APPLICATION OF INFORMATION ASYMMETRY TO NIGERIAN BUSINESS SITUATIONS

Abstract

This study adopted the mixed methods comprising the qualitative and quantitative content 
analyses. Using both primary and secondary data, it combined oral interviews and thematic 
preoccupation approaches to analyse the application of information asymmetry in relation to 
the Nigerian business environment. The research was anchored on the frameworks of 
information asymmetry and trade puffery. Information asymmetry deals with information 
imbalance between the seller and the buyer while the trade puffery concerns itself with 
unsubstantiated exaggerations and claims about a product or service. The coding was both 
thematic and quantitative.  The former enabled the researchers to identify, analyse and freely 
interpret the patterns of meaning within the qualitative data. In the quantitative coding buyer 
response was represented on tables with simple percentages. Despite its complexities, the 
holistic population of study enhanced accurate representation thereby reducing bias risks. It 
also enabled the researchers to engage in a comprehensive and multifaceted study of the sellers 
and buyers. The sample size was the 100 respondents drawn through convenience sampling, a 
non-probability and quick technique, was used to select respondents based on their ease of 
access and availability. The simple random sampling was finally used to select respondents for 
oral interviews. Findings revealed the factors promoting information asymmetry in the Nigerian 
market situations, exposed buyer opinion and ugly experience in the hands of dubious sellers. 
Finally, it investigated the legal provisions and court litigations against dishonest sellers, as 
well as the solution.