Ecommerce Research Paper Pyramid Scheme

2004 WordsJul 23, 20119 Pages
Analysis on Conversion Behavior of Consumers after Awareness about Pyramid Scheme E-Commerce Keywords: Pyramid Scheme, step commission Abstract The aim of the study is to find out the consumer behavior regarding to the step commission plan in category of e- investment. The study show results about the preferences of consumers for accepting the step commission plan or pyramid scheme after awareness. To support the research a study conducted before awareness and after awareness of the consumer about pyramid scheme. A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than…show more content…
Straub-2003) ONLINE INVESTING AND OVERCONFIDENCE a. Self-attribution bias: Online investors outperform the market before going online. People tend to ascribe their successes to their personal abilities and their failures to bad luck or the actions of others [Langer and Roth (1975), Miller and Ross (1975)], and self-enhancing attributions following success are more common than self-protective attributions following failures [Fiske and Taylor (1991), see also Miller and Ross (1975)]. Gervais and Odean (2000) demonstrate that this self-attribution bias will cause successful investors to grow increasingly overconfident about their general trading prowess. [Daniel, Hirshleifer, and Subrahmanyam(1 998) further argue that self-attribution bias can intensify overreactions and lead to short term momentum and long-run reversals in stock prices.] Investors whose recent successes have increased their overconfidence will trade more actively and more speculatively. Because they anticipate that the effort of switching to online trading will be amortized over more trades, these investors are more likely to go online. If self-attribution-induced overconfidence triggers investors to go online, online investors will tend to be more overconfident than phone-based investors and more overconfident subsequent to going online than in the period before. b. The illusion of knowledge: When people are given more information on which to base a forecast or

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