Measuring E-Commerce Performance

摘要

The Internet market is global, as is the competition for customers. Online marketing strategies must be well established to develop and maintain the relationship with the customers, since customers can switch to competitive websites in seconds with minimal financial costs. The "stickiness" of the company's Web site , or the ability to create customer loyalty will be an important element in these strategies. Since millions of dollars are spent on Web site stickiness strategies, the investments should be evaluated on financial terms. One approach is to measure the stickiness investments' contribution to the site's revenue and profit. This paper offers such an approach by presenting a profit-oriented marketing model of stickiness investments. The paper also uses simultaneous-equation methods to econometrically operationalize the model. This operationalized econometric model is then used to analyze the effectiveness of stickiness investments for advertising-supported websites.