Chiu, Hsieh and Wang (2008)

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1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Chiu, Hsieh and Wang (2008)
Title: How to Encourage Customers to use Legal Software
Author(s): Chiu, H. C., Hsieh, Y. C., Wang, M. C.
Year: 2008
Citation: Chiu, H. C., Hsieh, Y. C. and Wang, M. C. 2008. How to Encourage Customers to use Legal Software. Journal of Business Ethics, 80, 583-595.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: 750 questionnaires, of which we deemed 554 useful, for a response rate of 73.9%. The respondents were composed of 290 men (52.3%) and 264 women (47.7%). The sample sizes of the three different loyalty groups were as follows: 218 stayers, 161 dissatisfied switchers, and 175 satisfied switchers.
Data Type: Primary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2008
Funder(s):

Abstract

This study attempts to identify customer retention strategies for legal software and discusses their effectiveness for three consumer groups (stayers, dissatisfied switchers, and satisfied switchers). Although previous studies propose several antipirating strategies, they do not discuss how to enhance customer intentions to use legal software, which is crucial for software companies. The authors provide four generic retention strategies developed from both antipiracy and customer loyalty literature. The results indicate lower-pricing, legal, communication, and product strategies all enhance customer purchase intentions toward legal software. The lower-pricing strategy is more useful for stayers and dissatisfied switchers, and the communication strategy is most useful for dissatisfied switchers. Both the legal and product strategies have similar impacts on purchase intentions across the three segments. From a firm perspective, a product strategy is most worthwhile and useful across all segments.

Main Results of the Study

The paper outlined 5 hypothesis:

  1. A lower-pricing strategy has a positive impact on purchase intentions toward a company's legal software.
  2. A legal strategy has a positive impact on purchase intentions toward a company's legal software.
  3. A communication strategy has a positive impact on purchase intentions toward legal software.
  4. A product strategy has a positive impact on purchase intentions toward legal software.
  5. How all four strategies impact intentions to purchase.

Results:

  • The lower-pricing strategy is more useful for stayers and dissatisfied switchers than for satisfied switchers.
  • The lower-pricing strategy is more useful for stayers and dissatisfied switchers than for satisfied switchers.
  • The legal and product strategies have similar impacts on purchase intentions across the three segments.
  • Of the four retention strategies, product strategy is the only one that provides both benefits and switching barriers.
  • The strategy to use special codes or other technologies to prevent copies seems useful for the majority of customers because they are not good at overcoming the protections, regardless of whether they are stayers, dissatisfied switchers, or satisfied switchers.

Policy Implications as Stated By Author

  • Companies should consider which retention strategies lead to increased customer purchase intentions across the different switching segments.
  • Companies should invest in the lower-pricing strategy, because it is useful for both stayers and dissatisfied switchers.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
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Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

Sample size: 554
Level of aggregation: Individual data
Period of material under study: 2008