From Technology to Traffic: How Website Technological Sophistication, Brand Recognition, and Business Model Innovation Drive Consumer Traffic in Korean E-Commerce

Abstract

As e-commerce continues to expand, understanding the factors that drive consumer traffic to business-to-consumer (B2C) websites is crucial. This study investigates the interplay between website technological sophistication, brand recognition, and business model innovation in influencing website traffic among Korean B2C companies. Drawing on data from 9003 companies across seven key sectors—finance, retail, healthcare, technology, food, education, and media—we employ Ordinary Least Squares (OLS) regression analysis to test our hypotheses. Our findings reveal that website technological sophistication is positively associated with monthly website visits. This relationship is particularly pronounced for companies with innovative business models, highlighting the synergistic effect of advanced website features and novel business strategies in attracting consumers. Conversely, the positive impact of website technological sophistication on traffic is less significant for well-established brands with high recognition levels, indicating that strong brand equity can mitigate the need for highly sophisticated websites. These results align with the Technology Acceptance Model (TAM), Innovation Diffusion Theory (IDT), and Signaling Theory (ST), providing a nuanced understanding of how technology, branding, and innovation intersect to drive online consumer behavior. Our study offers valuable insights for e-commerce firms seeking to optimize their digital presence and underscores the importance of investing in advanced website functionalities, particularly for lesser-known brands and companies with innovative business models. Future research should explore these dynamics in different cultural and industry contexts to enhance the generalizability of our findings.