Emergence of service-added model in B2C for small-sized companies

Authors:
Taro Kamioka;Kazuhiko Yahata
Affiliations:
Hitotsubashi University, Kunitachi, Tokyo, Japan;Hitotsubashi University, Kunitachi, Tokyo, Japan
Venue:
ICEC '06 Proceedings of the 8th international conference on Electronic commerce: The new e-commerce: innovations for conquering current barriers, obstacles and limitations to conducting successful business on the internet
Year:
2006

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Abstract

Independent site administration is not as easy for small-sized companies as it is for large ones in the field of B2C e-commerce from the perspective of limited resources. The most prevalent and effective method of compensating for such limited resources is through participation in organizations such as intermediary sites like online shopping malls. On the other hand, the recent movement in Japan which has caught our attention is the emergence of a scheme where customers who access specific sites are privileged to receive exclusive services. This sort of scheme will be referred to here as the service-added model. Though the idea for the service-added model is very simple, it without a doubt enables small-sized companies to increase the access volume to their sites as well as the chance for interaction between the site and customers. At the same time there is a negative aspect of this movement: that this subsequent increase in access volume may cause small-sized companies to neglect the movement of establishing relationships with customers. Yet it is believed that the service-added model could be a promising choice for the sites of small-sized companies as a future B2C model because it allows them to retain the high degree of freedom regarding decision-making and the use of customer data compared with the intermediary model. The idea is supported by our research on sites adopting the service-added model.