Three studies on digital content sales strategies : effects of content previews, monetization pricing, and consumption-based promotions on E-book sales = 디지털 콘텐츠의 판매와 소비를 위한 마케팅, 유료화, 홍보 전략의 실증적 연구
effects of content previews, monetization pricing, and consumption-based promotions on E-book sales
Mobile innovations are truly revolutionary, shifting the paradigm in which we buy and consume digital content products. Given the increase in mobile usage across the globe, the e-book market is characterized as one of the fastest-growing and most popular digital content sectors, where distribution platforms and channels continue to expend in size and scale. Advancements in technologies empower marketers, digital content providers, and retailers to track and monitor consumers’ browsing and content-consumption behaviors in online environments, allowing retailers to comprehensively unravel the preferences and inherent characteristics of consumers to understand how consumers conduct themselves online and accordingly establish effective marketing strategies. With consideration for the salient attributes of digital content, this thesis addresses the issues that surround the consumption and effective sale of digital content in three separate studies. The first essay investigates the interactive effects of exposure to online previews and reviews on consumers’ purchase decisions. Conducting analyses underlain by a two-stage hierarchical Bayesian framework, we found that online previews positively influence individual purchase decisions, and previews and reviews also serve as substitutes for each other, as evidenced by the decreasing positive effects of previews with increasing review volume and average review rating. The second study examines the effects exerted by “marshmallow pricing” on the monetization of hedonic digital content with development of analytical frameworks and the empirical validation. The findings reveal that marshmallow pricing poses positive effects on the monetization of digital content, generating new demand from users who would otherwise forgo participation in the market. The third essay probes into the effectiveness of consumption-based targeted promotional strategy through a field experiment involving 11,000 participants. The results show that consumers with high completion rates are more receptive to coupon promotions than those with low completion rates. Consumers who exhibit concentrated reading patterns are more likely to redeem coupons than consumers who display distracted reading behaviors.