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Journal of Information Technology Theory and Application (JITTA)

Abstract

The main objective of this paper is to investigate the customer value of the Internet business. Internet business can be viewed as a new way of value creation and provision. Internet business makes it possible for firms to create and provide higher or new values for a range of customers wider in scope than in conventional business. For this reason, customer value plays an important role in the success of the Internet business. A new framework is developed to analyze and evaluate customer value in the Internet business. The framework is comprised of value components and value improvement directions. Customer value can be created and/or enhanced by changing two components: the “content” and “context”. The value improvements of both can be achieved by quality enhancement, cost reduction, and customization. Measurements to assess customer value are derived from this framework. We also further propose the exploratory alternatives for creating or enhancing customer value in the Internet business on the basis of this framework. The framework of this paper can be used to analyze and evaluate customer value effectively and completely in various Internet businesses. It also can be used to compare the level of customer value among businesses on the Internet.

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