AUTHOR
Bui Quang Thong

DEPARTMENT
Business Administration and Social Sciences / Industrial marketing and e-commerce

SUMMARY
The purpose of this thesis has been to describe factors that influence the success of e-marketplaces. Due to the development of internet and information technology, a new business model called electronic marketplace emerged in recent years. Electronic marketplace (e-marketplace) is a website where buyers and sellers can trade and close deals. The popularity of e-marketplaces reached its peak in 2000, when the number of start-up marketplaces was nearly 1,500. However, only seven hundred of them existed in July 2002. This fact made us interested in the question of what factors contribute to the success of e-marketplaces. From the literature review, seven factors were identified potentially important to e-marketplaces’ success. In the frame of reference, five factors out of seven were included for our empirical research: target market, functions, technology, building liquidity and revenue models. Qualitative approach was used and multiple case studies were conducted. Our data was collected from the two e- marketplaces’ websites and in-depth telephone interviews with the owners and managers of the companies. While most of the data was found correlated with theory, some new findings were also evident:

• Markets with low degree of trust and security can be attractive for e- marketplaces set-up.
• E-marketplaces should ensure that users can comfortably use all functions of the marketplaces before introducing new functions.
• In order to build liquidity, e-marketplaces can still focus on customer relationship and implement many measures to develop a tight bond between members.
• E-marketplaces can also involve selling activities and generate considerable incomes.

ISSN 1404-5508 / ISRN LTU-SHU-EX--05/067--SE / NR 2005:067