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Evaluation and comparison of B2C e-commerce intensity in EU member states

Kunešová, Hana

Abstract

Electronic commerce in the business-to-consumer sphere (B2C e-commerce) represents a significant factor in the competitiveness of companies and entire economies. The purpose of this paper is to propose a tool to evaluate and compare B2C e-commerce intensity in economies. The authors address the following research questions: What is the position of individual EU member states in terms of B2C e-commerce intensity? Is there a strong correlation between B2C e-commerce intensity and the level of economic development of EU member states? Is there a correlation between B2C e-commerce intensity and the length of the countries' EU membership? From a theoretical background, key indicators of B2C e-commerce intensity are selected, which are aggregated into the B2C e-commerce intensity index using the TOPSIS method. The results of the multi-criteria evaluation and the positions of individual countries in the overall order indicate that in terms of B2C e-commerce intensity, EU member states are a rather heterogeneous group. The order of countries based on the value of the B2C e-commerce intensity index exhibits a strong and statistically significant correlation with the order of the countries in terms of the level of their economic development. However, the differences in the countries' economic development do not sufficiently explain the differences in the use of B2C e-commerce. The results indicate that there is a large unused potential of B2C e-commerce in the EU, not only in countries with weaker economies, but also in highly developed countries. The correlation between B2C e-commerce intensity and the duration of EU membership is moderate. It would be beneficial for further research to focus on the question of which factors have boosted the relatively high use of B2C e-commerce in some new EU member states with lower level of economic development (Estonia and Lithuania) and what obstacles prevent more intensive use of B2C e-commerce in Italy and Austria, whose level of economic development significantly exceeds that of the aforementioned countries.

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151 4, XX, 2017 Ma ke ing and T ade DOI: 10.15240/ ul/001/2017-4-011 In oduc ion Elec onic comme ce (e-comme ce), as pa o e-business, is s ill unde going dynamic de elopmen and signi i can ly a ec s he economic eali y in EU membe s a es. E-comme ce ela es o he de elopmen o in o ma ion and communica ions echnologies (ICT). I has gone h ough de elopmen s ages (de ailed below), and since 2010 (Schneide , 2015) has been in i s cu en ma u i y s age in de eloped coun ies and he Eu opean Union (EU) (Qin e al., 2014, acco ding o whom he ma u i y s age o e-comme ce da es back o 2004). This pape aims o p opose a ool o assessing and compa ing he in ensi y o B2C e-comme ce in EU membe s a es. Rega ding his goal, he au ho s deal wi h he ollowing esea ch ques ions: Wha is he posi ion o indi idual EU membe s a es in e ms o he in ensi y o B2C e-comme ce? Is he e a s ong co ela ion be ween B2C e-comme ce in ensi y and he le el o economic de elopmen o EU membe s a es? Is he e a co ela ion be ween B2C e-comme ce in ensi y and he leng h o he coun ies’ EU membe ship? In he i s sec ion o his pape , he e ms e-comme ce and B2C e-comme ce, as well as he de elopmen al s ages o B2C e-comme ce a e de i ned. These de i ni ions a e ollowed by an o e iew o he indica o s used in measu ing B2C e-comme ce in ensi y in an economy and he so-called B2C e-comme ce indices, which in ecen yea s, ha e been c ea ed o cap u e an agg ega e iew o a ious aspec s o B2C e-comme ce. The empi ical sec ion o ou s udy in oduces c i e ia o assessing he in ensi y o B2C e-comme ce in EU membe s a es and he p ocedu e o c ea ing he B2C e-comme ce in ensi y index, which will allow a comp ehensi e compa ison o B2C e-comme ce in EU membe s a es based on he selec ed c i e ia. Me hod TOPSIS was used in designing he p oposed index. The assessmen c i e ia e l ec he ele an publicly a ailable da a on he B2C e-comme ce in ensi y in EU membe s a es, which a e quan i i ed in he o m o speci i c indica o s. The ou pu o he empi ical sec ion consis s lis o EU membe s a es in e ms o B2C e-comme ce in ensi y, which conside all he selec ed assessmen c i e ia. The applica ion o he esul s o his s udy con ibu es o he de elopmen o he heo y o e-comme ce, as well as ep esen s a p ac ical con ibu ion. De e mining and compa ing he posi ions o EU membe s a es in e ms o B2C e-comme ce in ensi y allows us o iden i y coun ies ha do no su i cien ly u ilize he po en ial o B2C e-comme ce o inc ease hei p ospe i y and achie e consume u ili y. In he conclusion o his pape , he cu en esea ch limi a ions a e discussed along wi h a sugges ion o u he esea ch. 1. Theo e ical Backg ound o e-Comme ce O e he cou se o i s exis ence, e-comme ce has become a phenomenon ha has been de i ned in many ways (e.g. Ho e al., 2007; Qin e al., 2014; Reynolds, 2010; Schneide , 2015; Yada e al., 2013). The de elopmen o ICT and i s implemen a ion in he sphe e o e-comme ce has led o mo e speci i c de i ni ions. The as g ow h o e-comme ce has c ea ed he need o adop a uni o m and in e na ionally accep ed de i ni ion o s a is ical moni o ing and measu ing his new phenomenon in comme ce. The analyses o scien i i c esea ch in o e-comme ce (Ngai & Wa , 2001; Wang & Chen, 2010) sugges ha he i s s udies (e.g. T eese & S ewa , 1998) we e published in specialized jou nals in he ea ly 1990s. The apid g ow h o elec onic ansac ions in he second hal o he 1990s and he need o s a is ical measu ing equi ed a p ecise, and o easons EVALUATION AND COMPARISON OF B2C E-COMMERCE INTENSITY IN EU MEMBER STATES Hana Kunešo á, Lud ík Ege EM_4_2017.indd 151EM_4_2017.indd 151 13.12.2017 12:53:5113.12.2017 12:53:51 152 2017, XX, 4 Ma ke ing a obchod o in e na ional compa ison, an in e na ionally accep able de i ni ion o he e m “elec onic comme ce” and i s dis inc ion om “elec onic business” (e-business). 1.1 De i ning e-Comme ce In 2009, he O ganisa ion o Economic Co-ope a ion and De elopmen (OECD) published a e ised de i ni ion, which is s ill used in OECD documen s oday: “E-comme ce ansac ions a e he sale o pu chase o goods o se ices conduc ed o e compu e ne wo ks by me hods speci i cally designed o he pu pose o ecei ing o placing o o de s; paymen and deli e y a e no conside ed. T ansac ions can occu be ween en e p ises, households, indi iduals, go e nmen s and o he o ganisa ions. The de i ni ion includes o de s made h ough web pages, ex ane o EDI and excludes o de s by elephone calls, ax o manually yped e-mail.” (OECD, 2013b, p. 226). A simila de i ni ion o elec onic comme ce is ha by Eu os a (2015). Howe e , scien i i c sou ces indica e o he de i ni ions o e-comme ce and de i ne e-comme ce in a na owe and b oade sense. De i ning elec onic comme ce in he na ow and b oad sense ela es o ac i i ies ha a e included in e-comme ce. Fo example, Lee (2012) s a es ha , in he na ow sense o he ph ase, e-comme ce is he p ocess o buying, selling, o exchanging p oduc s, se ices and in o ma ion ia elecommunica ions ne wo ks. In he b oade sense, e-comme ce also includes, apa om buying and selling p oduc s and se ices, se icing cus ome s, collabo a ing wi h business pa ne s, and conduc ing elec onic ansac ions wi hin an o ganiza ion. The na ow de i ni ion o e-comme ce, pe Tu ban e al. (2015, p. 7), means “using he In e ne and in ane s o pu chase, sell, anspo , o ade da a, goods, o se ices.” A b oade concep is p esen ed by S allmann and Wegne (2015, p. 6), acco ding o whom e-comme ce is “ he sum o all digi al comme cial ansac ions be ween economic en i ies, conduc ed h ough he In e ne , mos o i being he sale o goods and se ices.” Issues wi h de i ning elec onic comme ce do no include only he a ying scope o de i ni ions used, bu also he unde s anding o he ela ionship be ween e-comme ce and e-business. In 2003, he OECD de i ned elec onic business as “(au oma ed) business p ocesses (bo h in a- and in e -company) o e compu e media ed ne wo ks” (OECD, 2003, p. 4). This de i ni ion was also adop ed by he EU (Eu opean Commission, 2010, p. 174). Using his de i ni ion, elec onic business includes a ange o ac i i ies, including elec onic comme ce. Howe e , acco ding o some p o essional sou ces, he de i ni ion o e-comme ce is i ually iden ical o ha o e-business (e.g., Xu & Quaddus, 2010; Schneide , 2015). The non-uni o m app oach o unde s anding elec onic comme ce also mani es s i sel in Czech p o essional li e a u e. Machko á (2009) uses he e ms e-comme ce and e-business synonymously, saying: “Typical o he second hal o he 1990s was he g ow h in elec onic comme ce (e-comme ce, e-business).” Suchánek (2012) and Machko á, Če nohlá ko á, Sa o, Malý and Sedláček (2014), on he o he hand, consis en ly dis inguish be ween he e ms e-comme ce and e-business. In ou s udy, we use he e m e-comme ce pe he 2009 OECD de i ni ion (see abo e). 1.2 Classi i ca ion o e-Comme ce E-comme ce is classi i ed based on a ious c i e ia. The basic ca ego ies o classi i ca ion o he en i ies in ol ed include business- o- business (B2B) and B2C. In e ac ions be ween consume s media ed by a hi d pa y all unde he consume - o-consume (C2C) ca ego y; howe e , di ec in e ac ion be ween consume s, e.g., on social media ne wo ks, wi hou he use o a hi d pa y, a e e e ed o as pee - o-pee (P2P). A ca ego y ha g ew in signi i cance la e was consume - o-business (C2B), in which he impe us comes om consume s who place hei demand, o example, on he In e ne . The numbe o e-comme ce ca ego ies has inc eased wi h he inclusion o go e nmen ins i u ions ha p o ide hei se ices o o he en i ies online, which has gi en ise o he ca ego ies G2B, G2C, G2G, B2G, and C2G (Waghma e, 2012). The inclusion o employees has led o he c ea ion o o he ca ego ies, e.g., B2E (Tu ban e al., 2015) o E2E, o med by employees using a company ne wo k – in ane (Cha ey, 2015). Acco ding o OECD da a, app oxima ely 90% o he alue o e-comme ce comp ises B2B ansac ions and 10% o hose ansac ions a e o he B2C, B2G, and EM_4_2017.indd 152EM_4_2017.indd 152 13.12.2017 12:53:5113.12.2017 12:53:51 153 4, XX, 2017 Ma ke ing and T ade C2C a ie y (OECD, 2013a, p. 4). Fu he classi i ca ion is, o example, based on he openness o he medium used (OECD, 1999b) o he deg ee o use o ICT (e.g., Suchánek, 2012; Tassabehji, 2003; Tu ban e al., 2015). F om he geog aphical poin o iew, he e is a dis inc ion be ween local, na ional, c oss- bo de (Gomez He e a e al., 2014) and global e-comme ce. 1.3 De elopmen o B2C e-Comme ce Since he mid-1990s, B2C e-comme ce has seen apid de elopmen . The signi i can miles ones in e-comme ce include he launch o he i s e-shops in 1995 (Amazon, eBay), he so-called do com c ash in 2000, and he huge inc ease in he sale o sma phones in 2013. Fo example, Schneide (2015) de i nes B2C e-comme ce in con ex wi h he de elopmen o online business in he USA and iews i as a long- e m p ocess di ided in o h ee s ages. The i s s age was he pe iod be ween 1995 and 2003; he second s age las ed be ween 2004 and 2009, and he hi d s age has been in p og ess since 2010. The miles ones be ween he indi idual s ages a e ep esen ed by he beginning o he apid de elopmen o e-shops in he USA in 1995, e mina ion o he second wa e o in es men s in e-comme ce and e-business in he USA in 2003 ollowing he do com c ash, and he pa allel appea ance o new ac o s in 2010, which had a signi i can impac on u he de elopmen o B2C e-comme ce. Simila ly, Qin e al. (2014) cha ac e ize he de elopmen o e-comme ce du ing he pe iod om 1995 o 2000 as a Phase o e-comme ce based on he In e ne . Du ing his phase, B2C e-comme ce wen h ough he ge mina ion s age (1995-1997) and he inno a ion s age (1997-2000). The pe iod a e 2000 is e e ed o by he au ho s as he s age o e-concep -based e-comme ce, du ing which e-comme ce expe ienced a c isis ollowing he do com c ash. In 2004, e-comme ce en e ed i s ma u i y s age, which has las ed o his day. Fu he , hey claim ha a e 2004 e-comme ce ceased o be a phenomenon con i ned o he USA and became a business model ha has sp ead o an inc easing numbe coun ies. In he mos ecen pe iod, since 2010 (Schneide , 2015), se e al new e-comme ce models ha e apidly become widesp ead: mobile comme ce (m-comme ce), social comme ce (s-comme ce), and he elec onic sale o mobile apps, ollowing he “App S o e” model. The massi e inc ease in he numbe o use s o he social ne wo k Facebook and i s use o B2C e-comme ce has gi en ise o he e m -comme ce (Tu ban e al., 2015, p. 13). Social ne wo ks also ep esen a new phenomenon in e-comme ce (Khan & Saga , 2015). 2. Measu ing B2C e-Comme ce S a ing in 1999, an OECD ask o ce deal in ensi ely wi h ques ions o how o measu e e-comme ce. Thei ask was o sugges an in e na ionally accep ed de i ni ion o elec onic comme ce and a se o indica o s o measu ing and compa ing in e na ionally elec onic comme ce and i s economic and social impac s (OECD, 1999a). The basis o iden i ying e-comme ce indica o s was he S-cu e, ep esen ing h ee s ages in he li e cycle o e-comme ce (e-comme ce eadiness, e-comme ce in ensi y, and e-comme ce impac ) and i s measu emen p io i ies. A di e en ype o in o ma ion is gi en p io i y in each s age o he li e cycle o e-comme ce. Some esea ch s udies (e.g., Cha ey, 2015; Gomez He e a e al., 2014; Ho e al., 2007; Ka iwi & MacG ego , 2007; Kshe i, 2007; Sa ul e al., 2014; Sing e al., 2001; Sp emic & Hlupic, 2007; Zhu e al., 2003) sea ch o ac o s suppo ing he de elopmen o B2C e-comme ce o , on he o he hand, ep esen ing obs acles in i s de elopmen , and hus con ibu e o he de elopmen o he me hodology o measu ing e-comme ce. In his s udy, we ocus on he second s age o B2C e-comme ce, e-comme ce in ensi y, which comes a e e-comme ce eadiness, and is ollowed by he hi d s age, ocused on he u u e, e-comme ce impac . In he second s age, ha is, e-comme ce ma u i y, he in ensi y o he use o e-comme ce is acked, and he cu en ques ion is: Wha e ec does e-comme ce ha e on he economy and socie y? (OECD, 1999a; OECD, 2011) 2.1 Measu ing B2C e-Comme ce In ensi y The use o B2C e-comme ce includes he in ensi y and g ow h o B2C e-comme ce, he na u e o ansac ions, he selle s’ ac i i ies, he consume s’ beha iou , and o he aspec s (see Tab. 1). S a is ical acking o he aspec s lis ed EM_4_2017.indd 153EM_4_2017.indd 153 13.12.2017 12:53:5213.12.2017 12:53:52 154 2017, XX, 4 Ma ke ing a obchod abo e makes i possible o iden i y sec o s, indus ies, and whole economies ha do o do no use he possibili ies o B2C e-comme ce. Indi idual indica o s measu e only selec ed aspec s o B2C e-comme ce. Fo a comp ehensi e assessmen o B2C e-comme ce, he no only he choice o indi idual indica o s, bu also hei agg ega ion in o an o e all indica o , which can exp ess a global iew o B2C e-comme ce based on he e alua ion c i e ia, is impo an . The agg ega e indica o s o B2C e-comme ce ( e e ed o as indices in o eign sou ces) a e ela i ely new. The e a e cu en ly se e al B2C e-comme ce indica o s, each o which ocuses on acking B2C e-comme ce om a di e en poin o iew, howe e , none o hem indica es he in ensi y o B2C e-comme ce and i s use. Since 2012, he ATKea ney consul ing company has been publishing “The Global Re ail E-comme ce Index” (ATKea ney, 2013), which exp esses he a ac i eness o economies o in es men s in B2C e-comme ce on a 100-poin scale. In 2014, The Economis In elligence Uni published “The G20 e-T ade Readiness Index” (The Economis In elligence Uni , 2014), which exp esses he condi ions o engagemen in c oss-bo de B2C e-comme ce in G20 coun ies. I is e iden ha i does no comp ehensi ely compa e he use o e-comme ce in he a ea ha we a e conce ned. Since 2015, he “The UNCTAD B2C E-comme ce Index” (UNCTAD, 2016) has been published, which compa es economies based on ou c i e ia: he sha e o indi iduals using he In e ne , he numbe o secu e In e ne se e s pe 1 million people, he sha e o indi iduals wi h a c edi ca d, and he pos al eliabili y sco e. This index allows us o compa e economies in e ms o hei eadiness o B2C e-comme ce and o iden i y hei s eng hs and weaknesses in his a ea. Apa om he indices lis ed, he e is also “The Readiness Index Fo es e ,” pu o h by he Fo es e Company (2016). This index assesses he condi ions o he de elopmen o B2C e-comme ce based on 25 indica o s. I is a ailable only o clien s o Fo es e , and in o ma ion ega ding i s s uc u e o alues is no publicly accessible. 2.2 Issues wi h Measu ing B2C e-Comme ce Al hough B2C e-comme ce has been a ound o mo e han 20 yea s, measu ing and s a is ically acking i is s ill p oblema ic. In he ea ly s age o i s exis ence, B2C e-comme ce was di i cul o measu e and he s a is ical da a ob ained wasn’ compa able, as he e was nei he a uni o m de i ni ion o B2C e-comme ce no any me hodology o how o measu e i (c . Hawk, 2004). In oducing an in e na ionally accep able de i ni ion o B2C e-comme ce and de elopmen o a me hodology o measu e i ha e con ibu ed o esol ing he ini ial p oblems. Howe e , he p oblem wi h he objec i i y and accessibili y o da a on B2C e-comme ce ansac ions p o ided by business en i ies con inues o his day (mainly ega ding e enues om online sales, he a e age alue o an online pu chase, he numbe o o de s, he a e age alue o an o de , and o he s). Howe e , he ewes p oblems conce n he a ailabili y o da a ega ding he eadiness o he economy o B2C e-comme ce. P oblems wi h measu ing B2C e-comme ce ansac ions a e due o se e al ac o s, which include: a la ge numbe o companies engaged Indica o s o B2C e-comme ce in ensi y Selec ed da a sou ces (da a published wi h a ying pe iodici y) Companies selling online. Indi iduals shopping online. Tu no e o B2C e-comme ce. A e age alue o an online o de . F equency o online shopping. S uc u e o goods and se ices sold online. Paymen me hods used. Ways o deli e ing p oduc s. The Czech S a is ical O i ce The Eu os a da abase Ecomme ce Eu ope. Wo ldpay. Global paymen s epo . Comme cial and esea ch o ganiza ions Domes ic and c oss-bo de online pu chases, sales. The Czech S a is ical O i ce Eu os a da abase Sou ce: own Tab. 1: Indica o s o B2C e-comme ce in ensi y and selec ed da a sou ces EM_4_2017.indd 154EM_4_2017.indd 154 13.12.2017 12:53:5213.12.2017 12:53:52 155 4, XX, 2017 Ma ke ing and T ade in B2C e-comme ce; he ac ha a numbe o companies engage in bo h elec onic and adi ional (b ick-and-mo a ) sales, ye hei eco ds do no make a dis inc ion be ween he wo sales me hods; he igh compe i ion in he i eld o B2C e-comme ce, which leads o he concealmen o dis o ion o da a; he dynamic de elopmen o ICT and he esul ing new ends in B2C e-comme ce; and las ly, he ongoing me hodological issues wi h measu ing B2C e-comme ce. A la ge obs acle in measu ing B2C e-comme ce objec i ely is compe i ion, which was men ioned by he OECD in he 1990s (OECD, 1997) as an obs acle in gaining business da a o measu ing B2C e-comme ce, bu i is men ioned by o he p o essional sou ces as well. Gomez He e a e al. (2014) poin ou ha da a on B2C e-comme ce a e gene a ed mainly by p i a e companies in ol ed in online e-comme ce; howe e , comme cial in e es s s op hem om publishing his da a. Ca dona e al. (2015) and simila ly Duch-B own and Ma ens (2015) poin o he p oblem wi h s a is ical da a on e-comme ce in he EU. The p oblem wi h da a a ailabili y also applies o he Czech economy (e.g., Hla enka, 2011). Measu ing B2C e-comme ce is also a ec ed by me hodological p oblems, e.g., di e en p ocedu es in da a collec ion, in measu ing c oss-bo de B2C e-comme ce, o in measu ing B2C e-comme ce in mul ina ional co po a ions (OECD, 2015). Some o hese p oblems can be elimina ed by in e na ional s anda ds o acking and measu ing B2C e-comme ce. An example o such a s anda d is he Global Online Measu emen S anda d o E-comme ce (GOMSEC), adhe ed o by he in e na ional associa ion o B2C e-comme ce, Ecomme ce Eu ope, including i s na ional associa ions, and o he coope a ing o ganiza ions (Ecomme ce Eu ope, 2016). Among o he hings, GOMSEC has de i ned he ca ego ies o p oduc s and se ices included in B2C e-comme ce (e.g., Media and en e ainmen , Fashion, Toys, Elec onics, and o he s), and de e mined which i ems will be excluded om epo s on B2C e-comme ce (e.g., he sale o mo o ehicles, eal es a e, s ocks and bonds, and o he s). Since Janua y 1, 2008, he Czech S a is ical O i ce has been using he NACE in e na ional classi i ca ion, which has conside ed echnological de elopmen and s uc u al changes in he economy, and made i possible o compa e he s a is ical da a om he Czech Republic wi h hose o he EU as well as globally (Czech S a is ical O i ce, 2008). In ecen yea s, da a on he de elopmen o B2C e-comme ce has also been published by Eu os a in connec ion wi h he goals o he Eu ope 2020 s a egy. The OECD publishes s a is ical da a o all e-comme ce ca ego ies wi hou he dis inc ion o B2C e-comme ce. In o ma ion on selec ed B2C e-comme ce indica o s, wi hou an ex ensi e ime se ies, is published on a limi ed scale by a ious o ganiza ions (e.g., Ecomme ce Founda ion, S a is a.com, Fo es e , Bos on Consul ing G oup), which p o ide he ull e sions o documen s only o hei membe s. In he Czech Republic, apa om he Czech S a is ical O i ce, e-comme ce is moni o ed mainly by e-comme ce consul ing companies APEK and ACOMWARE. 3. Compa ison o EU Membe S a es in Te ms o B2C e-Comme ce In ensi y The goal o his s udy is o p opose a ool o assessing and compa ing he in ensi y o B2C e-comme ce in EU membe s a es and, in ela ion o his, answe he ollowing esea ch ques ions: Wha is he posi ion o indi idual EU membe s a es in e ms o B2C e-comme ce in ensi y? Is he e a s ong co ela ion be ween B2C e-comme ce in ensi y and he le el o economic de elopmen o EU membe s a es? Is he e a co ela ion be ween B2C e-comme ce in ensi y and he leng h o he coun ies’ EU membe ship? 3.1 Me hod To assess and compa e B2C e-comme ce in ensi y in EU membe s a es, me hod o mul i- c i e ia e alua ion o al e na i es, ha all in o he ca ego y o mul i-c i e ia decision analysis me hods, was chosen. Me hods o mul i-c i e ia e alua ion o al e na i es allow he agg ega ion o pa ial e alua ion based on selec ed c i e ia in o an agg ega e assessmen , which conside s all he assessmen c i e ia. The mul i-c i e ia e alua ion o he al e na i es used esul s in he compila ion o an o de o al e na i es (EU membe s a es) om “ he bes ” o “ he wo s ” al e na i e (Kunešo á, 2016). Mul i-c i e ia decision analysis is bo h an app oach and a se o echniques, wi h he aim o p o iding an o e all o de ing o op ions, EM_4_2017.indd 155EM_4_2017.indd 155 13.12.2017 12:53:5213.12.2017 12:53:52 156 2017, XX, 4 Ma ke ing a obchod om he mos p e e ed o he leas p e e ed op ion (Dinçe , 2011). Mul i-c i e ia decision p oblems a e cha ac e ized by a se o decision al e na i es, a se o e alua ion c i e ia, and a numbe o links be ween he c i e ia and he al e na i es. The decision-make inpu s in o ma ion on he al e na i es and e alua ion c i e ia, which helps o o mula e he mul i- c i e ia model. Mul i-c i e ia e alua ion o al e na i es makes i possible o assess a i ni e numbe o al e na i es based on he i ni e numbe o c i e ia. The numbe o al e na i es can ange om se e al o housands o al e na i es. The al e na i es a e “sc eened, p io i ized, selec ed and/o anked” (Yoon & Hwang, 1995, p. 2). C ucial o he e alua ion o al e na i es is he choice o e alua ion c i e ia, speci i cally, a ibu es acco ding o which he al e na i es a e assessed. Yoon and Hwang (1995, p. 2) s a e ha he numbe o e alua ion c i e ia depends on he na u e o he p oblem. The c i e ia mus be independen , should co e all he e alua ion a ibu es, should no be oo many in numbe o a oid making he p oblem chao ic (Šub e al., 2015), and mus be quan i i able. To esol e p oblems o mul i-c i e ia e alua ion o al e na i es, i is impo an whe he and how ce ain c i e ia a e gi en p e e ence. In he s udy, he p e e ence o c i e ia is exp essed by c i e ia weigh s. Gene ally, c i e ia weigh s a e alues in he in e al 0, 1, which exp ess he ela i e impo ance o indi idual c i e ia in compa ison wi h o he s. The sum o all c i e ia weigh s is equal o 1. The g ea e he impo ance o a c i e ion, he bigge i s weigh . The ela i e impo ance o an indi idual c i e ion is exp essed by he c i e ia weigh ec o (Fiala, 2013). This s udy uses he poin me hod, which is based on he supposi ion ha he decision- make is able, no only o de e mine he o de o c i e ia based on hei impo ance, bu also quan i y he impo ance o each c i e ion by a numbe o poin s on a p e-selec ed scale. This me hod is sui able e en o e alua ion by mul iple expe s (Šub e al., 2015). The assigning o poin s o c i e ia by a la ge numbe o expe s (e.g., h ough ques ionnai es) inc eases he le el o objec i i y in de e mining c i e ia weigh s. The calcula ion o c i e ia weigh s ( he no maliza ion o weigh ec o alues) om he poin e alua ion was done using he ollowing o mula: (1) whe e bj is he sum o all poin s assigned by he indi idual expe s o c i e ion j, and j = 1, 2, …., n. In ou s udy we used he TOPSIS me hod ( he Technique o O de o P e e ence by Simila i y o Ideal Solu ion – TOPSIS), which was de eloped by Hwang and Yoon (1981) and ep esen s me hods based on he p inciple o minimiza ion o he dis ance om he ideal solu ion and maximiza ion o he dis ance om he nega i e-ideal solu ion. The TOPSIS me hod allows us o de e mine he o de o all he al e na i e solu ions. The equi ed inpu da a include ca dinal in o ma ion ( he ac ual alues o he al e na i es based on indi idual c i e ia in di e en uni s) and indi idual c i e ia weigh s. The TOPSIS me hod e alua es he decision ma ix which e e s o p al e na i es which a e e alua ed in e ms o k c i e ia. The TOPSIS me hod consis s o he ollowing six s eps ( o example Dinçe , 2011; Fiala, 2013; Šub e al., 2015; T ian aphyllou e al., 1998). S ep 1: Cons uc he no malized decision ma ix This p ocess ies o con e he a ious a ibu e dimensions in o non-dimensional a ibu es. Fo he no maliza ion o inpu alues, he TOPSIS me hod uses an app oach based on he Euclidean dis ance ( o mula 2). The elemen ij o he no malized decision ma ix R can be calcula ed as ollows: (2) whe e yij is he inpu alue o he i al e na i e assessed by he j c i e ion; p is he numbe o al e na i es, i = 1, 2, …. p, j = 1, 2, ….k. S ep 2: Cons uc he weigh ed no malized decision ma ix The weigh ed no malized c i e ia ma ix W = (wij) is based on he no malized c i e ia ma ix R = ( ij) in such a way ha each elemen ij o he R ma ix is mul iplied by he app op ia e weigh j ( o mula 3): (3) EM_4_2017.indd 156EM_4_2017.indd 156 13.12.2017 12:53:5213.12.2017 12:53:52 157 4, XX, 2017 Ma ke ing and T ade whe e j is he weigh o c i e ion j, and ij a e he ma ix elemen s o he no malized c i e ia ma ix R. S ep 3: De e mine he ideal and he nega i e- ideal solu ions The elemen s o he ma ix W de e mine he ideal solu ion Hj wi h c i e ia alues (H1, H2, …., Hk) and he nega i e-ideal solu ion Dj wi h c i e ia alues (D1, D2,…., Dk), gi en he alues in he weigh ed c i e ia ma ix W. The ideal solu ion deli e s he bes alues based on each c i e ion; he nega i e-ideal solu ion deli e s he wo s alues based on each c i e ion. S ep 4: Calcula e he sepa a ion dis ances o each al e na i e o he ideal solu ion and he nega i e-ideal solu ion (4) whe e is he sepa a ion (in he Euclidean sense) o each al e na i e om he ideal solu ion. (5) whe e is he sepa a ion (in he Euclidean sense) o each al e na i e om he non-ideal solu ion. S ep 5: Calcula e he ela i e dis ances o each al e na i e om he nega i e-ideal solu ion (6) whe e ci is he indica o o he ela i e dis ance o an al e na i e om he nega i e-ideal solu ion. S ep 6: Rank he p e e ence o de Rank he al e na i es, so ing hem by he alue o he indica o ci, in dec easing o de . The bes al e na i e is he one ha has he longes dis ance om he nega i e-ideal solu ion. 3.2 C i e ia o E alua ing B2C e-Comme ce In ensi y Fo he pu pose o compa ing EU membe s a es in e ms o B2C e-comme ce in ensi y, wo c i e ia we e selec ed ha ela e o he engagemen o consume s and selle s in B2C e-comme ce, and one c i e ion ha ela e o comme cial ansac ions wi hin B2C e-comme ce ( ela i e size o he u no e o B2C e-comme ce). Following esea ch in o he po en ial sou ces o da a on he use o B2C e-comme ce, he Eu os a da abase (2017) was chosen o p o ide s a is ical da a o hese c i e ia. Tab. 2 de ails he selec ed c i e ia, hei quan i i ca ion in he o m o a speci i c indica o , and he da a sou ce. The s udy uses he la es da a om he sou ces lis ed. All he c i e ia in Tab. 2 a e maximiza ion c i e ia, i.e., he highe he alue o he pa icula c i e ion, he be e he esul o he coun y in he a ea ha is being e alua ed. In connec ion wi h he abo e-men ioned c i e ia and selec ed me hod o mul i-c i e ia e alua ion o al e na i es, he au ho s ha e sugges ed he ollowing hypo heses: H1: The e is a s ong co ela ion be ween he o de o EU membe s a es in e ms o B2C e-comme ce in ensi y and hei o de in e ms o hei economic de elopmen . C i e ion No. C i e ion Quan i i ca ion o he c i e ion Da a sou ce 1In e ne pu chases by indi iduals The pe cen age o indi iduals (aged 16-74) who made las online pu chase in he pas 12 mon hs, da a ob ained in 2016 Eu os a (2017) 2En e p ises selling ia a websi e - B2C The sha e o en e p ises ha sold online on he B2C ma ke in 2016 (% o en e p ises excluding hose in he i nancial sec o ) Eu os a (2017) 3 Rela i e size o he en e p ises‘ u no e om web sales - B2C The sha e o he u no e om web sales – B2C in he o al u no e o en e p ises in 2016 (in %) Eu os a (2017) Sou ce: own Tab. 2: C i e ia o e alua ing B2C e-comme ce in ensi y EM_4_2017.indd 157EM_4_2017.indd 157 13.12.2017 12:53:5213.12.2017 12:53:52 158 2017, XX, 4 Ma ke ing a obchod C i e ion No. 1 2 3 Type o c i e ion max. max. max. Pe iod 2016 2016 2016 Al e na i e / uni % % % Aus ia 58 12 1 Belgium 57 17 3 Bulga ia 17 6 0 (n) C oa ia 33 11 1 Cyp us 29 12 1 Czech Republic 47 17 2 Denma k 82 15 2 Es onia 56 12 2 Finland* 67 13 2 F ance 66 12 2 Ge many 74 18 1 G eece 31 10 3 Hunga y 39 11 1 I eland 59 22 12 I aly* 29 7 0 (n) La ia 44 7 1 Li huania 33 15 2 Luxembou g** 78 8 3 Mal a 48 18 1 Ne he lands 74 14 3 Poland 42 8 1 Po ugal 31 10 2 Romania 12 4 1 Slo akia 56 9 1 Slo enia 40 12 1 Spain 44 11 2 Sweden 76 15 3 Uni ed Kingdom 83 15 4 Sou ce: Eu os a (2017) and au ho s’ own elabo a ion No e: (n) no signi i can * Fo coun ies ma ked wi h an as e isk, da a o c i e ion 3 o he yea 2016 we e no a ailable and he las known da a we e used ins ead (Finland: 2015, I aly: 2014). ** In he case o Luxembou g, he e we e no da a o c i e ion 3 a ailable o any yea (acco ding o Eu os a , da a o Luxembou g a e con i den ial). The missing alue o c i e ion 3 o Luxembou g was se as he a e age o he alues o c i e ion 3 o Belgium and he Ne he lands (coun ies o he Benelux). Tab. 3: The decision ma ix o e alua ing B2C e-comme ce in ensi y EM_4_2017.indd 158EM_4_2017.indd 158 13.12.2017 12:53:5213.12.2017 12:53:52 159 4, XX, 2017 Ma ke ing and T ade H2: The highes B2C e-comme ce in ensi y can be ound in coun ies ha ha e been membe s o he EU he longes . H3: The lowes B2C e-comme ce in ensi y can be ound in new EU membe s a es wi h low economic de elopmen . The inpu da a con ained in Tab. 3 shows ha none o he al e na i es assessed a e he bes o wo s in all c i e ia. Using he poin me hod, a weigh was assigned o each c i e ion, based on a ques ionnai e su ey conduc ed among expe s on B2C e-comme ce. The c i e ia weigh s a e calcula ed acco ding o o mula (1). The poin s assigned by he expe s and he calcula ion o c i e ia weigh s a e shown in Tab. 4. The expe s include ep esen a i es o h ee Czech uni e si ies, who ha e been engaging wi h he opic o online ma ke ing and e-comme ce o a long e m ( i e yea s expe ience minimum), ep esen a i es o majo companies, such as Google Czech Republic, ACOMWARE, Ma ke UP, and ep esen a i es o egional p o essional agencies ha adminis e a numbe o e-shops, such as ANT S udio and P oSEO Media, and i nally ep esen a i es o e-shop owne s. These expe s make up a ep esen a i e sample o he pu pose o de e mining he weigh s o selec ed B2C e-comme ce c i e ia. The ollowing ex p esen s he ou pu o he selec ed me hod o mul i-c i e ia e alua ion o al e na i es ha was applied o he selec ed e alua ion c i e ia and hei p e e ence gi en by he c i e ia weigh s. All he calcula ions we e pe o med in MS Excel. 4. The O de o EU Membe S a es De e mined by he TOPSIS Me hod The decision ma ix o e alua ing B2C e-comme ce in ensi y (Tab. 3) was con e ed acco ding o he o mula (2) o a no malized c i e ia ma ix (Tab. 5). Based on he no malized c i e ia ma ix in Tab. 5 and he c i e ia weigh s (Tab. 4), he weigh ed c i e ia ma ix was cons uc ed acco ding o he o mula (3). Using i s elemen s, he hypo he ical nega i e-ideal solu ion Dj was de e mined wi h he c i e ia alues (D1, D2, …, Dk) and he hypo he ical ideal solu ion Hj wi h he c i e ia alues (H1, H2, …, Hk) wi h espec o he alues in he weigh ed c i e ia ma ix. Using he o mulas (4) and (5) o calcula ing he dis ance o indi idual al e na i es om he ideal and nega i e-ideal solu ions, he coe i cien di + was de e mined, which exp esses he dis ance o he al e na i e i om he ideal solu ion, and he coe i cien di -, which exp esses he dis ance o he al e na i e i om he nega i e-ideal Expe s C i e ia 123 Expe 1 988 Expe 2 585 Expe 3 786 Expe 4 10 7 10 Expe 5 769 Expe 6 1098 Expe 7 10 10 8 Expe 8 9510 Expe 9 433 Sub o al 71 64 67 To al No. o poin s assigned: 202 C i e ion weigh 0.351 0.317 0.332 Sou ce: own Tab. 4: De e mining c i e ia weigh s o e alua ing B2C e-comme ce in ensi y by he poin me hod EM_4_2017.indd 159EM_4_2017.indd 159 13.12.2017 12:53:5313.12.2017 12:53:53 166 2017, XX, 4 Ma ke ing a obchod Qin, Z., Chang, Y., Li, S., & Li, F. (2014). E-comme ce s a egy. Be lin, Ge many: Sp inge . Schneide , G. P. (2015). Elec onic Comme ce (11 h ed.). S am o d, CT: CENGAGE Lea ning. Sa ul, M., Inceka a, A., & Sene , S. (2014). 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Re ie ed Augus 28, 2016, om h p://unc ad.o g/en/ Publica ionsLib a y/ n_unc ad_ic 4d07_en.pd . Wang, Ch-Ch., & Chen, Ch-Ch. (2010). Elec onic comme ce esea ch in la es decade: A li e a u e e iew. In e na ional Jou nal o Elec onic Comme ce S udies, 1(1), 1-14. doi:10.7903/ijecs.898. Waghma e, G. T. (2012). E-comme ce; A business e iew and u u e p ospec s in Indian business. Indian S eams Resea ch Jou nal, 2(4). Xu, J., & Quaddus, M. (2010). Founda ion o e-business and e-business echnologies. In J. Xu, & M. Quaddus (Eds.), E-business in he 21s cen u y: Reali ies, Challenges and Ou look (pp. 3-34). Singapo e: Wo ld Scien i i c Publishing. Re ie ed June 10, 2016 om h p://www.wo ldscien i i c.com/ wo ldscibooks/10.1142/7097. Yada , S. M., de Valck, K., Henning- Thu au, T., Ho man, D., & Spann, M. (2013). Social Comme ce: A Con ingency F amewo k o Accessing Ma ke ing Po en ial. Jou nal o In e ac i e Ma ke ing, 27(4), 311-323. doi:10.1016/j.in ma .2013.09.001. Yoon, K. P., & Hwang, C. L (1995). Mul iple A ibu e Decision Making: An In oduc ion. Thousand Oaks, CA: SAGE Publica ions. Zhu, K., K aeme , K., & Xu, S. (2003). Elec onic business adop ion by Eu opean i ms, ac oss-coun y assessmen o he acili a o s and inhibi o s. Eu opean Jou nal o In o ma ion Sys ems. 12(4), 251-268. doi:10.1057/palg a e.ejis.3000475. Ing. Hana Kunešo á Uni e si y o Wes Bohemia Facul y o Economics Depa men o Ma ke ing, T ade and Se ices [email p o ec ed] doc. PaedD . Lud ík Ege , CSc. Uni e si y o Wes Bohemia Facul y o Economics Depa men o Ma ke ing, T ade and Se ices [email p o ec ed] EM_4_2017.indd 166EM_4_2017.indd 166 13.12.2017 12:53:5413.12.2017 12:53:54 167 4, XX, 2017 Ma ke ing and T ade Abs ac EVALUATION AND COMPARISON OF B2C E-COMMERCE INTENSITY IN EU MEMBER STATES Hana Kunešo á, Lud ík Ege Elec onic comme ce in he business- o-consume sphe e (B2C e-comme ce) ep esen s a signi i can ac o in he compe i i eness o companies and en i e economies. The pu pose o his pape is o p opose a ool o e alua e and compa e B2C e-comme ce in ensi y in economies. The au ho s add ess he ollowing esea ch ques ions: Wha is he posi ion o indi idual EU membe s a es in e ms o B2C e-comme ce in ensi y? Is he e a s ong co ela ion be ween B2C e-comme ce in ensi y and he le el o economic de elopmen o EU membe s a es? Is he e a co ela ion be ween B2C e-comme ce in ensi y and he leng h o he coun ies’ EU membe ship? F om a heo e ical backg ound, key indica o s o B2C e-comme ce in ensi y a e selec ed, which a e agg ega ed in o he B2C e-comme ce in ensi y index using he TOPSIS me hod. The esul s o he mul i-c i e ia e alua ion and he posi ions o indi idual coun ies in he o e all o de indica e ha in e ms o B2C e-comme ce in ensi y, EU membe s a es a e a a he he e ogeneous g oup. The o de o coun ies based on he alue o he B2C e-comme ce in ensi y index exhibi s a s ong and s a is ically signi i can co ela ion wi h he o de o he coun ies in e ms o he le el o hei economic de elopmen . Howe e , he di e ences in he coun ies’ economic de elopmen do no su i cien ly explain he di e ences in he use o B2C e-comme ce. The esul s indica e ha he e is a la ge unused po en ial o B2C e-comme ce in he EU, no only in coun ies wi h weake economies, bu also in highly de eloped coun ies. The co ela ion be ween B2C e-comme ce in ensi y and he du a ion o EU membe ship is mode a e. I would be bene i cial o u he esea ch o ocus on he ques ion o which ac o s ha e boos ed he ela i ely high use o B2C e-comme ce in some new EU membe s a es wi h lowe le el o economic de elopmen (Es onia and Li huania) and wha obs acles p e en mo e in ensi e use o B2C e-comme ce in I aly and Aus ia, whose le el o economic de elopmen signi i can ly exceeds ha o he a o emen ioned coun ies. Key Wo ds: B2C e-comme ce, e-comme ce in ensi y index, Eu opean Union, mul i-c i e ia decision analysis, TOPSIS. JEL Classi i ca ion: L81, M21, C44. DOI: 10.15240/ ul/001/2017-4-011 EM_4_2017.indd 167EM_4_2017.indd 167 13.12.2017 12:53:5413.12.2017 12:53:54