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sustainability

Article
Competitiveness of E Commerce Firms through ESG Logistics
Jinsung Kim , Minseok Kim, Sehyeuk Im and Donghyun Choi *

School of Air Transportation and Logistics, Korea Aerospace University, Goyang, Gyeonggi 10540, Korea;
kauscm@kau.kr (J.K.); ms9804@kau.kr (M.K.); imsekr@kau.kr (S.I.)
* Correspondence: dchoi@kau.ac.kr

Abstract: Rapid growth in the e-commerce market, caused by COVID-19, has led to fierce competition.
The intense competition in e-commerce market triggers firms to strengthen their competitiveness
by providing logistics services. Furthermore, as sustainability becomes important in consumers’
choices of products or services, e-commerce companies’ environmental, social, and governance (ESG)
activities are becoming important. Therefore, our purpose of study is to examine the attributes
of e-commerce’s competitiveness in the perspective of ESG in the logistics service and to suggest
differentiation strategies. We analyzed the importance of each ESG attribute in the logistics through a
conjoint analysis. As a result, we found that e-commerce consumers value ESG activities in the order
of distribution in the social (9.866%), partnership in the governance (9.637%), operation of distribution
center in the social (8.570%), packaging in the environmental (8.320%), operation of distribution
center in the environmental (8.262%), purchasing in the social (8.200%), and distribution in the
environmental (7.153%). Accordingly, we suggested ESG strategies such as win-win cooperation,
opening information on the working environment in delivery and distribution centers, development
of a shared logistics platform, preventing COVID-19, and raising consumers’ awareness of eco-
 friendly delivery.


Citation: Kim, J.; Kim, M.; Im, S.; Keywords: e-commerce; logistics; environment; social; governance; ESG; conjoint analysis
Choi, D. Competitiveness of E
Commerce Firms through ESG
Logistics. Sustainability 2021, 13,
11548. https://doi.org/10.3390/ 1. Introduction
su132011548
In line with the booming online market caused by COVID-19, e-commerce is emerging
as a promising industry [1]. Korean IT portal companies such as Daum and Naver are also
Academic Editor: Sungyong Choi
entering e-commerce in addition to large offline distributors due to low barriers to entry.
Consequently, e-commerce companies are seeking to increase product diversity and price
Received: 17 September 2021
competitiveness and strengthen their competitiveness through platform reconstruction [2–4].
Accepted: 14 October 2021
Published: 19 October 2021
Under these circumstances, e-commerce companies are evolving into firms that include
logistics service functions, as well as platform functions that link products. In addition, they
Publisher’s Note: MDPI stays neutral
are trying to secure competitiveness by introducing time concepts of existing logistics services
with regard to jurisdictional claims in
such as same-day delivery, early-morning delivery, and 4-h delivery [5]. At the same time, as
published maps and institutional affil-
the words sustainable and ethical consumption are commonly used among consumers, and e-
iations. commerce’s on the environment, social, governance (ESG) activities are becoming important,
as is providing merchantability, quickness, and convenience [6]. For example, a fire at a
Coupang Logistics Center in June 2021 was not simply recognized as damage to corporate
property but as a poor labor environment and an avoidance of responsibility to consumers,
which led to a boycott of Coupang. In other words, ESG activities in the logistics sector have
Copyright: © 2021 by the authors.
Licensee MDPI, Basel, Switzerland.
become an important factor in consumers’ choice of e-commerce platforms. However, there
This article is an open access article
is lack of research for impact of ESG on consumer’s platform choices. Previous studies have
distributed under the terms and
focused on how corporate ESG activities attract investors [7]. Therefore, the purpose of this
conditions of the Creative Commons study is to examine the key attributes of e-commerce’s competitiveness from the perspective
Attribution (CC BY) license (https:// of ESG in the logistics sector and present a differentiation strategy through ESG. To this end,
creativecommons.org/licenses/by/ this study seeks to analyze the importance of each ESG factor in the logistics sector through
4.0/). a conjoint analysis based on a survey.

Sustainability 2021, 13, 11548. https://doi.org/10.3390/su132011548 https://www.mdpi.com/journal/sustainability


Sustainability 2021, 13, 11548 2 of 15

The contribution of this study is that, first of all, it identified the attributes which make
an e-commerce entity gain competitive market advantage in the logistics sector among the
criteria of ESG management. Secondly, the interest of ESG-related logistics attributes of
customers using e-commerce was identified. Finally, meaningful corporate action strategies
are presented regarding the important ESG factors derived.

2. Literature Research
2.1. E-Commerce Concept and Industry Status
In the past, e-commerce meant purchasing or selling information, products, and
services through a computer network [8]. Gupta [9] extended this concept, viewing that
e-commerce is a broad online business for products and services and is related to all forms
of transactions, except physical exchange or contact. In addition, Meng [10] considered
e-commerce to mean any business process that uses a computer network to realize the
high-efficiency and low-cost trading of goods.
Traditional e-commerce companies in the past have played a role in providing plat-
forms for e-commerce, but now they are building their own logistics service networks in
addition to providing platforms. This is because, among the logistics services, especially
the Last-mile service, it is one of the key elements for a successful e-commerce business
and is needed for continuous improvement in service levels [5]. Existing e-commerce
definitions lack this logistical concept, so redefining e-commerce, including logistics, is nec-
essary. Accordingly, in this study, by combining platform elements and logistics elements,
e-commerce was defined as the entire process from online ordering made through platform
selection using PCs and mobile devices to actual consumers.
Recently, while e-commerce companies using logistics outsourcing have experienced
delays in shipping/returns, lack of follow-up services, and inability to respond immedi-
ately to problems [5], e-commerce companies that provide their own logistics services are
operating more effectively regarding these issues. This is because, through direct manage-
ment, they can increase the quality and efficiency of their logistics services and respond
flexibly to sudden changes [11]. In fact, Coupang, Korea’s leading e-commerce company,
is showing rapid growth with its own logistics services at the forefront. According to
Deloitte’s [12] analysis of the 250 top retailers worldwide, since 2014, Coupang has ranked
first in ‘the company with the highest growth rate’ at an average annual rate of about
103%. It also topped the list for three consecutive years in terms of online shopping and
delivery satisfaction by brands in Korea in 2020. In particular, it was found that there was
an overwhelming gap of 73 points compared with the company in second place in the
‘Quickness/Accuracy’ category among satisfaction evaluation factors [13]. This can be seen
as an example of gaining an upper hand in the market by taking advantage of providing
its own logistics services.
However, many e-commerce companies, which have realized the benefits of estab-
lishing their own logistics network, are scrambling to provide logistics services, making
it difficult to draw differential competitiveness in the logistics sector. For example, as
Coupang began next-day delivery, companies such as Shinsegae and Naver, which are
latecomers, have quickly introduced next-day delivery services, and now most e-commerce
companies are already providing next-day delivery services. Meanwhile, SMEs (small
and medium-sized enterprises) are seeking to secure consumers with specialized deliv-
ery services such as ‘early-morning delivery’ and ‘four-hour delivery’ to combat capital
offensives by large companies, and in this situation, zero-sum games continue to take away
limited pies. Therefore, to secure a customer base, e-commerce companies need to find
new attributes to be competitive.
One of the attributes considered by e-commerce companies is sustainability. Compa-
nies such as Amazon, Veo, and Wal-Mart are actively promoting companies that provide
sustainable goods and services [14]. The reason companies pursue sustainable brand value
is because it is a new strategy to secure and maintain a customer base [15]. In particular,
it is necessary to focus on ESG, which is in the spotlight. Accordingly, this study seeks
Sustainability 2021, 13, 11548 3 of 15

to examine the factors of consumers’ selection of e-commerce platforms in the past and
derive important factors of ESG in the logistics sector for e-commerce companies to be
competitive in the future.

2.2. Competitive Factors for E-Commerce


The fierce competition between platforms in e-commerce has led to the need for a
strategic approach to gain a differential competitive advantage in this market [16]. In
order for e-commerce companies to increase their market share, research is needed on the
attributes that consumers consider when choosing e-commerce platforms.
Meanwhile, previous studies have shown that establishing an efficient logistics supply
chain in e-commerce has an impact on the success or failure of a company [17–20]. Babenko
et al. [21] also suggested reliability, quality, government involvement, and accessibility
as the success factors of e-commerce. These previous studies have revealed the impor-
tant and essential factors required for success of e-commerce companies. On the other
hand, other prior studies have suggested the important factors in terms of consumers
choosing e-commerce companies. The factors that consumers consider in choosing an e-
commerce platform are delivery services [4], platform usability [4], feedback mechanism [4],
information security [2], reliability [3], product diversity [2], price competitiveness [3],
information [22], responsiveness [22], and others. A description of each factor is in Table 1.
In particular, the authors and consumers consider logistics services the most important
factor in choosing e-commerce’s platform.

Table 1. Attributes of e-commerce customer satisfaction in advanced research.

Attributes Definition Example


Specialized delivery service, delivery
Customer attraction by providing
lead time, delivery safety, tracking
Delivery Service [2,4,23,24] promptness and convenience to consumers
service, recognition of potential delivery
through delivery service.
delays
It can be described as the platform’s
accessibility, search capabilities for Accessibility, web design, search support,
Platform Usability [2–4,22,24]
products, user-friendly interfaces, and usefulness, content visibility
impact user satisfaction.
Performs a kind of certification that can be
Feedback Mechanism [4,22,25] evaluated on a product through other Reviews, comments, ratings
consumers.
The extent to which consumers feel safe Personal information security, personal
Information Security [2–4,22–24] from the illegal use of personal information information collection, payment
online. information protection
The extent to which consumers feel that the
Reliability [2,3,22–24] products and transactions offered by Trust in transactions, trust in contents
e-commerce platforms are reliable.
Capability to present alternative
Diversity and depth of products provided
Product Diversity [2,23,24,26] products, a variety of products, and
by the platform.
specialized products
The extent to which the consumer Price comparison with other platforms,
Price Competitiveness [2,3,23] perceives that the product has been price satisfaction compared to offline
purchased at a reasonable price. transactions
How up-to-date, accurate, and complete Continuous update of information, the
Information [3,22] the information is that is provided by the accuracy of information, completeness of
platform. information
The extent to which the platform is
Customer response speed, customer
Reactivity [3,22,23] perceived to respond quickly and
response procedures
appropriately to consumer needs.
Sustainability 2021, 13, 11548 4 of 15

2.3. ESG
In order to secure long-term competitive advantage and sustainable growth, com-
panies need to consider not only existing financial performance but also non-financial
performance. In the past, if an entity was based on its financial indicators when evaluating
the entity, the current society has grown to demand even non-financial performance, such
as ESG [7]. As ESG activities have emerged as a hot topic, they have become a core of corpo-
rate management and are also emerging as clear differentiators in the e-commerce industry.
These ESG activities or performance disclosures have been found to help companies attract
investment [7] and grow financial performance [27,28].
Meanwhile, sustainability is becoming important in consumers’ choice of goods or
services [6]. This is especially true since, as the volume of traffic and pollution in the city
increases due to the increase in freight volume by the e-commerce industry, e-commerce
customers are also interested in sustainability [29]. So, e-commerce companies are seeking
to secure new consumers and promote their value through ESG activities. However, just as
the competitiveness of e-commerce companies is determined in the logistics sector, ESG
activities of e-commerce companies are also performed in conjunction with the logistics
sector (Table 2).

Table 2. ESG activities in the logistics of e-commerce companies.

Activities Examples
Use reusable packaging, use recyclable packaging, avoid using
Packaging
additional packaging [30,31]
Reduction in air pollution and carbon emissions through Green
Environment Distribution (Last-mile delivery)
Vehicle Routing [32], using electric vehicles or bicycles [33]
Green Warehousing and introducing eco-friendly
Operation of Distribution center
power generation [34,35]
Purchasing Ethical purchasing [36]
Using the Crowd logistics platform [37], improving the working
Distribution (Last-mile delivery) environment (work schedules, salaries, etc.) [38], avoidance of
Social vehicle noise and illegal parking [39]
Creating local community jobs [40], improving the working
Operation of Distribution center environment (work schedules, salaries, etc.), avoidance of
traffic congestion [41,42]
Avoiding unfair trade practices and supporting SMES
Governance Partnership
(retailers and suppliers)

2.3.1. Environment
Environmental activities in logistics can be classified as the packaging, delivery, and
operation of the distribution center, and environmental activities in packaging include using
reusable and recyclable packaging and avoiding the use of additional packaging [30,31].
Amazon, for example, is implementing a policy of reducing waste of packaging resources
by delivering products safely to consumers without additional packaging through its
frustration-free packing program [43]. Moreover, 11th Street, SK’s e-commerce platform, is
also working on environmental activities in the logistics sector by introducing recyclable
paper boxes, adhesive tapes, and vinyl buffers.
Environmental activities in the distribution sector relate to activities that reduce air
pollution and carbon emissions caused by vehicle operations. E-commerce companies
are introducing the Green Vehicle Routing Program to simultaneously optimize transport
routes and minimize carbon emissions while introducing electric vehicles and bicycles to
reduce the carbon emissions caused by delivery [32,33]. For instance, Hyundai Department
Store is trying to attract new consumers by combining electric trucks with cold-chain
systems and services that deliver premium fresh foods within 30 min.
Meanwhile, environmental activities are being emphasized in the operation of logistics
centers, and a green warehousing strategy that minimizes energy use and maximizes space
Sustainability 2021, 13, 11548 5 of 15

use of centers to reduce costs and increase efficiency while using eco-friendly energy
is being introduced to e-commerce companies [34,35]. For example, Amazon is trying
to reduce carbon emissions by installing solar panels in idle space on the roof of its
logistics center.

2.3.2. Social
Social activities in logistics can be classified as the purchasing, delivery, and operation
of the distribution center. As e-commerce companies include not only platform functions
that connect businesses and consumers but also distribution capabilities that purchase and
sell products, which products to buy or sell also becomes important. Ethical purchasing
by enterprises is particularly emphasized because it is the first step in consumers’ ethical
consumption.
Social activities in the distribution sector are related to job creation and the improve-
ment of the working and living environments. In particular, e-commerce companies have
recently provided jobs for ordinary people to deliver directly through crowd logistics such
as Coupang Flex. On the other hand, there are also negative opinions about crowd logistics,
as there are cases of increased traffic congestion and noise due to it.
Social activities in the distribution center management sector are related to job creation
and improvement of the working environment. E-commerce companies are reinforcing
their logistics networks by establishing a new logistics center and revamping their image
by creating jobs in the region. For example, according to the Ministry of SMEs and
Startups, Market Kurly established the Gimpo Logistics Center in 2020 and hired more
than 100 workers related to the logistics center, ranking first in employment growth rate
among venture companies. On the other hand, since the operation of the distribution
center can cause traffic congestion around it, the location selection of the distribution center
considering the nearby residents is an important factor in social activities [41,42].

2.3.3. Governance
Sound corporate governance is essential to corporate performance improvement and
survival [44]. Meanwhile, corporate governance relates not only to the internal structure
of an entity, such as the formation of a board of directors, but also to the relationships
between other entities. E-commerce companies receive commissions from store companies
(sellers) and are implementing open market policies to help store companies secure new
customers. However, as social problems such as e-commerce companies’ demand for the
lowest price and high commissions have emerged, e-commerce companies have recently
implemented win-win policies such as discounting fees and supporting advertising. In
fact, Market Kurly has introduced a ‘direct purchase system’ for some stores to reduce the
inventory burden.

2.4. Research Model


According to the other literature measuring the utility of e-commerce consumers
through conjoint analysis, attributes that affect consumer utility were presented as research
models. For example, Schaupp [2] schematized the research that technology factors, shop-
ping factors, and product factors affect the satisfaction of online consumers. This study
benchmarks the literature to present a research model above that ESG attributes affect
consumer utility. Recently, the authors and consumers consider logistics services to be the
most important factor in choosing e-commerce’s platform. Therefore, we selected note-
worthy attributes in aspects of logistics services and ESG activities based upon antecedent
literature [29]. In the category of ESG in terms of logistics, issues in the environment,
society, and governance sectors were selected as the attributes of the study to measure
the utility that consumers feel. In the environmental sector, packaging, distribution, and
the operation of logistics centers were used as attributes to evaluate the consumer utility,
which is impacted by environmental activities of e-commerce logistics [30–35]. In the social
sector, purchasing activities, distribution, and logistics center operation were used as key
be the most important factor in choosing e-commerce’s platform. Therefore, we selected
noteworthy attributes in aspects of logistics services and ESG activities based upon ante-
cedent literature [29]. In the category of ESG in terms of logistics, issues in the environ-
ment, society, and governance sectors were selected as the attributes of the study to meas-
ure the utility that consumers feel. In the environmental sector, packaging, distribution,
Sustainability 2021, 13, 11548 6 of 15
and the operation of logistics centers were used as attributes to evaluate the consumer
utility, which is impacted by environmental activities of e-commerce logistics [30–35]. In
the social sector, purchasing activities, distribution, and logistics center operation were
used as key
attributes of attributes of social
social logistics, logistics,
which which
deal with deal with utility
consumers’ consumers’ utility
[36–42]. [36–42].
In the In the
governance
governance
sector, it wassector, it was
decided decided to
to evaluate evaluate
whether whether e-commerce
e-commerce companies companies influence
influence consumer
consumer preferences
preferences depending on depending on whether
whether they maintainthey maintain
sound sound with
relationships relationships with
their partners.
their partners.
Figure 1 showsFigure 1 shows
that the that the four
four categories categories
in this in this study comprehensively
study comprehensively affect
affect the utility of
the utility of consumers.
e-commerce e-commerce consumers.

Figure 1. Research model.

Therefore, this study


Therefore, this studyaims
aimstotoanalyze
analyze which
which logistics
logistics factors
factors consumers
consumers consider
consider im-
important when choosing an e-commerce platform, including logistics in the service
portant when choosing an e-commerce platform, including logistics in the service aspect, aspect,
which
which isis the
the most
most important
important factor
factor to
to the
the consumer,
consumer, and
and ESG
ESG logistics,
logistics, which
which isis aa hot
hot topic
topic
recently and what logistics and ESG strategies e-commerce company should
recently and what logistics and ESG strategies e-commerce company should implement implement in
the future (see Figure 1).
in the future (see Figure 1).
3. Materials and Methods
3. Materials and Methods
3.1. Conjoint Analysis
3.1. Conjoint Analysis
Conjoint analysis is a research method that estimates respondents’ preferences and
utilityConjoint
for a goodanalysis is a research
or service, predictingmethod
which that estimates
product respondents’
or service preferences
they prefer. and
Conjoint anal-
utility for a good or service, predicting which product or service they prefer.
ysis is based on the assumption that respondents judge two or more attributes collectively Conjoint
analysis
in assessingis based on the assumption
preferences that with
and satisfaction respondents
goods orjudge two[2].
services or more attributes
Conjoint analysiscollec-
can
tively in assessing preferences and satisfaction with goods or services [2].
thus create a realistic decision model by creating an environment similar to the process Conjoint analy-
sis can
that realthus create achoose
consumers realistic
fromdecision model by
in the market. Thecreating
conjointan environment
analysis similar to the
also characterizes the
process that real consumers choose from in the market.
importance of relative attributes to gain a market advantage [4]. The conjoint analysis also charac-
terizesOnthetheimportance
other hand,ofthe
relative attributes
model to gain
of conjoint a market
analysis advantage
is divided [4]. to how the
according
level On the otheraffects
of attributes hand,utility.
the model of conjoint
Models analysis
are divided is divided
into vector according
models, to how
ideal point models,the
levelpart-worth
and of attributes affects utility.
function models.Models are divided
The vector models into vector targets
evaluate models,for
ideal point
each mod-
attribute
els, and
and part-worth
weigh-in function
for their models.
evaluation The vector
values. models
The ideal pointevaluate
model targets
assumes forthat
each attribute
there is an
ideal level for each variable and that, away from that level, the utility is reduced. For a
part-worth function model, it is assumed that the increase in utility varies depending on
the level of the attribute.
In this study, we used a part-worth function model assuming that the utility for the
platform varies depending on the level of attributes. The mathematical equation of the t-th
attribute that constitutes a part-worth function model is as follows:

Ut x jt = Ut1 Dt1 + Ut2 Dt2 + . . . + Utrt−1 Dtrt−1 (1)
Sustainability 2021, 13, 11548 7 of 15

In this equation, rt is the number of levels of different t-th attributes, Dtk is the dummy
variable that takes 1 if xit equals the kth level of xt or 0 if not, and Utk is the part-worth
function factor for the k-th level of xt [45].

3.2. Survey
The previously selected consumer e-commerce platform selection attributes (logistics
service, environment, society, governance) were established as shown in Table 3, and 16
cards were generated through SPSS 28. To avoid the unnecessary generation of cards, cards
were created using Fractional Factorial Design to prevent the predictive validity of the
survey [46].

Table 3. Levels by attributes.

Attributes Detailed Attributes Levels


Lead time and Quality (Last Mile Delivery) Low, Medium, High
Service
Commodity Wide variety, Medium variety, Narrow variety
Packaging Implemented, Not implemented
Environment Distribution (Last Mile Delivery) Implemented, Not implemented
Operation of distribution center Implemented, Not implemented
Purchase Implemented, Not implemented
Social Distribution (Last Mile Delivery) Implemented, Not implemented
Operation of distribution center Implemented, Not implemented
Governance Partnership Implemented, Not implemented

A Full-profile approach is used to collect data to simultaneously consider multiple


attributes at a time. Even though the card has a large number of attributes, this approach is
simple to manage, easy to use, and does not require a complex estimation method when
using a part-worth function model. However, there are disadvantages in that researchers
may find it difficult to evaluate attributes that keep other attributes constant, and duplicated
attributes can lead to the problem of double counting [45]. Accordingly, in order to solve
the double counting problem, the respondents of the survey were asked to view the profile,
give a score of 1 (Very Undesirable) to 10 (Very Preferred) for each attribute at first response,
and then give a score of 1 to 100 in the second response.

3.3. Sample
The survey in this study was conducted on consumers who have used e-commerce.
The researchers opened the survey in August 2021. The invitation of survey was sent
via web forum and KakaoTalk, the most popular messenger application in Korea. The
survey method was a Google Form because of the familiarity to the respondents. The total
number of survey respondents was 128, and the research was based on a total of 96 surveys,
excluding 31 responses with duplicate scores and one with missing values. The respond
rate for the survey was 67.7%.
The respondents of the survey are composed of various ages. However, most of
the respondents are in the ages between their 20s and 30s, which are considered as the
dominant participants in the e-commerce market. We also tested systemic difference
between sex and age groups using an ANOVA test. We found no significant difference
between groups. The detailed characteristics of respondents are shown in Table 4.
Sustainability 2021, 13, 11548 8 of 15

Table 4. Characteristics of respondents.

Number of Ratio of
Characteristics Categories
Respondents Respondents
Male 40 41.7%
Gender
Female 56 58.3%
10~19 12 12.5%
20~29 64 66.7%
Age 30~39 15 15.6%
40~49 4 4.2%
More than 50 1 1.0%
Number of Less than 2 60 62.5%
E-commerce usage 2 or 3 times 31 32.3%
(Average per week) More than 4 5 5.2%

4. Results
The detailed attributes that consumers consider most important in choosing e-commerce
platforms are lead time and quality (21.938%) in the logistics service sector, followed by com-
modity (18.054%) in the logistics service sector. Meanwhile, with regard to ESG, consumers
recognized its importance in the order of distribution in the social sector (9.866%), partner-
ship in governance sector (9.637%), logistics center operation in the social sector (8.320%),
packaging in the environmental sector (8.262%), purchases in the social sector (8.253%), and
distribution in the environmental sector (7.153%). In this study, Pearson’s R and Kendall’s
tau values were found to be 0.998 and 0.967, respectively, showing very high explanatory
power in the model. Furthermore, the model fit for the 16 combinations of these e-commerce
platform selection attributes is less than 0.05, indicating that this model fits (This is set out in
Table 5.).

Table 5. Conjoint analysis of e-commerce platform selection attributes.

Attributes Detailed Attributes Level Utility Estimation Importance (%)


Low −8.387
Lead time and Quality
Medium −0.099 21.938
(Last Mile Delivery)
High 8.486
Service
Narrow variety −7.794
Commodity Medium variety 1.702 18.054
Wide variety 6.092
Implemented 3.199
Packaging 8.320
Not Implemented −3.199
Distribution Implemented 2.751
Environment 7.153
(Last Mile Delivery) Not Implemented −2.751
Implemented 3.177
Operation of distribution center 8.262
Not Implemented −3.177
Implemented 3.153
Purchase 8.200
Not Implemented −3.153
Distribution Implemented 3.794
Social 9.866
(Last Mile Delivery) Not Implemented −3.794
Implemented 3.295
Operation of distribution center 8.570
Not Implemented −3.295
Implemented 3.706
Governance Partnership 9.637
Not Implemented −3.706
Constant 59.384
Coefficient of Pearson’s R = 0.998, significance = 0.000
Determination Kendall’s tau = 0.967, significance = 0.000
Sustainability 2021, 13, x FOR PEER REVIEW 9 of 15

Not Implemented −3.706


Not Implemented −3.706
Constant 59.384
Sustainability 2021, 13, 11548 Constant 59.384 9 of 15
Coefficient of Determi- Pearson’s R = 0.998, significance = 0.000
Coefficient of Determi- Pearson’s R = 0.998, significance = 0.000
nation Kendall’s tau = 0.967, significance = 0.000
nation Kendall’s tau = 0.967, significance = 0.000
Results for Detailed Attributes
Attributes
Results for Detailed Attributes
Figure 22 shows
showsthatthatconsumers
consumers value
value platforms
platforms thatthat offer
offer goodgood delivery
delivery services
services (lead
Figure 2 shows that consumers value platforms that offer good delivery services (lead
(lead
time timequality)
and and quality)
and a and a variety
variety of of commodities
commodities when when choosing
choosing an an e-commerce
e-commerce platform.
time and quality) and a variety of commodities when choosing an e-commerce platform.
platform.
However, However,
unlike unlike the
thevariety
variety variety of commodities, respondents showed negative
However, unlike the ofofcommodities,
commodities, respondents
respondents showed
showed negative
negative utility
utility values
values
utility
for values
moderate for moderate
delivery delivery
services. services.
However, However,
while good while
deliverygood delivery
services services
(8.486) and (8.486)
various
for moderate delivery services. However, while good delivery services (8.486) and various
and various commodities
commodities show(6.092)
(6.092) show show
highlevels
levelsofhigh levels of
ofutility,
utility, utility, the importance of delivery
commodities (6.092) high thethe importance
importance of delivery
of delivery services
services
services
(21.938%) (21.938%) is greater than commodity variety (18.054%), so providing
(21.938%) is greater than commodity variety (18.054%), so providing good delivery ser- ser-
is greater than commodity variety (18.054%), so providing good good delivery
delivery
services
vices is more
vices is more important
important
important than
than
than diversity
diversity
diversity in logistics
ininlogistics
logistics services.
services.
services.

(a) (b)
(a) (b)
Figure2.2.Logistics
Figure Logistics service
service utility
utilityscore.
score.(a)
(a)Lead
Leadtime
time&&Quality;
Quality;(b)(b)
Commodity.
Commodity.
Figure 2. Logistics service utility score. (a) Lead time & Quality; (b) Commodity.
According to
According to Figure
Figure 3,3,in
inthe
theenvironment
environmentsector,
sector,respondents
respondents consider packaging
consider packaging
According
(8.320%), to
logistics Figure
center 3, in
operation the environment
(8.262%), and sector, respondents
distribution (7.153%),
(8.320%), logistics center operation (8.262%), and distribution (7.153%), which consider
which packaging
shows that
shows
respondents
(8.320%),
that consider
respondents eco-friendly
logisticsconsider
center operation packaging
(8.262%),
eco-friendly of this commercial
and distribution
packaging platform the most
(7.153%),platform
of this commercial which shows
theim- that
most
portant.
respondents
important. consider eco-friendly packaging of this commercial platform the most im-
portant.

(a) (b)

(a) (b)

Figure 3. Cont.
Sustainability 2021, 13, 11548 10 of 15
Sustainability 2021, 13, x FOR PEER REVIEW 10 of 15

Sustainability 2021, 13, x FOR PEER REVIEW 10 of 15

(c)
Figure
Figure 3.
3. Environment
Environment utility
utility score.
score. (a)
(a) Packaging;
Packaging; (b)
(b) Distribution;
Distribution; (c)
(c) Operation
Operation of
of distribution
distribution center.
center.

In
In terms
terms of social activities, importance
importance was was derived
derived in the order of distribution
(9.866%),
(9.866%), logistics
logistics center (c)
center operation
operation (8.570%),
(8.570%), andand ethical
ethical purchasing
purchasing (8.200%)
(8.200%) (Figure
(Figure 4).
4).
The ethical purchasing of e-commerce is of lesser importance than the other
Figure 3. Environment utility score. (a) Packaging; (b) Distribution; (c) Operation of distribution center.two attributes
but
but is of sufficient significance in terms of utility.
utility.
In the
termscorporate
of socialgovernance
activities, sector, respondents
importance preferred
was derived an e-commerce
in the platform
order of distribution
that conducts
(9.866%), partner
logistics relationship
center operationmanagement.
(8.570%), andThe importance
ethical of partnerships
purchasing (9.637%)
(8.200%) (Figure 4).
was the second
The ethical highestof
purchasing among ESG-related
e-commerce attributes,
is of lesser indicating
importance thatother
than the governance is also
two attributes
important
but to customers,
is of sufficient such asinenvironmental
significance terms of utility. and social activities (Figure 5).

(a) (b)

(a) (b)

Figure 4. Cont.
Sustainability 2021, 13, x FOR PEER REVIEW 11 of 15

Sustainability 2021, 13,


Sustainability 2021, 13, 11548
x FOR PEER REVIEW 1111of
of 15
15

(c)
Figure 4. Social utility score. (a) Purchase; (b) Distribution; (c) Operation of distribution center.

In the corporate governance sector, respondents preferred an e-commerce platform


(c)
that conducts partner relationship management. The importance of partnerships (9.637%)
Figure
Figure 4. Socialwas
4. Social utilitythe
utility second
score.
score. (a) highest among
(a) Purchase;
Purchase; (b) ESG-related
(b) Distribution;
Distribution; (c) attributes,
(c) Operation
Operation of indicatingcenter.
of distribution
distribution that governance is also
center.
important to customers, such as environmental and social activities (Figure 5).
In the corporate governance sector, respondents preferred an e-commerce platform
that conducts partner relationship management. The importance of partnerships (9.637%)
was the second highest among ESG-related attributes, indicating that governance is also
important to customers, such as environmental and social activities (Figure 5).

Figure5.5.Governance
Figure Governanceutility
utilityscore.
score.

5.5.Discussion
Discussion
As
Asthe
the e-commerce market
marketgrows,
grows,it it
hashas become
become an environment
an environment where
where it longer
it is no is no
Figure
longer 5.possible
possible Governance
to achieve utility
to achieve score.
significant
significant performance
performance only only by strengthening
by strengthening delivery
delivery services.
services. De-
Delivery services(lead
livery services (leadtime
timeandandquality)
quality) have
have become
become an essential
essential element
elementfor fore-commerce
e-commerce
5. Discussion
companies,
companies, and customers have become accustomed to these services, makingititdifficult
and customers have become accustomed to these services, making difficult
As the
totodraw
draw e-commerce
differences
differences market
through
through onlygrows,
only it has
delivery
delivery become
services.
services. an environment
Therefore,
Therefore, this where
study
this studyaimsit to
aimsis no longera
pioneer
to pioneer
new market
possible
a new market by presenting
to achieve by presenting strategies
significant in terms
performance
strategies of ESG
only
in terms byESG
of that e-commerce
strengthening
that companies
delivery
e-commerce have have
services.
companies not
De-
previously
livery considered.
services
not previously (lead time and quality) have become an essential element for e-commerce
considered.
First,
First,when
companies, looking
lookingatat
and customers
when the
thegovernance
have become
governance structure,
accustomed
structure, toititthese
was
wasfound
foundthat
services, customers
making
that place
it difficult
customers place
significant
to draw value
differences upon the
through relationship
only deliverybetween e-commerce
services. Therefore,
significant value upon the relationship between e-commerce companies’ partners when companies’
this study partners
aims to when
pioneer
achoosing
new market
choosing aaplatform. In recent
by presenting
platform. In recent years,the
strategies
years, the publicof
in public
terms interest
ESG that
interest ininsocially
sociallyasymmetric
e-commerce asymmetric
companiesandand un-
have
unrea-
reasonable
not previously
sonable contractual
considered.
contractual relations has increased. Consumers avoid
relations has increased. Consumers avoid e-commerce companies e-commerce companies
forcing
forcingunreasonable
First, when looking
unreasonable relationships
relationships with
at the governance
withpartners withwith
structure,
partners excessive
it was advertising
found
excessive that fees and
customers
advertising com-
place
fees and
missions and
significant valuewantupone-commerce companies
the relationship to have
between win-win cooperation
e-commerce with partners.
companies’ partners when
Accordingly,
choosing in orderInfor
a platform. e-commerce
recent years, thecompanies to improve
public interest theirasymmetric
in socially relationshipand with their
unrea-
partners, the following strategies can be considered in terms
sonable contractual relations has increased. Consumers avoid e-commerce companies of governance structure.
forcing unreasonable relationships with partners with excessive advertising fees and
Sustainability 2021, 13, 11548 12 of 15

First, e-commerce companies should preemptively secure ESG collaboration initiatives


with SMEs that are sellers or suppliers. According to Schöder [29], e-commerce companies
lack collaboration initiatives with SMEs despite their large investments in the environment
and society. Likewise, domestic SMEs are in an environment where it is difficult to invest
in ESG management due to various restrictions. The strategy of e-commerce companies to
cooperate with SMEs in eco-product design and packaging can instill a positive image of
the company in consumers [47].
Second, it can be a close collaboration case for e-commerce companies to provide joint
logistics center services to SMEs in the process of storing high-cost products. In this case,
SMEs that have difficulty investing in ESG activities can naturally match e-commerce’s ESG
management and stride. Looking at Naver’s success in entering the e-commerce business,
Naver maintains a close relationship and high delivery service with CJ Logistics in terms
of logistics sector and implements a win-win strategy to provide seller-oriented fulfillment
services. Therefore, through this strategy, e-commerce companies should move forward as
leaders in ESG management.
In terms of social activities, the importance of delivery and distribution center opera-
tion attributes was largely derived. In particular, it can be seen that the changed consumer’s
perception of delivery activities was reflected. Due to issues such as the recent strike of
courier workers, much social attention is being paid to the working environment treatment
of delivery workers. The reason why delivery in terms of social activities shows high
utility is because consumers have been exposed to these issues. Therefore, if e-commerce
companies make information publicly available on the working environment of deliv-
ery, they will be able to raise consumer awareness of social activity. For example, some
e-commerce companies, such as Amazon, tend to involve consumers who existed only as
customers in logistics activities. As a result, consumers played the role of logistics service
providers at the same time. Therefore, interest and expectations for delivery in terms of
society increased. In addition, these shared logistics are an opportunity to positively secure
a positive corporate image by providing transparent working environment information
beyond just job creation. On the other hand, these shared logistics activities are a method
that is not well used by traditional distribution companies that have newly entered the
e-commerce market. Therefore, traditional retailers can use strategies to add or activate
functions to shared logistics platforms to inform consumers of their social activities.
Similar to delivery, the nature of the distribution center operation on the social side
can be interpreted as having an impact on consumers’ choice of platform due to the recent
issue of improving the working environment for workers in the distribution center. As a
result, opportunities for consumers to participate in the operation of distribution centers,
such as creating jobs in the delivery sector through shared logistics, will be provided as a
platform, and disclosure of information will be a way to meet the utility of consumers.
On the other hand, as the COVID-19 infection of logistics center workers and the
spread of infectious diseases in the community have also become an issue, it can be
interpreted that the social aspect of logistics center operations is important for consumers.
In particular, for e-commerce companies that operate their logistics companies, the outbreak
of infectious diseases in the logistics center can greatly hurt logistics efficiency and corporate
image, so it is important to prevent them. In order to achieve this, it is necessary to consider
the Goods to Person method that can minimize face-to-face contact when designing the
distribution center.
In choosing an e-commerce platform, respondents considered delivery to be the least
important attribute in the environment sector. In addition to simply delivering using
eco-friendly vehicles, eco-friendly delivery also includes improving logistic efficiency such
as improving vehicle loading rates and optimizing routing. However, it is not easy for con-
sumers to recognize the environmental impact of delivery because e-commerce companies
do not actually provide information on the environmental impact of such activities. In
addition, unlike the directly visible packaging, delivery in terms of environmental activities
Sustainability 2021, 13, 11548 13 of 15

is difficult for consumers to feel, so it can be seen that such results were derived due to its
relatively low importance.
As major countries such as the U.S. and regions such as the EU accelerate eco-friendly
policies, leading logistics companies such as Amazon and FedEx also declare carbon
neutrality and are sparing no investment regarding eco-friendly delivery. As such, the
logistics industry tends to value the environment, and eco-friendly delivery is also one
of the directions that e-commerce companies should take in the future. On the other
hand, e-commerce companies need to raise consumer awareness of environment activities
first in order to have discriminatory competitiveness in the market through delivery in
the environmental sector. For example, it is important to inform e-commerce companies
and consumers that they are participating in eco-friendly delivery activities by providing
various options, such as allowing consumers to choose eco-friendly delivery directly and
improving loading rates, even if it takes a little longer than the standard delivery method.

6. Limitation and Future Research


Our study investigates securing competitiveness strategy from logistics and ESG per-
spectives. We acknowledge that our study has limitations that provide some opportunities
for future research. First, four attributes were selected and were hypothesized to have
impacts on e-commerce customer’s choices. Although, these attributes are grounded from
logistics and ESG perspectives, we recognize that other latent attributes influence the
customer’s choice. For example, if e-commerce companies are to provide discriminatory
services through ESG, it leads to an inevitable increase in costs. Accordingly, in future
studies, it is necessary to understand the importance of logistics costs that consumers think
of and to determine how much extra they are willing to pay. Second, there was a lack of
investigation on which attributes derived in this study are related to existing e-commerce
platforms and on which the e-commerce company consumers were choosing. Therefore,
future research will present a more practical strategy by synthesizing consumers’ actual
e-commerce platform selection and analysis results. Third, the analyses of individual
factors such as marital status, size of household, and income were not considered in detail
while conducting the research. These factors can be influential to the dependent variable of
this research. For example, the income of respondents may lead respondents to consider
ESG attributes when they choose an e-commerce platform. In future studies, the factors
of individual respondents can be hypothesized to expand the influence on utility of the
e-commerce platforms. Lastly, most of the survey samples were biased toward those in
their 20s (66.7%), and the number of respondents in their 40s and 50s was very small,
so there was a limit to reflecting the perception of middle-aged and elderly people in
the results. Nevertheless, the recent change in consumption patterns of young people
(Generation Z and millennials) has a great influence on the e-commerce market [48]. Our
study show that the young generation recognized the importance of ESG when choosing an
e-commerce platform. In addition, the total sample reflected in the analysis was 96, which
is reasonable to conduct conjoint analysis, but it can be seen as somewhat insufficient to
generalize the research results. Therefore, in future research, various age groups suitable
for Korea’s population structure are considered, and more samples are collected to further
increase the reliability of the study.

Author Contributions: Conceptualization, J.K.; Methodology, M.K. and S.I.; Software, M.K. and
J.K.; Validation, D.C. and J.K.; Formal Analysis, J.K., M.K., and S.I.; Investigation, J.K., M.K., and
S.I.; Resource, J.K., M.K., S.I., and D.C.; Data Curation: J.K., M.K., and S.I.; Writing Original Draft
Preparation, J.K., M.K., and S.I.; Writing – Review and Editing, J.K. and D.C.; Visualization, M.K.;
Supervision, J.K., M.K., S.I., and D.C.; Project Administration, J.K.; Funding Acquisition, J.K., M.K.,
and S.I. All authors have read and agreed to the published version of the manuscript.
Funding: Foundation of Korea Logistics Industry Promotion.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Informed consent was obtained from all subjects involved in the study.
Sustainability 2021, 13, 11548 14 of 15

Data Availability Statement: The data presented in this study are available on request from the first
author.
Conflicts of Interest: The authors declare no conflict of interest.

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