This dissertation consists of three empirical essays on issues related to Internet-based firms entering the offline channel. Issues arising from offline entry include the potential spillovers in online revenue, online customer acquisition, and online customer activity. Over the past decade, there has been considerable research examining brick $\&$ mortar companies entering the online channel. The maturation of the Internet industry has led to several established online-based firms that have opened physical stores. The first essay of the dissertation investigates the impact of an online e-commerce marketplace provider opening physical stores. The focus is on the spillover effects with respect to online seller revenue, online seller acquisition, and online seller activity. The analysis finds store entry leads to a positive revenue spillover, however store entry cannibalizes new online sellers as well as online seller listings. The positive online revenue spillover may be due to the relative rise in the average selling price of products sold online in regions with store entry. The focus of the second essay is on the role of offline store entry on online consumer purchase behavior; in particular, the spillover effects with respect to online buyer revenue, online buyer acquisition, and online bidding activity. The analysis finds store entry engenders positive online buyer sales and positive online buyer acquisition spillover. The analysis also finds a positive spillover for the average price of products purchased online in regions with store entry. The increase in average sales price for products purchased may be explained by both a change in the assortment of products being purchased and an increase in the price expectation for products sold through the firm. The third essay extends the study of the relationship between the study of product quality and market size to an Internet setting. Additionally, the empirical essay examines the link between firm specialization and market size, as well as product quality, in an Internet setting. The results indicate that similar to other settings, there is a positive relationship between market size and market concentration. However, unlike previous studies, there is an overall negative link between market size and product quality. The analysis also finds that the level of firm specialization diminishes with increases in market size, but there is a positive link between the level of firm specialization and the product quality of firms. The product quality findings of the study may be explained by the partially hidden nature of quality in this setting.

Last modified

• 09/08/2018

Creator

• Manish Tripathi

DOI

• https://doi.org/10.21985/N2S736

Subject

• Marketing

Keyword

• Internet

Date created

• 2008-05-07

Resource type

• Dissertation

Rights statement

• In Copyright