A structural model for sales in the e-retailing industry

A structural model for sales in the e-retailing industry

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Article ID: iaor20105726
Volume: 61
Issue: 9
Start Page Number: 1377
End Page Number: 1388
Publication Date: Sep 2010
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: retailing
Abstract:

This article analyses intangible constructs that affect sales on the Internet retailing industry. We suggest an explanatory model for the success of retailers that operate on the Internet. Non-financial information has been used to identify several intangible constructs: ‘web traffic generation’, ‘relevance in search engines’, ‘link popularity’, and ‘blogs popularity’. The success is measured through items derived from financial statements: sales and profits. The model has been built within a structural modelling framework. It has been estimated using Partial Least Squares with a sample of USA e-tailers. The results show that there is a significant relationship between the intangible constructs and accounting figures. This relationship is stronger when we consider Sales from Internet Operations rather than Total Sales or Net Profit.

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