scholarly journals The impacts of digital content piracy and copyright protection policies when consumers are loss averse

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Yan-Xin Chai ◽  
Steven Ji-Fan Ren ◽  
Jian-Qiang Zhang
Keyword(s):  
Product Quality ◽  
Loss Aversion ◽  
Copyright Protection ◽  
Consumer Surplus ◽  
Digital Content ◽  
Purchase Decisions ◽  
Information Effect ◽  
Technological Advances ◽  
Firm Profitability ◽  
Game Theoretic

<p style='text-indent:20px;'>Recent technological advances in digitization and online communications have enabled unauthorized reproduction and illegal file-sharing. However, controversies still exist over the impacts of digital content piracy and copyright protection policies. Using a game-theoretic framework, we examine the impacts of digital content piracy and copyright protection policies on product quality, firm profitability, consumer surplus, and social welfare when consumers exhibit loss aversion in the quality dimension. Specifically, consumers are initially uncertain about the product quality and will form an expectation, but once they buy the licensed product or use piracy, they know the actual product quality and compare it with their expectation. When consumers are loss averse, consumer propensity to an option is more negatively affected by product quality above the expectation than positively affected by product quality below the expectation. Our analysis shows that although piracy exerts a negative cannibalization effect in the absence of loss aversion, it can exert an additional positive information effect when the degree of loss aversion on the licensed product is higher than the degree of loss aversion on piracy. We find that when the information effect dominates the cannibalization effect, piracy can lead to a win-win situation for firm profitability and consumer surplus. Moreover, under certain circumstances, anti-protection policies can simultaneously raise product quality, firm profitability and consumer surplus. The rationale behind the positive impacts of piracy and anti-protection policies is rooted in the influences of loss aversion behavior on consumer purchase decisions. The results show that it is essential to quantify the degree of consumer loss aversion for firms in formulating pricing and quality strategies and for policymakers to develop copyright protection policies.</p>

scholarly journals Prepurchase Information Acquisition and Credible Advertising

2020 ◽  
Author(s):  
Pedro M. Gardete ◽  
Liang Guo
Keyword(s):  
Product Quality ◽  
Information Acquisition ◽  
Consumer Surplus ◽  
Cheap Talk ◽  
Perceived Quality ◽  
Expected Value ◽  
Consumer Information ◽  
Informative Advertising ◽  
Firm Profitability ◽  
Advertising Strategies

Consumers can decide whether to acquire more information about their valuations prior to purchase. In this paper, we examine pricing and advertising strategies when consumers can engage in prepurchase information acquisition. We show that consumer information acquisition can increase valuation heterogeneity and undermine a firm’s ability to extract consumer surplus. As a result, interestingly, a higher product quality can exert a nonmonotonic impact on equilibrium information acquisition, hurt firm profitability, and lead to lower consumer surplus. We also demonstrate that prepurchase information acquisition can be an endogenous mechanism to enable credible advertising in a cheap-talk setting. We show that quality claims in advertisements can be informative even when the firm can freely misrepresent its advertising message. Informative advertising can arise because a higher perceived quality can not only increase consumers’ expected value, but it also induces more information acquisition and thus hurts the firm’s ability to extract consumer surplus. This novel explanation for the credibility of cheap-talk advertising is distinguished from those identified in the literature (e.g., matching between firm types and heterogenous consumers, restrictive communication on multidimensional attributes). Moreover, we show that a higher quality can soften competition by inducing more information acquisition, thus benefiting the rival firm’s profitability. This paper was accepted by Matthew Shum, marketing.

scholarly journals Modeling the Assimilation-Contrast Effects in Online Product Rating Systems: Debiasing and Recommendations

2018 ◽  
Author(s):  
Xiaoying Zhang ◽  
Hong Xie ◽  
Junzhou Zhao ◽  
John C.S. Lui
Keyword(s):  
Product Quality ◽  
Factor Model ◽  
Experimental Studies ◽  
Purchase Decisions ◽  
Contrast Effects ◽  
Rating Systems ◽  
Micro Level ◽  
Online Product Ratings ◽  
Product Ratings ◽  
Product Rating

The unbiasedness of online product ratings, an important property to ensure that users’ ratings indeed reflect their true evaluations to products, is vital both in shaping consumer purchase decisions and providing reliable recommendations. Recent experimental studies showed that distortions from historical ratings would ruin the unbiasedness of subsequent ratings. How to “discover” the distortions from historical ratings in each single rating (or at the micro-level), and perform the “debiasing operations” in real rating systems are the main objectives of this work. Using 42 million real customer ratings, we first show that users either “assimilate” or “contrast” to historical ratings under different scenarios: users conform to historical ratings if historical ratings are not far from the product quality (assimilation), while users deviate from historical ratings if historical ratings are significantly different from the product quality (contrast). This phenomenon can be explained by the well-known psychological argument: the “Assimilate-Contrast” theory. However, none of the existing works on modeling historical ratings’ influence have taken this into account, and this motivates us to propose the Histori- cal Influence Aware Latent Factor Model (HIALF), the first model for real rating systems to capture and mitigate historical distortions in each single rating. HIALF also allows us to study the influence patterns of historical ratings from a modeling perspective, and it perfectly matches the assimilation and contrast effects we previously observed. Also, HIALF achieves significant improvements in predicting subsequent ratings, and accurately predicts the relationships revealed in previous empirical measurements on real ratings. Finally, we show that HIALF can contribute to better recommendations by decoupling users’ real preference from distorted ratings, and reveal the intrinsic product quality for wiser consumer purchase decisions.

scholarly journals ANALYSIS OF PRICE FACTORS AND PRODUCT QUALITY ON PURCHASE DECISIONS THROUGH CONSUMER SATISFACTION OF MINROSE PRODUCTS IN TEACHING FACTORY PROCESSING DIVISION OF TEGALAMPEL 1 STATE VOCATIONAL SCHOOL OF BONDOWOSO VOCATIONAL SCHOOL

2019 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Mirza Marditasari ◽  
Hariadi Subagja ◽  
Kasutjianingati Kasutjianingati
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Indirect Effect ◽  
Consumer Satisfaction ◽  
Vocational School ◽  
Purchase Decisions ◽  
Purchasing Decisions ◽  
Purchasing Decision ◽  
Processed Products ◽  
Processing Division

Rosela (Hibiscus sabdariffa L.) is used for drinks because it contains organic acids, polysaccharides, and flavonoids that are useful in preventing cancer, controlling blood pressure, promoting blood circulation, and promoting defecation, so it is feasible to be developed. Teaching Factory Tegalampel Bondowoso Processing Division of the PP Negeri 1 Vocational School captures the potential for the development of rosella by producing Minrose processed products, ready-to-drink and healthy packaging drinks from Rosela flowers as one of the superior products suitable for consumption for all people. Sales fluctuations assume that managers need to conduct studies by conducting price policies and building positive perceptions about product quality through customer satisfaction for purchasing decisions. Researchers used samples to consumers or buyers of Minrose products at the age of 15 to 60 as many as 70 people. This study uses path analysis analysis method that shows the results that the price affects consumer satisfaction (ρX1.Z = 0.387 with Sign. 0.001), product quality has an effect on customer satisfaction (ρX2.Z = 0.294 with Sign. 0.009), the price has no effect on purchasing decision (ρX1.Y = 0.046 with Sign. 0.630 and Indirect effect = 0.157 and Total Coefficient = 0.203), product quality affects purchasing decisions (ρX2.Y = 0.457 with Sign. 0,000 and Indirect effect = 0.117 and Total Coefficient = 0.576 ), consumer satisfaction affects the purchasing decision (ρZ.Y = 0.407 with Sign. 0,000) Minrose products at the Teaching Factory of the Processing Division of SMK PP Negeri 1 Tegalampel Bondowoso.

scholarly journals Pengaruh Kualitas Produk, Promosi, dan Citra Merek terhadap Keputusan Pembelian Kopi Merek Moola Pedawa

2021 ◽  
Vol 7 (1) ◽  
pp. 56
Author(s):  
Vika Ervina ◽  
Made Ary Meitriana
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Product Quality ◽  
Brand Image ◽  
Sampling Technique ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Collection Method ◽  
Analysis Technique ◽  
Quality Promotion

The purpose of this study was to discover the effect of product quality, promotion and brand image on the purchase decision of Moola Pedawa Coffee. This type of research is associative with a quantitative approach. The population was customers who have bought and consumed Moola Pedawa Coffee for 384 respondents, collected by the purposive sampling technique. The data collection method was using questionnaires. The data analysis technique was using multiple linear regression. Hypothesis tests were conducted using the t test and f test. The results showed that partially and simultaneously product quality, promotion, and brand image have a positively effect on purchase decisions

scholarly journals Effect of Trust, Quality of Products and Quality Services on Purchase Decisions on E-Commerce Shopee in Palembang City

2019 ◽  
Vol 3 (12) ◽  
pp. 1-6
Keyword(s):  
Regression Analysis ◽  
Service Quality ◽  
Product Quality ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Purchase Decisions ◽  
Purchasing Decisions ◽  
Quality Of Products ◽  
Dominant Influence

Purchasing decision is the decision of consumers to buy a product or service as desired. This study aims to determine the effect of trust, product quality and service quality on purchasing decisions at e-commerce Shopee in Palembang. This study uses multiple linear regression analysis. The sample in this study were 100 respondents who showed the results that the variables of trust, product quality and service quality had a positive and significant effect on purchasing decisions in ecommerce Shopee. there is one variable that has dominant influence on purchasing decisions, namely the variable trust in purchasing decisions

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