The Impact of Free Sampling of Information Goods on the Dynamics of Online Word-of-Mouth and Retail Sales

Free sampling of information goods has become a common business practice in expectation of reducing consumers’ uncertainty of product quality and helping product diffusion, yet receiving limited investigation of how consumers process free sampling and online word-of-mouth (WOM) and its consequences on retail sales. In this research, we examine the impact of free sampling of information goods on the dynamics of online WOM and retail sales by analyzing a simultaneous equation system in a Bayesian hierarchical framework in online software market. We find that free sampling of information goods asymmetrically moderates the positive feedback mechanism between online WOM and retail sales. More adoptions of free trial not only directly lead to more retail sales but also enhance online WOM effect. Nevertheless, more adoptions of free trial generate fewer WOM and weaken the impact of past sales on WOM, which could potentially have a negative impact on future sales

Shareware competition: Selling an experience

A firm may allow customers to learn the value of its product prior to buying it. This increases their willingness to pay, even though it also leads some not to buy. That strategy may also be used as a competitive tool to increase its product's attractiveness. This paper examines competition between ex-ante identical firms that sell horizontally differentiated and mutually exclusive experience goods. Customers incur set-up costs when buying a good, but those set-up costs are partly recoverable if they then decide to buy the product of a competitor. The main conclusion from this paper is that while a firm that gives information about its product makes higher profits than a competing firm that chooses not to do so, a firm may however choose that last option in order to avoid being in direct competition with a firm that is more open about the value of its product.Experience goods, Transaction costs, Technical compatibility, Mechanism competition, information goods, sampling, switching costs

On the Formal Theory of Inspection and Evaluation in Product Markets

This paper builds a formal theory of consumer behavior under imperfect information when goods are described by multiple characteristics which vary in their degree of "observability." An optimal strategy for the consumer is shown to exist. In general, this strategy is shown to involve both inspection (sampling to observe general characteristics of goods) and evaluation (consumption of goods to observe specific characteristics). Comparative statics of the optimal strategy are also analyzed

Pengaruh Profitabilitas, Solvabilitas, Ukuran Perusahaan dan Opini Audit terhadap Ketepatan Waktu Penyampaian Laporan Keuangan

The purpose of financial reporting is to provide information regarding the financial position, performance, and changes in the financial position of an entity that is beneficial to a large number of users in economic decision-making. Timeliness is an important component that can improve the quality of financial information. Financial information is timely if the information is available to decision-makers before losing capacity to influence decisions.. The purpose of this study is to test whether profitability (ROA), solvency (DER), firm size, and audit opinion affect the timeliness of financial reporting in consumer goods companies listed on Indonesia Stock Exchange in 2013-2016.The object of this research is 24 Consumer Goods companies listed on Indonesia Stock Exchange in 2013-2016. Sampling technique used is Non-Probability Sampling technique, using purposive sampling method. Analytical methods used are descriptive straticistic test, coefficient equality test, classical assumption test, and multiple linear regression analysis.The conclusion of this research indicates that profitability (ROA) has a positive effect on timeliness. solvency (DER) has a negative effect on timeliness. While firm size and audit opinion have no effect on timeliness

Contracting for Infrastructure Projects as Credence Goods

Large infrastructure projects are a major responsibility of government, who usually lacks expertise to fully specify the demanded projects. Contractors, typically experts on such projects, advise of the needed design in their bids. Producing the right design is nevertheless costly. We model the contracting for such infrastructure projects taking into account this credence goods feature and examine the performance of commonly used contracting methods. We show that when building costs are public information, multistage competitive bidding involving shortlisting of two contractors and contingent compensation of both contractors on design efforts outperforms sequential search and the traditional Design-and-Build approach. While the latter leads to minimum design effort, sequential search suffers from a commitment problem. If building costs are the private information of the contractors and are revealed to them after design cost is sunk, competitive bidding may involve sampling more than two contractors. The commitment problem under sequential search may be overcome by the procurer's incentive to search for low building cost if the design cost is sufficiently low. If this is the case, sequential search may outperform competitive bidding.Credence Goods, Design-Build, Competitive Bidding, Sequential Search, Infrastructure Projects

ROLE ANALYSIS OF ELABORATION LIKELIHOOD MODEL IN INFLUENCES OF PURCHASING INTERESTS BY ONLINE, EMPIRICAL STUDY IN AUTHENTICSTORESBY

The number of online fraud is increasing in Indonesia, the main cause is customers who are tempted by low prices, so many online sellers are trying to increase consumer confidence by providing clear and complete information on their online stores. Through the Elaboration Likelihood Model theory, it will be seen whether customers prioritize emotions that will be represented by price sensitivity or affections represented by information transparency. This study aims to examine whether there is an influence between price sensitivity, information transparency, and buying interest for luxury goods. The object of this research is prospective buyers from AuthenticStoreSby. The sample collection method uses a purposive sampling of 130 people, which will be distributed online to Authenticstoresby followers in Indonesia. The SPSS application is used for multiple linear analysis of this study. The results of this study are price sensitivity and information transparency have a significant influence on consumer buying interest in luxury goods. However, information transparency does not significantly influence price sensitivity in luxury goods

Consumer Awareness of the Right to Truthful Advertising Information in Kenya

The objective of this study was to investigate consumer awareness of their right to truthful advertising information. Truthful and factual advertising information is essential because it enables consumers to make informed purchase decisions on new goods and services. However, advertisers use persuasive words that might end up misleading the consumer to believe whatever an advert says about a product is true even when there is a possibility of deception. The study was conducted through mixed methods approach, where sampling involved a stratified random sampling of consumers of goods and services in selected estates within Nairobi City County Kenya. Quantitative data was collected using questionnaires. Qualitative data was collected using Focus Group Discussions and interviews. The study established that consumers had low awareness of their right to truthful advertising information and were not aware of the organizations that they could complain to when products did not have the advertised quality. The study concluded that consumers are victims of misleading advertising information and there is need to enforce the consumer rights protection laws and regulations to protect consumers from deceptive advertising. Keywords: Advertising, consumers, deception, puffer

BEBAN PAJAK TANGGUHAN, LEVERAGE, ASIMETRI INFORMASI TERHADAP MANAJEMEN LABA

The purpose of this study was to examine the effect of deferred tax expense, leverage, and information assimilation on earnings management.  This study uses secondary data with a population of companies registered in the Consumer Goods Industrial Sector Manufacturing Companies listed on the Indonesia Stock Exchange for the 2014-2018 period.  The method used to determine the sample using purposive sampling.  It consists of 18 manufacturing companies in the Consumer Goods industry with 90 samples.  The analytical method used is descriptive data analysis.  The results of hypothesis testing show that Deferred Tax Expenses have no effect on earnings management, Leverage has a positive effect on corporate earnings management and information assurance has no effect on corporate earningsmanagement

Content sampling, household informedness, and the consumption of digital information goods

National Research Foundation (NRF) Singapore under International Research Centres in Singapore Funding Initiativ

Analysis of Service Quality in Supporting The Effectiveness of Goods and Services Procurement

PT. Varia Usaha Fabrikasi is a labor service provider company, and is a limited liability company that is part of the extended family of PT Semen Indonesia Logistik Group. With high dedication and quality service products in all business activities, one of which is in the procurement of goods and services sector which is the company's main priority to achieve long-term corporate goals. Obstacles currently being faced regarding the large amount of competition in the procurement sector which makes business actors, especially PT. Varia Usaha Fabrikasi tries to emphasize the quality factor of the services provided in the hope of supporting the effectiveness of goods and services procurement activities. The research subject is the subject to be studied by the researcher. The type of research in this study is qualitative-descriptive because it utilizes qualitative data and is explained descriptively. Using the Snowball Sampling method found Sampling Subject 1 Users in the goods sector, Subject 2 Users in the services sector, and Subject 3 Users in the goods and services sector which has been suggested by the HR company PT. Varia Usaha Fabrikasi. Data were obtained from predetermined subjects by conducting interviews and direct observation to obtain the information needed by researchers to support this research. And the result is that the quality of service provided by PT. Varia Usaha Fabrikasi as a Provider is quite good and is considered quite effective in the procurement of goods and services both in terms of the process when carrying out the procurement and factors in the fiel