Chiu, Hsieh and Wang (2008)
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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 |
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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 |
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Cross Country Study?: | No |
Comparative Study?: | No |
Literature review?: | No |
Government or policy study?: | No |
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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:
- A lower-pricing strategy has a positive impact on purchase intentions toward a company's legal software.
- A legal strategy has a positive impact on purchase intentions toward a company's legal software.
- A communication strategy has a positive impact on purchase intentions toward legal software.
- A product strategy has a positive impact on purchase intentions toward legal software.
- 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
Datasets
Sample size: | 554 |
Level of aggregation: | Individual data |
Period of material under study: | 2008 |