Extended Service Warranties: Why Are They Purchased?

By: Rajiv K. Sinha Warranties have traditionally been used as a means to signal to potential customers that the product is high-quality and to allay customers’ anxiety over purchasing a new product of unknown reliability. However, given large increases in reliability as well as the level of commoditization in consumer electronics markets, the value of …

Transitioning Services from Free to Fee – How Social Networks are Making it Work

By Kristie Dickinson What would it take to convince you to pay for services on Facebook? What about LinkedIn? Or Classmates.com? In today’s world of “try now, buy later” premium models, it’s harder than ever to sway social networkers to upgrade to premium services. There is certainly a recipe for success, but what is the …