Abstract
Business information services are intermediaries that collect, collate, package and distribute information of value to professional users. We consider two technologies that such intermediaries may use for delivering information. First, a packaged design that uses physical media like CD-ROMs to distribute information. Second, an online service that delivers such information via the Internet or other online networks. We model a market where subscribers may choose between “self-service”, where they collect and collate information directly from sources, and a third party service provider who provides either a packaged design or an online service. Subscribers are indexed by their volume of usage for the service. In a duopoly, we show that providers with online or package technologies will serve different market segments. The package provider’s limited ability to provide current information, combined with decreasing search costs in an online service will make a package provider increasingly vulnerable to being driven out of the market by the online provider.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bashyam, T.C.A. and U.S. Karmarkar (2000), “Aspect Development Inc (A)”, Managing the Global Corporation: Case Studies in Strategy and Management, J. De La Torre, Y. Doz and T. Devinney (Eds.), 2nd Edition, pp. 335–348, McGraw Hill, New York.
Bashyam, T.C.A and U.S. Karmarkar (2004), “Usage Volume and Value Segmentation in Business Information Services”, in Managing Business Interfaces: Marketing, Engineering, and Manufacturing Perspectives, Chakravarty, A. and J. Eliashberg (Eds.), Kluwer Academic Publishers.
Boeri, R. and M. Hensel (1995), “What Good is SGML?”, CD-ROM Professional 8(4), 108–110.
Electronic Engineering Times (1993), “Two launch component information services”, n770, November 1, pp. 16–18.
Friedman, J. (1977), Oligopoly and the Theory of Games, North-Holland, Amsterdam.
Moorthy, K.S. (1988), “Product and Price Competition in a Duopoly”, Marketing Science 7(2), 141–168.
Rockafellar, R.T. (1970), Convex Analysis, Princeton University Press, Princeton, New Jersey.
Weidemer, J.D. and D.B. Boelio (1995), “CD-ROM versus Online: An Economic Analysis for Publishers”, CD-ROM Professional 8(4), 36–42.
Westland, J.C. (1989), “Topic Specific Market Concentration in the Information Services Industry: Evidence from the DIALOG Group of Databases”, The Information Society 6, 127–138.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2007 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Anant, B., Karmarkar, U.S. (2007). Service Design, Competition and Market Segmentation in Business Information Services with Data Updates. In: Apte, U., Karmarkar, U. (eds) Managing in the Information Economy. Annals of Information Systems, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-36892-4_13
Download citation
DOI: https://doi.org/10.1007/978-0-387-36892-4_13
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-34214-6
Online ISBN: 978-0-387-36892-4
eBook Packages: Business and EconomicsBusiness and Management (R0)