PRICE AND THE MARKETING ENVIRONMENT FOR ELECTRONIC INFORMATION

Argues the central role of pricing strategy in determining the future characteristics of the information marketplace. Focuses on three of th e four variables in the marketing of electronic databases: product, di stribution and price. The fourth variable, promotion, is omitted. Disc usses the product variable in terms of the nature of information as a product and its value, consumption, dynamics, life cycle and individua lity. Considers the distribution variable in terms of three potential distribution channels: CD-ROMs; data networks; and facsimile transmiss ion; noting that many producers are still involved in printed products . Discusses the price variable by considering five key approaches to p ricing and charging: optimal pricing; pricing according to value; pric ing for full cost recovery; marginal cost pricing; and free distributi on of services. Analyses the pricing structures for online searching o f external databases (subscription charges, discount plans, volume pur chase plans, connect time charges, display and print charges, telecomm unications charges, session rates, charges for special commands, and c harges for special services such as SDI, statistical reports and end-u ser services). Presents a similar analysis for CD-ROM databases. Concl udes that the complex and chaotic information marketplace may be allev iated by standardization in pricing structures for products such as CD -ROMs and research which seeks to link the factors that influence pric ing structures to a more closely defined model.