The Determinants for Profitability of B2C Business Market in Taiwan Under Different Types of Commodities

  • 楊 孟榛

Student thesis: Doctoral Thesis

Abstract

SUMMARY Electronic commerce (E-commerce EC) which means the activity of buying or selling of products by internet is the trend of global transactions nowadays Internet transactions can effectively solve the shortcomings of the traditional business model For example consumers can purchase goods by internet at any time without the limitation of the business service hour Firms not only can reduce the cost of rents but also minimize the demand for employees Both firms and consumers can benefit from electronic commerce The present research focus on analyzing the determinants for profitability of B2C business market a type of e-commerce under different types of commodities Data source of the study is from the Survey Research Data Archive (SRDA) The questionnaire which named “Domestic B2C Online Store Management Survey” is conducted by Department of Commerce MOEA The study used the 2014 and 2015 survey Utilizing Multinomial Probit Model (MNP) the research explores the determinants for profitability of the “break even” and the “profit making” status relative to “loss” respectively Results indicate that the longer the firm is established the reputation of the shopping platform and the number of being suppliers of shopping websites have positive effects on profitability Besides the business model will affect the profitability under different commodities Key words:Electronic commerce B2C Multinomial Probit Model Business model INTRODUCTION In the mid-1990s the internet boomed around the world The internet changes the world used to be And more and more people start to use the internet Research from Taiwan Network Information Center (TWNIC) found that there are 82% Taiwanese population using the internet It means that the internet has been a part of our life There are several functions of the internet which include shopping study and even friends making We can satisfy the needs of life by the internet The rapid development of technology has created more desires for human beings And technology creates closer inventions to life Specifically electronic commerce is the trend of global transactions nowadays According to International Standard Industrial Classification of All Economic Activities (ISIC) from the United Nations it implies that the definition of electronic commerce is the production units transfers the ownership of the goods or service through the internet A lot of research discusses the definition application of electronic commerce and even the operational performance of electronic commerce model They try to analyze the topic of electronic commerce more deeply This research will focus on analyzing the determinants for profitability of B2C businessmarket a type of e-commerce under different types of commodities in Taiwan MATERIALS AND METHODS The study used the 2014 and 2015 “Domestic B2C Online Store Management Survey” which is conducted by Department of Commerce MOEA The data source of the study is released by the Survey Research Data Archive (SRDA) Utilizing Multinomial Probit Model (MNP) the research explores the determinants for profitability of B2C business market under different types of commodities of the “break even” and the “profit making” status relative to “loss” respectively Regarding the independent variables the analysis focus on several items include sales pipeline platform payment and shipment methods discount and marketing strategies and the firms’ and consumers’ background such as the years of establishment of the firm and consumer gender etc RESULTS AND DISCUSSION The empirical results show that the different commodities do have different determinants for profitability under different business models In general the longer the firm is established the more profitable it will be Besides the reputation of the shopping platform such as Yahoo! Auctions and the number of being suppliers of shopping websites have positive effects on profitability But the basic information of consumers does not have significantly positive or negative effect on profitability However there are some limitations in process of the analysis First the sample size may not be enough to conduct the research in analyzing the determinants for profitability for some specific commodities Second the survey only contains the years of 2014 and 2015 and the survey questions are limited to the questionnaire which make the present research can’t do further analysis For example the firm’s capital amount is not included in the analysis Lacks of key information of firm may limit the findings of this study Hopefully the questionnaire can provide detailed information such as the firms’ capital amount the operating status and financial arrangements between the parent company and the subsidiary Therefore it can try to include more detailed company information in future research CONCLUSION Electronic commerce is the product of the development of the internet Electronic commerce can't be considered as an advancement of technology but can be considered as an electronic and a digitalization change to life Indeed electronic commerce can effectively solve the shortcomings of the traditional business such as the business hours The availability of apps and mobile phone definitely brings more profitability potentials for electronic commerce Issues of electronic commerce must be a growing topic to explore in the future
Date of Award2019
Original languageEnglish
SupervisorWei-Hua Tian (Supervisor)

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