A Consumer Preference Formation Perspective on Pioneering Advantage in Electronic Marketplace

Kuan-Pin Chiang, Long Island University
ABSTRACT - In physical markets, the pioneer or first-mover often enjoys large market share because of its early entry. This large share is often a result of high entry barriers for late entrants and high switching costs for consumers. In electronic markets, however, switching costs across online retailers are relatively lower and entry barriers are minimal. This paper extends the stream of competitive advantage research to e-commerce settings. Specifically, it conceptualizes and assesses the pioneering advantage of online retailers from the perspective of consumer preference formation. Several propositions were developed for future empirical testing.
[ to cite ]:
Kuan-Pin Chiang (2004) ,"A Consumer Preference Formation Perspective on Pioneering Advantage in Electronic Marketplace", in NA - Advances in Consumer Research Volume 31, eds. Barbara E. Kahn and Mary Frances Luce, Valdosta, GA : Association for Consumer Research, Pages: 382-386.