Carter Parker
Research Mentor(s): Jin Sung
Mentor Department: Marketing
Authors: Carter Parker, Yeonjin Sung
Session: Session 6 (3:00pm – 3:50pm)
Presentation Type: Poster 110
Abstract
Previous research demonstrates that ebooks and other formats of digital content have benefits that physical formats lack; however, these benefits are not reflected in the consumption trends of digital content. Consumers have been found to violate the assumed rational actor theory when choosing between format options as shown in previous research with a preferred choice of physical goods, a higher intention to consume physical goods, and a higher willingness to pay for physical goods. Through a series of online studies, we were able to gauge a diverse group of consumer preferences between physical and digital books even in the face of unequal prices. We find that even when the economic benefit favors digital formatting, consumer preferences significantly still favor physical formatting in the ebook market. The effects on consumers’ market beliefs were then tested through the mediating variable of price fairness perceptions. Despite the personal and societal advantages of digital content adoption, pricing physical and digital versions equally was found to unintentionally discourage consumers from choosing digital options due to the perceived violation of fairness. Our findings yield implications for digital pricing strategies, emphasizing consumers’ fairness perceptions in format-choice decisions. Moderators and boundary conditions are also investigated. These insights provide actionable pricing strategy guidance for managers and policy-makers advocating digital adoption. Such strategies could help reduce physical production, distribution costs, and environmental impacts, supporting business goals and societal sustainability initiatives.
