IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v91y2015i2p343-357.html
   My bibliography  Save this article

Substitution or Promotion? The Impact of Price Discounts on Cross-Channel Sales of Digital Movies

Author

Listed:
  • Gong, Jing
  • Smith, Michael D.
  • Telang, Rahul

Abstract

Technology is transforming the marketing function in many ways, and this transformation is particularly apparent for information goods such as movies where digital technologies provide marketers with new distribution channels, which in turn create new opportunities for cross-channel effects. However, these digital channels also provide researchers with new opportunities to measure micro-level customer behavior to understand the impact of cross-channel effects in real-world settings.

Suggested Citation

  • Gong, Jing & Smith, Michael D. & Telang, Rahul, 2015. "Substitution or Promotion? The Impact of Price Discounts on Cross-Channel Sales of Digital Movies," Journal of Retailing, Elsevier, vol. 91(2), pages 343-357.
  • Handle: RePEc:eee:jouret:v:91:y:2015:i:2:p:343-357
    DOI: 10.1016/j.jretai.2015.02.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435915000172
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretai.2015.02.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cameron,A. Colin & Trivedi,Pravin K., 2013. "Regression Analysis of Count Data," Cambridge Books, Cambridge University Press, number 9781107667273, January.
    2. Judith Chevalier & Austan Goolsbee, 2003. "Measuring Prices and Price Competition Online: Amazon.com and BarnesandNoble.com," Quantitative Marketing and Economics (QME), Springer, vol. 1(2), pages 203-222, June.
    3. Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
    4. Knox, George & Eliashberg, Jehoshua, 2009. "The consumer's rent vs. buy decision in the rentailer," International Journal of Research in Marketing, Elsevier, vol. 26(2), pages 125-135.
    5. Erik Brynjolfsson & Yu (Jeffrey) Hu & Mohammad S. Rahman, 2009. "Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition," Management Science, INFORMS, vol. 55(11), pages 1755-1765, November.
    6. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    7. Alejandro Zentner & Michael Smith & Cuneyd Kaya, 2013. "How Video Rental Patterns Change as Consumers Move Online," Management Science, INFORMS, vol. 59(11), pages 2622-2634, November.
    8. Erik Brynjolfsson & Yu (Jeffrey) Hu & Michael D. Smith, 2003. "Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers," Management Science, INFORMS, vol. 49(11), pages 1580-1596, November.
    9. Ken Hendricks & Alan Sorensen, 2009. "Information and the Skewness of Music Sales," Journal of Political Economy, University of Chicago Press, vol. 117(2), pages 324-369, April.
    10. Brett Danaher & Samita Dhanasobhon & Michael D. Smith & Rahul Telang, 2010. "Converting Pirates Without Cannibalizing Purchasers: The Impact of Digital Distribution on Physical Sales and Internet Piracy," Marketing Science, INFORMS, vol. 29(6), pages 1138-1151, 11-12.
    11. Berend Wierenga, 2006. "—Motion Pictures: Consumers, Channels, and Intuition," Marketing Science, INFORMS, vol. 25(6), pages 674-677, 11-12.
    12. Deleersnyder, B. & Geyskens, I. & Gielens, K.J.P. & Dekimpe, M.G., 2002. "How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands," Other publications TiSEM 16dcb25c-7ea9-4c75-bdf6-5, Tilburg University, School of Economics and Management.
    13. Anil Kaul & Dick R. Wittink, 1995. "Empirical Generalizations About the Impact of Advertising on Price Sensitivity and Price," Marketing Science, INFORMS, vol. 14(3_supplem), pages 151-160.
    14. P. K. Kannan & Barbara Kline Pope & Sanjay Jain, 2009. "—Pricing Digital Content Product Lines: A Model and Application for the National Academies Press," Marketing Science, INFORMS, vol. 28(4), pages 620-636, 07-08.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jo, Jee Hyung & Lee, Jong Hee & Cho, Shin, 2020. "The characteristics of videos on demand for television programs and the determinants of their viewing patterns: Evidence from the Korean IPTV market," Telecommunications Policy, Elsevier, vol. 44(8).
    2. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Hailiang Chen & Yu Jeffrey Hu & Michael D. Smith, 2019. "The Impact of E-book Distribution on Print Sales: Analysis of a Natural Experiment," Management Science, INFORMS, vol. 65(1), pages 19-31, January.
    4. Xing Wan & Jing Chen, 2019. "The relationship between platform choice and supplier’s efficiency- evidence from China’s online to offline (O2O)e-commerce platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(2), pages 153-166, June.
    5. Marta Arce-Urriza & Javier Cebollada & María Fernanda Tarira, 2017. "The effect of price promotions on consumer shopping behavior across online and offline channels: differences between frequent and non-frequent shoppers," Information Systems and e-Business Management, Springer, vol. 15(1), pages 69-87, February.
    6. Alaei, Amir Mohammad & Taleizadeh, Ata Allah & Rabbani, Masoud, 2022. "Marketplace, reseller, or web-store channel: The impact of return policy and cross-channel spillover from marketplace to web-store," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    7. Rouven Seifert & Cord Otten & Michel Clement & Sönke Albers & Ole Kleinen, 2023. "Exclusivity strategies for digital products across digital and physical markets," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 245-265, March.
    8. Haris Krijestorac & Rajiv Garg & Vijay Mahajan, 2020. "Cross-Platform Spillover Effects in Consumption of Viral Content: A Quasi-Experimental Analysis Using Synthetic Controls," Information Systems Research, INFORMS, vol. 31(2), pages 449-472, June.
    9. Neirotti, Paolo & Raguseo, Elisabetta & Paolucci, Emilio, 2016. "Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning," International Journal of Information Management, Elsevier, vol. 36(6), pages 1133-1143.
    10. Shankar, Venkatesh & Kushwaha, Tarun, 2021. "Omnichannel marketing: Are cross-channel effects symmetric?," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 290-310.
    11. Xu, Xun & Jackson, Jonathan E., 2019. "Investigating the influential factors of return channel loyalty in omni-channel retailing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 118-132.
    12. Satyendra Kumar Sharma & Swapnajit Chakraborti & Tanaya Jha, 2019. "Analysis of book sales prediction at Amazon marketplace in India: a machine learning approach," Information Systems and e-Business Management, Springer, vol. 17(2), pages 261-284, December.
    13. Raoul Kübler & Rouven Seifert & Michael Kandziora, 2021. "Content valuation strategies for digital subscription platforms," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 295-326, June.
    14. Liu, Huan & Lobschat, Lara & Verhoef, Peter C. & Zhao, Hong, 2021. "The effect of permanent product discounts and order coupons on purchase incidence, purchase quantity, and spending," Journal of Retailing, Elsevier, vol. 97(3), pages 377-393.
    15. Huang, Yeu-Shiang & Huang, Wei-Jeh & Fang, Chih-Chiang, 2018. "Coordination for distribution of motion pictures in the context of piracy," Journal of Business Research, Elsevier, vol. 85(C), pages 209-225.
    16. Maier, Erik & Wieringa, Jaap, 2021. "Acquiring customers through online marketplaces? The effect of marketplace sales on sales in a retailer's own channels," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 311-328.
    17. Naseer Ahmad & Ali Raza Elahi, 2023. "The Effectiveness of Promotion through Brochure Advertising on Merchandise Sales: A Case Study of Multiple Retail Stores of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 732-740.
    18. Qian Tang & Andrew B. Whinston, 2020. "Do Reputational Sanctions Deter Negligence in Information Security Management? A Field Quasi‐Experiment," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 410-427, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hailiang Chen & Yu Jeffrey Hu & Michael D. Smith, 2019. "The Impact of E-book Distribution on Print Sales: Analysis of a Natural Experiment," Management Science, INFORMS, vol. 65(1), pages 19-31, January.
    2. Haris Krijestorac & Rajiv Garg & Vijay Mahajan, 2020. "Cross-Platform Spillover Effects in Consumption of Viral Content: A Quasi-Experimental Analysis Using Synthetic Controls," Information Systems Research, INFORMS, vol. 31(2), pages 449-472, June.
    3. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    4. Brett Danaher & Samita Dhanasobhon & Michael D. Smith & Rahul Telang, 2010. "Converting Pirates Without Cannibalizing Purchasers: The Impact of Digital Distribution on Physical Sales and Internet Piracy," Marketing Science, INFORMS, vol. 29(6), pages 1138-1151, 11-12.
    5. Ting Li & Robert J. Kauffman & Eric van Heck & Peter Vervest & Benedict G. C. Dellaert, 2014. "Consumer Informedness and Firm Information Strategy," Information Systems Research, INFORMS, vol. 25(2), pages 345-363, June.
    6. Huang, Yeu-Shiang & Huang, Wei-Jeh & Fang, Chih-Chiang, 2018. "Coordination for distribution of motion pictures in the context of piracy," Journal of Business Research, Elsevier, vol. 85(C), pages 209-225.
    7. Yongjin Park & Youngsok Bang & Jae-Hyeon Ahn, 2020. "How Does the Mobile Channel Reshape the Sales Distribution in E-Commerce?," Information Systems Research, INFORMS, vol. 31(4), pages 1164-1182, December.
    8. Eyal Carmi & Gal OEstreicher-Singer & Arun Sundararajan, 2010. "Is Oprah Contagious? Identifying Demand Spillovers in Product Networks," Working Papers 10-18, NET Institute.
    9. Gonca Soysal & Lakshman Krishnamurthi, 2016. "How Does Adoption of the Outlet Channel Impact Customers’ Spending in the Retail Stores: Conflict or Synergy?," Management Science, INFORMS, vol. 62(9), pages 2692-2704, September.
    10. Santiago Gallino & Antonio Moreno & Ioannis Stamatopoulos, 2017. "Channel Integration, Sales Dispersion, and Inventory Management," Management Science, INFORMS, vol. 63(9), pages 2813-2831, September.
    11. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro, 2023. "Multichannel customer purchase behavior and long tail effects in the fashion goods market," Journal of Retailing, Elsevier, vol. 99(1), pages 46-65.
    12. Burmester, Alexa B. & Eggers, Felix & Clement, Michel & Prostka, Tim, 2016. "Accepting or fighting unlicensed usage: Can firms reduce unlicensed usage by optimizing their timing and pricing strategies?," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 343-356.
    13. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    14. Qian Tang & Mei Lin & Youngsoo Kim, 2021. "Inter‐Retailer Channel Competition: Empirical Analyses of Store Entry Effects on Online Purchases," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2547-2563, August.
    15. Necati Ertekin & Mehmet Gümüş & Mohammad E. Nikoofal, 2022. "Online-Exclusive or Hybrid? Channel Merchandising Strategies for Ship-to-Store Implementation," Management Science, INFORMS, vol. 68(8), pages 5828-5846, August.
    16. Sumit Raut & Sanjeev Swami & Eunkyu Lee & Charles B. Weinberg, 2008. "How Complex Do Movie Channel Contracts Need to Be?," Marketing Science, INFORMS, vol. 27(4), pages 627-641, 07-08.
    17. Fenner, Trevor & Levene, Mark & Loizou, George, 2010. "Predicting the long tail of book sales: Unearthing the power-law exponent," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(12), pages 2416-2421.
    18. Ghosh, Prasenjit & Rong, Jian & Khanna, Madhu & Wang, Weiwei & Miao, Ruiqing, 2017. "Have They Gone with the Wind? Indirect Effects of Wind Turbines on Bird Abundance," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258100, Agricultural and Applied Economics Association.
    19. Rik L. Rozendaal & Herman R. J. Vollebergh, 2021. "Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market," CESifo Working Paper Series 9422, CESifo.
    20. Kretschmer, Tobias & Peukert, Christian, 2014. "Video killed the radio star? Online music videos and digital music sales," LSE Research Online Documents on Economics 60276, London School of Economics and Political Science, LSE Library.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jouret:v:91:y:2015:i:2:p:343-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.