that compensate for the weakness of CD sales

A question very current and still not cleared, here are both clear and rigorous book, packed with examples and anecdotes - a genus where excellent Americans. Chris Anderson, editor-in-Chief of the online "wired" magazine, develops a few paradoxes - Yes, you can win money without doing anything pay, Yes, the waste is sometimes source of wealth - to better inform this surprising territory is "the free economy".

The free is everywhere in our daily life, sometimes without that we pay attention. The author distinguishes four categories. In supermarkets, promotions use the formula "A purchased, a free," or "Gift inside": this is a false free, the price of the product "" is included in the paid product. Second category, the marketing tool (the sample or the free trial), which is related to any purchase, but aims to attract the potential customer. Is the "third party pay": through free newspapers, television, radio, information is not paid by the consumer, but by the commercial advertiser. Finally, a fourth type develops with the digital economy: these are free products (software, services, texts...) because their marginal cost is zero, or close to zero. This "miracle" of the Web may be due to technical factors (a new user access to a service costs nothing). It can be linked to the existence of non-monetary markets, as the"reputation": thus, more and more bands and singers put their products online, the notoriety they acquire success providing revenue (concerts, advertising contracts...) that compensate for the weakness of CD sales. This system has become almost standard in China, which has renounced fight piracy of films or musical works.

Increase awareness of a product

Free has special properties. American researchers in behavioral economics have proposed a Panel to choose between two transactions: purchase truffle chocolate high range for 15 cents (or much less than their price in the store), or the ordinary tablets for 1 cent. Most, considering the difference in price justified by the difference in quality, preferred to buy the truffles. The experience was repeated by lowering the two prizes of 1 cent, truffle then cost 14 cents and 0 100 tablets. The choice came en masse on the shelves, although the difference between the two prices remained the same: the free fact pounce demand curves. This feature is operated by marketing through the various forms of "freemium" (a word coined from "free" and "premium"): provide a product or service for free for a limited time, before the purchase decision. free offer a "basic" version of a service, more complete and elaborate version being charged; book free of charge to a certain type of client, which will be used to increase awareness of the product, etc.

The emergence of the free also amends managers thinking of economists. The market is no longer the simple meeting of both parties, buyers and sellers, but "an ecosystem formed of many parts, which some only exchange money directly.In the digital economy, prices no longer their traditional role of signals, in systems where flow "cross subsidies" between content creators, equipment providers, network operators and end users. Chris Anderson celebrates perhaps a little excessive the triumph of the free, neglecting its adverse effects on the protection of intellectual property and innovation, but his book is a valuable guide for the discovery of this new continent.

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