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Web-Based Customer Loyalty Efforts and Effects on E-Business Strategy
Abstract
Despite continued market growth, a number of Web sites have been unprofitable. Some notable failures were eToys. com, boo.com, bluefly.com, buy.com, and valueamerica. com. An examination of the companies’ IPO filings suggests that the collapses were caused by cut-price strategies, overinvestment, incorrect expectations, and non-profitability. Surviving in the digital market has become a critical challenge for Web managers. To face the business challenge, Web managers and marketers demand information about Web site design and investment effectiveness (Ghosh, 1998). As the rate and diversity of product/service innovation declines and competition intensifies, Web managers need better research on Internet-related investment decisions (Donath, 1999; Hoffman, 2000). The original article examined the role of customer retention actions in these decisions (Forgionne & Ingsriswang, 2005). This article updates the original analysis by incorporating new research on comprehensive e-business strategy models.
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