Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P110 pps

1024
Open Source LMS for Management and E-Business Applications
and education, the greatest challenge lies in the
fact that a greater part of the adult population
does not have adequate knowledge and skills in
computer software applications or hardware in
order to explore their use in everyday activities
or at their workplaces. It is therefore expected
t hat by en rol li ng i n t he pr ogr a ms at A IT I -K ACE,
a participant1 can either be employable or have
skills to venture out into self-employment. AITI
-KACE targets adults—at least those who have
completed high school.
DESCRIPTION OF E-BUSINESS
APPLICATIONS
The main technology used by AITI-KACE to
deliver instruction and learning materials, and
promote e-business solutions is an open-source
learning-management systems (LMS). Free and
open-source software (F/OSS) is software with
an unrestrictive license whose source code is
PDGHDYDLODEOHIRUPRGL¿FDWLRQFXVWRPL]DWLRQ
and distribution by others. Martin Dougiamas
(n.d.) began the development of the Moodle LMS
in the 1990s. However, it was not until August
20, 2002, that version 1.0 was released. Moodle
assists in the planning, delivery, and manage-
ment of e-learning, and is aimed at remedying
the fragmented nature of e-learning by creating
an integrative system.
LMSs were developed to enable instructors not

o n l y t o d e l i v e r m a t e r i a l s i n a n o n l i n e e n v i r o n m e n t ,
but also to track user activities and progress across
various learning activities (Barron, 2002). LMSs
are characterized by the following customizable
elements: a course-development component that
enables an instructor to develop a course, a roster
component that enables the instructor to enroll
users in a course, the assignment-management
component that enables the instructor to assign
lessons and activities for the users, the courseware-
launching component that provides the interface
for users to have access to course content and
activities, and the data-collection component
that enables the instructor to collect and manage
information, as shown in Figure 1.
The F/OSS that have been operational at AITI-
KACE are Open USS, Eledge, and Moodle. Open
USS is an open-source administration system
aimed at institutes of higher learning. Eledge is
a learning- and course-management system de-
veloped by the University of Utah. AITI-KACE
has since discontinued the use of Eledge, but has
combined the examination section of Open USS
with Moodle as the main system for delivering and
managing its online program. The AITI-KACE
e-learning-management system is a virtual cam-
pus with instructional material on e-technology
applications in business such as those required
for diplomas in advanced computing (DACs),
business computing, Web technologies, and Mi-

FURVRIW 1HWWHFKQRORJLHVDQG FHUWL¿FDWHVLQ&
programming, Web programming, and database
technologies.
The installation of Moodle requires three other
open-source software: Easy PHP, Apache, and
MySQL. Easy PHP is a software application writ-
ten in the dynamic PHP language that combines
an Apache Web server and a MySQL database to
FUHDWHÀH[LEOH:HEGHYHORSPHQWWRROV$SDFKHLV
an open-source Web server. Web servers use the
h y p e r t e x t t r a n s f e r p r o t o c o l ( h t t p) t o e n a b l e a c o m -
puter user to connect to the Internet. MySQL is an
open-source database that organizes information
through tables, and enables interactions between
the user and the Web through the creation of dy-
namic Web pages. The system was implemented by
WKH$,7,.$&(PDQDJHPHQWWRHQVXUHHI¿FLHQF\
and the effective delivery of the services at the
center. It was aimed at providing an alternative
DQGÀH[LEOHDSSURDFKWRWKHGHYHORSPHQWRI,&7
skills of the participants enrolled at the center.
It also serves as a practical demonstration of the
use of ICT in the management and delivery of
services in business.
Moodle is a learner-centered application
grounded in the social constructionist pedagogy
1025
Open Source LMS for Management and E-Business Applications
(Dougiamas, n.d.). Social constructionists assume
that knowledge is acquired through interaction

with an environment. Learners acquire knowledge
through active construction and discovery, and
by explaining their understanding of concepts to
others. Learner-oriented LMSs such as Moodle are
suitable for the adult learner because it facilitates
WKHGHVLJQDQGGHOLYHU\RIFXVWRP¿WPDWHULDOV
Adult learners are considered to be motivated
E\WKHLUSHUFHLYHGEHQH¿WRIDOHDUQLQJH[HUFLVH
especially if it may have a positive impact on their
profession (Holton & Swanson, 1998). In this
regard, the use of Moodle offers AITI-KACE an
opportunity for self-directed learning, consistent
with Campbell’s (2000) notion of an education
environment where learners take responsibility
IRUWKHLURZQOHDUQLQJLQDÀH[LEOHLQVWUXFWLRQDO
environment that allows for the designing and
use of nonlinear instructional material suitable
for adults. Such an environment provides the op-
portunity for adult learners to apply previously
gained knowledge and experience, and to also
relate their future goals to the learning process.
IMPACT OF E-TECHNOLOGY
APPLICATIONS
AITI-KACE is a novelty and is in principle an
initiative long over due. It has created more
awareness about the value of e-technologies in
the development of the economy of a nation like
Ghana. The center is involved in the develop-
PHQW RI H[SHUWLVH LQ WKH ¿HOG RI ,&7 7KH XVH
of Moodle in the facilitation and promotion of

ICT applications in business at AITI-KACE is a
pioneering effort in the teaching of ICT in Ghana
that combines traditional teaching and learning
methods with the online delivery of teaching and
learning materials.
The Moodle LMS is used to provide an online
version of all instructional and learning material
us e d a t A I T I - K AC E . I t p r o v i d es a n o n l i n e t e a c h i n g
and learning environment alternative to the daily
on-site teaching activities at the center. It provides
students access to learning and instructional
materials on demand and at their convenience.
According to the Moodle administrator at AITI-
Figure 1. The basic setup of the Moodle LMS
1026
Open Source LMS for Management and E-Business Applications
.$&(LWLVDPRUHÀH[LEOHDSSURDFKWRWKHGHOLYHU\
of services compared to on-site delivery. From
the perspective of the system administrator, the
on-site delivery of services has spatial limitation
in terms of where, when, and how students can
access, use, and submit materials.
The center’s e-applications administrator has
FRQ¿JXUHG0RRGOHVXFKWKDWDOORI$,7,.$&(¶V
12 lecturers have automatic accounts based on the
courses they teach. Each course has a maximum
class size of 25 participants. At the moment, the
center, which started in 2003, has 145 students (F.
Ankamah, personal communication, February 4,
2005) and has turned out 635 graduates (Ghana

News Agency, 2005).
Administratively, the use of Moodle is con-
sidered a success because it is cost effective (the
Moodle LMS software is free, and all the setup and
content management are done at the center) and
works well for the center. The greatest challenge in
running the Moodle application at the center lies
with its use by the lecturers and participants of the
center. Currently, 21% of participants and 8% of
lecturers use the Moodle LMS. According to the
system administrator, the percentage of usage is
attributable to the Ghanaian learning culture, to
which the Internet-based delivery of educational
instructions and the performance of learning ac-
tivities are new. The participants, especially, are
not familiar with online virtual campuses, and
would rather prefer traditional on-site teaching
and learning activities, and hard-copy delivery
and submission of learning materials.
To ensure that the Moodle LMS e-application
does not fail, the AITI-KACE administration ad-
opted and implemented an e-documentation policy
by declaring the center’s learning environment
paperless. However, there are drawbacks in the
implementation of the paperless e-documentation
policy for the following reasons. First, it has been
observed that even though participants appreciate
the online delivery and submission of instruction
and learning material, most of them do not have
access to the Internet at home. Second, not all of

the lecturers have used the Moodle LMS as an
alternative to the delivery of instructional and
learning materials to the center’s participants,
and that is a major concern. Finally, building up
a team to manage the Moodle LMS has been a
challenge.
The center had a system administration team
of three, which has now been reduced to one be-
cause the other two who trained on the job quit
their positions. The current team of one is fully
stretched with regard to the maintenance and
further development of the system; this is quite a
challenge. The Moodle LMS is a stand-alone Web
application at the center, and the administrator is
working toward integrating it with its post-nuke-
based Web site. The other challenges are how to
improve participant access and lecturers’ usage of
Moodle as an alternative medium for delivering
their work (E. Ofori, personal communication,
February 4, 2005).
The center estimates that about 80% of its
graduates are able to apply their acquired skills at
their jobs or start-up businesses. The majority of
the center’s participants enroll with sponsorships
from their employers. The center does not know
what the remaining 20% do with the skills they
acquired after their respective programs. Tracking
DQGNQRZLQJZKDWWKLVVLJQL¿FDQWPLQRULW\GRHV
with its skills is another challenge.
CONCLUSION

The establishment of the Moodle LMS at AITI-
KACE offers alternative, electronic means for
delivering learning and instructional material at
an information and communications technology
innovation center. The use of the Moodle LMS
is considered successful because it allowed the
administrators of the center to adopt and imple-
ment a paperless learning environment while
promoting e-business application in Ghana. The
center’s activities for which the Moodle LMS was
used to implement support the principles of social
1027
Open Source LMS for Management and E-Business Applications
constructionist pedagogy, which is favorable to
adult learning.
The use of the Moodle LMS at AITI-KACE
LQGLFDWHV¿UVWWKDW)266KDYHWKHSRWHQWLDOWR
support the integration of e-technologies in insti-
tutions and in regions like Africa as suggested by
Castells and Ince (2003). Particularly, the use of
business models based on open-source software
has been very successful in developing countries
(Weerawarana & Weenatunga, 2004), and AITI-
KACE is on the right track. Second, the use of
the Moodle LMS by the lecturers and participants
illustrates that the deployment of e-applications for
the delivery of services in an institution requires
WDNLQJLQWRFRQVLGHUDWLRQWKHFXOWXUDOLQÀXHQFHV
on the users. Third, the delivery of e-business
services requires that end-user access to the In-

ternet in their homes or off campus is essential,
especially when the service is Web based.
Twenty percent of the graduates of AITI-KACE
are not known to have either taken up employment
or set up new businesses. This calls for a tracking
system and an evaluation of the mechanism used
in accessing the needs of participants when they
enroll at the center. The center should seek ways
to improve its mechanism for identifying and
tracking the needs of participants after they have
completed. This will enable it to cater to those
needs that are not easily discernable, and assess the
full impact of the activities of the center. Perhaps
an approach to supplement existing procedures
is to expose participants to developed prototypes
of information and communications technology
DSSOLFDWLRQVDVD¿UVWVWHSWRZDUGGHYHORSLQJWKHLU
own models for implementation.
7KHFHQWHUVKRXOGFRQVLGHUKDYLQJDQRI¿FHRU
setup for innovations in teaching and learning that
will explore other electronic means of packaging
their electronic materials. For instance, the center
FRXOGSDFNDJHWKHLUPDWHULDOVLQWRSRUWDEOH¿OHV
on compact discs or other downloadable forms to
be used by participants who do not have personal
Internet access in their homes. Finally, the center
should consider making its business incubation
component more prominent.
REFERENCES
Azad, A., Erdem, A., & Saleem, N. (1999). A

framework for realizing the potential of informa-
tion technology in developing countries. Interna-
tional Journal of Commerce and Management,
8(2), 121-133.
Barron, T. (2002). Evolving business models in
e-learning. Menlo Park, CA: SRI Consulting
Business Intelligence.
Campbell, J. A. (2000). Using Internet technology
WRVXSSRUWÀH[LEOHOHDUQLQJLQEXVLQHVVHGXFD-
tion. Information Technology and Management,
1, 351-362.
Castells, M., & Ince, M. (2003). Conversations with
Manuel Castells. Oxford, UK: Polity Press.
Dougiamas, M. (n.d.). Moodle documentation.
Retrieved January 10, 2005, from http://www.
moodle.org
*KDQD1HZV$JHQF\.R¿$QQDQ&HQWUH
train over 600 in ICT. Retrieved February 7, 2005,
from />Morrison, D. (2003). E-learning strategies: How
W RJ HW L PSO HP HQ W DW LR QD Q GG HO LYH U \ U LJ KW ¿ U V W W L P H 
John Wiley & Sons.
NHDP. (2003). Information and communication
technologies (ICTs) for development. National
Human Development Reports.
3HUHQV %  7KH RSHQ VRXUFH GH¿QLWLRQ
Retrieved February 6, 2005, from http://www.
opensource.org/
Robey, D., Boudreau, M., & Rose, G. M. (2000).
Information technology and organizational
learning: A review and assessment of research.

1028
Open Source LMS for Management and E-Business Applications
Accounting, Management & Information Tech-
nology, 10, 125-155.
Weerawarana, S., & Weeratunga, J. (2004). Open
s o u r c e i n d e v el o pi n g c o u n t r i e s . D e p a r t m e n t o f I n -
frastructure and Economic Cooperation: Sida.
KEY TERMS
Apache: An open-source Web server. Web
servers use http to enable a computer user to
connect to the Internet.
Easy PHP: Software application written in
the dynamic PHP language that combines an
Apache Web server and a MySQL database to
FUHDWHÀH[LEOH:HEGHYHORSPHQWWRROV
E-Business Models: Strategies that en-
able businesses to take advantage of the latest
WHFKQRORJLHVWRJHQHUDWHSUR¿WVDQGFXVWRPHU
satisfaction.
E-Innovations: Innovations encouraging
users of new communications technologies to
develop dependable and viable business plans
or systems that can be used for an economic
(business) or social (health care, education, etc.)
enterprise.
E-Learning: Effective and continuous learn-
ing process that occurs through the delivery of
interactive multimedia educational materials that
have no spatial limitation.
E-Models: The designing of prototypes of

electronic businesses or systems that illustrate
how digital technology can be used in any en-
terprise.
F/OSS: Software with an unrestrictive license
ZKRVHVRXUFHFRGHLVPDGHDYDLODEOHIRUPRGL¿FD-
tion, customization, and distribution by others.
MySQL: Open-source database that organizes
information through tables and enables interac-
tions between the user and the Web through the
creation of dynamic Web pages.
Virtual Campus or Learning-Management
System: Web-based, customizable e-learning
environment that integrates a variety of educa-
tional tools with interfaces to accommodate the
technology competencies of the user and his or
her learning needs.
ENDNOTE
1
The center refers to those enrolled in its programs
as participants and not students.
This work was previously published in Encyclopedia of E-Commerce, E-Government, and Mobile Commerce, edited by M.
Khosrow-Pour, pp. 890-894, copyright 2006 by Information Science Reference (an imprint of IGI Global).
1029
Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited.
Chapter 4.4
Measurements in E-Business
Damon Aiken
Eastern Washington University, USA
ABSTRACT
This chapter is designed to answer two funda-

mental questions related to research on electronic
surveys and measures. First, what are some of the
PDMRUPHDVXUHVVSHFL¿FDOO\UHODWHGWR e-business?
Second, what makes Internet research methods
different from off-line research methods? The
chapter partly delineates what makes Internet
research methods distinctive through its discus-
sion and separation of the most common measures.
This separation not only provides the framework
for the chapter, but it distinguishes research for
understanding the evolving e-consumer from
measures related to the new paradigm for e-busi-
ness strategy. In total, 17 different measures are
discussed. The chapter concludes with a discus-
sion of emerging issues in e-business metrics,
and possibilities for future research.
INTRODUCTION
The Internet has emerged as the very foundation
for business communications worldwide. Indeed,
in the instant that it takes to read these words,
millions of people are shopping on the Internet,
checking the status of orders and shipments,
investigating stock prices and mortgage rates,
and browsing and bidding in a new realm of on-
line auctions. The Internet has transformed the
physical marketplace into a virtual marketspace
(Varadarajan & Yadav, 2002); it has created a shift
from reasonably well-informed buyers to worldly
Web-enabled e-consumers (Bakos, 1997); and, it
has accelerated business into an information age

wherein issues of technological expertise, privacy,
security, and control are now essential aspects
of business (Glazer, 1991; Hoffman, Novak, &
Peralta, 1999).
Marketing practitioners, strategists, and re-
searchers cannot deny the critical changes that
have occurred in the realm of global business
communications. Most have come to realize that
online retailing is distinctive and that it requires
a great deal of new research. Interactive com-
munications and transactions now occur together
in a single virtual medium that has increased
risks for online consumers, and has placed a
heavy communications burden on sellers whose
Web site effectiveness is affected by a multitude
of design characteristics (Geissler, Zinkhan, &
1030
Measurements in E-Business
Watson, 2001). Internet consumers are placed
in a unique inference-making position in which
information asymmetry abounds. The task at
hand now, for researchers and practitioners alike,
is to accurately measure, analyze, and interpret
online behaviors.
The purpose of this chapter is to introduce the
topic of e-business measurement, and delineate
some of what makes Internet research methods
different from off-line research methods. The
chapter separates measures for understanding
the evolving e-consumer from measures related

to the new paradigm for e-business strategy (a
separation derived from the work of Biswas and
Krishnan, 2004). The measures discussed in this
chapter are graphically displayed in Table 1. The
chapter concludes with a discussion of emerging
issues in e-business metrics, and possibilities for
future research.
Internet technologies are like an arms race in
which both sides develop increasingly powerful
weapons. (Bakos, 1998, p. 41)
MEASUREMENTS FOR
UNDERSTANDING E-CONSUMERS
8QGHUVWDQGLQJKRZWKH,QWHUQHWKDVLQÀXHQFHG
consumer psychology is a critical task for business
people. Speaking of the transformative nature of
the Internet, it appears that businesses and con-
VXPHUVDOLNHDUHQRZ³DUPHG´ZLWKSUHYLRXVO\
unthinkable advances in information acquisition,
FODVVL¿FDWLRQHYDOXDWLRQDQGVWRUDJH,QWKH
unusual context of the Internet, key traditional
elements of business exchange are noticeably
absent, such as personal, nonverbal cues, and
physical contact with products (Keen, Wetzels, de
Ruyter, & Feinberg, 2004). In an effort to under-
stand the Internet consumer, business research-
ers have begun to study notions of online trust,
privacy, issues of control of personal information,
F R J Q LW LYHHI IRU WD QGL Q IRU PD WLR QVH DU FK DQ GÀRZ
Many of these issues are interrelated and, given
that we are still in the early stages of Internet

research, the topics need further exploration and
insightful analysis.
Online trust. Internet marketing researchers
have reported that, regardless of the number of
SULYDF\SROLFLHVRU³KLJKWHFK´HQFU\SWLRQV\V-
WHPVZKDW:HEFRQVXPHUVUHDOO\ZDQWLV³«
another type of exchange—characterized by an
explicit social contract executed in the context of
a cooperative relationship built on trust” (Hoff-
PDQ HWDOS7KLV¿QGLQJ LV ERWK D
recognition of the uniqueness of the Internet as a
computer-mediated business environment, and an
allusion towards the critical importance of trust in
any Internet relationship. A consumer wishing to
shop or purchase over the Internet needs to trust
the e-tailer, but also needs to trust the Internet
itself as a mode of shopping.
A small but growing subset of the business
DQGPDUNHWLQJOLWHUDWXUHKDVDWWHPSWHGWRGH¿QH
and measure the concept of trust in a computer-
mediated environment (CME) (Handy, 1995;
Hine & Eve, 1998; Jarvenpaa & Tractinsky, 1999;
0F.QLJKW&KHUYDQ\1HZGH¿QLWLRQVRI
Table 1. Summary of measures in e-business
Measurements for
understanding e-consumers
Measurements for
e-business strategy
Online trust Exposures
Privacy Impressions

Control of information Hits
Cognitive effort Visits
Information search Clicks
Flow Path analysis
Conversion
Frequency
Recency
Average time per visit
Stickiness
1031
Measurements in E-Business
WUXVWLQWKH&0(UHÀHFWSDUWLFXODUFRQFHUQVDERXW
risk, reliability, privacy, and control of informa-
tion. Milne and Boza (1999) operationalize trust
LQWHUPVRIDQDIIHFWLYHSULYDF\HOHPHQWDV³WKH
expectancy of a customer to rely upon database
marketers to treat the consumer’s personal infor-
mation fairly” (p. 8). Through unique processes
of interactive communication, consumers must
achieve a level of trust that surpasses perceptions
of personal vulnerability (Aiken, Liu, Mackoy,
& Osland, 2004). Inasmuch as trust requires a
cognitive and affective leap of faith (a movement
beyond calculative prediction—see Williamson,
1993), trust in the Internet implies, to some extent,
behaviorally overcoming a concern for privacy.
To take action in the face of risk is to engage in
trusting behavior. Thus, much of the research
on trust seems to derive three primary dimen-
sions: (1) the affective/emotional element, (2) the

cognitive/rational element, and (3) the behavioral
element.
Privacy. Recent research reveals that concern
for privacy is the most important consumer issue
facing the Internet, ahead of ease-of-use, spam,
security, and cost (Benassi, 1999). In the off-line
world, consumers think nothing of giving their
phone numbers or home addresses to seemingly
disinterested servers, cashiers, and sales clerks.
However, Internet consumers worry about every-
thing from excessive spam e-mails and intrusive
FRRNLH¿OHVWRFRVWO\FUHGLWFDUGIUDXGDQGSHULO-
ous identity theft.
Measuring perceptions of privacy, as well as
the e-consumer’s felt need for privacy, is a critical
issue in e-business. Researchers have observed
that privacy is a multidimensional concept, and
plays a critical role in fear of purchasing online
(Hine & Eve, 1998; Sheehan & Hoy, 2000). Much
of the concern for privacy may stem from fear
of the unknown (Hoffman et al., 1999). Online
consumers often cite feelings of helplessness while
shopping on the Internet (Hine & Eve, 1998).
Control of personal information. Issues of
control further substantiate the unique nature of
Internet business relationships. Degrees of interac-
tivity between consumer and e-business become a
FRPPXQLFDWLYH³WXJRIZDU´DVFRQVXPHUVVWULYH
for varied levels of control just as businesses
strive to gather more and more strategic informa-

tion (Yadav & Varadarajan, 2005). User control
over personal information, over the actions of a
Web vendor, and over the Internet site itself all
relate to issues of trust. Additionally, control over
the actions of a Web vendor affects consumers’
perceptions of privacy and security of the online
environment (Bhatnagar & Ghose, 2004; Hoffman
et al., 1999). Consumers often guard their personal
information carefully. Hoffman and Novak (1998)
QRWHWKDW³9LUWXDOO\DOO:HEXVHUVKDYHGHFOLQHG
to provide personal information to Web sites at
some point, and close to half who have provided
data have gone to the trouble of falsifying it” (p.
1). Consequently, perceptions and levels of control
become key measures in e-business.
Cognitive effort and information search.
Many researchers have noted that decision mak-
ing is both task dependent (Bettman, Johnson,
& Payne, 1990; Maule & Edland, 1997) and con-
text dependent (Bettman, Luce, & Payne, 1998;
Wright, 1974). Given that both the decision task
and the decision context are different in a CME;
new research has just begun to measure cognitive
effort, search characteristics, and decision-making
processes. Weiner et al. (Weiner, Deighton, Gupta,
Johnson, Mellers, Morwitz, & O’Guinn,1997)
QRWH³7KHDELOLW\RI>,QWHUQHW@FRQVXPHUVWR
sort on attributes and make reasoned decisions
at home about which brands to choose … has
the potential to change decision processes and

ultimately brand choice” (p. 291). These authors
also reason that customization, searching, and
sorting will drastically change decision mak-
ing on the Internet. Within a decision context,
cognitive effort relates to the mental resources
required, as well as to the individual resources
available. Cognitive effort can be thought of as
information load that deals with how cognitive
processes handle incoming stimuli (information),
1032
Measurements in E-Business
matching the cognitive resources required with
the cognitive resources available. The experience,
skill, and amount of resources a decision maker
has are negatively correlated with the cognitive
effort required in the decision task (Bakos 1997;
Garbarino & Edell, 1997).
Cognitive effort, within the context of Internet
decision making, can be seen from two perspec-
tives. First, it seems logical that cognitive effort
could be reduced within the CME. Certainly,
consumer search costs have been drastically low-
ered with the assistance of the Internet (Bakos,
1997). This premise allows price and product
information to be readily gathered, analyzed,
and compared. Furthermore, one could argue
that there is less noise when shopping on the Web
c o mp a r e d t o sh o pp i n g i n a c r owd e d , i n fo r m a t i o n -
packed retail outlet. Additionally, people can gain
experience and skill in utilizing the Internet as a

shopping tool. As experience and skill grow, less
cognitive effort may be required to gather, sort,
and analyze attributes of a choice set. However,
a second perspective yields precisely the oppo-
site conclusions: that, as a rule, cognitive effort
is persistently increased for Internet decision
makers. It seems reasonable that users are re-
quired, by necessity of the medium, to hold more
information in working memory. More cognitive
UHVRXUFHVDUHQHHGHGWR³VXUI´IURP:HESDJH
to Web page, recording, analyzing, and main-
taining information in memory. Further, given
the wealth of information available on the Web
and the relative ease of searching for additional
facts and advice, one could summarily argue that
increases in cognitive effort are the norm. The
sheer volume of Web advertising is a critical noise
factor that would seem to rival the distractions of
any retail environment. Internet consumers’ may
routinely have their decision processes clouded
by information overload. Future research should
strive to resolve this issue.
Flow. Flow is not only useful in describing
general human-computer interactions (Csikszent-
mihalyi, 1990), it is also an important construct
in the study of Internet navigations. Hoffman and
1RYDNKDYHDVFULEHGWKHÀRZH[SHULHQFH
to Web behavior, measuring the loss of self-con-
sciousness in an essentially blissful encounter.
In this situation, ÀRZFDQEHGH¿QHGDVWKHVWDWH

occurring during Web navigations character-
ized by (1) a seamless sequence of responses
facilitated by interactivity, (2) an intrinsically
enjoyable experience, (3) accompanied by a loss
of self-consciousness that is (4) self-reinforcing
(Novak,Hoffman, & Yung, 2000). Of course,
ÀRZLVQRWRQO\DGLI¿FXOWFRQFHSWWRLGHQWLI\LW
LVDOVRDGLI¿FXOWFRQFHSWWRPHDVXUH(EXVLQHVV
researchers have just begun to study the effects of
consumers entering (and Web sites facilitating) the
ÀRZH[SHULHQFH5LFKDUG&KDQGUD
Just as human experiences are evolving because of
WKH,QWHUQHW¶VLQÀXHQFHVRWRRDUHWKHSRVVLELOLWLHV
and methods of commerce evolving .(Parasuraman
& Zinkhan, 2002, p. 294)
MEASUREMENTS FOR
E-BUSINESS STRATEGY
The evolution of business and communications
has transpired at lightning speed. The Internet
has made the collection of data faster, easier,
and less costly than ever before in the history
of business. Consequently, a new paradigm
is emerging in terms of e-business research
strategy (see Hoffman & Novak, 1997) wherein
the challenge is no longer in the painstaking
meticulousness of data collection, but rather it
HPHUJHV DV UHVHDUFKHUV VWULYH WR ³PLQH´ WUXO\
meaningful information, insights, and predictions
IURP¿JXUDWLYH³PRXQWDLQV´RIGDWD2YHUWKH
last decade, e-business researchers have made

valiant attempts to measure consumer actions in
an effort to more strategically communicate with
DQGLQÀXHQFH,QWHUQHWFRQVXPHUV6WXGLHVKDYH
measured primary actions (i.e., initial exposures,
impressions, hits, and visits), secondary actions
1033
Measurements in E-Business
(i.e., what happens next in terms of clicks and path
analyses), transforming actions (i.e., consumer
FRQYHUVLRQVDQG³LQYROYLQJ´DFWLRQVLH:HE
s i t e s t i c k i n e s s). Me a s u r e s o f a l l t y p e s o f c o n s u m e r
actions directly relate to strategic changes in site
design as well as alterations to multiple elements
of the marketing mix.
Exposures, impressions, hits, and visits. A
wealth of strategic measures evaluate e-con-
sumers’ primary actions including exposures,
impressions, hits, and visits. The simple essence
of measuring exposures entails measuring fre-
TXHQF\FRXQWVRI:HEWUDI¿FE\SDJH7KLVLVDQ
important matter for advertisers as they convert
fees into cost per thousand (CPM), and partially
evaluate advertising according to the number
of people exposed. Page impressions deal with
counting the number of Web pages requested
by users’ browsers (Bhat, Bevans, & Sengupta,
2002). Hits are essentially similar measures of
user actions. Finally, put plainly, visits count the
number of user-sessions at a Web site. This is an
important measure because businesses can track

trends, charge advertisers accordingly, modify
their sites and servers, and so forth.
Clicks and path analysis. A second set of
measures attempts to interpret the paths of Web
consumers. Researchers note that the sheer num-
ber of clicks may be important as to time spent on
a Web site, the length of time a user is exposed to
an ad, and the overall level of interest expressed
in average time per visit. Researchers have mea-
sured click-throughs and click-through rates for
some time. Essentially, this is when a potential
e-consumer clicks on an advertisement and is
taken, via hyperlink, to another online location
(i.e., another Web site, another e-tailer, etc.). Path
analysis provides strategic insight into the popu-
ODULW\RIYDULRXVSDJHVWKHHDVHRUGLI¿FXOW\RI
navigating a site, and general navigational trends.
Often, this type of data is labeled click-stream
data as it measures the series of links that a user
goes through when steering through the Web
(Rayport & Jaworski, 2002)
Conversion. A third topic of strategic measures
relates to tracking conversion rates. Conversion
basically implies the completion of some action
by an e-consumer (Rayport & Jaworski, 2002).
For example, conversion events include complet-
ing a membership form, requesting a newsletter,
opting in to receive future e-mails and updates,
¿OOLQJRXWRQOLQHIRUPVDQGVRIRUWK$FRQYHUVLRQ
rate measures the number of visitors who come

to a Web site and take action relative to the total
number of visitors to the site (Bhat et al., 2002).
Conversion rates are of strategic importance
because of their abilities to bring the customer
closer to the business, converting and escalating
a new and heightened level of involvement and
perhaps loyalty.
Stickiness.$¿QDOWRSLFRIVWUDWHJLF,QWHUQHW
business measures is that of Web site stickiness.
Web site stickiness relates the notion of user in-
volvement to an evaluation of how attractive and
memorable a site is (Gladwell, 2000). Stickiness
can also be evaluated according to the frequency
of site visits, the recency between visits, and the
average time per visit (Bhat et al., 2002). The at-
tractiveness of this metric is that it makes a good
deal of intuitive sense, and that it encompasses
multidimensional aspects of a site experience.
However, there may be a misconception in simply
evaluating length of time on the site as a mea-
sure of stickiness. In this case, researchers may
be mislabeling time as stickiness, as opposed to
patience spent searching through a complex and
perhaps frustrating Web site.
Thus, operationaliztions, or measures, are the
means by which we attempt to capture a moon-
beam and hold it in our hands. (Straub, Hoffman,
:HEHU6WHLQ¿HOGS