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This paper aims to discover how consumers process an innovative set of systematically varied service trial offers and how this affects their learning and interaction as precursors to customer engagement.

The research uses experiments that manipulate pricing, type of service and delivery method. A repeated-measures design was used with a sample of 396 participants.

Free (as opposed to cost or full price) service trials were more likely to be accepted, with perceived truthfulness of the trial offer and perceived obligation mediating the relationship. Credence service trials generate higher levels of perceived obligation than experience service trial offers, while personal services are more likely to lead to trial adoption.

The research can be extended to well-recognized brands and further mixed service contexts.

Trial offers of new services are best targeted at buyers who are in the likely buyer group. The trial offer may accelerate time to purchase and relieve perceived risks. The trials of credence services need further signals of quality in the trial itself for consumers to adopt the full service. With personal service trials, skeptical consumers need assurance as to what will happen after the trial experience. Free trials may actually devalue a service, threatening engagement.

Uniquely, service trial offers are systematically manipulated using experience versus credence and personal versus impersonal trials to determine their effect on acceptance of the trial offer and the full service. Additionally, the study compares free, cost price and full price trial offers.

This study aims to answer an important question of how brand-related communications, including advertising and sales promotion contents, which are disseminated on social media platforms, can enhance positive brand image and evoke favourable behavioural intention from consumers.

This study surveys 615 consumers of automotive brands across Malaysia. The data were analysed with AMOS, which was used to specify both the measurement and structural models. The mediating effect of both hedonic and functional brand images was tested using the bootstrapping approach in AMOS and Sobel test.

The findings reported in this research demonstrate that there are positive and significant relationships between social media advertising content, social media sales promotion content, hedonic brand image, functional brand image and behavioural intention. Both hedonic and functional brand images have significant mediating effects on social media advertising content, social media sales promotion content and behavioural intention. However, the relationship between social media advertising content and behavioural intention is insignificant.

This paper proffers insights to brand managers and marketers on how to leverage on social media contents by unearthing the roles of traditional marketing communications such as social media advertising and promotional information in enhancing brand preference and improving consumers’ purchase intention.

This research advances the discussions in the realm of social media communications and branding by examining the mediating effects of both hedonic and functional brand images of automotive brands. In addition, this study focuses on two essential marketing communications, advertising and sales promotions, which are commonly disseminated by brand managers on social media platforms.

This paper aims to describe best practice in pricing strategy for new products and services being introduced to a market.

A review of introductory pricing patterns across a number of industries shows there are some common patterns in customer evaluation of new products and services. Study of customer behavior can be closely tracked where there is an ongoing relationship with the buyer, e.g. online services, software as a service, professional or technical services, consumables, consumer products and sometimes capital items with service suites and warranties (e.g. medical devices). The means for inferring and tracking customer understanding, beliefs and values is to quantify usage patterns, service call‐ins, warranty requirements and trade‐out of the new product/service for newer products and services.

This article examines customer behaviors to suggest that there are three phases to customer product or service adoption: a “learning” phase, where the customer or potential customer (in trial) learns about the products, its attributes, features, utility and value; a “use” phase where the customer has learned how to use the service or product, and is appreciating the value of the product, and using a lot; and a “reassessment” phase. Now the customer is very familiar with the product, the novelty and mystery has worn off, and they wonder if there is an equivalent substitute available for a lower cost.

A bad introductory pricing strategy can destroy price levels and destroy a market, not to mention cost a company a lot of money. For some years many new product/service sponsors believed the best pricing approach for new products and services was to offer it for free. This paper shows that this simple approach is both ineffective and impracticable for most companies. The better approach is to understand customer product adoption cycles, and link the introductory pricing strategy to customer understanding and behavior.

Some public sector organizations have decided to implement activity-based costing (ABC), a new cost calculation device and management accounting innovation initially designed for the private sector. The purpose of this study is to better understand the translation of this new calculation device in the context of a local government and to identify the trials of strength that actors faced during the implementation.

Building on actor-network theory and the concept of “trial of strength,” this study examines how a major change in a large local government’s structure, the merger of several cities, led to the adoption of ABC. This case study provides a setting for conducting a longitudinal analysis of the translation of a cost management innovation, ABC, in a public sector organization.

This study highlights how human and non-human actors interact when implementing a management accounting innovation in a local government and the trials of strength that they face. It also shows that although ABC helped the local government deal with issues such as setting fees, assessing outsourcing opportunities, increasing accountability and improving processes, the oversophistication of the technology used to implement the ABC model and the lack of links between the costing device and the budgeting process provoked a struggle among these two networks, leading actors to choose the budget over ABC.

This study’s findings extend the work on trials of strength of Christensen et al. (2019) and Laguecir et al. (2020). While those two studies focused on the struggles existing between opposing networks of human actors regarding the strategic orientation or the mission of public sector organizations, this study highlights that trials of strength may also occur when actors agree on the objectives of the new accounting innovation but not on how it is implemented.

A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and retailers. The discounts were found to be illegal under the Robinson-Patman Act by the Federal Trade Commission and the Supreme Court. The Commission and the Court believed that the discounts were unjustified price concessions granted to “large” buyers, consistent with the concerns of the Robinson-Patman Act. However, the evidence indicates that the most common discount – the “carload discount” – was received by virtually all buyers, regardless of the buyer’s size; the other discounts – “annual volume” discounts – though received primarily by “large” buyers, were likely cost based. The history of the discounts and likely reasons why they were granted are explored in detail.

Free trial is an effective strategy to gaining users’ data so as to strengthen and optimize product design. The purpose of this paper is to understand the IT companies' dynamic decision-making behavior in the free trial of IT products and services context based on a three-stage theoretical framework and users' decision-making behavior in the respective stage.

A three-stage methodology is proposed to clarify relevant decision problems and actions in each stage from IT companies' and users' perspectives, respectively. It then investigates relating variables on IT companies' decision-making based on extant research and users' decision-making.

In this study, the authors argue that the IT companies have to make the offering, implementation and retention decision in different stage during the whole free trial process. Each decision is determined by several variables from their own and users, namely the offering decision is determined by product characteristics, network effects, product life cycle and WOM (word of mouth); the implementation decision is determined by the quality of products and services, trial type, incentive measures on user's usage and communication strategy; and the retention decision is determined by the product and price strategy.

The results are practical and can be used by IT companies as a decision basis or reference to make reliable decisions so that IT companies can take target measures to ensure the effectiveness of their free trial strategy so as to meet their users' needs based on products designed by data driven. Thus, the ultimate goal of supply chain management is achieved.

In this study, the decision-making process in the free trial of IT products and services context is investigated as a whole for the first time. From the IT companies' perspective, the process includes offering, implementation and retention decision stages, which are continuous and inseparable. The variables that determine IT companies' decision-making are identified based on users' decision and action. Hence, it represents a brand-new whole process perception to clearly understand the dynamic of the IT companies' decision-making. Considering users' decision and action, the final decisions of the IT companies will be more practical in respect of motivating, retaining and upgrading users.

Research sponsored by entities in developed countries, but conducted in developing countries, has recently been the focus of academic debate, international declarations and media controversy. Much of this attention has focused on whether the trials are exploitative and if so what should be done to avoid exploitation. This chapter takes Alan Wertheimer's principles of mutually advantageous transactions and applies them to the question of exploitation in international research. In this chapter, I develop an analysis of exploitation and apply this to the hypothesis that some pharmaceutical companies who run drug trials in developing countries wrongfully exploit the trial participants.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.