The classification and strategic management of services in e-commerce: Development of service taxonomy based on customer perception

Previous studies have failed to take into account of the service sector, which accounts for a large portion of e-commerce transactions these days. To overcome the limitation, this research focuses on online service offers and attempts to develop their taxonomy. For the purpose, online services were identified from Korean Portal Sites and classified by 11 variables representing customer perceptions about service characteristics in the e-commerce context. Data for the analysis were obtained from a survey and the data-mining techniques and statistical processes including factor analysis, clustering and ANOVA were used. As a result, online services were classified into six groups – mass, professional, intellectual, credit, supporting and facility services and the distinctive features of each group were examined and strategies for marketing and operations recommended. By understanding the unique characteristics of each service group, managers can implement more suitable strategies, foster more positive attitudes towards online transactions, and finally increase online buying intentions.