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Determinants of distribution channel choice for online software licence purchases: A transaction cost perspective

Author

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  • Hadaya, Pierre
  • Deserres, Dominique

Abstract

The objective of this paper is to test empirically a research model proposed in a previous paper, entitled ‘Determinants of distribution channel choice for online software licence purchases: A theoretical model’, which was published in the Journal of Digital Asset Management in 2008 (Vol. 4, No. 6). By casting the software distribution channel choice as a transaction cost analysis (TCA) problem, the research model that the authors proposed in that first paper aimed to uncover the reasons why, when purchasing a software licence for a product that is marketed using a ‘try-before-you-buy’ strategy, consumers would select the physical distribution channel not tied to any digital rights management (DRM) technologies (ie, CD-ROM) rather than the digital distribution channel that uses DRM technologies (ie, electronic software distribution through demo-unlock). With data collected from 224 customers of a software product, this follow-up paper shows that customers consider two transactions in the software ownership life cycle: the initial licence acquisition transaction and the licence management transaction related to software re-installations. The results also show that both transaction costs and TCA dimensions influence customers’ choice of software distribution channel.

Suggested Citation

  • Hadaya, Pierre & Deserres, Dominique, 2013. "Determinants of distribution channel choice for online software licence purchases: A transaction cost perspective," Journal of Digital Media Management, Henry Stewart Publications, vol. 2(1), pages 78-94, May.
  • Handle: RePEc:aza:jdmm00:y:2013:v:2:i:1:p:78-94
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    More about this item

    Keywords

    software distribution; digital rights management; transaction cost analysis; transaction cost economics;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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