This article summarizes a study that explores consumer perceptions of price fairness for digital and physical books and the implications for purchasing decisions. The study examines how different price levels and price comparisons, independent of content, affect perceived price fairness, intention to buy (ITB), and willingness to pay (WTP). [1]
Key Findings
- Consumers are more willing to pay for physical books than digital books. This trend is magnified as the price of the books increases. [2, 3]
- Consumers are more sensitive to the price fairness of digital books. When digital book prices are perceived as unfair, consumers are less likely to buy them. [4]
- Outcome Price Fairness (OPF), which refers to the consumer’s judgment of the value they receive for the price paid, plays a more significant role in purchasing decisions for digital books than Procedural Price Fairness (PPF). PPF relates to the consumer’s perception of the fairness of the pricing process. [5]
- While consumers may be aware of the costs associated with producing and distributing physical books, they have difficulty understanding the costs of digital books. This lack of understanding can lead to perceptions of unfair pricing. [6, 7]
- Content plays a role in consumer valuations of physical and digital books. Consumers are willing to pay more for physical copies of „classic” or „long read” books, even if they receive a free digital copy. [8]
Implications for Marketers and Business Owners
- Price digital books strategically. Recognize that consumers perceive the value of digital books differently than physical books. Consider pricing digital books lower than their physical counterparts to enhance perceptions of price fairness and increase sales. [9, 10]
- Emphasize the value of digital books. Clearly communicate the unique benefits of digital books, such as portability, searchability, and instant access. Highlight the value consumers receive beyond simply owning a physical copy. [11]
- Utilize price anchoring. Presenting consumers with a higher initial price, even if it’s for a comparable physical book, can make the actual price of the digital book seem more attractive. [12]
- Leverage content to drive value perception. Highlight the value of owning physical copies of longer, classic books that hold a higher perceived value. [13]
- Address price fairness concerns directly. If consumers perceive digital book prices as unfair, consider offering transparent explanations of pricing decisions. This can help to build trust and increase purchase intentions. [11]
- Explore alternative pricing models for digital books. Consider options such as subscriptions, bundles, or value-added services to enhance the perceived value of digital books and cater to different consumer segments. [14]
By understanding the factors that influence consumer perceptions of price fairness for digital books, marketers and business owners can develop effective pricing and marketing strategies to drive sales and build customer loyalty.
Kučinskas, G., & Pikturnienė, I. (2021). WILLINGNESS TO BUY DIGITAL AND PHYSICAL BOOKS: IMPACT OF PRICE FAIRNESS PERCEPTIONS ON DIFFERENT PRICE LEVELS AND CONTENT OF BOOKS. Market/Trziste, 33.