Online Intrinsic Content

From Information Systems at Pitt Business

Many online companies have encountered difficulties in deciding whether to charge for online content or not. Some companies have had much success with this approach, but generally are offering information that is necessary for some decision-based outcome (e.g., purchase of a product, invest in a company). However, the majority of online websites provide content that has value in itself, or for pure enjoyment (e.g., music, pictures, sports, book reviews). Determining how to charge for access to this content is difficult as the value of the information is unknown and highly variable.

623 subjects from university courses completed a survey to assess their willingness to pay for online sports content based on the overall technical quality and the reputation of the website, expected benefits. The analysis revealed that the largest predictor of a consumer's willingness to pay for online intrinsic content was based on the expected benefit to the consumer, which is also largely driven by the overall technical quality of the website.

[edit] Abstract

Providing profitable online content has been an elusive goal, challenging many companies such as the New York Times, Disney/ABC/ESPN, and Microsoft/Slate. Charging for content has been hit-or-miss, attributable to a lack of generally applicable models of information value. Previous studies in the management information systems literature emphasized extrinsically motivated content (addressing tangible gains), while many sites target intrinsic goals such as entertainment or education. This study examines potential factors influencing willingness to pay for intrinsically motivated online content. Data from 392 college students indicate that even when analyzing content whose potential rewards are intangible and nonquantifiable, potential consumers focus on "expected benefits" as the main antecedent for willingness to pay. Other antecedents, such as perceived quality and provider reputation, only affected willingness to pay indirectly through expected benefits. Researchers are offered a baseline model for future study, and practitioners are advised to provide initial visitors a clear message about benefits of use to entice them to pay for content.

[edit] Paper Information

Authors: Alexandre Lopes, Dennis Galletta

To check out the paper Consumer Perceptions and Willingness to Pay for Intrinsically Motivated Online Content

This paper was originally published in JMIS, Vol 23, Num 2, Fall 2006.

[edit] Keywords

Consumer Assessments, E-Commerce, Online Content, Service Value