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How insurance plays a role in e-shopping

So before you whip out your smartphone and click buy on that item you’re itching to get your hands on, here are a few tips you can do to protect your “budol” finds and your hard-earned money from online shopping frauds.

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Filipinos love to shop online–a recent report by data and analytics firm GlobalData showed that nearly 90% of Filipino consumers have shopped online in the last six months. This has put the growth of the e-commerce market at 31.3% in 2022 and is expected to grow by 22.9% and reach a value of P615.7 billion within the year.

Along with the widespread adoption and convenience online shopping offers comes the risk of frauds–from fake products to sellers who send defective products or send no product at all. 61% of Filipinos reported being targeted and/or victims of fraud in the past three months, according to a Q4 2022 Consumer Pulse Study by consumer credit reporting agency, TransUnion. This is a significant increase from the 55% reported in Q3 of the same year. While phishing remained the most commonly reported fraud scheme (51%), third-party seller scams on legitimate e-commerce sites came in third (33%), indicating a concerning trend that puts Filipino online shoppers at risk.

So before you whip out your smartphone and click buy on that item you’re itching to get your hands on, here are a few tips you can do to protect your “budol” finds and your hard-earned money from online shopping frauds:

Buy from official stores or legitimate sellers

Sometimes when browsing through online stores, you’ll undoubtedly encounter a deal that’s too good to pass up but before you bite the bullet and check out, take a few seconds to check the seller and make sure that they are legitimate sellers or official stores.

Buying from official stores and legitimate sellers ensures that the products you’re buying are authentic and are of good quality. Plus, some e-commerce platforms also offer additional perks when you buy from these stores including warranties, free shipping, and even money back guarantees.

Check the reviews

You’ll undoubtedly come across multiple products being sold by different stores online and the sheer number of options can be overwhelming. One way to weed out the best deals and items is to check reviews from previous buyers.

Check the review section of the product you’re eyeing on e-commerce platforms or if you’re buying from Facebook Marketplace and other social media pages, see if you can find a business page where previous customers have left reviews.

Reviews are helpful in helping you make informed decisions on your purchase–if the item is worth buying, if the seller is legitimate, cooperative, and responsive, or if there are any watch outs like long delivery lead times or trouble when it comes to repairs, returns, or refunds.

Compare prices

If you’re on the lookout for a good deal, it never hurts to compare prices. Several sellers will have the same exact product on sale and it’s good to take a second and look at other sellers before deciding on where to buy.

Some stores may offer the same price but throw in other perks like free shipping for no minimum spend, extended warranties, a small freebie, or the lowest price offered on the platform. A word of caution on super low prices, if it seems too good to be true, it probably is, and it would be beneficial to check if the seller is legit and the products reviews before deciding where to buy.

Get an online shopping insurance to protect your purchases

One of the main advantages of shopping online is the time it saves from selection to purchase–you don’t need to go to a physical store and buy an item as with a few clicks, the item will be on its way to you within a few days.

However, its main advantage can also be a disadvantage as you’re buying something sight unseen–you really can’t check the quality of the purchase until it’s already delivered. Even if you follow all the steps to make a good purchase, sometimes you may still receive a bad or fake product, or it may not even show up at all.

Designed to protect consumers from e-commerce scams and frauds, Igloo and GCash collaborated on an Online Shopping Insurance that provides coverage for undelivered goods and uncontactable sellers, partial delivery or fake goods for up to P150,000 for as low as P15/month. 

Policy holders can file multiple claims until they reach their benefit amount after which the policy expires and will require a shopper to apply for another policy.

By following these steps, you can reduce your risk of falling victim to online shopping fraud and scams, safeguard your “budol” finds and shop worry-free. 

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Reminder to marketing people: Missing information can misinform

You don’t need bad actors for people to get the wrong idea. Incomplete information can be enough.

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To get people to pay attention, you have to make it engaging. But what makes content engaging often comes at the cost of detail – shaping what people learn and what they think they’ve learned. The result: People can come away with the wrong idea, even when what they read isn’t factually wrong.

That tension sits at the core of research from Marta Serra-Garcia, a behavioral economist at the University of California San Diego’s Rady School of Management. The study, published in the American Economic Review, examines how incentives in the online attention economy shape the way scientific information is communicated – and what readers ultimately take away from it.

A trade-off in the attention economy

You don’t need bad actors for people to get the wrong idea. Incomplete information can be enough.

Crucially, the research finds that attention-grabbing summaries are not more likely to be factually inaccurate. Instead, they tend to include less information – especially key details about how studies were conducted.

“This is not a simple story that clickbait is bad,” said Serra-Garcia, associate professor of economics and strategy and Phyllis and Daniel Epstein Chancellor’s Endowed Faculty Fellow at UC San Diego’s Rady School. “You need to get people’s attention in order for them to learn something, and it’s good to encourage curiosity. Yet there’s a trade-off: Material designed to engage can also unintentionally contribute to the kinds of misunderstandings that can fuel misinformation.”

The finding comes from a large, multi-stage experimental study in which freelance writers produced nearly 600 summaries of actual scientific research, and more than 3,700 participants were then tested on what they learned from them.

Why “in mice” matters

In one study used in the experiment, a compound in broccoli reduced cancer cell growth – in mice. Leave out those last two words, and the finding can sound far more directly relevant to human health than it actually is.

“Why can’t we say ‘in mice’?” Serra-Garcia said. “It’s not very hard to add. It’s two words. But once you say ‘in mice,’ maybe fewer people will click.”

Study results were consistent. Summaries written to attract attention were shorter, easier to read and more engaging – but included less detailed information, especially about sample sizes and methods.

Given the option to seek out more information, most readers did not. That mirrors real-world behavior: Studies of social media use suggest most content is shared without users ever clicking through to read more.

Among those who relied on summaries alone in Serra-Garcia’s study, knowledge dropped by about 6-7 percentage points. Readers were also more likely to draw incorrect conclusions – such as assuming findings applied to humans or reflected firm medical guidance.

Inside the experiments

To isolate these effects, Serra-Garcia conducted a multi-stage experimental study. In the first stage, 149 freelance writers produced nearly 600 summaries of the same set of studies – covering topics such as cancer, sleep, vaccines and climate – under different instructions: to inform readers accurately, or to attract attention by encouraging clicks or shares. 

In the second stage, more than 3,700 participants read those summaries under different conditions, including whether they could click through for more information.

The results held across experiments: Attention-driven summaries increased engagement and prompted some readers to learn more – but left many others with less complete understanding.

AI and the attention economy

The same pattern emerged when a human wasn’t doing the writing. In additional tests, when a large language model was prompted to attract attention, it also produced less detailed summaries – suggesting the effect is driven less by who creates the content than by the objective it’s optimized for.

For Serra-Garcia, the findings point to an ongoing challenge for researchers, journalists and institutions alike.

“How do you make science engaging and important to readers,” she said, “without missing the essentials that convey the full picture?” 

The research was funded in part by National Science Foundation grant no. 2343858. 

Read the full study: “The Attention – Information Trade-off.” 

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Office owners or managers, take note: Increased risk of bullying in open-plan offices

In traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

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Open-plan offices entail a clearly increased risk of workplace bullying compared with employees having their own office or sharing with just a few colleagues. This is shown in research from Linköping University, Sweden. 

“Increased bullying is a tangible negative consequence of how you choose to organise the workplace. It’s important to highlight this, as it hasn’t previously been examined,” says Michael Rosander, professor at the Division of Psychology at Linköping University.

Open-plan offices, where many employees share the same space, have become increasingly common. Employers often justify this development as a way to use premises more efficiently and to encourage creative interactions between employees. However, research has shown that open-plan offices do not promote health, job satisfaction or productivity.  

Until now, it has been unclear whether open-plan offices also affect the risk of bullying and employees’ motivation to look for another job. Through surveys of more than 3,300 randomly selected individuals in employment in Sweden, Michael Rosander has now provided an answer. The results are published in the journal Occupational Health Science. 

Thirty per cent of those with some form of office-based work reported that they worked in a traditional open-plan office with no access to private space. Thirteen per cent worked in so-called activity-based offices, where employees spend part of their time in an open-plan environment but also have access to designated rooms for tasks requiring peace and quiet. The remainder had their own office or shared one with only a few colleagues.

For traditional open-plan offices, the survey responses showed a clearly increased risk of bullying compared with those who had their own office or shared an office with only a few colleagues. The difference remained regardless of factors such as personality traits and the extent of remote working. This suggests that the problems are indeed caused by the work environment in the office.  

The researchers’ explanation is that in traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

Activity-based open-plan offices, by contrast, showed no increased risk of bullying, likely due to the availability of private spaces. However, in both types of open-plan office, employees were more likely to consider changing jobs. One possible explanation is that activity-based offices also involve more distractions, according to Michael Rosander.

For employers who have introduced, or are planning to introduce, open-plan offices, there are some lessons to be learned. One is to be prepared to deal with irritation and conflicts before they escalate. Another is the importance of providing rooms where employees can work undisturbed. Placing individuals with similar needs and tasks near one another may also reduce the risk of disruption.

“Traditional open-plan offices are in themselves negative for the individual, for productivity, and make people more likely to leave their job. Social interaction also suffers. So it’s worth considering how to handle it,” says Michael Rosander.

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Long-serving CEOs may weaken innovation, study finds

Companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

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A new study from the University of East London has found that companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation.

The study published in the journal Corporate Governance found that CEOs who remain in office for many years often become more cautious and less willing to back risky research and development projects. These companies were more likely to reduce investment in innovation and long-term technological growth.

Firms with higher numbers of independent directors were more likely to continue building innovation capacity with experienced CEOs and independent directors forming an effective partnership, to combine deep company knowledge with outside challenge.

However, both experienced CEOs and independent directors become more cautious and less willing to back risky research and development projects when the company fails to meet performance aspirations, suggesting that independent directors do not have stable risk preferences.

The findings suggest that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Author Dr Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said: “Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development.”

He added: “This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.”

The paper argues that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards think about CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

Osinubi’s research, “Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls”, was published in the Corporate Governance: The International Journal of Business in Society

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