Innovation, Bestsellers and Digitization - Where to Find the Needle in the Haystack?

Georg Goetz, Daniel Herold, Phil-Adrian Klotz and Jan Thomas Schaefer ()
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Georg Goetz: Justus Liebig University Giessen
Daniel Herold: Justus Liebig University Giessen
Phil-Adrian Klotz: Justus Liebig University Giessen
Jan Thomas Schaefer: Justus Liebig University Giessen
Authors registered in the RePEc Author Service: Georg Götz

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: We empirically analyze the role of e-Commerce and brick-and-mortar retailers in discovering new bestsellers in the book market, using the German market as an example. Using an AR(1)-Process, we find that when a title becomes a bestseller sales increase in e-Commerce and decrease in brick-and-mortar stores relative to a title that is not on the bestseller-list. This finding implies that consumers in the online channel respond by increasing sales upon receiving a quality signal (i.e., a title becoming a bestseller). Consumers in the offline channel seem to already know that title so that, compared to a title that is not on the bestseller-lists, sales are decreasing. This might imply that consumers in the offline channel are more likely to read future bestsellers.

Pages: 15 pages
Date: 2020
New Economics Papers: this item is included in nep-com and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202012

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