A preliminary study of product nature and electronic commerce

Abstract

It may be logical to think that a firm offering products that can be delivered online will benefit more from Internet commerce. However, there is limited evidence to prove if this is entirely true. This paper reports a preliminary study that examines whether product characteristics have significant effect on Internet commerce benefit. The results indicate that product characteristics in isolation do not have a significant effect on Internet commerce benefit. No significant difference in experience of Internet commerce benefit is observed between those who offer physical goods and those who offer digital ones. Although the one‐sided result may have been sampling bias, it requires management to rethink their marketing strategy based not solely on product nature.