Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model
This paper aims to define a model for measuring the localness of a company in an innovative and reliable way, motivated by the growing consumer interest in purchasing local products and supporting local economies. The proposed Expenses Localness Indicators (ELI) model uses existing data from informa...
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MDPI AG
2025-04-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
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| Online Access: | https://www.mdpi.com/0718-1876/20/2/67 |
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| author | Georgia Parastatidou Vassilios Chatzis |
| author_facet | Georgia Parastatidou Vassilios Chatzis |
| author_sort | Georgia Parastatidou |
| collection | DOAJ |
| description | This paper aims to define a model for measuring the localness of a company in an innovative and reliable way, motivated by the growing consumer interest in purchasing local products and supporting local economies. The proposed Expenses Localness Indicators (ELI) model uses existing data from information systems to define Localness Indicators, and incorporates Localness Levels based on geographic and economic criteria. It can be applied to any type of financial entity and overcomes the difficulty of defining localness in e-commerce companies or digital businesses in general. Previous studies have examined the impact of localness and investigated its effectiveness as a branding strategy for managers, mainly through product traceability. The ELI model uses as data the expenses of a company paid to other financial entities. The Expenses Localness Indicators are determined based on the distribution of these payments combined with the localness of the paid financial entities. These Indicators represent the degree of localness as a percentage, ranging from 0% (non-local) to 100% (fully local), and may vary over time. The results of the presented examples indicate that a company’s localness increases as it spends more of its expenses on local financial entities and vice versa. Specific strategies have been tested using synthetic data that demonstrate the correct functioning of the model’s indicators. The ELI model could be used to provide reliable and certifiable information to consumers who want to know where their money goes when they buy products. Implementing the proposed model on a large scale would require acceptance by as many companies and states as possible. However, by making the necessary adjustments, the model could be applied on a smaller scale, supported by consumers and local governments interested in uncovering knowledge about localness. It could also be established as a valid indicator of localness to provide information that researchers, government agencies and professionals can use to promote local entrepreneurship. |
| format | Article |
| id | doaj-art-b68e0f4e51014760b25bab8a6547349f |
| institution | Kabale University |
| issn | 0718-1876 |
| language | English |
| publishDate | 2025-04-01 |
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| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj-art-b68e0f4e51014760b25bab8a6547349f2025-08-20T03:27:33ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762025-04-012026710.3390/jtaer20020067Measuring Localness in E-Commerce Using the Expenses Localness Indicators ModelGeorgia Parastatidou0Vassilios Chatzis1Department of Management Science and Technology, Democritus University of Thrace, 65404 Kavala, GreeceDepartment of Management Science and Technology, Democritus University of Thrace, 65404 Kavala, GreeceThis paper aims to define a model for measuring the localness of a company in an innovative and reliable way, motivated by the growing consumer interest in purchasing local products and supporting local economies. The proposed Expenses Localness Indicators (ELI) model uses existing data from information systems to define Localness Indicators, and incorporates Localness Levels based on geographic and economic criteria. It can be applied to any type of financial entity and overcomes the difficulty of defining localness in e-commerce companies or digital businesses in general. Previous studies have examined the impact of localness and investigated its effectiveness as a branding strategy for managers, mainly through product traceability. The ELI model uses as data the expenses of a company paid to other financial entities. The Expenses Localness Indicators are determined based on the distribution of these payments combined with the localness of the paid financial entities. These Indicators represent the degree of localness as a percentage, ranging from 0% (non-local) to 100% (fully local), and may vary over time. The results of the presented examples indicate that a company’s localness increases as it spends more of its expenses on local financial entities and vice versa. Specific strategies have been tested using synthetic data that demonstrate the correct functioning of the model’s indicators. The ELI model could be used to provide reliable and certifiable information to consumers who want to know where their money goes when they buy products. Implementing the proposed model on a large scale would require acceptance by as many companies and states as possible. However, by making the necessary adjustments, the model could be applied on a smaller scale, supported by consumers and local governments interested in uncovering knowledge about localness. It could also be established as a valid indicator of localness to provide information that researchers, government agencies and professionals can use to promote local entrepreneurship.https://www.mdpi.com/0718-1876/20/2/67expenses localness indicatorse-commercelocality estimationbrand localnessconsumer behaviourbusiness information process |
| spellingShingle | Georgia Parastatidou Vassilios Chatzis Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model Journal of Theoretical and Applied Electronic Commerce Research expenses localness indicators e-commerce locality estimation brand localness consumer behaviour business information process |
| title | Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model |
| title_full | Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model |
| title_fullStr | Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model |
| title_full_unstemmed | Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model |
| title_short | Measuring Localness in E-Commerce Using the Expenses Localness Indicators Model |
| title_sort | measuring localness in e commerce using the expenses localness indicators model |
| topic | expenses localness indicators e-commerce locality estimation brand localness consumer behaviour business information process |
| url | https://www.mdpi.com/0718-1876/20/2/67 |
| work_keys_str_mv | AT georgiaparastatidou measuringlocalnessinecommerceusingtheexpenseslocalnessindicatorsmodel AT vassilioschatzis measuringlocalnessinecommerceusingtheexpenseslocalnessindicatorsmodel |