The sources examine consumer perceptions of physical and digital books, focusing on price fairness and author compensation. They argue that transparent communication about higher author compensation for digital books can positively influence consumer purchase intentions, especially among digital reading enthusiasts.
Kučinskas, G., & Pikturnienė, I. (2024). Valuing the Creator: The Impact of Author Compensation Cues on Perceived Price Fairness and Purchase Intentions. Journal of Internet Commerce, 1-25
Here are some key findings and implications from the sources, which were based on two experimental studies:
- Consumers perceive the revenue share distribution among authors, publishers, and sellers differently for digital and physical books. [1] For the same price, consumers attributed more revenue to the author and less to the publisher for digital books compared to physical books. [2, 3] This difference likely reflects consumers’ awareness of the lower production and distribution costs associated with digital formats.
- Consumers are more sensitive to the pricing of digital books from a fairness perspective. [4] This sensitivity arises from the lower perceived value of digital goods compared to their physical counterparts. [5]
- Perceived Outcome Price Fairness (POF) plays a mediating role in consumer behavior. [6, 7] Consumers are more likely to buy a digital book if they perceive the price as fair, particularly in relation to the author’s share of the revenue.
- Explicit information cues about high author compensation for digital books significantly increase purchase likelihood and willingness to pay (WTP) for digital books. [8] This effect is especially pronounced among consumers who are concerned about authorial remuneration and those who perceive higher value in digital books. [9, 10]
- Physical books still command a higher willingness to pay (WTP) and willingness to buy (WTB) than digital books. [11, 12] This difference likely stems from the tangible and sensory experience associated with physical books. [13]
Learnings for Marketers and Business Owners:
- Transparency in author compensation for digital books is crucial. [14, 15] Clearly communicating how much of the revenue goes to the author can enhance consumer trust, increase the perceived value of the digital product, and ultimately boost sales. [14, 15]
- Fairness in pricing is a key driver of purchase intentions. [16] Consumers are increasingly attuned to ethical consumption practices. [17] Publishers and retailers should consider adjusting pricing and compensation models to ensure authors receive a fair share of the revenue. This practice can lead to long-term gains by improving consumer attitudes and perceptions of price fairness. [18, 19]
- Targeting digital reading enthusiasts with messaging about author compensation is an effective strategy. [20] These consumers are more receptive to information about author earnings and are more likely to be influenced by it in their purchase decisions.
- Emphasize the value of digital books while also acknowledging the value of physical books. [20] Marketing campaigns should not only highlight the convenience and accessibility of digital books but also acknowledge the unique appeal of physical books.
- Consider incorporating author compensation information into marketing campaigns. [21] Highlighting the author’s role and their earnings can create a more personal connection with consumers and enhance their perception of the book’s value.
By understanding the dynamics of consumer perceptions and the importance of fair author compensation, marketers and business owners can develop effective strategies to enhance the appeal and profitability of digital books.
Kučinskas, G., & Pikturnienė, I. (2024). Valuing the Creator: The Impact of Author Compensation Cues on Perceived Price Fairness and Purchase Intentions. Journal of Internet Commerce, 1-25