E-Retailing

A MODEL FOR EVALUATING B2C E-COMMERCE WEBSITES:

APPLICATION IN THE CD E-RETAILING INDUSTRY IN

BRAZIL

Oliveira, Luiz Clбudio B., Brazilian School of Public and Business Administration - Getulio

Vargas Foundation, Praia de Botafogo 190, Room 526, 22250-900, Rio de Janeiro, Brazil,

lcolive@domain.com.br

Joia, Luiz Antonio, Brazilian School of Public and Business Administration - Getulio Vargas

Foundation and Rio de Janeiro State University, Praia de Botafogo 190, Room 526, 22250-

900, Rio de Janeiro, Brazil, luizjoia@fgv.br

Abstract

The scope of this research is to develop and test a model for evaluating B2C e-commerce websites

quantitatively. Consequently, this study seeks to investigate the relationship between the website

interface of B2C e-commerce and virtual customer behavior, emphasizing the purchasing attitude and

intention. The objective of this paper is, therefore, to research which features of a virtual store

effectively influence the user purchasing process via the Internet. In order to achieve this aim, the

Technology Acceptance Model (TAM) was adapted for pertinent theoretical references about

consumer behavior on the web. The model developed was then tested and validated through a

Structural Equation Modeling (SEM) approach. An empirical analysis of the CD e-retailing industry

in Brazil was then conducted, as this is one of the most important areas of the B2C e-commerce realm.

The study concludes that, for the electronic commerce of CDs, ease of use, trust, pleasure and

attractiveness as perceived by visitors to CD e-retailing websites are key issues for understanding

customer attitude and purchasing intention. Lastly, recommendations associated with the conclusions

of this research are made, and further research options are proposed.

Key-Words: B2C E-Commerce; Website Evaluation; E-Retailing; CD Industry; Brazil

1 INTRODUCTION

In a virtual enterprise, most of the contact with customers hinges on the interaction between the

customer and the website. However, most B2C e-commerce websites were not developed to cater to

this aspect, thus creating obstacles to conquering user trust in order to make the customer feel

sufficiently comfortable to conduct a commercial transaction (Zhang et al, 2000). Indeed, some

websites effectively discourage the purchase, producing results that are diametrically opposed to those

desired (Nielsen, 2001).

Furthermore, the Brazilian on-line retailing industry has experienced sustained growth due to the

Internet. This digital channel has increased market-share in the retailing industry as a whole (Parente,

2000). However, very little is yet known about how this virtual environment affects customer

behavior, i.e. customer attitude and intention throughout the course of the purchasing process.

Moreover, it is important to stress that in this specific scenario, all interaction between the customer

and the digital company is developed via the website. So, its characteristics are linked to the subjective

and objective elements that will influence the purchase, which makes careful planning of the website

of paramount importance, as this will either lead to the success or failure of a virtual enterprise

(Nielsen, 2001).

Hence, the scope of this article is to build a B2C e-commerce website evaluation model that makes it

possible to pinpoint the website characteristics that contribute to improving the virtual customer's

attitude and purchasing intention. This model will be applied in the Brazilian CD e-retailing industry.

Similar studies regarding B2C e-commerce website evaluation have already been undertaken by

several authors (Lohse & Spiler, 1999; Turban & Gehrke, 1999; Zhang et al, 2000; Zhang & Dran,

2001; Schubert & Selz, 1999; Lederer et al, 2000; Heidjen, 2001, to name a few), though all of them

use different methodologies and pursue varied objectives. In this research, different facets of these

models are blended in such a way as to make it possible to establish the relationships between the

several factors that enable an on-line transaction.

This paper is structured as follows. Firstly, the theoretical background used to develop the model is

presented. The Technology Acceptance Model (TAM) adapted to B2C e-commerce, as well as the

classification of on-line customers, is then stressed. Using this bibliographical review, the research

methodology adopted, the hypotheses to be tested in the paper and the model developed to evaluate

the influence of the e-retailing website on the increase of customer attitude and purchasing intention

are set forth. The model developed is then tested, validated and reviewed through its application in the

Brazilian CD e-retailing industry. Finally, the contributions and limitations of the study are presented,

in addition to recommendations for further research addressing this area.

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