Stages of Pure E-Tailers, CM Retailers, and BM Retailers

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Stages of Pure E-Tailers, C&M Retailers, and B&M Retailers

Based on the statistical analysis already described, we can derive the stages of e-tailers and retailers. To evaluate the impact of revenue and income, we can use the coefficients, the corresponding t-values and significance levels. To see the normalized weight between factors regardless of the scale, let us use the standardized coefficients noted in the parentheses in Table 5.

Stages of e-Tailers

1. T1999: Late Exploration Stage

   In T1999, neither revenue nor income has significant impact even though we have expected the revenue impact significant. This may be caused because of the small sample size of 6. In spite of the low significance level (45.1% and 73.2%), it is noteworthy that revenue has a positive coefficient of 0.492, and income has a negative coefficient of -0.214. So we can conclude that the period T1999 was the late exploration stage.

2. T2000: Late Breakeven Stage

   In T2000, revenue has a significant (1.8%) impact with a larger positive coefficient (1.314) than income (0.625 with 21.6% level of significance). Since the impact of income is insignificant, the period T2000 belongs to the late Breakeven Stage.

3. T2001: Growth Stage

   In T2001, both revenue (0.637 with 4.7% of significance) and income (0.53 with 9.1% of significance) have positive and significant coefficients. So the period T2001 belongs to the Growth Stage.

According to this analysis, e-tailers have progressed its stages from exploration to breakeven and growth stages during T1999–2001.

Stages of Click and Mortar Retailers

1. T1999: Income Sensitive Stage

   The income effect 0.799 is significant (0.0%), while the revenue effect (0.151) is small and insignificant (18.3%). So investors in this stage were more sensitive to income than revenue. According to model (3), we can see that the income effect in C&M is significantly (0.05%) larger than that of B&M (see Table 6). So we can conclude that in T1999 the primary contribution of online channel was the enhancement of income. Although the statistical phenomenon of C&M is the same as the maturity stage, it is not appropriate to explain the status of C&M with the stage theory. So let us call this stage an Income Sensitive Stage.

2. T2000: Income Sensitive Stage

   The stage in T1999 continues in T2000. The income effect 1.063 is significant (0.0%), while the revenue effect (-0.105) is small and insignificant (23.4%). Note that the coefficient of revenue is even negative although it is not significant. According to model (3), we can see that the income effect in C&M is significantly (0.00%) greater than that of B&M. So we can conclude that the online channel was used to enhance income in T2000.

3. T2001: Balanced Stage

   In T2001, the income effect 0.542 is still significant (0.0%), and the revenue effect (0.441) has also become positive and significant (0.0%). So investors in this stage have balanced concern between income and revenue. According to model (3), we can see that the revenue effect in C&M is significantly (7.8%) larger than that of B&M, so we can conclude that the online channel has significantly contributed to the enhancement of revenue effect in T2001. This phenomenon is a keen contrast to T2000.

In summary, we can conclude that the online business in C&M has contributed more to income in T1999–T2000, and both income and revenue in T2001.

Stages of Brick and Mortar Retailers

1. T1999–T2001: Balanced Stages

   During the entire period of T1999–T2001, both revenue and income effects have been positive at 1% of significance. So we can conclude that all periods belong to the Balanced Stage, and the changed magnitudes of the coefficients of B&M were smaller than those of C&M and pure e-tailers.

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