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The Virtual Location of E-Tailers: Evidence from a B2C E-Commerce Market

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  • Häring, Julia

Abstract

An Internet retailer?s (e-tailer?s) outstanding virtual location enhances the probability of being noticed by potential customers. The notion of a virtual location for e-tailers refers to the analogy to the physical location. In the empirical analysis, an e-tailer?s Internet search engine rank as well as its advertising activities in search engines serve as proxies for the virtual location. The results suggest that it is optimal for e-tailers to complement a high search engine rank with investments in online advertising. Moreover, banner ads seem to serve as price advertising mechanism, whereas sponsored links rather seem to be used in order to signal outstanding customer service.

Suggested Citation

  • Häring, Julia, 2005. "The Virtual Location of E-Tailers: Evidence from a B2C E-Commerce Market," ZEW Discussion Papers 05-52, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4278
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    References listed on IDEAS

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    More about this item

    Keywords

    virtual location; online advertising; search engines;
    All these keywords.

    JEL classification:

    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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