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The Role and Determinants of Electronic Commerce and On-line Advertising within Corporate Activity

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The research focuses on the application of the Internet in three major areas: sales, purchasing and advertising, which, from a marketing point of view, are the most relevant activities in a company. It is argued that by the end of the 1990s in Hungary Internet-related business activities had become new and increasingly important areas of competition - and this observation holds even though the penetration of the Internet amongst the Hungarian population remains low, so that consumer fears are major obstacles to the more widespread use of this type of media. In this research, the “supply side” of business activities is investigated - that is, companies. In this article (which relies on a large-scale representative national survey carried out in 2000), there will first of all be provided an overview of the intensity of Internet usage among Hungarian companies in relation to marketing activity. Second, based on cutting-edge international literature, the possible factors in the model which determine Internet usage in companies' purchasing, sales and advertising activities will be outlined. Finally, there is an empirical testing of the given model on a representative sample of Hungarian companies.

Keywords: electronic commerce; marketing strategy; online advertisement; organisational capabilities

Document Type: Research Article

Publication date: November 27, 2003

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