Pricing and consumption of digital content

Seminar paper from the year 2016 in the subject Communications - Multimedia, Internet, New Technologies, grade: 1,0, University of Frankfurt (Main) (Marketing), course: Pricing-, Customer-, And Online Decision Making, language: English, ...

Pricing and consumption of digital content

Pricing and consumption of digital content

Seminar paper from the year 2016 in the subject Communications - Multimedia, Internet, New Technologies, grade: 1,0, University of Frankfurt (Main) (Marketing), course: Pricing-, Customer-, And Online Decision Making, language: English, abstract: A lot of publishers start to charge for digital content and refrain from offering digital content for free. This resulted from declining advertising rates for online space and decreasing subscription rates to print content. However, a lot of publishers fear that price increases lead to a decrease in demand and revenue. In this paper, I address the question of how to successfully implement prices for digital content. Nevertheless, little is known about how the users react to price changes and if price increases effectively decrease the demand for digital content. Besides, applying behavioral theories, such as the mental accounting theory, on digital content is a rather new and unexplored topic. Therefore, this paper gives not only an overview of the existing literature on the pricing of digital content but also the findings of the mental accounting theory and its possible implications for digital content. I want to show that the payment frequency, the screening effect and the sunk-cost effect influence the bundling and the micropayment model differently and that higher prices attract users with a higher willingness-to-pay, who increase consumption and could offset the loss in demand from users with a free-lunch-mentality. However, there are contradictory findings of the effects of price on consumption. For instance, the prospect theory from Kahneman and Tversky states that users are loss-averse and want to avoid payments as often as possible, which implies to decrease the payment frequency.

More Books:

Pricing and consumption of digital content
Language: en
Pages: 19
Authors: Florian Uhl
Categories: Computers
Type: BOOK - Published: 2016-11-15 - Publisher: GRIN Verlag

Seminar paper from the year 2016 in the subject Communications - Multimedia, Internet, New Technologies, grade: 1,0, University of Frankfurt (Main) (Marketing), course: Pricing-, Customer-, And Online Decision Making, language: English, abstract: A lot of publishers start to charge for digital content and refrain from offering digital content for free.
Handbook of Research on Digital Media and Advertising: User Generated Content Consumption
Language: en
Pages: 768
Authors: Eastin, Matthew S., Daugherty, Terry, Burns, Neal M.
Categories: Business & Economics
Type: BOOK - Published: 2010-07-31 - Publisher: IGI Global

"This book bridges the gap between professional and academic perceptions of advertising in new media environments, defining the evolution of consumerism within the context of media change and establishing the practical issues related to consumer power shifts from supplier to user"--Provided by publisher.
Illegal Online File Sharing, Decision-Analysis, and the Pricing of Digital Goods
Language: en
Pages: 288
Authors: Michael I. C. Nwogugu
Categories: Business & Economics
Type: BOOK - Published: 2016-11-03 - Publisher: CRC Press

Illegal online file sharing costs companies tens of billions of dollars of lost revenues around the world annually and results in lost productivity, various psychological issues, and significant reduction of incentives to create and innovate. Legislative, technical, and enforcement efforts have failed. This book presents psychological theories about why people
Remaking the Movies Digital Content and the Evolution of the Film and Video Industries
Language: en
Pages: 132
Authors: OECD
Categories: Business & Economics
Type: BOOK - Published: 2008-05-05 - Publisher: OECD Publishing

Analyses the impact of digital content creation, distribution and use on value chains and business models of the film and video industry and explores the policy implications of these changes to identify how digital content may affect the function and position of participants in the industry.
Understanding the Interactive Digital Media Marketplace: Frameworks, Platforms, Communities and Issues
Language: en
Pages: 427
Authors: Sharma, Ravi S.
Categories: Computers
Type: BOOK - Published: 2011-10-31 - Publisher: IGI Global

Increasingly, multimedia content—from music, movies, games, news, books, and digital art to sharable educational material, e-government services, and e-health services—is delivered over broadband networks. With technological advances, cloud computing applications, and social networking approaches, many exciting applications are emerging to deliver this content as Interactive Digital Media (IDM). Understanding the

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