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Competition in mature software markets

Torlina, Luba and Kazakevitch, Gennadi 2008, Competition in mature software markets, European journal of management, vol. 8, no. 2, Summer, pp. 225-230.

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Title Competition in mature software markets
Author(s) Torlina, Luba
Kazakevitch, Gennadi
Journal name European journal of management
Volume number 8
Issue number 2
Season Summer
Start page 225
End page 230
Publisher International Academy of Business and Economics
Place of publication Tula, Russia
Publication date 2008
ISSN 1555-4015
Keyword(s) mature markets
product quality
consumer choice
monopolistic competition
Summary A theoretical framework is built for capturing properties of competition in mature monopolistic digital product markets. Based on an empirical study of the market of accounting software for small and medium enterprises, a consumer choice model is suggested, where a rational consumer is already using a particular version of a software package and is considering to chose from the following three options: either to continue using it, or to upgrade to a newer version of the product, or to switch to a competitive product. Consumer decision is justified by software quality, and network effects, under the price and switching costs constrains. A modified consumer demand function is used for the model, and theoretical conditions are analysed for choosing from one of the three above-mentioned options. The results are applicable to a wide range of digital products.
Notes Reproduced with the kind permission of the copyright owner.
Language eng
Field of Research 150599 Marketing not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2008, International Academy of Business and Economics
Persistent URL http://hdl.handle.net/10536/DRO/DU:30017795

Document type: Journal Article
Collections: School of Information and Business Analytics
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