Shohat Michael

Perspectives for B2C E-Commerce in South America: Evidence from Chile

Abstract

Internet development in South America is often described in ambivalent terms. On the one hand, explosive growth is predicted, promising an increase in democracy, decentralization, and the overcoming of traditional socio-economic barriers. On the other hand, infrastructure deficits, unequal distribution of resources on an international as well as intranational level, and the local New Economyıs complete dependency on the US pose considerable development barriers. It is thus argued that South Americaıs E-Commerce future cannot be predicted simply by projecting US development patterns several years onto the future, as has been done somewhat accurately for Western Europe. Rather, unique circumstances typical for this region require a detailed analysis of social, political, and economic determinants of the marketıs development.

A brief overview of previous findings on South American E-Commerce is followed by a discussion of preliminary research results recently obtained in Chile. Part of a growing body of research on the Internet in South America, the presented data stems from surveys, interviews, and media analysis considering psychological, socio-cultural, socio-economic and political aspects of B2C E-Commerce use and potentials, including the following issues:
- Effects of unequal distribution of resources on B2C E-Commerce use in a segmented society
- Trust, distrust, and E-Commerce use
- US-based vs. local E-Commerce
- E-Commerce opportunities for underdeveloped rural regions
- Benefits and challenges for border-crossing E-Commerce within South America.