«Warranty of misinforming as an option in product utiliza- tion process. Informing Science: the International Journal of an Emerging Transdiscipline, ...»
2. The product shows potential to provide extra utility and it is not worth keeping it, but by exploring the warranty contract the client may acquire a higher range product that will allow him/her to benefit from solving an extended set of problems.
Variety of Gain Curves Learning during the warranty period may progress in two directions answering to the following
What are the properties of the product and how one can use the product, so that the • properties are fully utilized?
What are the additional problems in the costumer’s domain area, such that the product is • suitable to address them – identification of new problems to try to solve with the product, i.e., overcoming the initial bias regarding the suitability of the product? In this case learning allows adjusting the client’s initial understanding on the idea of “perfect” product.
The actual gain of product utilization follows the learning progress and different learning curves lead to different gain curves.
Importance of Learning The learning progress is the main key in acquiring the utility, potentially embedded in the product.
Learning is usually done through trial and errors approach, because the customer has to learn how to use the product in order to address his/her own problems. Some technical assistance during the learning period is not only possible, but desirable, but a major effort has to be invested by the client to avoid misleading, misinterpretation and, and in general, misinforming.
Similarities Options and warranty of misinforming provide the client with some rights, which can be • exercised only under particular circumstances.
To obtain these rights one has to invest some resources - the price of the option/warranty • of misinforming.
Difference In the case of options in finance and trade, if the client decides not to use the option, s/he • loses only the price paid for the option; in the case of warranty of misinforming the price, as a monetary value, is reimbursable, but the “value” obtained via investing time and efforts to explore the product – knowledge, understanding, expertise, and even recognizing a set of additional problems of interest - remains beneficial to the client in extending his/her overall skills.
In the case of options in finance and trade the market conditions are the same for all • participants and everybody who bought the option gets the same benefit – owners of an option either all use it or all do not use it. In the case of warranty of misinforming as an option some clients may use it, and others may decide not to use it.
In the case of options in finance and trade the market conditions are the same for all • participants and everybody who bought the option gets the same benefit. In the case of warranty of misinforming as an option – the cost in monetary terms is the same for everybody, but the benefit is strictly individual to the particular client.
Having in mind all of the above, we believe that considering the warranty of misinforming as an option will provide some sound theoretical and practical background and a new research direction to study, in a more formal/deeper level, the warranty of misinforming using the well-developed methods and approaches employed for studying options in finance and trade.
Practical Implications Understanding that, on the one hand, the warranty of misinforming could address and remedy the negative • aspects of the information asymmetry naturally affecting the communication process between sellers and buyers, and on the other hand, the warranty of misinforming could have a positive impact on the • sellers/ buyers relationship by providing some opportunities to expand the usefulness of the considered product, is of significant benefit to the sellers.
Despite of the financial uncertainties related to the warranty of misinforming, this new understanding of misinforming may encourage the sellers to provide and promote in their businesses the risks sharing mechanisms rooted in warranties.
Also, there are significant theoretical implications of the proposed work – more systematic analysis of the warranty of misinforming could be attempted by employing theoretical, well developed and tested approaches and techniques from financial options.
85Warranty of Misinforming
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