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This paper presents an analysis of how the business models of organizations are getting transformed in the Marketspace created by the Internet. We use a research model comprising the transformation scores of four Ps(Product, Price, Promotion, and Place) as dependent variables and three dimensions, D...

This paper presents an analysis of how the business models of organizations are getting transformed in the Marketspace created by the Internet. We use a research model comprising the transformation scores of four Ps(Product, Price, Promotion, and Place) as dependent variables and three dimensions, Demographics, Technology, and Community elements on the Websites, as explaining variables about the Cyber Transformation of the 4Ps. While most existing literatures have focused on Website's technology, our research model includes 22 five-point-scale items; 10 Demographics /Technology items and 12 Community items. To measure the 4P's transformation scores, the authors selected 14 workable items from the Marketspace Model by Dutta, Kwan, & Segev(1997). A sample of 123 shopping mall Websites comprising three categories(grocery, jewelry/accessory, and cosmetics) from the 100hot.co.kr list are evaluated and the data is analyzed by SPSSWIN 8.0 version. The result shows that there are five significant factors, Technology, Interaction, Connectedness, Business Features, and Domain, while the average transformation scores of 4Ps are at very low level. The factor scores are used in regression analysis for each P. Two factors, Technology and Interaction are influencing all four Ps; Connectedness is influencing only two, Product and Place. Organizations must not simply take their existing business models. They have to adopt the Technology items(navigation, logo, e-mail, guide, graphics) and to facilitate the Interaction items(consulting, number/quality of bulletin boards, participation, offline events) and Connectedness(club activation, contents, partner/site link, entertainment contents) in order to get transformed in the Marketspace successfully in the near future.

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