FREE PRODUCT TRIALS: DISCLOSING QUALITY AND MATCH VALUE.

A prepurchase trial allows a consumer to learn both a product's quality and how well it matches her idiosyncratic taste. By offering a trial, the marginal seller thus shifts up demand by increasing perceived quality and rotates demand by revealing match. In contrast to classic results,a trial is off...

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Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 58; no. 4; pp. 1565 - 1577
Autores principales: Lubensky, Dmitry, Schmidbauer, Eric
Formato: Artículo
Publicado: Wiley-Blackwell Oct2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: FREE PRODUCT TRIALS: DISCLOSING QUALITY AND MATCH VALUE.
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        au:
          Lubensky, Dmitry
          Schmidbauer, Eric
        affil:
          Amazon, Seattle WA, 98109
          Department of Economics, University of Central Florida, College of Business Administration, Orlando FL, 32816
      su:
        Consumers
        Business
        Commerce
        Product quality
        Idiosyncratic risk (Securities)
      sug:
        subj:
          Consumers
          Business
          Commerce
          Product quality
          Idiosyncratic risk (Securities)
      ab: A prepurchase trial allows a consumer to learn both a product's quality and how well it matches her idiosyncratic taste. By offering a trial, the marginal seller thus shifts up demand by increasing perceived quality and rotates demand by revealing match. In contrast to classic results,a trial is offered only when quality is sufficiently high, and sometimes not at all. Fewer trials are offered when match is more important and when there are fewer gains from trade. "Cooling off" rules allowing free returns are effectively mandatory trials, benefiting consumers but decreasing welfare when there are sufficient gains from trade.
      pubtype: Academic Journal
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    language: English
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