Exploring Perceived Value Components and Willingness to Pay: A Comparative Study of Digital and Physical Book Formats

Abstract

The study investigates the differences in perceived value between digital and physical formats of the books, specifically which value components differ and how they drive overall value perceptions and, in turn, willingness to pay for each format.  293 participants were recruited from United Kingdom through the Prolific platform. They selected a book they would consider purchasing for a short, easy, and relaxing read, and randomly assigned to two groups – digital format and physical format. Participants then rated their willingness to pay and several value components for different formats of books. Partial least squares structural equation modelling (PLS-SEM) was conducted to derive customer perceived value for digital and physical formats of the book and assess its impact on willingness to pay.  The study found that cataloguing ease, overall satisfaction, perceived durability, perceived permanence, preservation ease, psychological ownership, and value retention were the significant indicators of digital value, while cataloguing ease, overall satisfaction, reading pleasure, sharing ease, and value retention were the significant indicators of physical value. Both digital and physical values significantly influence willingness to pay, with higher impact of digital value.  Several studies examined the differences in customer value perception across digital and physical books, but a conceptual framework of customer perceived value for digital and physical books is still missing. The findings are useful for academicians, practitioners, readers, bookstore managers, and publishers to understand how value perceptions differs in digital and physical book market.