A fundamental question remains unanswered which I seek to address in this research: What is the actual value of novelty in pharmaceuticals to consumers?…Read More
Valuing Novelty in Consumer Demand for Pharmaceuticals
consumer behavior
Estimating the Impact of Consumer Privacy Regulations
This study aims to measure the impact of General Data Protection Regulations on firms and consumers. Specifically, we plan to document GDPR’s impact on consumers search and discovery of products, and firm’s ability to reach out and sell to a broad set of consumers.…Read More
Consumer Preferences and Firm Technology Choice
Advances in intelligent technologies change the way consumers search and shop for products. Emerging is the trend of home-shopping devices such as Amazon’s Alexa and Google Home, which allow consumers to search or order products using voice commands.…Read More
Social Network Design for Inducing Effort
We study how to optimally structure such consumer communities when the objective is to maximize the total or average amount of effort expended. …Read More
Quantifying Network Effects in Mobile App Markets
Many technology products and platform markets are characterized by indirect network effects. These network effects arise when the benefit from using a product or a service increases with the use of a complementary product or service.…Read More
How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems through Purchase Stages?
We investigate the impact of several different recommender algorithms (e.g., Amazon.com’s “Consumers who bought this item also bought”), commonly used in ecommerce and online services, on sales volume and diversity, using field experiment data on movie sales from a top retailer in North America. …Read More
The Short-run Effects of GDPR on Consumer Engagement and Search
In today’s connected world, individuals are no longer mere consumers of goods, information and services, but public producers of often valuable data. In fact, personal data is becoming such a core input that The Economist called it “the world’s most valuable resource” ahead of oil.…Read More
Does Immediate Feedback Make You Not Try as Hard? A Study on Automotive Telematics
Technological innovation is changing the landscape of many industries, and automotive telematics devices are perhaps the most disruptive technology for the auto insurance industry and most automotive manufacturers have plans to develop telematics. Moreover, a number of startup companies use telematics devices in various applications. …Read More
Samsung NEXT on Connectivity Within the ‘Experience Economy’
Brandon Hoffman (WG’15) discusses the role Samsung NEXT plays in transforming the customer experience that Samsung delivers.…Read More
Innovation Through Diversity: Understanding The Ever-Changing Consumer Landscape
As firms look to innovate, attention must be paid to the role cultural diversity (e.g. racial and gender diversity) plays in consumer interest in new products. In today’s society, firms need an understanding of how diversity can be used as an asset to engage consumers with their brands.…Read More
Optimizing Service using High Dimensional Panel Data
We study how retail stores’ multi-dimensioned service levels affect consumers’ buying behavior in a spatial setting. To this end, we propose the Double Block-Lasso BLP estimator, which combines the double selection procedure introduced in Belloni, Chernozhukov, and Hansen (2014), with demand estimation methods set forth in Berry, Levinsohn and Pakes (1995).…Read More
Predictable Magic: Designing Around Customer Emotions to Reach Beyond Existing Markets
Deepa Prahalad, author of “Predictable Magic: Unleash the Power of Design Strategy to Transform Your Business,” introduces design thinking frameworks that can create strong emotional engagement between customers and firms.…Read More
Doing Good for (Maybe) Nothing: Motive Inferences when Rewards are Uncertain
Consumers are often skeptical of social innovation (e.g., CSR), thinking that firms undertake such innovations to increase profit rather than to “do the right thing.” How can firms convey the social and monetary benefits of investing in social innovations to consumers and stakeholders to best improve their brand image?…Read More
Better Sales Forecasting: Why the Crowd Outperforms the “Expert with the Eye”
The ability to predict consumer preferences for new fashions by clothing manufacturer executives seems rather low. This is confirmed by secondary data on inventory markdowns and our pilot interviews with major manufacturers. …Read More
The Long Tail Theory, Debunked: We Stick With What We Know
Wharton professor Serguei Netessine finds that even as consumers are deluged with a growing array of choices, they tend to remain loyal to familiar brands and products.…Read More
Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook
We describe the effect of social media advertising content on customer engagement using data from Facebook. We content-code 106,316 Facebook messages across 782 companies, using a combination of Amazon Mechanical Turk and Natural Language Processing algorithms.…Read More
Is Tom Cruise Threatened? An Empirical Study of the Impact of Product Variety on Demand Concentration
We empirically examine the impact of expanded product variety on demand concentration using large data sets from the movie rental industry as our test bed. We find that product variety is likely to increase demand concentration.…Read More
Media Multiplexing Behavior: Implications for Targeting and Media Planning
There is a growing trend among consumers to serially consume small, incomplete “chunks” of multiple media types—television, radio, Internet, and print—within a short time period. We refer to this behavior as media multiplexing and note the key challenges for integrated marketing communications media planners.…Read More
Price Effects in Online Product Reviews: An Analytical Model and Empirical Analysis
Consumer reviews may reflect not only perceived quality but also the difference between quality and price (perceived value). In markets where product prices change frequently, these price-influenced reviews may be biased as a signal of product quality when used by consumers possessing no knowledge of historical prices.…Read More
Revenue Management with Strategic Customers: Last-Minute Selling and Opaque Selling
Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in the short term, the long-term consequences of such a strategy are not immediately obvious.…Read More