Why does firm choose internet marketing channel? A firm perspective and contingent framework

Abstract

The emergence and diffusion of the Internet motivates the firm to change and take the Internet as a kind of marketing channel. Extensive literatures focus on the consumer's perspective but seldom literatures research from firms' perspective. This paper aims to analyze the determinants of applying or switching to the Internet direct marketing channel from firms' perspective. First, the paper reviews the relevant literatures of marketing channel structure and transaction cost theory; second, the paper summarizes the possible determinants such as transaction cost and their effective condition; last, the paper proposes a synthesized framework and eight propositions. © 2012 Springer-Verlag.