Competing against Electronic Intermediaries: the Case of Digital Music

Matt, C; Hess, T (2012). Competing against Electronic Intermediaries: the Case of Digital Music. In: 20th European Conference on Information Systems. Barcelona, Spain.

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The development of Internet technologies and e-commerce has opened up new possibilities for suppliers to address their consumers directly. However, it has also posed new challenges for suppliers to position themselves against intermediaries, who may have been necessary partners in brick-andmortar worlds, but are now also competitors. Despite significant potential savings by excluding intermediaries from their supply chains, in many markets suppliers have for the time being lost the battle against intermediaries. We focus on the case of digital music and use experimental techniques to analyse how consumers search for products and how they intuitively respond to changes in several vendor and market-related parameters. We implement a simplified task that is easy to understand but does not allow participants to calculate optimal solutions. Employing various measurements for the acceptance of supplier and intermediary online shops, we find that consumers are especially responsive to changes in price and supplier product assortment, while a higher number of suppliers in the market does not necessarily lead to a stronger desire for intermediation. Keywords: Intermediation, e-commerce, consumer product search, transaction costs, experimental economics.

Item Type:

Conference or Workshop Item (Paper)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems > Information Management
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems

UniBE Contributor:

Matt, Christian

Subjects:

000 Computer science, knowledge & systems
300 Social sciences, sociology & anthropology > 330 Economics

ISBN:

978-84-88971-54-8

Series:

Proceedings of the 20th European Conference on Information Systems

Language:

English

Submitter:

Michelle Deborah Rohrer

Date Deposited:

12 Mar 2018 16:29

Last Modified:

25 Nov 2019 10:56

BORIS DOI:

10.7892/boris.105367

URI:

https://boris.unibe.ch/id/eprint/105367

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