Hsu and Shiue (2008)
|Hsu and Shiue (2008)|
|Title:||Consumers' willingness to pay for non-pirated software|
|Author(s):||Hsu, J. L., Shiue, C. W.|
|Citation:||Hsu, J. L., & Shiue, C. W. (2008). Consumers’ willingness to pay for non-pirated software. Journal of Business Ethics, 81(4), 715-732.|
|Key Related Studies:|
|About the Data|
|Data Description:||This study surveyed high school students, college students, graduate students, and general consumers who were not currently enrolled as full-time students in order to include respondents of various age and educational levels. Valid samples of college students were 200, of graduate students were 199. For respondents who were no longer full-time students, the survey was administered at two memorial halls and Taipei Main Station. Valid samples of general consumers were 200.Total valid samples were 799.|
|Data Type:||Primary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
This study analyzed consumers’ willingness to pay (WTP) for non-pirated computer software and examined how attitudes toward intellectual property rights and perceived risk affect WTPs. Two commonly used software products, Microsoft Windows and Microsoft Office, were used in the study as objects to reveal consumer assessed values. A consumer survey was administered in Taiwan and the total valid samples were 799. Respondents in this study included students from senior high schools, colleges, and graduate schools, and general consumers who were no longer full-time students. The estimated average WTP for Windows was USD 58.55 and for Office was USD 53.49, much lower than the respective suggested retail prices in the market. Social norms had strong positive influences on willingness-to-pay for software products. The prosecution risk did not significantly increase WTPs for software products due to the reason that individuals who used pirated software were not at a high risk of being prosecuted. Performance risk was positively correlated to WTPs for software products. The respondents segmented into the low-WTP cluster were more likely to use pirated software than those in the high- WTP segment. Source reliability, legitimacy, technical support, and customer service were emphasized in decisions of respondents in the high-WTP segment and could be used in marketing strategies.
Main Results of the Study
This article selects two commonly used commercial software products, Microsoft Windows and Microsoft Office, to examine consumers’ usage patterns of unauthorized software in addition to evaluating the dollar amount of willingness-to-pay (WTP) for these two software products. Its objective is to examine the behavioral usage of pirated software products in Taiwan. This article shows that:
- Respondents’ WTP for Windows were higher than those for Office except the nonstudent respondents.
- The sensitivity of social norms seemed to have strong positive influences on willingness-to-pay for software products.
- The risk of being prosecuted upon using pirated software did not have significant influences on willingness-to-pay for authorized software products.
- Dimensions of performance risk significantly increased WTPs for software products except for high school students.
- The vast majority of respondents obtained pirated software from family and friends as well as through Internet downloading.
Policy Implications as Stated By Author
- Software firms may need to cooperate with government administration to establish educational programs to emphasize importance and legitimacy of using authorized software.
- Lowering prices may be a way to reduce piracy levels in addition to applying price discrimination in segmented markets.
- Computer firms may utilize information marketing strategies to strengthen the reliability of copyrighted products as well as quality customer services to increase the willingness-to-pay for authorized software products.
Coverage of Study
|Level of aggregation:||Individual|
|Period of material under study:||2006|