Internet traffic and firm performance in big-ticket sectors:there are two sides of the coin
| Parent link: | Retos-Revista de ciencias de la administracion y economia Vol. 12, No. 23.— 2022.— [P. 95-110] |
|---|---|
| Main Author: | |
| Corporate Authors: | , |
| Other Authors: | , |
| Summary: | Title screen The importance of well-established and customer-friendly firms’ websites has increased in the context of the digitalization of the economy. The COVID-19 pandemic has become a new driver for the development of Internet communications between manufacturers and consumers. This article explores the relationship between the Internet traffic of companies’ websites of and their sales volumes and profitability. We apply panel data regression analysis and model of Prais–Winsten regression with panel standard error adjustment, which provides conservative and reliable estimates. In the sample of 268 observations drawn from 67 Russian firms operating in the big-ticket industries of car manufacturing and real estate development during the period of 2017-2022 characterized by a major exogenous shock, we demonstrate that internet traffic exerts a positive effect on firm sales. At the same time, this positive effect on sales is accompanied by a negative effect of internet traffic on firm profitability. The negative effect on profitability is particularly pronounced for younger firms that are likely to face severe resource constraints and can thus be said to sacrifice profitability to ensure sales. In such situation, application of cost-effective strategies may be critical for younger firms. Younger firms should pay particular attention to the contents of their websites to ensure that they provide enough adequate information that will help win the trust of new customers. |
| Language: | English |
| Published: |
2022
|
| Subjects: | |
| Online Access: | https://doi.org/10.17163/ret.n23.2022.06 |
| Format: | Electronic Book Chapter |
| KOHA link: | https://koha.lib.tpu.ru/cgi-bin/koha/opac-detail.pl?biblionumber=667721 |
MARC
| LEADER | 00000naa0a2200000 4500 | ||
|---|---|---|---|
| 001 | 667721 | ||
| 005 | 20250404160906.0 | ||
| 035 | |a (RuTPU)RU\TPU\network\38932 | ||
| 035 | |a RU\TPU\network\36315 | ||
| 090 | |a 667721 | ||
| 100 | |a 20220415d2022 k||y0rusy50 ba | ||
| 101 | 0 | |a eng | |
| 135 | |a drcn ---uucaa | ||
| 181 | 0 | |a i | |
| 182 | 0 | |a b | |
| 200 | 1 | |a Internet traffic and firm performance in big-ticket sectors:there are two sides of the coin |f L. Yu. Spitsina (Spitsyna), A. A. Kretinin, V. V. Spitsin | |
| 203 | |a Text |c electronic | ||
| 300 | |a Title screen | ||
| 320 | |a [References: p. 106-109] | ||
| 330 | |a The importance of well-established and customer-friendly firms’ websites has increased in the context of the digitalization of the economy. The COVID-19 pandemic has become a new driver for the development of Internet communications between manufacturers and consumers. This article explores the relationship between the Internet traffic of companies’ websites of and their sales volumes and profitability. We apply panel data regression analysis and model of Prais–Winsten regression with panel standard error adjustment, which provides conservative and reliable estimates. In the sample of 268 observations drawn from 67 Russian firms operating in the big-ticket industries of car manufacturing and real estate development during the period of 2017-2022 characterized by a major exogenous shock, we demonstrate that internet traffic exerts a positive effect on firm sales. At the same time, this positive effect on sales is accompanied by a negative effect of internet traffic on firm profitability. The negative effect on profitability is particularly pronounced for younger firms that are likely to face severe resource constraints and can thus be said to sacrifice profitability to ensure sales. In such situation, application of cost-effective strategies may be critical for younger firms. Younger firms should pay particular attention to the contents of their websites to ensure that they provide enough adequate information that will help win the trust of new customers. | ||
| 461 | |t Retos-Revista de ciencias de la administracion y economia | ||
| 463 | |t Vol. 12, No. 23 |v [P. 95-110] |d 2022 | ||
| 610 | 1 | |a электронный ресурс | |
| 610 | 1 | |a труды учёных ТПУ | |
| 610 | 1 | |a Internet traffic | |
| 610 | 1 | |a sales | |
| 610 | 1 | |a profitability | |
| 610 | 1 | |a big-ticket items | |
| 610 | 1 | |a economic crisis | |
| 610 | 1 | |a exogenous shock | |
| 610 | 1 | |a firm age | |
| 610 | 1 | |a e-commerce | |
| 610 | 1 | |a Интернет-трафик | |
| 610 | 1 | |a продажи | |
| 610 | 1 | |a рентабельность | |
| 610 | 1 | |a крупногабаритные изделия | |
| 610 | 1 | |a экономический кризис | |
| 610 | 1 | |a электронная коммерция | |
| 700 | 1 | |a Spitsina (Spitsyna) |b L. Yu. |c Economist |c Associate Professor of Tomsk Polytechnic University, Candidate of economic sciences |f 1976- |g Lubov Yurievna |3 (RuTPU)RU\TPU\pers\35245 |9 18510 | |
| 701 | 1 | |a Kretinin |b A. A. |g Andrey | |
| 701 | 1 | |a Spitsin |b V. V. |c economist |c Associate Professor of Tomsk Polytechnic University, Candidate of economic sciences |f 1976- |g Vladislav Vladimirovich |3 (RuTPU)RU\TPU\pers\30957 |9 15195 | |
| 712 | 0 | 2 | |a Национальный исследовательский Томский политехнический университет |b Школа инженерного предпринимательства |c (2017- ) |3 (RuTPU)RU\TPU\col\23544 |
| 712 | 0 | 2 | |a Национальный исследовательский Томский политехнический университет |b Школа базовой инженерной подготовки |b Отделение социально-гуманитарных наук |3 (RuTPU)RU\TPU\col\23512 |
| 801 | 0 | |a RU |b 63413507 |c 20220415 |g RCR | |
| 856 | 4 | |u https://doi.org/10.17163/ret.n23.2022.06 | |
| 942 | |c CF | ||