Virtual Store Performance Measurement : A Logical consequence on Strategic and Operational Decisions

Performance measurement is the buzzword in today’s business world. This mechanism has become an essential tool in online marketplace to identify victors and losers. Apparently, virtual stores are searching for decision-oriented performance measures to aid them in addition to identifying strengths, weaknesses, threats and opportunities make sound strategic and operational decisions as they compete with their peers. In that paradigm this study attempt to measure performance of virtual stores using decision-making associated variables sternly to evaluate the impact of the variables or indicators on strategic and operational decisions. To achieve this purpose, the study used an evaluation framework to identify drivers which have a significant and positive effect on strategic and operational decisions. The study surveyed 100 internet users in Goteborg of a randomly selected four virtual store (EBay Amazon.com, Yahoo and Buy.com). The results identified three major dimensions: website, product and services and promotion. These dimensions share many common aspects with decision making determinants derived within the context of online market industry. Conversely, these dimensions have unique characteristics inherent in the online marketing environment. The study revealed a significantly positive relationship between the variables on operational and strategic decisions. The conclusion is that the fact that performance measures are assessed to firms’ business activities both operational and strategic decisions initiatives begin with defining users’ needs and preferences, and their related performance variable. If the virtual store understands what dimensions users use to judge quality, they can take appropriate actions to monitor and enhance performance on those dimensions and remedy service failures. Keywords: Virtual store, Strategic and operational decisions, Decision-oriented performance variables, variable dimensions, Website, product and service and Promotio