Building an Online Reputation with Free Content: Evidence from the E-book Market

Dainis Zegners

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: An important strategy to build a reputation is to practice introductory pricing. By selling at a lower introductory price, sellers can increase demand, induce more buyers to provide feedback, and build a reputation more quickly. I examine introductory pricing in the form of offering free content. I show that offering free content to build a reputation can be a double-edged strategy. It does not only attract buyers with a high preference, but also buyers with a low preference for the product.

JEL-codes: D82 L86 M31 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-mkt and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168293

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