"Will they pay for it?" A conceptual framework for analyzing consumer responses to pricing decisions regarding the online distribution of digital content

Table of Contents

• Introduction and Overview
• Justification of the Study and Problem Statement
• State of the Research
• Research Purpose and Chapter Overview
• The Concept of Digital Content – Definition and Classification
• The Concept of Electronic Markets as the Medium of Exchange
• The Internet Economy
• Electronic Markets and Electronic Commerce
• Definition of Digital Content
• Economic Characteristics of Digital Content
• Experience Good
• Indestructibility
• Transmutability
• Cost Structure
• Externalities
• Classification of Digital Content
• Pricing Strategies for the Online Distribution of Digital Content
• Analytical Framework
• Pricing Schedules
• Overview
• Alternative classification of pricing schedules for digital content
• Comparing usage-based with non-usage-based models
• Price Setting Policy
• Overview
• Decisions Regarding the Price Structure
• Decisions Regarding the Price Level
• Definition of Constructs
• The Concept of Willingness to Pay
• Theoretical Foundations
• Willingness to Pay in the Context of the Internet
• Willingness to Pay for Digital Content Online
• The Concept of Perceived Price Fairness
• Literature Review and Theoretical Foundations
• Perceived Fairness in the Context of the Internet
• The Concept of Perceived Risk
• Literature Review and Theoretical Foundations
• Perceived Risk in the Context of the Internet
• Theoretical Framework
• Overview
• Prospect Theory
• Mental Accounting
• Coupling and Mental Depreciation
• Analyzing Consumer Reactions to the Pricing Decisions of Digital Content Providers
• General Overview
• Determinants of Willingness to Pay for Digital Content Online
• Perceived Price Fairness
• Perceived Risk
• Model 1 - Comparing the Effects of Different Pricing Schedules
• Model 2 - Comparing the Effects of Different Price Setting Strategies
• Moderating Factors
• "Sponsored Lunch" Mentality
• Reputation
• Offline Pendant

Objectives and Key Themes

This research aims to develop a conceptual framework for analyzing consumer responses to pricing decisions regarding the online distribution of digital content. The study explores the factors influencing consumer willingness to pay for digital content, particularly focusing on the role of perceived price fairness and perceived risk.

• The definition and classification of digital content
• Pricing strategies for the online distribution of digital content
• Consumer behavior towards pricing decisions for digital content
• The influence of perceived price fairness and perceived risk on willingness to pay
• The development of a theoretical framework for understanding consumer responses

Chapter Summaries

The first chapter introduces the study's justification, problem statement, and research purpose. It also provides a brief overview of the existing research in the field. Chapter 2 delves into the concept of digital content, defining it and exploring its economic characteristics, such as experience good, indestructibility, and transmutability. It also discusses the classification of digital content based on different criteria. Chapter 3 analyzes various pricing strategies for the online distribution of digital content, examining both pricing schedules and price setting policies. Chapter 4 defines key constructs like willingness to pay, perceived price fairness, and perceived risk, drawing upon relevant literature and theoretical foundations. It then introduces a theoretical framework that combines Prospect Theory, Mental Accounting, and Coupling and Mental Depreciation. Chapter 5 examines the factors influencing consumer responses to pricing decisions, specifically focusing on the impact of perceived price fairness and perceived risk on willingness to pay. It presents two models to compare the effects of different pricing schedules and price setting strategies. Finally, it explores the role of moderating factors such as "sponsored lunch" mentality, reputation, and offline pendants.

Keywords

Digital Content, Online Distribution, Pricing Decisions, Consumer Behavior, Willingness to Pay, Perceived Price Fairness, Perceived Risk, Theoretical Framework, Prospect Theory, Mental Accounting, Pricing Schedules, Price Setting Policy, Moderating Factors.