Since the causes of failure are not unique to e-business, and there could be more than one, it is not possible to evaluate all the possible reasons within one study.
E-business has been growing at a very fast pace that firms need to remain competitive and innovative. E-business suggests a customer-centric approach and the business offers are designed to cater to different consumer needs and preferences. This implies that marketing of products or services through e-business is critical. Since there is no human contact in e-business, the marketing function gains importance. E-business is taken up more by established companies, than by start-ups (Amit & Zott, 2000). The established businesses would tend to apply the same marketing techniques and practices that they use for offline business. However, online marketing differs from conventional marketing. Marketing strategy hence could be one of the reasons for failures of e-business.
Internet exchanges are beneficial not just for the customers or end users but it helps businesses to exchange and grow together. Internet offers a platform to conduct e-business in different models. These models could vary from business-to-business (B2B), business-to-customer (B2C) and customer-to-customer (C2C) and offer advantages over the traditional way of transacting business (Amit & Zott, 2000).
The traditional offline shopping environments atmospheric elements influence approach behaviors as they can influence positive emotions like pleasure and arousal (Demangeot & Broderick, 2006). Online shopping environments are much smaller theaters of experience and hence require technological skill. However, online shopping can be a very engrossing experience and is of equal importance to the shopper and the marketer. It helps the marketer to understand the customer moods, behaviors and attitudes.
Internet is free competition gone mad (Starling, 2002) but branding works to some extent to fight competition. Consumers are too