In spite of the fact that a huge piece of the examination concerning purchaser lead takes a gander at considering selective direct proposal to improve client utility, there is similarly a darker side to buyer lead. In extreme cases, the issue of digital piracy comes up that needs to be addressed (Dootson et al. 2016). The major sections of the population that are involved in this issue are the people between the ages of 18 to 30 years.
The digital piracy market is out and out not the same as that of counterfeit and pirated physical stock that makes unprecedented and engaging issues for copyright proprietors and can copy issues stood up to by system makers and creators of digital things. Therefore, it is important that the concern is comprehended properly and a new approach is undertaken to discourage pirating behaviour and inspire the lawful consumption of products and services (Dootson 2014). The concern would be put up to address the people who belong in the age group of 18-30 years and are the major consumers of digital entertainment.
The problem
Software, video games, movies, music, books, photos, and other media forms are dynamically open to customers on the web. Various customers go on the web and pay for digital substance or applications through sites like Amazon, iTunes or Netflix. Regardless, extremely various Internet customers are downloading pirated digital substance from illegal sites or peer-to-peer (P2P) networks. The issue has transformed into some unavoidable that no under 1 in 4 bits of action on the Internet is related to infringing substance. Some of these sites pick up publicizing dollars from genuine associations. Online piracy altogether influences the economy. It has been found that while the right cost of piracy is difficult to measure, the impact is significant. Online piracy harms the authorities, both the celebrated and fighting, who make content, and the specialists—sound designers, editors, set fashioners, programming and redirection programming engineers—who make it. Piracy finally similarly hurts fair customers who must pay higher expenses for substance, acknowledge less substance or largely cut down quality substance, or pay higher expenses for Internet access to alter for the costs of piracy (Dootson et al. 2016).
Impact
The principal after effect of digital piracy is that it really limits copyright proprietors in their ability to control how information things get to purchasers. Hence, the openness of digital copies is likely going to reduce the copyright proprietor’s advantages (Belleflamme and Peitz 2014). Looking at the advantages of copyright proprietors, they started to reduce when end-customer piracy started to grow, especially in music industry where physical music bargains dropped (Waldfogel 2012a). By no means has any trial work been given to the whole deal effects of piracy. One noteworthy extraordinary case is Waldfogel (2012b), who tries to survey how much digital piracy has affected the sparks to convey a consistent stream of essential new things.
Solution
There are many suggestions by Belleflamme and Peitz (2014) who have talked about the positive effects of piracy. Illegal copies of any digital product can be used as a sample to attract customers to get the legitimate copy later. Zhang (2013) says that removal of digital rights management systems (DRM) can have a positive impact on digital music sales because of the lowered search costs. Digital piracy can increase the demand for the products that complement the pirated content. Mortimer, Nosko and Sorenson (2012) found evidence regarding this with the help of album sales data with concert data, finding that digital piracy increased the revenues from live performances of small artists. Zhang (2013) also found that digital products can generate network effects, evident in case of the television series “Game of Thrones”, whose director stated that the series benefitted from piracy and the cultural buzz created as a result.
Digital piracy addresses a basic threat to the marketers of digital service products. The Model of Goal Directed Behaviour is pushed and tentatively affirmed transversely over both film and music industry settings therefore. This model points out the key sections of the theory of organized lead concerning targets instead of practices. Need expect an essential part in The Model of Goal Directed Behaviour in a way that it supposedly is more grounded predictor appeared differently in relation to mindsets and subjective principles. Application of the model unveils that markets need to study basic wishes of their target customer part so that product and services can be made to satisfy this longing or give the perspective of satisfaction of the desire (Patrick and Hagtvedt 2012).
Maslow’s Hierarchy of Needs Model says that one ought to first satisfy cut down level fundamental needs before progressing on to higher needs. While hard to draw a right parallel, the pyramid of human needs shares something in a comparable way as the digital universe of fervour: Basic incitement necessities in like manner ought to be fulfilled before moving to more hoisted sum prerequisites (Lester 2013).
Strategy 1: Redefining the business model
In past circumstances, it is worth recalling that music lovers obtained albums containing ten to twelve tunes, which were priced in like way. With the onset of the digital period, customers began purchasing tunes. Today we are in the third period of the progression of music business. It is interesting to note that these spilling services have driven down costs per track to such low levels that it is making a gouge into piracy.
By then there is “Freemium” paying little respect to whether as differential pricing, or cross subsidy. Online news productions have bolstered their business with the cross subsidy freemium model all through late years – where a couple paying customers deal with the cost of upgrading the masses. The gaming business has seen decently more vital accomplishment in its examinations with differential pricing freemium model – same product (preoccupation plot), yet with different levels of inclusion. That the business ought to just understand the excellent music experience that customers would be most prepared to pay for – content, can be free. Regardless, industry players need to comprehend that exchange stream out a freemium model is not straight; along these lines, this model is urged just in case they have an emergency cash spare. Associations using this model can see their pay rise and fall and after that rising again regularly as time goes on. Those that do not speak to this ponder danger dissatisfaction (Halmenschlager and Waelbroeck 2014).
Strategy 2: Sampling strategy
Digital product sampling framework says that it is conceivable to change over a part of the purchasers who pirated in the transient stage into buyers by giving a sample. From a logical perspective, a sample is a “segment” of the full product. Such product samples may imply a full product that ends after a particular time, or it could be a subset of the regard giving components of the product. The conceptualization is one of lifetime utility where the customer ought to assert (through getting or keeping the pirated copy) the full product (Lin, Zhang and Tan 2016). Sampling has been used to incredible effect by physical experience products dealers and research in marketing uncovers knowledge into the supportiveness of sampling in extending goodwill in the whole deal and inclination to buy for the present. It is a strategy for empowering customers to experience products with little peril or responsibility by giving a “trial measure” portion of products. Since samples fill in as a prompt wellspring of information to customers, it is for certain superior to influencing them to buy than advancing, which just offers circuitous experiences. Favourably for physical products, the purchasers’ needs cannot be totally met as samples are not a replenishable source, and if customers like the product they have to over the long haul get it when they miss the mark on samples. Regardless, observe that it is not largely clear that sampling is a suitable marketing method for experience products that can be pirated. Naturally, it can be seen that sampling may diminish the segment of buyers (or the price they will pay) if the product fit has at first been overestimated and therefore is not a sensible technique, yet rather despite for had a poor opinion of products where sampling constructs the fit perception, sampling may not be perfect (Goode 2012).
Strategy 3: Pricing strategy
Piracy affects a vendor’s pricing power reliably over its differing customer segments. This is disregarding the way that each of these parts may regard the pirated incredible in an unforeseen way. Hence, the merchant’s pricing system should be to arrange the perfect pricing arrangement unconstrained by piracy, and after that fundamentally change total prices sliding over all utilization levels, by an aggregate proportionate to the regard its most negligible customer sort would get from the pirated awesome (Piolatto and Schuett 2012). As piracy levels increase, dealers need to parcel their customers more purposely, giving watchful thought to the differential regard that customers may get from the pirated products. The perfect pricing change in light of a higher peril of piracy consistently prompts legitimate acquiring by another game plan of customers who were previously priced out of the market. The contrasting section of the pricing timetable relies on upon the piracy-opposing contract, which is a low-price, low-utilize pricing arrangement. Besides, as piracy levels increase, pricing for the higher piece of the market should be cut down further, by the regard the most lessened customer sort in this segment would get from the pirated awesome. As the market for a productive digital thing creates, there is frequently a development in hungered for utilize levels over all customers in the market. Likewise, the seller should develop the division of customers joined into its higher part, and at the same time augment prices (Rasch and Wenzel 2013).
Recommendations and Conclusion
The obtained idea from this study informs that digital piracy is one of the major concerns that have been widespread in the current era. Therefore, it is necessary to prevent this issue and protect the intellectual property rights of the artists. In order to prevent such discrepancies, it would be beneficial to implement the regulatory bans and protect the copyright. On the other hand, as the objective for this study goes, the best option would be to mould the pricing of the content according to the customer segment and the target market.
References
Belleflamme, P. and Peitz, M., 2014. Digital piracy. Encyclopedia of Law and Economics, Berlin, Springer.
Dootson, Paula (2014) From fare evasion to illegal downloads : the cost of defiance. The Conversation, June(18).
Dootson, Paula, Johnston, Kim A., Beatson, Amanda T., & Lings, Ian (2016) Where do consumers draw the line? Factors informing perceptions and justifications of deviant consumer behaviour. Journal of Marketing Management, 32(7-8), pp. 750-776.
Goode, S., 2012. Initial findings of a gap analysis of the digital piracy literature: six undiscovered countries. Journal of Research in Interactive Marketing, 6(4), pp.238-259.
Halmenschlager, C. and Waelbroeck, P., 2014. Fighting free with free: Freemium vs. piracy.
Lester, D., 2013. Measuring Maslow’s hierarchy of needs. Psychological Reports, 113(1), pp.15-17.
Lin, Z., Zhang, Y. and Tan, Y., 2016. An Empirical Study of Free Product Sampling and Rating Bias.
Mortimer JH, Nosko C, Sorenson A (2012) Supply responses to digital distribution: recorded music and live performances. Inf Econ Policy 24:3–14
Patrick, V.M. and Hagtvedt, H., 2012. “I Don’t” versus “I Can’t”: When Empowered Refusal Motivates Goal-Directed Behavior. Journal of Consumer Research, 39(2), pp.371-381.
Piolatto, A. and Schuett, F., 2012. Music piracy: A case of “the rich get richer and the poor get poorer”. Information Economics and Policy, 24(1), pp.30-39.
Rasch, A. and Wenzel, T., 2013. Piracy in a two-sided software market. Journal of Economic Behavior & Organization, 88, pp.78-89.
Waldfogel J (2012a) Digital piracy: empirics. In: Peitz M, Waldfogel J (eds) The Oxford handbook of the digital economy. Oxford University Press, New York
Waldfogel J (2012b) Copyright protection, technological change, and the quality of new products: evidence from recorded music since Napster. J Law Econ 55:715–740
Zhang L (2013) Intellectual property strategy and the long tail: evidence from the recorded music industry. Mimeo. University of Toronto, Toronto, Canada
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