07-LECTURE NOTES 7 E - COMMERCE DIGITAL MARKET AND DIGITAL GOODS

Short key concepts in e commerce digital markets and

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Unformatted text preview: ort of revolutionary, and we see the results around us every day. short KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS KEY DIGITAL GOODS The impact of Internet on the market of these kind of digital goods is nothing short of The revolutionary, and we see the results around us every day. revolutionary, Businesses dependent on the physical products for sales – such as bookstores, book Businesses publishers, music labels and film studios – face the possibility of declining sales and even destruction of their businesses. Newspapers and magazines are losing readers to the Internet, and losing advertisers. Internet, HOW INTERNET CHANGES THE MARKETS FOR DIGITAL GOODS Marginal Cost / unit Cost of Production Copying Cost Distributed Delivery Cost Inventory Cost Marketing Cost Pricing DIGITAL GOODS Zero High Approximately 0 Low Low Variable TRADITIONAL GOODS Greater than Zero Variable Greater than high High High Variable More Variable Fixed, based on unit cost (Bundling, Random Pricing Games) KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS KEY INTERNET BUSINESS MODELS...
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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.

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