Physical distribution service quality in Internet retailing: Service pricing, transaction attributes, and firm attributes

Elliot Rabinovich, Joseph P. Bailey

Research output: Contribution to journalArticle

121 Scopus citations

Abstract

This paper develops a theoretical framework and empirically investigates physical distribution service (PDS) quality by Internet retailers in their transactions with consumers. An analysis of data that measure hundreds of electronic commerce transactions along with data at the firm level shows that higher shipping and handling charges are good indicators of better PDS quality. Other transaction-level conditions and firm-level attributes also affect PDS quality, as measured by availability, timeliness, and reliability. Most notably, when the net price of products transacted increases, PDS reliability and availability decline. Furthermore, Internet-retailer size is found to favor PDS availability whereas, surprisingly, newer Internet retailers exhibit a higher level of PDS availability than many of their incumbent competitors.

Original languageEnglish (US)
Pages (from-to)651-672
Number of pages22
JournalJournal of Operations Management
Volume21
Issue number6
DOIs
StatePublished - Jan 1 2004

Keywords

  • Logistics/distribution
  • MIS/operations interface
  • Service operations
  • e-Commerce
  • e-Services

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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