Responses to Rival Exit: Product Variety, Market Expansion, and Preexisting Market Structure

Funded Research Proposal

The departure of major players from a concentrated market often causes dramatic changes in the competitive landscape, yet little research has investigated the strategic implications of rival exit for surviving firms. This study examines analytically and empirically how a surviving firm responds to the exit of its main rival through product variety adjustment and market expansion. Read More

Offline Showrooms in Omni-channel Retail: Demand and Operational Benefits

Published Research

Omni-channel environments where customers can shop online and offline at the same retailer are increasingly ubiquitous. Furthermore, the presence of both channels has important implications for customer demand and operational issues such as product returns.Read More

The Demand for One-to-One Customization on the Internet: Evidence from the Retail PC Hardware Industry

Working Papers

We study the demand for one-to-one customization in the computer hardware industry. Using household browsing, transaction, and demographic data from the comScore database, we uncover evidence that geographically isolated households that are technologically savvy are more likely to buy and customize computer hardware online. Read More

The Store is Dead–Long Live the Store

Published Research

Offline demise and offline renaissance is the paradox of new retail writ large. Swiss multinational financial services company Credit Suisse projects that by the time the numbers are in, more than 8,500 stores in the United States will have closed in 2017.Read More

Using Crowds to Predict Retail Sales

Funded Research Proposal

We often base our predictions on instincts and gut intuitions, and this is frequently the case among buyers in the retail sector. Buyers rely heavily on feelings to guide their forecasts about what customers might like. Forecasting research suggests there are many ways to improve the accuracy of intuitive predictions.Read More

Agency Selling or Reselling? Channel Structures in Electronic Retailing

Published Research

In recent years, online retailers (also called e-tailers) have started allowing manufacturers direct access to their customers while charging a fee for providing this access, a format commonly referred to as agency selling. In this paper, we use a stylized theoretical model to answer a key question that e-tailers are facing: When should they use an agency selling format instead of using the more conventional reselling format?Read More

Location Is (Still) Everything: The Surprising Influence of the Real World on How We Search, Shop, and Sell in the Virtual One 

Published Research

Conventional wisdom holds that the internet makes the world flat and reduces friction by erasing the impact of the physical world on our buying habits. But Wharton professor David Bell argues that the way we use the internet is still largely shaped by the physical world we inhabit.Read More

Preference Minorities and the Internet

Published Research

Offline retailers face trading area and shelf space constraints, so they offer products tailored to the needs of the majority. Consumers whose preferences are dissimilar to the majority — “preference minorities” — are underserved offline and should be more likely to shop online. The authors use sales data from Diapers.com, the leading U.S. online retailer for baby diapers, to show why geographic variation in preference minority status of target customers explains geographic variation in online sales.Read More