BU415 Lecture 8: BU-415 Lecture 8
Document Summary
Classic info goods: products that a consumer purchases for the only purpose of gaining access to the info they contain, product that can be digitized. Economic characteristics: high production costs, sunk costs, significant risk in producing info goods, negligible replication costs, negligible distribution costs. Info isn"t the carrier: no natural capacity limits, not consumed by use, experience good. Info goods can produce high gross profit margins. Info in networks: physical carriers of info goods often prevent info goods from behaving like info goods. Info isn"t what the customer seeks but the info may be: one of the critical components of the product/service, a necessary resource during production, examples. Info material about product features: r&d research. Richness and reach trade-off: richness, amount of info that can be transmitted, degree to which info can be tailored to individual needs, level of interactivity of the message, reach, number of possible recipients of the message.
