The Role of Marketing in Digital Business Platforms

https://doi.org/10.1016/j.intmar.2020.04.006Get rights and content
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Highlights

  • Conceptualization of Digital Business Platforms (DBPs) and their characteristics.

  • Transaction Cost Analysis framework to articulate the roles of of marketing in DBPs.

  • Marketing in DBPs must reduce transaction and production costs and enhance benefits for users.

  • How DBPs change the way value is created and appropriated.

  • Future research to address theoretical, empirical, and managerial issues of DBPs.

Abstract

Digital business platforms (DBPs) such as eBay, Google, and Uber Technologies have seen enormous growth; this paper explores their salient characteristics, the role of marketing in helping DBPs succeed, and important research topics for theory and practice. A new conceptual framework based on insights from transaction cost analysis outlines the role and impact of marketing in DBPs. A key role for marketing is to increase the number and quality of interactions on a DBP while reducing transaction costs for users and production costs for the DPB. The DBPs' interactions and the data thus generated are key enablers of value creation and value appropriation on these platforms. However, there are several challenges to resolve in value creation and value appropriation because DBPs cater to the needs of many different types of users. Therefore, DBPs should carefully coordinate and manage interactions among users on different sides of a platform. For researchers, there are many opportunities to reconceptualize some of the traditional roles of marketing in the context of DBPs.

Keywords

Digital platforms
Digital marketing
Business model

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Contact authors. The others are listed in alphabetical order and contributed equally to the paper.