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Internet marketing based on Electronic Commerce

Conference Paper · July 2011

DOI: 10.1109/CSAE.2011.5952607 · Source: IEEE Xplore

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 Internet Marketing based on Electronic Commerce

Li-Fu Hsu
Dept. of Information Management
Hwh Hsia Institute of Technology
Taipei, Taiwan
Lhhsu@cc.hwh.edu.tw

Abstract—Electronic Commerce (E-Commerce or EC) is
possibly the most promising application of information
technology witnessed in recent years. E-Commerce has been
defined in several ways depending on the context and research
objective. In this study, We proposed a research model that
suggested five factors in internet marketing: keyword, internet
auction, e-mail, Blog and advertising marketing. Inspired by
the technology acceptance model and other relevant research
in the area, we also identified four factors that influence
electronic commerce adoption: organizational readiness, price,
evaluate, and perceived usefulness. To validate the research
model, we collected data from top corporate website by using
an Internet survey and show the experimental results of the
Internet marketing influence.
Keywords- E-Commerce; information technology; internet
marketing
I. INTRODUCTION
Electronic Commerce (E-Commerce) is a popular topic
in the mass media and in informatics area as well. Many E-
Commerce initiatives have risen in a short period of time.
Those initiatives include innovative smart cards to facilitate
E-Commerce, remote payments and electronic checking [1],
online trading of stocks, bonds and related financial
instruments, online banking, and online retailing (e-tailing).
For this study, we have taken two definitions of e-commerce
[2],[3] and adapted them in a B2C context: ‘‘the process of
buying and selling products or services using electronic data
transmission via the Internet and the www.’’ E-commerce
provides many benefits to both sellers and buyers; e.g.
Napier et al. [4] pointed out that by implementing and using
e-commerce sellers can access narrow markets segments that
are widely distributed while buyers can benefit by accessing
global markets with larger product availability from a variety
of sellers at reduced costs. Improvement in product quality
and the creation of new methods of selling existing products
are also benefits [5].
We have witnessed a revolution with the growth of the
Internet and Internet use in twenty century, and we are
experiencing a second Internet revolution which is called
electronic commerce. The E-Commerce applications such as
inter-bank electronic funds via the Internet to do conversion,
electronic payments between enterprises, as well as the
enterprises use the Internet to process all underlie trading. E-
Commerce is growing very rapidly, in 2002 the global EC
market was estimated at $200-300 billion, but is predicted to
rise to $3000 billion, by 2010.
Many commercial web sites have catalogues and online
transactions, but EC is much more than these. It includes
everything from sourcing to settlement and all the underlie
trading.
Internet marketing is the integral part of E-Commerce,
and E-Commerce includes Internet marketing. Internet
marketing will be the entry point of small and medium
enterprises to carry to the E-Commerce when the overall
environment of E-Commerce is not yet very mature.
Therefore, the Internet marketing is as a method of the
enterprise management to realize commodity exchange, it is
the very important and basic internet business activities of
enterprise E-Commerce activities.
At present, business-to-business EC seems still greater
volume than business-to-consumer EC, but it will change in
the future. These trends are important to global economy
and to the economy of individual countries since EC
contributes to economic efficiency. EC contributes to
economic efficiency in five important ways. They are as
follows: (1) extreme distances and time limitation, (2)
speeding products development, (3) reducing distribution
and transaction costs, (4) public information for buyers and
sellers and (5) enlarging customer choice and supplier reach
[6].
The organization of this paper is as follows: Section 2
presents the concept and relationship between EC and
Internet marketing. Section 3 examines the five factors in
Internet marketing and developing model of E-Commerce on
Internet marketing is proposed in Section 4. Section 5 shows
the experimental results of the Internet marketing influence.
Finally, Section 6 presents a summary of finding and
conclusions.
II. THE CONCEPT AND RELATIONSHIP BETWEEN E-
COMMERCE AND INTERNET MARKETING
E-Commerce is a popular area that accomplishes
processes directly or indirectly related to buying, selling and
trading of products, services and information via internet. E-
Commerce is a new communications technology. It includes
all aspects of trading, including commercial market
development, ordering, supply chain management and the
transfer of money [7].
The Internet markets in Taiwan are growth rapidly,
especially in recent ten years. Table 1 shows the growth
ratio of B2C and C2C in recent five years. The Internet and
WWW offer the opportunity to expand EC activity in the
contract cycle to enable new suppliers to service new
customers electronically.
TABLE I. THE INETERNET MARKETS IN TAIWAN
Internet Growth rate of
Growth rate of Growth rate of
Year Marketing online
B2C C2C
(Billion) shopping
2006 1340 46.5% 36.2% 66.5%

2007 1842 37.5% 29.6% 50.0%

2008 2430 29.7% 24.9% 36.4%

2009 2950 23.5% 24.5% 22.1%

2010 3583 21.5% 23.6% 18.7% Figure 2. Relationship between E-Commerce and Internet marketing

The content of E-Commerce and Internet marketing

The WWW enables business-to- business and business-
to-consumer transactions. Tim Berners-Lee make the
protocols in 1990that were introduced onto the Internet in
1991 using Nicola Pellow’s line-model browser and the
existing hypertext mark-up language (HTML) [8]. When
combined with Mosaic in 1993, the web protocols brought us
the WWW. The internet is key ingredient in E-Commerce as
we know it today, and Figure 1. is shown that Internet
marketing on Taiwan from 2006 to 2010.
Figure 1. How E-Commerce Websites Work
Internet marketing is growth rapidly every year. At the
application level, typical technologies would include:
telephone, fax, EDI, electronic mail, electronic funds transfer,
and the Internet – more specifically the Web.
Therefore, it can say that Internet marketing is an
important means of implementing E-Commerce, and the E-
Commerce is the advanced stage of Internet marketing
developing, so carrying out marketing E-Commerce can not
separate from the Internet marketing, but the Internet
marketing does not equal to the E-Commerce. Figure 2
gives out relationship of E-Commerce and Internet
marketing [9],[10], and we can obtain from Figure 2.
Based on concepts of E-Commerce and Internet
marketing, we believe that E-Commerce and Internet
marketing refers to new comprehensive marketing model
which is based on E-Commerce and uses every kind of
Internet marketing methods and means to achieve online
business activities [11].
should include three aspects: First, E-Commerce insists
Internet marketing. Second, Internet marketing is the core
business activities of E-Commerce. Third, the combination
of E-Commerce and Internet marketing will give E-
Commerce new contents, expand E-Commerce extension,
accelerate the using of Internet marketing methods, create
integrated and comprehensive modem new marketing model
which is E-Commerce based on Internet marketing.
III. EXAMINES THE FIVE FACTORS IN INTERNET
MARKETING
The open standards of the Internet ensure that large
organizations can easily extend their trading communities, by
increasing the efficiency of their business operations. In
addition, smaller companies that found the proprietary
communications technologies of the last decade too complex
and costly can now select the level of communication
appropriate for their businesses and benefit from the Internet
revolution and the E-Commerce revolution.
The Internet environments are an on-line global
marketplace that operates 24 hours a day, with millions of
sellers, buyers, products and services. The Internet and its
capabilities also provide companies with new, more cost
effective and time-efficient means for working with
customers, suppliers and development partners.
The model of Internet marketing based on E-Commerce
is focus on five factors which as follow:
 Keyword: The keyword in the internet marketing
gains access to world wide markets at a fraction of
traditional costs and shorten procurement cycles
through the se of on-line catalogues, ordering, and
payment.
 Internet auction: Internet auction could reduce the
marketing cost and reduce purchasing and
production cycles.
 E-mail: E-mail will promote closer relationship with
customers and suppliers and rising exposure rate. It
is also reduce the cost of communications directly.
 Blog: The consumer will have trust and loyalty.
Blog will reduce the cost of the service. It provides
 a quick and easy way of exchanging information
about a company and its products.
 Advertising marketing: It is easier to estimate the
effect of advertising marketing.
According the five factors in Internet marketing, we
develop the workflow of Internet marketing based on E-
Commerce which can be divided into three main stages
[12],[13], which are following:
Stage 1: Marketing analysis and research. In this stage, it
should know the characteristics of the product, financial
condition and human resources.
Stage 2: Constructing E-Commerce platform. This stage
include 4 plans, which are E-Commerce platform owned by
the enterprise, third-party E-Commerce platform,
collaborative E-Commerce platform and international E-
Commerce platform.
Stage 3: Implementing Internet marketing on E-
Commerce. Information collecting and publishing, Web
promoting, on-line transacting and paying, commodities
transporting and after-sales service are in this stage complete.
No matter what kind of Internet marketing to take, as
long as they links to the internet, the enterprise has the basic
conditions to develop Internet marketing, and it will make
initial marketing activities such publishing some supply and
demand information on internet, exchanges with customers
by e-mail, etc.
IV. DEVELOPING MODEL OF E-COMMERCE ON INTERNET
MARKETING
The information network technology is developing and is
applied; E-Commerce and Internet marketing will be
developed toward the integrating direction. Internal
management and external commodity trading and internet
marketing activities coordinates, E-Commerce and Internet
marketing gradually integrates. It is shown in Figure 3.
 Network. It is mainly linked by wired network
between internal departments. It is also mainly
linked by wireless network between external
customers, to realize trade activities, marketing
activities, personalized services.
 Functions of each part. E-Commerce module should
have functions that meet customization needs of
customers, business negotiating, on-line signing, on-
line payment and commodities distributing and
services, after-sale service etc. Internet marketing
module should have functions such as search engine
marketing, on-line advertising and short message
marketing. A variety of on-line marketing methods
are more flexible and integrated application. Internal
management module should comprehensive use ERP,
SCM, CRM and other advanced modern
management science methods to make the internal
enterprise management, and at the same time.
V. EXPERIMENTAL RESULTS
In the experiments we used the World Wide Web
User Surveys, begun in 2010 Aug. and end in 2010 Oct.,
have been made publicly available for academic research.
Questionnaire information is available for about 10,000
respondents for each survey, with 4153 respondents
answering questions from specialized surveys. For our
analyses, we used answers 8 related to online shopping
proficiency from one specialized survey about 5 factors.
Table 2 is shown the percent of sample with characteristic
and factors.
TABLE II. THE PERCENT OF SAMPLE WITH CHARACTERISTIC AND
FACTORS
Searching Internet Advertising
K eyword E-mail Blog
Sam ple A uction Marketing
M ale 62.7% 16.7% 33.4% 5.6% 19.7% 24.6%

Fem ale 82.3% 13.2% 42.5% 6.7% 18.3% 19.3%

M arried 45.1% 5.7% 23.8% 20.6% 26.1% 23.8%

D ivorce 11.5% 16.5% 22.4% 6.4% 29.7% 25.0%

In C ollege 33.8% 19.8% 27.6% 11.3% 18.6% 22.7%

PostG rad 48.9% 17.6% 24.3% 9.8% 19.7% 28.6%

Incom e $20,000-
26.6% 17.3% 25.4% 12.3% 14.2% 30.8%
$40,000
Incom e $40,000-
12.1% 15.4% 22.5% 6.2% 11.3% 44.6%
Figure 3. Developing model of Internet marketing on E-Commerce $50,000
Incom e $50,000-
19.4% 13.5% 32.5% 3.4% 19.2% 31.4%
The major three parts of the model are described as $75,000
follow: Incom e O ver
19.7% 8.6% 22.8% 2.9% 23.5% 42.2%
$75,000
 Integration of every component. The model is an
organic integration of the various parts, the E- Incom e N otSay 11.5% 19.7% 24.3% 5.7% 27.5% 22.8%
Commerce, Internet marketing, internal management A ge 25-39 39.8% 12.8% 21.6% 4.2% 26.4% 35.0%
and external customers is linked by network, to
coordinate with each other and interrelated. A ge 40-65 43.9% 10.9% 20.7% 8.6% 21.6% 38.2%
 A ge O ver 65 3.6% 24.5% 22.8% 15.7% 16.2% 20.8% The world around us is rapidly changing. The Internet
InternetExp.6-
marketing and other E-Commerce related developments have
18.7% 19.7% 26.9% 23.4% 22.6% 7.4% the potential to radically change the ways in which we
12 M onths
InternetExp.1-3 communicate, interact, receive information, entertainment
35.1% 16.7% 25.4% 16.5% 27.6% 13.8% and other service. For businesses to survive in the 21th
Y ears
InternetExp.4-6 century and beyond, we proposed the Internet marketing
20.5% 21.5% 19.4% 12.1% 21.6% 25.4% based on E-Commerce models that give business outstanding
Y ears
InternetExp. it deserves as a key ingredient in business success.
8.7% 23.7% 29.7% 11.7% 20.9% 14.0%
O ver 7 Y ears

To verify that the experimental manipulations were
successful, subjects responded to manipulation-check
questions after completion of their responses. . The mean
ratings obtained are 2.95 and 4.67, respectively. This
difference in means is highly significant (p _ 0.001, x2 _
0.176) and in the intended direction. We conclude that our
manipulations were successful.
Table 2 shows the 18 characteristics with 5 factors.
The female are used the internet to do online shopping
mostly. And people who use the internet marketing with the
5 factors, E-mail is the minimal effect, advertising
marketing is the most effect factor. The second effect
factors are the Internet Auction and Blog. Both male and
female are focused on the Internet Auction. The college and
graduated students are focused on the Internet Auction and
Advertising Marketing.
VI. CONCULSION
How to use Internet marketing based on E-Commerce
will empower the business to take advantage of new business
opportunities. Businesses must focus on strong partnerships
and the core products and marketing which make E-
Commerce possible. Development of effective strategies for
achieving competitive advantage through E-Commerce will
be necessary for success in the 21st century.
Internet marketing has closet internal relationship with E-
Commerce. To make Internet marketing based on E-
Commerce, is conducive to play the functions of each other
and the overall advantages.
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