Comparing Prices on Classical Literature Books and Bestsellers - Research Paper Example

Comparing Prices on ical Literature Books and Bestsellers Comparing Prices on ical Literature Books and Bestsellers' Prepared for: Prepared by: Date: Letter of Transmittal My aim during the compilation of the report was to be able to grasp the essence of pricing amongst the books of tow specific kinds: the literature books as well as the Bestsellers. Being a reader myself, I have had great interest within the field for quite some time now. The findings were both very surprising at times and also very informative at the same time. This report is intended to be submitted to my professor '''''''''''''. who was my instructor within the course of ''''''''''''''''' Executive Summary The following document contains a report on the comparative prices of the bestseller books and the literature books online. I have used the secondary mode of research where the reports that have been published in the past have been reviewed to contemplate the present form of the following report. Books are an inevitable part of all individuals' lives. Literature is a classic genre of books, for which there is still a lot of consumer interest both online as well as offline. Despite that we were able to extrapolate how the bestsellers of today have cut down the market of literature books. Comparing Prices on Classical Literature Books and Bestsellers' Introduction: The purpose of this report is to present literature and data that would help us compare prices on Classical Literature Books and Bestsellers. I have always been interested in reading best sellers. Also I have been keen on discovering how these books are actually priced. I have wanted to compare the prices from most of the famous online book stores. We all are aware of the fact that the World Wide Web has made lives a lot easier for us, by providing us with easy acess to all our needs within our daily lives. This can range from food, to our daily exercise to the emotional counseling. Likewise, accessing online book stores, and purchasing the book of our choice, has also become so much easier. It is because of the World Wide Web that we are able to acess book stores from all around the world at a single click. Scope and the limitations of the report: Within this report we will be looking at the: General market trends regarding the selling of literature books and best sellers. An insight into buying books online and the online industry. Comparing the prices between three famous online book stores. Owing to the time constraints we will be comparing prices on these books, within online book stores. Through the use of the Internet, we will be able to acess multiple online books stores and come up with an appropriate data. We also will be able to evaluate why consumers tend to prefer buying literature books over the Bestsellers or vice versa. The experts along with the marketers know that an individual's biased preferences tend to manipulate the decision making procedure. These consist of returns, demographic matters, worth, individual taste, authentic emotional or physiological wants, spiritual beliefs or customs, class, peer stress, and artificial desire, amongst others. Research Methodology: Both primary and secondary mode of research is used within the current investigation. We looked through published articles, papers within electronic journals to gather data on the price comparisons of literature books and the bestsellers. There are primary and secondary techniques of carrying out investigations. The major difference between the two is that within the primary investigation, the data gathered is first hand and direct. On the other hand secondary investigation includes data gathered and already published by other sources which are then used by us elaborate on and connect them to our personal research objective. Books and the importance of reading: Books will for eternity have the benefit of the most important spot of the long list of being a man's best friends furthermore we being individuals realize that this is so accurately said! The preference of reading books has got to be incorporated amid individuals at a very young age. A good quality book can edify lot of things in addition to this also facilitates in approving of an individual's thoughts. Even though online books are extremely a great deal in fashion moreover may possibly establish to be functional for individuals who are carrying on an all-embracing investigation, there is not anything that can be weighed against to a book that is purchased off the shelf of a book store. From classics to Bestsellers, books are amazing so much that they ought to live in split sovereignty inside your residence. If it had not been for these magnificent books, our everyday lives would unquestionably not be supplemented in the technique it is at the moment. There are individuals who admire and respect so much so that they are unable to stop themselves from purchasing them. People most of the times want to purchase bestsellers, these bestsellers can obviously be of various kinds, they can be literature books, they can be grammar, language books, they can be poetry and prose, fiction and nonfiction. The consumer market for bestsellers in the market of today seems to be a lot higher than for literature books. For literature books, they do not buy until and unless the individuals have specific interest within the subject. People do not want to buy these kinds of books. But literature does change a reader's outlook towards life in many ways. The importance of book Reading skills and habits are among the most important for an undergraduate or a postgraduate student. Many student shortcomings relate to the quality and quantity of time spent on reading. Reading has always been a primary Leisure activity. It is a celebrated reality that when there were no small screens or desktops, reading was a prime spare time activity. People would pay out hours reading books as well as travel to lands distant within their minds. It is sad that with the passing time people have forgotten how important it is to read. Online book industry: The online book industry has established the most concentrated inspection from the bestsellers to the literature books; therefore we need to be familiar with the basic information about the retailer activities within this division. The Online retailers post considerably dissimilar prices for the similar books. One comprehensive study is Clay, Krishnan, and Wolff (2001, pg43). Their information cover up the daily bare minimum prices of 800 books at 40 online bookstores for the phase amid August 2000 to January 2001. The books consist of a muddle up of bestsellers declared by the New York Times, Amazon.com bestsellers, along with indiscriminate books preferred from books in publishing houses. The lowly priced store within the model is Buy.com, which had the bare minimum price 39 percent of the instance. No additional store had the least price more than 12 percent of the instance. The big three presented extremely comparable prices. Crossways all the kinds of books as well as the stores, the standard differentiation amid Amazon as well as the least priced store assorted from a squat of 13 percent for existing New York Times bestsellers to a soaring of 27 percent for books that had stirred off of the New York Times bestsellers catalog. An additional all-inclusive investigation is Smith (2001, pg 24). His information enclosed prices for an approximate 20,000 exceptional titles as well as 39 retailers for the interlude amid August 25, 2000 to November 9, 1999. During each one of the cases the prices were restored in reaction to the investigation for books instigated by the patrons stopping at Dealtime.com, a well-known shopbot for bestseller and literature books. An advantage of his data set relative to Clay, Krishnan, Wolff (2001, pg32) is the much broader range of titles that are included. A drawback is that prices are more often than not merely taken ion on a particular day. His information set, which does not consist of Buy.com, instituted that the King books in addition to the A1Books restored the least price on 10 percent as well as 12 percent of the books correspondingly. To end with, the matter of participation has come up for the reason that of the resemblance within prices amongst the big three in addition to the potential leader adherent behavior with Amazon performing as an industry head. Smith (2001,pg 22) and Clay, Krishnan, Wolff (2001,pg 120) certify the similarity in prices amongst the huge three moreover make a note of the fact that the number of additional stores tag prices that are exceptionally comparable to Amazon's prices. Kaufmann and Wood (2000, pg77) clearly scrutinized the matter of leader adherent behavior by means of a data which consisted of the bestselling books as well as the classic literature books. Regrettably, the character of their data did not permit them to discriminate amid exogenous modifications connected with objects averting off of the bestseller books list along with endogenous modifications connected with the leader adherent behavior. Book pricing: There is an enormous disparity amid advertising a book additionally advertising a can of soda, for instance. Books are secluded by copyright law, which permits to authors otherwise somebody to whom the writer allocates the copyright, the limited right of the book, retailing, as well as giving out of their work for an explicit period of time. The following question which comes to our minds is how does a customer make a purchase decision within this atmosphere' How significant is the cost of a literature book to distinctive bestsellers who feel obligated to be attentive of the pioneering exploration within their turf' Are there considerable variations in fondness amongst book readers within diverse grounds with reverence to the layout otherwise cost, for instance' Do persons within diverse fields put a superior price on possessing literature books' Experts within the field are busy looking out for all these answers. On the other hand, there are a few common clarifications that can be extrapolated at this point in time. The readers tend to become aware about fresh as well as newly published books first and foremost from book reviews, publishing companies announcements within bookish journals, moreover publisher exhibits at educational conferences. The effects of a buyers purchase decisions, buying behaviour and attitudes with respect to literature and bestseller books: Whenever we visit a website to purchase a literature book or else a bestseller, we scrutinize that the online Book shop provides the visitors with a list of bestselling books. It appears that, the underlying principle of issuing these bestseller lists is to purely report the total consumer purchases. On the other hand, there are a number of justifications as to why certain bestsellers tend to be higher within their sales rankings than any other literature book. This purchase decision reflects the reader's personality along with the consumer's behaviour towards bestsellers or literature books. The customers who tend to buy more of Bestsellers, may perhaps point out a specific style: for example, the bookstore clientele who are interested in buying a certain kind of book with a specific writer may perhaps even so buy her present bestseller, bearing in mind the fact that that the writers character as well as reputation tend to reflect the class of the book. The exposed sales rankings would additionally unswervingly control the consumer behavior within the occurrence of public effects, with the bestseller lists allocating as a structure of a classifying mechanism. For instance, the teenagers who yearn for reading the bestsellers as well as the literature books that are the classics can also take a look on the Billboard charts to recognize what has been the most commonly read book on the charts, Another advantage of buying online is that the clientele might be able to keep a certain book on the top of the chart. In the particular case of books, the bestseller rank beside the literature book also sets the ground for further promotion and advertising of the other. For the comparable causes that the bestseller lists may perhaps reliably manipulate the clientele purchase decisions, they may possibly conceivably also resource the sales to be more outstandingly resolute on the small number of bestselling books. This, in turn, could impinge on the books diversity. Bailey (1998a, 1998b) carried out the prominent study to compare price levels within corporeal marketplaces to cost levels within the online markets. Bailey contrasted the prices for a synchronized set of books that included the literature classic gathered from the Online as well as the physical book stores during 1998 and 2000 till the year 2007. For this segment, he recognized that he prices were higher over the Internet than in physical stores. He further conceived that this assertion may perhaps be due to a need of competition within the online marketplaces within that particular time frame. The Online book retailers and prices of Literature books as well as Best Sellers: Within the highly globalized world of today, there were now a lot of book retailers inside the market both online as well as offline. As a result of this we can say that the retailers might not been able to grasp the actual market need also in terms of what segment is interested in literature books and what percentage is interested in Bestsellers only. This assertion was concurred by Bailey's investigation of Barnes and Noble.com, along with the initial phase when it had just entered the market during March 1997. Bailey examined the fact that Barnesandnoble.com entered the market by cutting through the Amazon.com's charged prices by an approximate 18 percent moreover that Amazon.com speedily synchronized these lesser prices all the way through the following months. During an investigation that was carried out later, Brynjolfsson and Smith (2000, pg 32), observed the prices for the bestseller books along with the literature books had collectively come on the same platform in terms of online as well as offline physical book store retailers during 1998 also 2000. In disproportion to Bailey, their investigation recognized that the prices had been lesser on the online marketplace than inside the physical book stores: 19 percent lesser when currently taking into account the book prices along with being a 12 percent lesser when the excise in addition the shipping as well as the handling charges was included. As extrapolated within the lines above, a probable institution for the inequality discrepancy amid Bailey's as well as Brynjolfsson moreover Smith's investigations and their outcomes was the fact that, they all pointed towards an increasing competition in the midst of the retailers right through the entire phase. Jointly the earlier investigations had raised several questions in relation to the character of this competition that had built itself overtime. In respect of the bookstores, Clay, Krishnan, and Wolff (2001) established that the costs were either constant or else growing over a small period of time. The contrasting regressions that controlled the number of bookstores advertising a specific book pointed out that prices were competently highly stable likewise that the prices were lesser for books literature books advertised by most of the books stores. Moreover, the book sellers both have been able to grasp the fact that the bestsellers are more of not selling books than the literature books. And so they have been pricing the bestsellers as high as they can, with respect to the completion on hand. Brown and Goose (2000, pg 24) investigated how a certain percentage of people had been affecting the literature books cost online. Their information integrated regional along with online figures for customers inside Europe in addition to the data of individuals who are more interested in buying bestsellers. They established that an approximate 18 percent of all the consumers online utilize the facility of online purchasing of books, because of the fact that they are able to acess a lot of other bookstores than the one they are buying from online, they end up managing an approximate 10 percent discount, within books of either category. The investigators have also developed the Online as well as Book store dealer price assessments to scrutinize the indirect uniqueness of the overall marketplace competence. Png, Lee, and Yan (2000,pg 39), for case in point, the unruffled prices for the bestseller books along with the literature books from physical bookstores together with these online dealers have been able to compare and contrast prices over the market places within the book markets of literature books along with bestsellers. They ascertain that their information is dependable within the online marketplaces amid the minute buyer investigation costs. In disproportion to the costs for the price standing above, the observed costs for the price distribution have been practically acknowledged. More or less all the investigations demonstrate a high level of price dissemination amongst literature books and bestsellers within the online marketplaces as well as physical book store prices. For the data gathered during 1997 as well as 1998, Bailey (1998a, 1998b) established more dispersion inside the Online markets for Bestseller books , than for the classic literature books that are put up for sale within the physical book store marketplaces. For data gathered during 1998 moreover 2000, Brynjolfsson and Smith (2000) in addition established that the delivery is elevated for bestseller books than the classic literature books on the Online than within the corporeal stores. These soaring levels of distribution have been established during additional, latest investigations for the Online book marketplaces (Clay, Krishnan, and Wolff 2000; Smith 2000, pg 21), as well as especial literature book markets (Tang and Xing 2000, pg 77). The latest effort on the worldwide online textbook marketplace points to the fact that the accumulative distribution is also extremely huge (Clay and Tay 2001, pg 43). There are a number of ways and means to expand the experiential results declared during this segment. A large number of the investigations till date have paid attention on the low cost customer goods like normal books, along with special literature books. The market places for more classy books may perhaps have diverse investigation awareness moreover consequently assorted proficiency uniqueness. Also of concern are the services like the special delivery services as well as classical literature books along with the bestseller books (Belobaba 1987, Smith, 2001). The forecasts regarding the retailer behavior have assorted from the ideal competition to a little outline of understood responsibility, to favoritism. As of this investigation, the empirical confirmation to experiment these suppositions is restricted to a very minute amount of books, like the bestsellers as well as the Literatures. Along with the exclusion of the investigation of academic books, each and every one of the retailers are advertising famous writers, as a result it is smooth to compare prices crossways amid different vendors. Primary investigation: Within the primary investigation phase, we made another effort. We visited the physical books stores located close to our vicinity. We posed random questions at the owner of these books stores. Our aim was to find out what was the frequency of customers buying bestsellers and literature books. How had they priced these two kinds of books' On what grounds was this decision made' Why were there assumed reasons of readers not spending to buy a literature book or a Bestseller' We were able to deduce the fact that these book store owners, had deduced on an average that there were more bestseller book sales, than literature book sales. More, because they thought that people were now not interested in literature books any more. And they come to buy a literature book only if they need to. Otherwise the literature books are only bought by individuals who have always been interested in literature. This is how they were compelled from time to time to price these books. Also keeping in mind the competitors prices, they usually price their bestsellers higher than their literature books, as a few book store owners deemed these bestsellers a hot cake. But almost all the store owners agreed to the fact that with passing time and advancing technology of the internet the readers are smart enough sometimes to check price variations online and then make their purchase within physical book stores. Conclusions: The investigations that have been cited above are a significant institute in considering the dealer pricing within online markets. Cooperatively, on the other hand, they cover up comparatively a small number of markets along with a moderately small time periods, suggestive of the fact that a lot more effort is required to recognize how Online retailer activities vary inside as well as across the markets as well as in excess of time. Particularly, the potential effort ought to address the questions of whether specific stores are methodically contemptible or else more luxurious, whether price differentiations reproduce cost compensations or else premeditated decisions, the degree of favoritism, the affiliation amid price, demarcation as well as sales, moreover whether the activities of multichannel retailers diverges from internet simply retailers. It ought to additionally deal with the vibrant matter like the fact how the individual dealers price as well as non price characteristics are varying over time in addition to whether experiential changes are driven by exogenous modifications within cost or else demand or aspects that are interior to the marketplace. Information from the online shopbots permits the investigators to investigate the reaction of the patrons comparing the prices of the bestsellers as well as the literature books offered by diverse retailers. The Shopbots are online apparatus that permit the clientele to look for the prices from copious online retailers with presently just a few clacks. The prices are characteristically offered to the consumer inside an easy to interpret evaluation board that catalogues price, deliverance time, in addition to other prominent uniqueness of the avilable books. The investigations within the specific category of the literature books as well as bestsellers contain Brynjolfsson and Smith (2000, pg9) as well as Smith and Brynjolfsson (2001, pg7) who utilized a specific form to investigate alternative actions amongst the patrons at DealTime.com. These writers also discovered that the shop bot consumers, at the same time as being price responsive, were also incredibly responsive to the retailer brand name plus the retailers they have been to before on their respective websites. Works Cited Belobaba, Peter P. 1987, "Airline yield management: An overview of seat inventory control," Transportation Science, Vol. 21, No. 2 (May), pp. 63-73. Brynjolfsson, Erik, Michael Smith. 2000. Frictionless commerce' A comparison of Internet and conventional retailers. Management Science 46(4) 563-585. Brown, Jeffrey R., Austan Goolsbee. 2000. Does the Internet make markets more competitive' National Bureau of Economic Research Working Paper #7996, October. Bailey, Joseph P. 1998a. Intermediation and electronic markets: Aggregation and pricing in Internet commerce. Ph.D., Technology, Management and Policy, Massachusetts Institute of Technology, Cambridge, MA. Bailey, Joseph P. 1998b. Electronic commerce: Prices and consumer issues for three products: Books, Compact Discs, and Software, Organisation for Economic Co- Operation and Development, OCDE/GD 98(4). Clay, K., R. Krishnan, and E. Wolff. 2001. Prices and Price Dispersion on the Web: Evidence from the Online Book Industry. National Bureau of Economic Research Working Paper #8271, May. Clay, K. and C. H. Tay. 2001. Cross-Country Price Differentials in the Online Textbook Market. Working Paper, Carnegie Mellon University, May. Png, Ivan, Tom S.Y. Lee, Cui Yan. 2000. The competitiveness of on-line vis-'-vis conventional retailing. Working Paper, National University of Singapore, Singapore. Tang, Fang-Fang, Xiaolin Xing. 2000. An empirical study on pricing differences between dot coms and hybrids in the online video market. Working paper, Nanyang Business School, Singapore. Kauffman, Robert J., Charles A. Wood. 2000. Follow the Leader' Strategic Pricing in Ecommerce. The Proceedings of the International Conference on Information Systems 2000, Brisbane, Australia. Read More