Consumer Costs in Electronic Commerce: An Empirical Examination of Electronic Versus Traditional Markets

Abstract

Business to consumer electronic commerce has been growing at a rapid pace over the last few years. This growth is only sustainable in the future if consumers feel they are receiving a good value. In this article, I explore the costs to the consumer of participating in electronic markets and compare those costs with traditional retail outlets. Empirical data were collected and analyzed. The results show that there is no significant difference in the price of goods sold via electronic markets versus traditional markets. The results also indicate that consumers perceive electronic commerce as more risky (as measured by concern over credit card and personal data) than traditional markets. The implications of these findings are discussed.

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