Pricing the digital version of a book: wholesale vs. agency models

Luo, Chunlin; Leng, Mingming; Tian, Xin; Song, Jingpu

doi:10.1080/03155986.2017.1348570

Cited by 9 publications

(6 citation statements)

References 8 publications

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“…Numerous works consider the interaction between content and digital devices and find that the content price significantly affected the price of the digital device (Adner et al, 2020;Yu et al, 2011). Recent studies show interest in the pricing strategy and model of e-books (Li and Liu, 2013;Luo et al, 2017;Zhu and Yao, 2018). Our study is closely related to the e-book literature that considers distributes strategies under multi-channel models.…”

Section: Nbri 123mentioning

confidence: 85%

“…Lu et al (2018) find that both bookstores and publishers would prefer the agency model only when the channel structure is decentralized. Luo et al (2017) and Tan and Carrillo (2017) compare book prices in the different models and find that the retail prices of ebooks are lower under the agency model when the substitutability (competition) between the two versions of books is small. We also analyze books' pricing model between wholesale and agency pricing model.…”

Section: Nbri 123mentioning

confidence: 99%

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Publisher’s distribution channel selection of print books in a book supply chain with print and e-books

Zeng

Hou

2021

NBRI

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Purpose This paper aims to exam the publisher’s online distribution strategies of print books between a reselling and a marketplace channel with the coexistence of e-book. This study extends the study of channel selection to the content products industry. Design/methodology/approach By constructing a publisher-leader Stackelberg game model, the authors investigate the publisher’s distribution strategies. The retailer holds a digital channel for e-book and reselling and marketplace channels for print books. The authors examine three-channel modes for the print book distribution: a pure reselling channel, a marketplace channel and a hybrid channel. Findings The results reveal that a hybrid channel always dominates a pure marketplace channel from the publisher’s perspective. Then, only when the print book’s margin cost and the marketplace’s slotting fee are not very high, the publisher prefers the hybrid to a pure reselling channel. The authors also found a Pareto zone where the hybrid channel mode improves publisher’s and retailer’s profits. Furthermore, the publisher is less likely to choose the hybrid channel as the acceptance of e-book increases. The authors also examine the situation where a publisher-authorized third-party distributor runs the marketplace channel and found the results still hold. Originality/value This paper fills a theoretical and practical gap for a structured analysis of the content providers’ online distribution channel selection of the physical products and digital products. Different from previous related studies, this study focuses on analyzing physical products’ channel strategies and finds physical products’ cost plays a crucial role in the content provider’s channel decision.

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Section: Nbri 123mentioning

confidence: 85%

Section: Nbri 123mentioning

confidence: 99%

Publisher’s distribution channel selection of print books in a book supply chain with print and e-books

Zeng

Hou

2021

NBRI

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“…Abhishek et al (2015) investigate a manufacturer's strategic choice between agency selling and reselling formats for two competitive online channels. Tan et al (2016), Zhu andYao (2018), andLuo, Leng, et al (2018) explore a publisher's choice of selling modes for e-book, considering competing retailers, e-reader, and printed versions, respectively. Differing from these studies, our paper discusses the choices of selling modes from the respect of retailers that also catch enough attention from scholars in the field of electronic commerce.…”

Section: Literature Reviewmentioning

confidence: 99%

New brand introduction and selling mode choice for online retailers with network effect

Zhong

Shen

2021

Manage Decis Econ

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This paper builds a game‐theoretic model to examine online retailers' decisions of whether to introduce a new brand and whether to sell it in reselling or agency selling mode if introduced, given one existing brand supplier ex ante. We find it is not always more profitable for the online retailer to introduce the new brand. Interestingly, when determining to introduce the new brand, the online retailer may prefer the agency selling mode even though the commission fee becomes negligible and may not choose the agency selling even if the retailer can earn all sale profit as commission.

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“…See Guo and Meng (2015), Holm (2003), Sundararajan (2004), Kogan et al (2013), Wu, et al (2020, Zhang et al (2021). Some studies have mainly focused on analyzing the performances between the members in a two-echelon supply chain from the perspective of game theory see Li and Lin (2009), Avinadav et al (2014), Luo et al (2017), Huang et al (2017), Zhang and Peng (2020).…”

Section: Introductionmentioning

confidence: 99%

Protection in DRM and pricing strategies for digital products considering quality degradation

Zhang

2023

EAL

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In this paper, we develop a model in which a monopolistic firm manufactures and sells a digital product, by incorporating digital rights management (DRM), quality degradation of pirated products, and government copyright enforcement into the consumer’s utility function. We determine the monopolist’s optimal pricing strategies and the appropriate DRM protection level through mathematical deduction. Our results show that when the government copyright enforcement is moderate and the quality of pirated products is relatively high, implementing a DRM system is optimal for the monopolist. However, in most other cases, DRM-free is better for the monopolist. This result may explain why DRM is not very popular in some industries. Our results suggest that choosing the right price, focusing on content innovation, and weakening DRM protection may be a better strategy for firms now. The results also indicate that DRM-free may be more prominent in the digital music industry than in the software and video games industries.

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Pricing the digital version of a book: wholesale vs. agency models

Cited by 9 publications

References 8 publications

Publisher’s distribution channel selection of print books in a book supply chain with print and e-books

Publisher’s distribution channel selection of print books in a book supply chain with print and e-books

New brand introduction and selling mode choice for online retailers with network effect

Protection in DRM and pricing strategies for digital products considering quality degradation

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