Cost benefit factor analysis in e‐services

Abstract

This paper first presents a research framework for e‐service evaluation within four categories: cost, benefit, functions and development, each incorporating a number of factors. Through data analysis and hypotheses testing, inter‐relationships among the factors of the four categories are examined. The results show that the development type of an e‐service has a significant effect on the degree of user satisfaction. Expertise, technique and expense are the principle factors limiting current e‐service adoption. The most significant finding is that, in the development of e‐services, certain cost factors are significantly more important than others in relation to certain benefit factors. The finding is presented as a cost‐benefit factor‐relation model. This provides an insight into whether investment in certain areas of e‐service applications is more important than in others for particular business objectives. These results have the potential to improve the strategic planning of companies by determining more effective investment areas and adopting more suitable development activities where e‐services are concerned.

Citation

Lu, J. and Zhang, G. (2003), "Cost benefit factor analysis in e‐services", International Journal of Service Industry Management, Vol. 14 No. 5, pp. 570-595. https://doi.org/10.1108/09564230310500237