Abstract
This study explores the impact of social learning on sales strategies for incumbent firms facing new entrants in the digital software market. Consumers rely on peer reviews to assess product quality, making it difficult to evaluate new products. The study considers two pricing strategies: perpetual and subscription. Results suggest that monopolizing the market is not always beneficial for the incumbent. The best strategy depends on the strength of social learning effects, with a subscription strategy being more effective when social learning effects are strong, and a perpetual strategy being more effective when they are weak.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
