THEY ALL SEEM GOOD, BUT WHICH ONE FITS ME? REDUCING FIT UNCERTAINTY FOR DIGITAL ENTERTAINMENT GOODS

摘要

Faster Internet connections and advanced streaming technologies have boosted the consumption of digital entertainment content. Nonetheless, many content providers are still struggling to differentiate their services and sell their offerings in the market, due to the large number of options available and customers' uncertainty about the specific attributes of individual information goods. The providers employ different strategies to communicate information on the quality and fit of their products. In this research, I examine the effectiveness of sampling-based seller strategy on the marketing of digital entertainment goods. Using a large dataset on series drama on-demand, I show that content sampling plays a critical role in reducing consumers' uncertainty concerning fit, thus stimulates more demand. For this class of products, preference fit is more important than vertical quality assessment. The availability of such samples changes consumer purchase behavior by affecting the way they search for and learn about the products. Consumers prefer to seek fit information through more direct sources, even when with additional cost. This research suggests that content providers ought to invest more in strategies that communicate preference fit information to consumers.