Int. J. Electronic Customer Relationship Management, Vol. 1, No. 3, 2007 287 Copyright © 2007 Inderscience Enterprises Ltd. Internet Marketing adoption: factors affecting website sophistication Maria Teresa Borges Tiago*, João Pedro Almeida Couto, Flávio Borges Tiago and José António Cabral Vieira Department of Business and Economics, University of the Azores, Portugal E-mail: mariaborges@uac.pt E-mail: jpedro@uac.pt E-mail: flaviotiago@uac.pt E-mail: josevieira@uac.pt *Corresponding author Abstract: The continuous growth and evolution of the internet has turned it into a vital resource for organisations and the focus of increasing academic research. This study compares the adoption of Internet Marketing (IM) by 500 major European companies. We analyse different patterns of website sophistication to measure IM and the impact of contextual variables on this process. Considering the existing literature, we propose criteria to analyse the sophistication of the companies’ online presence, based on their websites features. Using a probit model we found a correlation between the level of IM utilisation, the nationality of the companies and the type of industry, with relevant effects derived from contextual variables like the number of hosts, internet users, and the company’s dimension, measured by sales volume. Keywords: Internet Marketing; IM; marketing strategy; electronic commerce; website sophistication. Reference to this paper should be made as follows: Tiago, M.T.B., Couto, J.P.A. Tiago, F.B. and Cabral Vieira, J.A. (2007) ‘Internet Marketing adoption: factors affecting website sophistication’, Int. J. Electronic Customer Relationship Management, Vol. 1, No. 3, pp.287–306. Biographical notes: Maria Teresa Borges Tiago is an Assistant Professor at University of Azores, PhD in International Marketing, and as the MBA by the Portuguese Catholic University. She teaches International Marketing and Service Marketing. She is a Research Fellow at CEEAplA (Portugal). Her main interests include international marketing, internet marketing and international business. She has published several papers in international journals such as The e-Business Review, Management Research News, Journal of the American Academy of Business, among others. João Pedro Almeida Couto is an Assistant Professor at University of Azores, PhD in International Business, and has the MBA by the University of Porto. Directs the management section of the Department of Economics and Management and teaches International Business and Strategic Management. He is also Research Fellow at CEEAplA (Portugal). His main interests include international business, international marketing and strategic management.