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

151 4, XX, 2017 Marketing and Trade DOI: 10.15240/tul/001/2017-4-011 Introduction Electronic commerce (e-commerce), as part of e-business, is still undergoing dynamic development and signifi cantly affects the economic reality in EU member states. E-commerce relates to the development of information and communications technologies (ICT). It has gone through development stages (detailed below), and since 2010 (Schneider, 2015) has been in its current maturity stage in developed countries and the European Union (EU) (Qin et al., 2014, according to whom the maturity stage of e-commerce dates back to 2004). This paper aims to propose a tool for assessing and comparing the intensity of B2C e-commerce in EU member states. Regarding this goal, the authors deal with the following research questions: What is the position of individual EU member states in terms of the intensity of B2C e-commerce? 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? In the fi rst section of this paper, the terms e-commerce and B2C e-commerce, as well as the developmental stages of B2C e-commerce are defi ned. These defi nitions are followed by an overview of the indicators used in measuring B2C e-commerce intensity in an economy and the so-called B2C e-commerce indices, which in recent years, have been created to capture an aggregate view of various aspects of B2C e-commerce. The empirical section of our study introduces criteria for assessing the intensity of B2C e-commerce in EU member states and the procedure for creating the B2C e-commerce intensity index, which will allow a comprehensive comparison of B2C e-commerce in EU member states based on the selected criteria. Method TOPSIS was used in designing the proposed index. The assessment criteria refl ect the relevant publicly available data on the B2C e-commerce intensity in EU member states, which are quantifi ed in the form of specifi c indicators. The output of the empirical section consists list of EU member states in terms of B2C e-commerce intensity, which consider all the selected assessment criteria. The application of the results of this study contributes to the development of the theory of e-commerce, as well as represents a practical contribution. Determining and comparing the positions of EU member states in terms of B2C e-commerce intensity allows us to identify countries that do not suffi ciently utilize the potential of B2C e-commerce to increase their prosperity and achieve consumer utility. In the conclusion of this paper, the current research limitations are discussed along with a suggestion for further research. 1. Theoretical Background of e-Commerce Over the course of its existence, e-commerce has become a phenomenon that has been defi ned in many ways (e.g. Ho et al., 2007; Qin et al., 2014; Reynolds, 2010; Schneider, 2015; Yadav et al., 2013). The development of ICT and its implementation in the sphere of e-commerce has led to more specifi c defi nitions. The fast growth of e-commerce has created the need to adopt a uniform and internationally accepted defi nition for statistical monitoring and measuring this new phenomenon in commerce. The analyses of scientifi c research into e-commerce (Ngai & Wat, 2001; Wang & Chen, 2010) suggest that the fi rst studies (e.g. Treese & Stewart, 1998) were published in specialized journals in the early 1990s. The rapid growth of electronic transactions in the second half of the 1990s and the need for statistical measuring required a precise, and for reasons EVALUATION AND COMPARISON OF B2C E-COMMERCE INTENSITY IN EU MEMBER STATES Hana Kunešová, Ludvík Eger EM_4_2017.indd 151EM_4_2017.indd 151 13.12.2017 12:53:5113.12.2017 12:53:51 152 2017, XX, 4 Marketing a obchod of international comparison, an internationally acceptable defi nition of the term “electronic commerce” and its distinction from “electronic business” (e-business). 1.1 Defi ning e-Commerce In 2009, the Organisation for Economic Co-operation and Development (OECD) published a revised defi nition, which is still used in OECD documents today: “E-commerce transactions are the sale or purchase of goods or services conducted over computer networks by methods specifi cally designed for the purpose of receiving or placing of orders; payment and delivery are not considered. Transactions can occur between enterprises, households, individuals, governments and other organisations. The defi nition includes orders made through web pages, extranet or EDI and excludes orders by telephone calls, fax or manually typed e-mail.” (OECD, 2013b, p. 226). A similar defi nition of electronic commerce is that by Eurostat (2015). However, scientifi c sources indicate other defi nitions of e-commerce and defi ne e-commerce in a narrower and broader sense. Defi ning electronic commerce in the narrow and broad sense relates to activities that are included in e-commerce. For example, Lee (2012) states that, in the narrow sense of the phrase, e-commerce is the process of buying, selling, or exchanging products, services and information via telecommunications networks. In the broader sense, e-commerce also includes, apart from buying and selling products and services, servicing customers, collaborating with business partners, and conducting electronic transactions within an organization. The narrow defi nition of e-commerce, per Turban et al. (2015, p. 7), means “using the Internet and intranets to purchase, sell, transport, or trade data, goods, or services.” A broader concept is presented by Stallmann and Wegner (2015, p. 6), according to whom e-commerce is “the sum of all digital commercial transactions between economic entities, conducted through the Internet, most of it being the sale of goods and services.” Issues with defi ning electronic commerce do not include only the varying scope of defi nitions used, but also the understanding of the relationship between e-commerce and e-business. In 2003, the OECD defi ned electronic business as “(automated) business processes (both intraand inter-company) over computer mediated networks” (OECD, 2003, p. 4). This defi nition was also adopted by the EU (European Commission, 2010, p. 174). Using this defi nition, electronic business includes a range of activities, including electronic commerce. However, according to some professional sources, the defi nition of e-commerce is virtually identical to that of e-business (e.g., Xu & Quaddus, 2010; Schneider, 2015). The non-uniform approach to understanding electronic commerce also manifests itself in Czech professional literature. Machková (2009) uses the terms e-commerce and e-business synonymously, saying: “Typical of the second half of the 1990s was the growth in electronic commerce (e-commerce, e-business).” Suchánek (2012) and Machková, Černohlávková, Sato, Malý and Sedláček (2014), on the other hand, consistently distinguish between the terms e-commerce and e-business. In our study, we use the term e-commerce per the 2009 OECD defi nition (see above). 1.2 Classifi cation of e-Commerce E-commerce is classifi ed based on various criteria. The basic categories of classifi cation of the entities involved include business-tobusiness (B2B) and B2C. Interactions between consumers mediated by a third party fall under the consumer-to-consumer (C2C) category; however, direct interaction between consumers, e.g., on social media networks, without the use of a third party, are referred to as peer-to-peer (P2P). A category that grew in signifi cance later was consumer-to-business (C2B), in which the impetus comes from consumers who place their demand, for example, on the Internet. The number of e-commerce categories has increased with the inclusion of government institutions that provide their services to other entities online, which has given rise to the categories G2B, G2C, G2G, B2G, and C2G (Waghmare, 2012). The inclusion of employees has led to the creation of other categories, e.g., B2E (Turban et al., 2015) or E2E, formed by employees using a company network – intranet (Chaffey, 2015). According to OECD data, approximately 90% of the value of e-commerce comprises B2B transactions and 10% of those transactions are of the 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 Marketing and Trade C2C variety (OECD, 2013a, p. 4). Further classifi cation is, for example, based on the openness of the medium used (OECD, 1999b) or the degree of use of ICT (e.g., Suchánek, 2012; Tassabehji, 2003; Turban et al., 2015). From the geographical point of view, there is a distinction between local, national, crossborder (Gomez Herrera et al., 2014) and global e-commerce. 1.3 Development of B2C e-Commerce Since the mid-1990s, B2C e-commerce has seen rapid development. The signifi cant milestones in e-commerce include the launch of the fi rst e-shops in 1995 (Amazon, eBay), the so-called dotcom crash in 2000, and the huge increase in the sale of smartphones in 2013. For example, Schneider (2015) defi nes B2C e-commerce in context with the development of online business in the USA and views it as a long-term process divided into three stages. The fi rst stage was the period between 1995 and 2003; the second stage lasted between 2004 and 2009, and the third stage has been in progress since 2010. The milestones between the individual stages are represented by the beginning of the rapid development of e-shops in the USA in 1995, termination of the second wave of investments in e-commerce and e-business in the USA in 2003 following the dotcom crash, and the parallel appearance of new factors in 2010, which had a signifi cant impact on further development of B2C e-commerce. Similarly, Qin et al. (2014) characterize the development of e-commerce during the period from 1995 to 2000 as a Phase of e-commerce based on the Internet. During this phase, B2C e-commerce went through the germination stage (1995-1997) and the innovation stage (1997-2000). The period after 2000 is referred to by the authors as the stage of e-concept-based e-commerce, during which e-commerce experienced a crisis following the dotcom crash. In 2004, e-commerce entered its maturity stage, which has lasted to this day. Further, they claim that after 2004 e-commerce ceased to be a phenomenon confi ned to the USA and became a business model that has spread to an increasing number countries. In the most recent period, since 2010 (Schneider, 2015), several new e-commerce models have rapidly become widespread: mobile commerce (m-commerce), social commerce (s-commerce), and the electronic sale of mobile apps, following the “App Store” model. The massive increase in the number of users of the social network Facebook and its use for B2C e-commerce has given rise to the term f-commerce (Turban et al., 2015, p. 13). Social networks also represent a new phenomenon in e-commerce (Khan & Sagar, 2015). 2. Measuring B2C e-Commerce Starting in 1999, an OECD task force dealt intensively with questions of how to measure e-commerce. Their task was to suggest an internationally accepted defi nition of electronic commerce and a set of indicators for measuring and comparing internationally electronic commerce and its economic and social impacts (OECD, 1999a). The basis for identifying e-commerce indicators was the S-curve, representing three stages in the life cycle of e-commerce (e-commerce readiness, e-commerce intensity, and e-commerce impact) and its measurement priorities. A different type of information is given priority in each stage of the life cycle of e-commerce. Some research studies (e.g., Chaffey, 2015; Gomez Herrera et al., 2014; Ho et al., 2007; Kartiwi & MacGregor, 2007; Kshetri, 2007; Savrul et al., 2014; Sing et al., 2001; Spremic & Hlupic, 2007; Zhu et al., 2003) search for factors supporting the development of B2C e-commerce or, on the other hand, representing obstacles in its development, and thus contribute to the development of the methodology of measuring e-commerce. In this study, we focus on the second stage of B2C e-commerce, e-commerce intensity, which comes after e-commerce readiness, and is followed by the third stage, focused on the future, e-commerce impact. In the second stage, that is, e-commerce maturity, the intensity of the use of e-commerce is tracked, and the current question is: What effect does e-commerce have on the economy and society? (OECD, 1999a; OECD, 2011) 2.1 Measuring B2C e-Commerce Intensity The use of B2C e-commerce includes the intensity and growth of B2C e-commerce, the nature of transactions, the sellers’ activities, the consumers’ behaviour, and other aspects (see Tab. 1). Statistical tracking of the aspects listed EM_4_2017.indd 153EM_4_2017.indd 153 13.12.2017 12:53:5213.12.2017 12:53:52 154 2017, XX, 4 Marketing a obchod above makes it possible to identify sectors, industries, and whole economies that do or do not use the possibilities of B2C e-commerce. Individual indicators measure only selected aspects of B2C e-commerce. For a comprehensive assessment of B2C e-commerce, the not only the choice of individual indicators, but also their aggregation into an overall indicator, which can express a global view of B2C e-commerce based on the evaluation criteria, is important. The aggregate indicators of B2C e-commerce (referred to as indices in foreign sources) are relatively new. There are currently several B2C e-commerce indicators, each of which focuses on tracking B2C e-commerce from a different point of view, however, none of them indicates the intensity of B2C e-commerce and its use. Since 2012, the ATKearney consulting company has been publishing “The Global Retail E-commerce Index” (ATKearney, 2013), which expresses the attractiveness of economies for investments in B2C e-commerce on a 100-point scale. In 2014, The Economist Intelligence Unit published “The G20 e-Trade Readiness Index” (The Economist Intelligence Unit, 2014), which expresses the conditions for engagement in cross-border B2C e-commerce in G20 countries. It is evident that it does not comprehensively compare the use of e-commerce in the area that we are concerned. Since 2015, the “The UNCTAD B2C E-commerce Index” (UNCTAD, 2016) has been published, which compares economies based on four criteria: the share of individuals using the Internet, the number of secure Internet servers per 1 million people, the share of individuals with a credit card, and the postal reliability score. This index allows us to compare economies in terms of their readiness for B2C e-commerce and to identify their strengths and weaknesses in this area. Apart from the indices listed, there is also “The Readiness Index Forrester,” put forth by the Forrester Company (2016). This index assesses the conditions for the development of B2C e-commerce based on 25 indicators. It is available only for clients of Forrester, and information regarding its structure or values is not publicly accessible. 2.2 Issues with Measuring B2C e-Commerce Although B2C e-commerce has been around for more than 20 years, measuring and statistically tracking it is still problematic. In the early stage of its existence, B2C e-commerce was diffi cult to measure and the statistical data obtained wasn’t comparable, as there was neither a uniform defi nition of B2C e-commerce nor any methodology of how to measure it (cf. Hawk, 2004). Introducing an internationally acceptable defi nition of B2C e-commerce and development of a methodology to measure it have contributed to resolving the initial problems. However, the problem with the objectivity and accessibility of data on B2C e-commerce transactions provided by business entities continues to this day (mainly regarding revenues from online sales, the average value of an online purchase, the number of orders, the average value of an order, and others). However, the fewest problems concern the availability of data regarding the readiness of the economy for B2C e-commerce. Problems with measuring B2C e-commerce transactions are due to several factors, which include: a large number of companies engaged Indicators of B2C e-commerce intensity Selected data sources (data published with varying periodicity) Companies selling online. Individuals shopping online. Turnover of B2C e-commerce. Average value of an online order. Frequency of online shopping. Structure of goods and services sold online. Payment methods used. Ways of delivering products. The Czech Statistical Offi ce The Eurostat database Ecommerce Europe. Worldpay. Global payments report. Commercial and research organizations Domestic and cross-border online purchases, sales. The Czech Statistical Offi ce Eurostat database Source: own Tab. 1: Indicators of B2C e-commerce intensity and selected data sources EM_4_2017.indd 154EM_4_2017.indd 154 13.12.2017 12:53:5213.12.2017 12:53:52 155 4, XX, 2017 Marketing and Trade in B2C e-commerce; the fact that a number of companies engage in both electronic and traditional (brick-and-mortar) sales, yet their records do not make a distinction between the two sales methods; the tight competition in the fi eld of B2C e-commerce, which leads to the concealment or distortion of data; the dynamic development of ICT and the resulting new trends in B2C e-commerce; and lastly, the ongoing methodological issues with measuring B2C e-commerce. A large obstacle in measuring B2C e-commerce objectively is competition, which was mentioned by the OECD in the 1990s (OECD, 1997) as an obstacle in gaining business data for measuring B2C e-commerce, but it is mentioned by other professional sources as well. Gomez Herrera et al. (2014) point out that data on B2C e-commerce are generated mainly by private companies involved in online e-commerce; however, commercial interests stop them from publishing this data. Cardona et al. (2015) and similarly Duch-Brown and Martens (2015) point to the problem with statistical data on e-commerce in the EU. The problem with data availability also applies to the Czech economy (e.g., Hlavenka, 2011). Measuring B2C e-commerce is also affected by methodological problems, e.g., different procedures in data collection, in measuring cross-border B2C e-commerce, or in measuring B2C e-commerce in multinational corporations (OECD, 2015). Some of these problems can be eliminated by international standards for tracking and measuring B2C e-commerce. An example of such a standard is the Global Online Measurement Standard for E-commerce (GOMSEC), adhered to by the international association for B2C e-commerce, Ecommerce Europe, including its national associations, and other cooperating organizations (Ecommerce Europe, 2016). Among other things, GOMSEC has defi ned the categories of products and services included in B2C e-commerce (e.g., Media and entertainment, Fashion, Toys, Electronics, and others), and determined which items will be excluded from reports on B2C e-commerce (e.g., the sale of motor vehicles, real estate, stocks and bonds, and others). Since January 1, 2008, the Czech Statistical Offi ce has been using the NACE international classifi cation, which has considered technological development and structural changes in the economy, and made it possible to compare the statistical data from the Czech Republic with those of the EU as well as globally (Czech Statistical Offi ce, 2008). In recent years, data on the development of B2C e-commerce has also been published by Eurostat in connection with the goals of the Europe 2020 strategy. The OECD publishes statistical data for all e-commerce categories without the distinction of B2C e-commerce. Information on selected B2C e-commerce indicators, without an extensive time series, is published on a limited scale by various organizations (e.g., Ecommerce Foundation, Statista.com, Forrester, Boston Consulting Group), which provide the full versions of documents only to their members. In the Czech Republic, apart from the Czech Statistical Offi ce, e-commerce is monitored mainly by e-commerce consulting companies APEK and ACOMWARE. 3. Comparison of EU Member States in Terms of B2C e-Commerce Intensity The goal of this study is to propose a tool for assessing and comparing the intensity of B2C e-commerce in EU member states and, in relation to this, answer 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? 3.1 Method To assess and compare B2C e-commerce intensity in EU member states, method of multicriteria evaluation of alternatives, that fall into the category of multi-criteria decision analysis methods, was chosen. Methods of multi-criteria evaluation of alternatives allow the aggregation of partial evaluation based on selected criteria into an aggregate assessment, which considers all the assessment criteria. The multi-criteria evaluation of the alternatives used results in the compilation of an order of alternatives (EU member states) from “the best” to “the worst” alternative (Kunešová, 2016). Multi-criteria decision analysis is both an approach and a set of techniques, with the aim of providing an overall ordering of options, EM_4_2017.indd 155EM_4_2017.indd 155 13.12.2017 12:53:5213.12.2017 12:53:52 156 2017, XX, 4 Marketing a obchod from the most preferred to the least preferred option (Dinçer, 2011). Multi-criteria decision problems are characterized by a set of decision alternatives, a set of evaluation criteria, and a number of links between the criteria and the alternatives. The decision-maker inputs information on the alternatives and evaluation criteria, which helps to formulate the multicriteria model. Multi-criteria evaluation of alternatives makes it possible to assess a fi nite number of alternatives based on the fi nite number of criteria. The number of alternatives can range from several to thousands of alternatives. The alternatives are “screened, prioritized, selected and/or ranked” (Yoon & Hwang, 1995, p. 2). Crucial to the evaluation of alternatives is the choice of evaluation criteria, specifi cally, attributes according to which the alternatives are assessed. Yoon and Hwang (1995, p. 2) state that the number of evaluation criteria depends on the nature of the problem. The criteria must be independent, should cover all the evaluation attributes, should not be too many in number to avoid making the problem chaotic (Šubrt et al., 2015), and must be quantifi able. To resolve problems of multi-criteria evaluation of alternatives, it is important whether and how certain criteria are given preference. In the study, the preference of criteria is expressed by criteria weights. Generally, criteria weights are values in the interval 0, 1, which express the relative importance of individual criteria in comparison with others. The sum of all criteria weights is equal to 1. The greater the importance of a criterion, the bigger its weight. The relative importance of an individual criterion is expressed by the criteria weight vector (Fiala, 2013). This study uses the point method, which is based on the supposition that the decisionmaker is able, not only to determine the order of criteria based on their importance, but also quantify the importance of each criterion by a number of points on a pre-selected scale. This method is suitable even for evaluation by multiple experts (Šubrt et al., 2015). The assigning of points to criteria by a larger number of experts (e.g., through questionnaires) increases the level of objectivity in determining criteria weights. The calculation of criteria weights (the normalization of weight vector values) from the point evaluation was done using the following formula: (1) where bj is the sum of all points assigned by the individual experts to criterion j, and j = 1, 2, …., n. In our study we used the TOPSIS method (the Technique for Order of Preference by Similarity to Ideal Solution – TOPSIS), which was developed by Hwang and Yoon (1981) and represents methods based on the principle of minimization of the distance from the ideal solution and maximization of the distance from the negative-ideal solution. The TOPSIS method allows us to determine the order of all the alternative solutions. The required input data include cardinal information (the actual values of the alternatives based on individual criteria in different units) and individual criteria weights. The TOPSIS method evaluates the decision matrix which refers to p alternatives which are evaluated in terms of k criteria. The TOPSIS method consists of the following six steps (for example Dinçer, 2011; Fiala, 2013; Šubrt et al., 2015; Triantaphyllou et al., 1998). Step 1: Construct the normalized decision matrix This process tries to convert the various attribute dimensions into non-dimensional attributes. For the normalization of input values, the TOPSIS method uses an approach based on the Euclidean distance (formula 2). The element rij of the normalized decision matrix R can be calculated as follows: (2) where yij is the input value of the i alternative assessed by the j criterion; p is the number of alternatives, i = 1, 2, …. p, j = 1, 2, ….k. Step 2: Construct the weighted normalized decision matrix The weighted normalized criteria matrix W = (wij) is based on the normalized criteria matrix R = (rij) in such a way that each element rij of the R matrix is multiplied by the appropriate weight vj (formula 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 Marketing and Trade where vj is the weight of criterion j, and rij are the matrix elements of the normalized criteria matrix R. Step 3: Determine the ideal and the negativeideal solutions The elements of the matrix W determine the ideal solution Hj with criteria values (H1, H2, …., Hk) and the negative-ideal solution Dj with criteria values (D1, D2,…., Dk), given the values in the weighted criteria matrix W. The ideal solution delivers the best values based on each criterion; the negative-ideal solution delivers the worst values based on each criterion. Step 4: Calculate the separation distances of each alternative to the ideal solution and the negative-ideal solution (4) where is the separation (in the Euclidean sense) of each alternative from the ideal solution. (5) where is the separation (in the Euclidean sense) of each alternative from the non-ideal solution. Step 5: Calculate the relative distances of each alternative from the negative-ideal solution (6) where ci is the indicator of the relative distance of an alternative from the negative-ideal solution. Step 6: Rank the preference order Rank the alternatives, sorting them by the value of the indicator ci, in decreasing order. The best alternative is the one that has the longest distance from the negative-ideal solution. 3.2 Criteria for Evaluating B2C e-Commerce Intensity For the purpose of comparing EU member states in terms of B2C e-commerce intensity, two criteria were selected that relate to the engagement of consumers and sellers in B2C e-commerce, and one criterion that relate to commercial transactions within B2C e-commerce (relative size of the turnover of B2C e-commerce). Following research into the potential sources of data on the use of B2C e-commerce, the Eurostat database (2017) was chosen to provide statistical data for these criteria. Tab. 2 details the selected criteria, their quantifi cation in the form of a specifi c indicator, and the data source. The study uses the latest data from the sources listed. All the criteria in Tab. 2 are maximization criteria, i.e., the higher the value of the particular criterion, the better the result of the country in the area that is being evaluated. In connection with the above-mentioned criteria and selected method of multi-criteria evaluation of alternatives, the authors have suggested the following hypotheses: H1: There is a strong correlation between the order of EU member states in terms of B2C e-commerce intensity and their order in terms of their economic development. Criterion No. Criterion Quantifi cation of the criterion Data source 1Internet purchases by individuals The percentage of individuals (aged 16-74) who made last online purchase in the past 12 months, data obtained in 2016 Eurostat (2017) 2Enterprises selling via a website - B2C The share of enterprises that sold online on the B2C market in 2016 (% of enterprises excluding those in the fi nancial sector) Eurostat (2017) 3 Relative size of the enterprises‘ turnover from web sales - B2C The share of the turnover from web sales – B2C in the total turnover of enterprises in 2016 (in %) Eurostat (2017) Source: own Tab. 2: Criteria for evaluating B2C e-commerce intensity EM_4_2017.indd 157EM_4_2017.indd 157 13.12.2017 12:53:5213.12.2017 12:53:52 158 2017, XX, 4 Marketing a obchod Criterion No. 1 2 3 Type of criterion max. max. max. Period 2016 2016 2016 Alternative / unit % % % Austria 58 12 1 Belgium 57 17 3 Bulgaria 17 6 0 (n) Croatia 33 11 1 Cyprus 29 12 1 Czech Republic 47 17 2 Denmark 82 15 2 Estonia 56 12 2 Finland* 67 13 2 France 66 12 2 Germany 74 18 1 Greece 31 10 3 Hungary 39 11 1 Ireland 59 22 12 Italy* 29 7 0 (n) Latvia 44 7 1 Lithuania 33 15 2 Luxembourg** 78 8 3 Malta 48 18 1 Netherlands 74 14 3 Poland 42 8 1 Portugal 31 10 2 Romania 12 4 1 Slovakia 56 9 1 Slovenia 40 12 1 Spain 44 11 2 Sweden 76 15 3 United Kingdom 83 15 4 Source: Eurostat (2017) and authors’ own elaboration Note: (n) not signifi cant * For countries marked with an asterisk, data for criterion 3 for the year 2016 were not available and the last known data were used instead (Finland: 2015, Italy: 2014). ** In the case of Luxembourg, there were no data for criterion 3 available for any year (according to Eurostat, data for Luxembourg are confi dential). The missing value of criterion 3 for Luxembourg was set as the average of the values for criterion 3 of Belgium and the Netherlands (countries of the Benelux). Tab. 3: The decision matrix for evaluating B2C e-commerce intensity EM_4_2017.indd 158EM_4_2017.indd 158 13.12.2017 12:53:5213.12.2017 12:53:52 159 4, XX, 2017 Marketing and Trade H2: The highest B2C e-commerce intensity can be found in countries that have been members of the EU the longest. H3: The lowest B2C e-commerce intensity can be found in new EU member states with low economic development. The input data contained in Tab. 3 shows that none of the alternatives assessed are the best or worst in all criteria. Using the point method, a weight was assigned to each criterion, based on a questionnaire survey conducted among experts on B2C e-commerce. The criteria weights are calculated according to formula (1). The points assigned by the experts and the calculation of criteria weights are shown in Tab. 4. The experts include representatives of three Czech universities, who have been engaging with the topic of online marketing and e-commerce for a long term (fi ve years experience minimum), representatives of major companies, such as Google Czech Republic, ACOMWARE, MarketUP, and representatives of regional professional agencies that administer a number of e-shops, such as ANT Studio and ProSEO Media, and fi nally representatives of e-shop owners. These experts make up a representative sample for the purpose of determining the weights of selected B2C e-commerce criteria. The following text presents the output of the selected method of multi-criteria evaluation of alternatives that was applied to the selected evaluation criteria and their preference given by the criteria weights. All the calculations were performed in MS Excel. 4. The Order of EU Member States Determined by the TOPSIS Method The decision matrix for evaluating B2C e-commerce intensity (Tab. 3) was converted according to the formula (2) to a normalized criteria matrix (Tab. 5). Based on the normalized criteria matrix in Tab. 5 and the criteria weights (Tab. 4), the weighted criteria matrix was constructed according to the formula (3). Using its elements, the hypothetical negative-ideal solution Dj was determined with the criteria values (D1, D2, …, Dk) and the hypothetical ideal solution Hj with the criteria values (H1, H2, …, Hk) with respect to the values in the weighted criteria matrix. Using the formulas (4) and (5) for calculating the distance of individual alternatives from the ideal and negative-ideal solutions, the coeffi cient di + was determined, which expresses the distance of the alternative i from the ideal solution, and the coeffi cient di -, which expresses the distance of the alternative i from the negative-ideal Experts Criteria 123 Expert 1 988 Expert 2 585 Expert 3 786 Expert 4 10 7 10 Expert 5 769 Expert 6 1098 Expert 7 10 10 8 Expert 8 9510 Expert 9 433 Subtotal 71 64 67 Total No. of points assigned: 202 Criterion weight 0.351 0.317 0.332 Source: own Tab. 4: Determining criteria weights for evaluating B2C e-commerce intensity by the point method EM_4_2017.indd 159EM_4_2017.indd 159 13.12.2017 12:53:5313.12.2017 12:53:53 166 2017, XX, 4 Marketing a obchod Qin, Z., Chang, Y., Li, S., & Li, F. (2014). E-commerce strategy. Berlin, Germany: Springer. Schneider, G. P. (2015). Electronic Commerce (11th ed.). Stamford, CT: CENGAGE Learning. 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University of West Bohemia Faculty of Economics Department of Marketing, Trade and Services [email protected] EM_4_2017.indd 166EM_4_2017.indd 166 13.12.2017 12:53:5413.12.2017 12:53:54 167 4, XX, 2017 Marketing and Trade Abstract EVALUATION AND COMPARISON OF B2C E-COMMERCE INTENSITY IN EU MEMBER STATES Hana Kunešová, Ludvík Eger Electronic commerce in the business-to-consumer sphere (B2C e-commerce) represents a signifi cant 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 signifi cant 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 suffi ciently 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 benefi cial 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 signifi cantly exceeds that of the aforementioned countries. Key Words: B2C e-commerce, e-commerce intensity index, European Union, multi-criteria decision analysis, TOPSIS. JEL Classifi cation: L81, M21, C44. DOI: 10.15240/tul/001/2017-4-011 EM_4_2017.indd 167EM_4_2017.indd 167 13.12.2017 12:53:5413.12.2017 12:53:54