Advertisement

Digital Rights Strategies in a Virtual World Marketplace

  • Yuanrong Hu
  • Si Fan
  • Qiuhong WangEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9191)

Abstract

This paper adopts the Heckman two-step model to analyze the impact of copyright strategy on sales performance of digital product, using the panel data comes from online virtual goods transaction website Xstreet.com. The results show that (1) significant relationship exists between sales performance and copyright strategy of digital product, but the influence of each copyright strategy on sales performance are different; (2) A seller’s copyright structure within same product line can also affect sales performance of a digital product, thus in order to optimize the copyright combinations, a seller should fully consider the copyright strategy within the whole product line.

Keywords

Copyright strategy Digitial products Virtual products 

Notes

Acknowledgements

We thank for the financial support from the Natural Science Foundation of China (71371082) and the innovation research funding (2013TS088) from the Huazhong University of Science and Technology.

References

  1. 1.
    Halbert, D.: Mass culture and the culture of the masses: a manifesto for user-generated rights. In: Vand. J. Ent. & Tech. L., 11, 921(2008)Google Scholar
  2. 2.
    Aichroth, P., Hasselbach, J.: Incentive management for virtual goods: about copyright and creative production in the digital domain. Virtual Goods 2003, 70–81 (2003)Google Scholar
  3. 3.
    Jamkhedkar, P.A., Heileman, G.L.: Digital rights management architectures. Comput. Electr. Eng. 35(2), 376–394 (2009)CrossRefGoogle Scholar
  4. 4.
    Fetscherin, M.: Digital rights management: what the consumer wants. J. Digit. Asset Manage. 2(3–4), 143–149 (2006)CrossRefGoogle Scholar
  5. 5.
    Foroughi, A., Albin, M., Gillard, S.: Digital rights management: a delicate balance between protection and accessibility. J. Inf. Sci. 28(5), 389–395 (2002)Google Scholar
  6. 6.
    Sinha, R.K., Machado, F.S., Sellman, C.: Don’t think twice, it’s all right: Music piracy and pricing in a DRM-free environment. J. Mark. 74(2), 40–54 (2010)CrossRefGoogle Scholar
  7. 7.
    Chen, Y.N., Png, I.: Information goods pricing and copyright enforcement: Welfare analysis. Inf. Syst. Res. 14(1), 107–123 (2003)CrossRefGoogle Scholar
  8. 8.
    Khouja, M., Park, S.: Optimal pricing of digital experience goods under piracy. J. Manage. Inf. Syst. 24(3), 109–141 (2007)CrossRefGoogle Scholar
  9. 9.
    Khouja, M., Smith, M.A.: Optimal pricing for information goods with piracy and saturation effect. Eur. J. Oper. Res. 176(1), 482–497 (2007)CrossRefGoogle Scholar
  10. 10.
    Khouja, M., Rajagopalan, H.K.: Can piracy lead to higher prices in the music and motion picture industries&quest. J. Oper. Res. Soc. 60(3), 372–383 (2009)CrossRefGoogle Scholar
  11. 11.
    Ba, S., Ke, D., Stallaert, J., Zhang, Z.: Why give away something for nothing? Investigating virtual goods pricing and permission strategies. In: ACM Transactions on Management Information Systems (TMIS), 1(1), p. 4 (2010)Google Scholar
  12. 12.
    Rosenblatt, W., Trippe, W., Mooney, S.: Digital Rights Management: Business and Technology (2002)Google Scholar
  13. 13.
    Ba, S., Ke, D., Stallaert, J., Zhang, Z.: An empirical analysis of virtual goods pricing strategies in virtual worlds. In: PACIS, p. 86 (2010)Google Scholar
  14. 14.
    Lehdonvirta, V.: Virtual item sales as a revenue model: identifying attributes that drive purchase decisions. Electron. Commer. Res. 9(1–2), 97–113 (2009)CrossRefGoogle Scholar
  15. 15.
    Martin, J.: Consuming code: use-value, exchange-value, and the role of virtual goods in second life. J. Fosr Virtual Worlds Res. 1(2), 1–21 (2008)Google Scholar
  16. 16.
    Guo, Y., Barnes, S.: Virtual item purchase behavior in virtual worlds: an exploratory investigation. Electronic Commer. Res. 9(1–2), 77–96 (2009)CrossRefGoogle Scholar
  17. 17.
    Guo, Y., Barnes, S.: Purchase behavior in virtual worlds: an empirical investigation in second life. Inf. Manage. 48(7), 303–312 (2011)CrossRefGoogle Scholar
  18. 18.
    Yee, N.: Motivations of play in MMORPGs. In: DiGRA. Vancouver, Canada (2005)Google Scholar
  19. 19.
    Waterman, D., Ji, S.W., Rochet, L.R.: Enforcement and control of piracy, copying, and sharing in the movie industry. Rev. Ind. Organ. 30(4), 255–289 (2007)CrossRefGoogle Scholar
  20. 20.
    Kuchinskas, S.: Mazingo: DRM plus content could equal handheld movies. Econtent-Wilton- 26(3), 52–53 (2003)Google Scholar
  21. 21.
    Shapiro, C., Varian, H.R.: Versioning: the smart way to. Harvard Bus. Rev. 107(6), 107 (1998)Google Scholar
  22. 22.
    Chen, Y.J., Seshadri, S.: Product development and pricing strategy for information goods under heterogeneous outside opportunities. Inf. Syst. Res. 18(2), 150–172 (2007)CrossRefGoogle Scholar
  23. 23.
    Lee, C.Y.: When is Versioning Optimal for Information Goods? (2010)Google Scholar
  24. 24.
    Sen, R., Subramaniam, C., Nelson, M.L.: Determinants of the choice of open source software license. J. Manage. Inf. Syst. 25(3), 207–240 (2008)CrossRefGoogle Scholar
  25. 25.
    Sen, R., Subramaniam, C., Nelson, M.L.: Open source software licenses: strong-copyleft, non-copyleft, or somewhere in between? Decis. Support Syst. 52(1), 199–206 (2011)CrossRefGoogle Scholar
  26. 26.
    Subramaniam, C., Sen, R., Nelson, M.L.: Determinants of open source software project success: a longitudinal study. Decis. Support Syst. 46(2), 576–585 (2009)CrossRefGoogle Scholar
  27. 27.
    To, P.L., Liao, C., Lin, T.H.: Shopping motivations on Internet: a study based on utilitarian and hedonic value. Technovation 27(12), 774–787 (2007)CrossRefGoogle Scholar
  28. 28.
    Franke, N., Schreier, M., Kaiser, U.: The “I designed it myself” effect in mass customization. Manage. Sci. 56(1), 125–140 (2010)CrossRefGoogle Scholar
  29. 29.
    Meuter, M.L., Ostrom, A.L., Roundtree, R.I., Bitner, M.J.: Self-service technologies: understanding customer satisfaction with technology-based service encounters. J. Mark. 64(3), 50–64 (2000)CrossRefGoogle Scholar
  30. 30.
    Bayus, B.L., Putsis Jr, W.P.: Product proliferation: an empirical analysis of product line determinants and market outcomes. Mark. Sci. 18(2), 137–153 (1999)CrossRefGoogle Scholar
  31. 31.
    Chong, J., Ho, T., Tang, C.S.: Product structure, brand width and brand share. In: Research Advances in Product Variety, Kluwer Academic Publishers, Boston, MA (1998)Google Scholar
  32. 32.
    Kekre, S., Srinivasan, K.: Broader product line: a necessity to achieve success? Manage. Sci. 36(10), 1216–1232 (1990)CrossRefGoogle Scholar
  33. 33.
    Sundararajan, G.O.S.A.: Are Digital Rights Valuable? Theory and Evidence from eBook Pricing (No. 06-01). CeDER Working Paper (2006)Google Scholar
  34. 34.
    Devi, J.I.: Estimating the helpfulness and economic impact of product reviews. Int. J. Innovative Res. Dev. 1(5), 232–236 (2012)Google Scholar
  35. 35.
    Qu, Z., Zhang, H., Li, H.: Determinants of online merchant rating: Content analysis of consumer comments about Yahoo merchants. Decis. Support Syst. 46(1), 440–449 (2008)CrossRefGoogle Scholar
  36. 36.
    Hui, K.L.: Product variety under brand influence: an empirical investigation of personal computer demand. Manage. Sci. 50(5), 686–700 (2004)MathSciNetCrossRefGoogle Scholar
  37. 37.
    Moorthy, K.S.: Market segmentation, self-selection, and product line design. Marke. Sci. 3(4), 288–307 (1984)CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  1. 1.School of ManagementHuazhong University of Science and TechnologyWuhanChina

Personalised recommendations