literature has been dominated by reference to work on overcoming speed deficits resulting from poor image quality but an emerging literature reveals a more complex set of variables at work. The present review considers the differences between the media in terms of outcomes and processes of reading and concludes that single variable explanations are insufficient to capture the range of issues involved in reading from screens.     

The mysterious case of the missing paradigm: a review of critical information systems research 1991–2001

Abstract.  In this journal, Chen and Hirschheim have provided a historical analysis of positivist and interpretivist research paradigms and methodologies in the 10 years following the much cited work of Orlikowski and Baroudi. In this paper, we investigate the mysterious case of the missing paradigm – that of the critical approach to information systems (IS) research. We take Chen and Hirschheim's survey as our starting point and aim to fill the gap left by the absence of the critical paradigm in their analysis and make some criticisms of their method. Recent years have seen the growth of IS research that consciously adopts a critical perspective. This paper charts the development of critical IS research over the period of 1991–2001, adding some comments on more recent developments. We conclude by critically reflecting on the current development of critical research in the field of IS.     

Analysis of a trust model for SLA negotiation and enforcement in cloud markets

Online Reputation Systems help mitigate the information asymmetry between clients and providers in Cloud Computing Markets. However, those systems raise two main drawbacks: the disagreement for assuming the cost of ownership of such services and their vulnerability to reputation attacks from dishonest parties that want to increase their reputation. This article faces both problems by describing a decentralised (peer-to-peer) trust model that does not require the intervention of a central entity to manage it. This model includes mechanisms to allow participants to avoid dishonest behaviour from other peers: each client statistically analyses the external reports about providers and updates the trustworthiness of the peers. The trustworthiness values will be used to negotiate prices in later transactions. The trust model is then incorporated in the Service-Level Agreement negotiation and enforcement processes, prioritising trusted clients over non-trusted clients to minimise the consequences of low Quality of Service in relation to the trust of the provider, and incentivise accurate trust reports from the clients. Finally, this article evaluates and discusses the validity of the trust model under different attacks from dishonest clients and providers.     

How different types of users develop trust in technology: A qualitative analysis of the antecedents of active and passive user trust in a shared technology

The aim of this study was to investigate the antecedents of trust in technology for active users and passive users working with a shared technology. According to the prominence-interpretation theory, to assess the trustworthiness of a technology, a person must first perceive and evaluate elements of the system that includes the technology. An experimental study was conducted with 54 participants who worked in two-person teams in a multi-task environment with a shared technology. Trust in technology was measured using a trust in technology questionnaire and antecedents of trust were elicited using an open-ended question. A list of antecedents of trust in technology was derived using qualitative analysis techniques. The following categories emerged from the antecedent: technology factors, user factors, and task factors. Similarities and differences between active users and passive user responses, in terms of trust in technology were discussed.