AdultShop.com: establishing legitimacy with the “virgin” consumer Available to Purchase

Despite the recent failures of many e‐businesses, the consensus remains that firms will need to develop e‐commerce strategies if they are to compete in the future. However, there is little by way of empirical research on how firms can successfully do so. We examine a case of a large global Internet start‐up in a heretofore neglected sector, that of adult entertainment. Our findings indicate the difficulties faced by Internet start‐ups, as they seek to build mass‐market penetration while controlling marketing and acquisition costs. The case also demonstrates the role that historical positioning and previous industry associations play in the development of an online brand.