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Customer-Specific Transaction Risk Management in E-Commerce

  • Conference paper
Value Creation in E-Business Management (AMCIS 2009)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 36))

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Abstract

Increasing potential for turnover in e-commerce is inextricably linked with an increase in risk. Online retailers (e-tailers), aiming for a company-wide value orientation should manage this risk. However, current approaches to risk management either use average retail prices elevated by an overall risk premium or restrict the payment methods offered to customers. Thus, they neglect customer-specific value and risk attributes and leave turnover potentials unconsidered. To close this gap, an innovative valuation model is proposed in this contribution that integrates customer-specific risk and potential turnover. The approach presented evaluates different payment methods using their risk-turnover characteristic, provides a risk-adjusted decision basis for selecting payment methods and allows e-tailers to derive automated risk management decisions per customer and transaction without reducing turnover potential.

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Author information

Authors and Affiliations

  1. Institute of Computer Science and Social Studies, Department of Telematics, University of Freiburg, Friedrichstrasse 50, 79098, Freiburg, Germany

    Markus Ruch & Stefan Sackmann

Authors
  1. Markus Ruch
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  2. Stefan Sackmann
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Editor information

Editors and Affiliations

  1. College of Business, Illinois State University, IL 61790, Normal, USA

    Matthew L. Nelson

  2. College of Business, University of Illinois, IL, 61820, Champaign, USA

    Michael J. Shaw

  3. College of Business and Public Administration, Drake University, IA 50311, Des Moines, USA

    Troy J. Strader

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© 2009 Springer-Verlag Berlin Heidelberg

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Ruch, M., Sackmann, S. (2009). Customer-Specific Transaction Risk Management in E-Commerce. In: Nelson, M.L., Shaw, M.J., Strader, T.J. (eds) Value Creation in E-Business Management. AMCIS 2009. Lecture Notes in Business Information Processing, vol 36. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03132-8_6

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  • DOI: https://doi.org/10.1007/978-3-642-03132-8_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03131-1

  • Online ISBN: 978-3-642-03132-8

  • eBook Packages: Computer ScienceComputer Science (R0)

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