Analysis of Low Growth of B2C in Korea - Focused on Transaction Cost

B2C is not doing well in Asia and Pacific countries in comparison to U.S. and Europe. But there is misunderstanding of low growth of B2C electric commerce caused by cultural factor. Consumers in market are rational to decide their purchase according to total cost - market price and transaction cost. I examined this with data of Korea and U.S. Transaction cost in real market is less in Korea than in U.S. but that of electric commerce, it is much less in U.S. As a result, the choice of consumers in Korea is real market transaction while consumers in U.S. choose electric commerce.