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Full-Text Articles in Management Information Systems
Optimal Digital Content Distribution Strategy In The Presence Of Consumer-To-Consumer Channel, Yunfang Feng, Zhiling Guo, Wei-Yu Kevin Chiang
Optimal Digital Content Distribution Strategy In The Presence Of Consumer-To-Consumer Channel, Yunfang Feng, Zhiling Guo, Wei-Yu Kevin Chiang
Research Collection School Of Computing and Information Systems
Although the online business-to-consumer (B2C) channel is the primary selling channel for digital content (e.g., videos, images, and music), modern digital technology has made possible the legal dissemination of such content over the consumer-to-consumer (C2C) channel through personal computing devices, such as PCs, mobile phones, and portable media players. This paper investigates the optimal channel structure and the corresponding pricing and service strategies for digital content distribution in order to understand the business value of introducing the C2C channel alongside the prevailing B2C channel. We identify conditions under which it is more profitable to use both B2C and C2C channels …
Pricing Software Upgrades: The Role Of Product Improvement & User Costs, Ram Bala, Scott Carr
Pricing Software Upgrades: The Role Of Product Improvement & User Costs, Ram Bala, Scott Carr
Information Systems and Analytics
The computer software industry is an extreme example of rapid new product introduction. However, many consumers are sophisticated enough to anticipate the availability of upgrades in the future. This creates the possibility that consumers might either postpone purchase or buy early on and never upgrade. In response, many software producers offer special upgrade pricing to old customers in order to mitigate the effects of strategic consumer behavior. We analyze the optimality of upgrade pricing by characterizing the relationship between magnitude of product improvement and the equilibrium pricing structure, particularly in the context of user upgrade costs. This upgrade cost (such …