Understanding product migration to the electronic marketplace: A conceptual framework

We present a conceptual framework that organizes current thinking regarding increased interactivity in the electronic marketplace and its implications for product migration. Product migration refers to the extent of reliance by buyers and sellers on the electronic marketplace for activities pertaining to information search, purchase, acquisition, use, and disposal of a product. We posit that value outcomes derived by buyers and sellers from increasing interactivity mediate the relationship between interactivity and product migration. The relationship between interactivity and value outcomes for buyers and sellers is moderated by three sets of product-related characteristics: the core characteristics of the product, its purchase and use-related characteristics, and market characteristics. Inertia and resistance exhibited by buyers and sellers negatively impact product migration to the electronic marketplace and also attenuate the impact of value outcomes on product migration. In addition to guiding theoretical and empirical work in this emerging area, the proposed framework can also be employed to structure a firm's strategic discussions related to the electronic marketplace. (c) 2005 New York University. Published by Elsevier Inc. All rights reserved.