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Unformatted text preview: e differences between Digital Markets and Traditional
Markets. KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS
KEY DIGITAL GOODS
Digital Gods are goods that can be delivered over a digital network such as music, tracks,
video, software, newspapers, magazines and books.
Digital Goods can be expressed, stored, delivered, and sold as purely digital products.
Currently, most of these products are sold as physical goods, for example, CDs DVDs
and hard copy bocks. But the Internet offers the possibility of delivering all these
products on demand as digital products.
In general, the marginal cost of producing another unit of digital good is about zero.
(it costs nothing to make another copy of music). Costs of delivering over the Internet
are very low; marketing costs remain the same; and pricing can be highly variable.
(e.g. On the Internet , the merchant can change prices as often as desired because of low
menu The impact of Internet on the market of these kind of digital goods is nothing
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This note was uploaded on 08/12/2011 for the course ITEC 421 taught by Professor Huseyingursev during the Spring '11 term at Eastern Mediterranean University.
- Spring '11