Ayelet Israeli

Assistant Professor of Business Administration

Ayelet Israeli is an assistant professor of business administration in the Marketing Unit. She teaches the Marketing course in the MBA required curriculum.

In her research, Professor Israeli focuses on pricing and pricing policies, channel management, and online marketing. Her research has been published in Marketing Science and Journal of Marketing Research. Her dissertation won the 2014 INFORMS Society for Marketing Science Doctoral Dissertation Proposal Award, and her work has been cited by The Wall Street JournalThe Atlantic, and MSN Money.

Professor Israeli received her PhD in marketing from the Kellogg School of Management at Northwestern University. She holds an MBA from the Hebrew University of Jerusalem, where she also earned her MSc and BSc in computer science. In addition to her academic experience, Professor Israeli served as a lieutenant in the Intelligence Corps of the Israeli Defense Forces and worked as an engineer at Israel Aerospace Industries and at Intel Corporation in Israel.

Journal Articles

  1. Repairing the Damage: The Effect of Price Knowledge and Gender on Auto-Repair Price Quotes

    Meghan Busse, Ayelet Israeli and Florian Zettelmeyer

    In this paper we investigate whether sellers treat consumers differently on the basis of how well informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be correctly informed, uninformed, or misinformed about market prices. We find that repair shops quote higher prices to callers who cite a higher benchmark price. We find that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention a benchmark price for the repair. Finally, we find that repair shops are more likely to offer a price concession if asked to do so by a woman than a man.

    Keywords: pricing; price discrimination; information; internet; gender; Automobiles; field experiment; Information; Fairness; Price; Knowledge Use and Leverage; Internet; Gender; Service Industry; Auto Industry;

    Citation:

    Busse, Meghan, Ayelet Israeli, and Florian Zettelmeyer. "Repairing the Damage: The Effect of Price Knowledge and Gender on Auto-Repair Price Quotes." Journal of Marketing Research (JMR) 54, no. 1 (February 2017): 75–95. View Details
  2. Minimum Advertised Pricing: Patterns of Violation in Competitive Retail Markets

    Ayelet Israeli, Eric Anderson and Anne Coughlan

    Manufacturers in many industries frequently use vertical price policies, such as minimum advertised price (MAP), to influence prices set by downstream retailers. Although manufacturers expect retail partners to comply with MAP policies, violations of MAP are common in practice. In this research, we document and explain both the extent and the depth of MAP policy violations. We also shed light on how retailers vary in their propensity to violate MAP policies and the depth by which they do so. Our inductive research approach documents managerial wisdom about MAP practices. We confront these insights from practice with a large empirical study that includes hundreds of products sold through hundreds of retailers. Consistent with managerial wisdom, we find that authorized retailers are more likely to comply with MAP than are unauthorized partners. By contrast to managerial wisdom, we find that authorized and unauthorized markets are largely separate, and that violations in the authorized channel have a small association with violations in the unauthorized channel. Last, we link our results to the literatures on agency theory, transaction cost analysis, and theories of price obfuscation.

    Keywords: Pricing policies; pricing; channel management; legal aspects of business; Price; Governance Compliance; Marketing Channels; Retail Industry;

    Citation:

    Israeli, Ayelet, Eric Anderson, and Anne Coughlan. "Minimum Advertised Pricing: Patterns of Violation in Competitive Retail Markets." Marketing Science 35, no. 4 (July–August 2016): 539–564. (Lead article.) View Details

Cases and Teaching Materials

  1. Angie's List: Ratings Pioneer Turns 20

    Robert J. Dolan and Ayelet Israeli

    In 1995, before people “googled” or “yelped,” Angela Hicks (HBS, 2000) was establishing her Angie’s List as a pioneer in the accumulation and dissemination of consumer rating information. Hicks focused on the home repair and maintenance market and, as she put it, “particularly on high cost of failure situations where good information on potential service providers is correspondingly of high value.” Angie's List had a paid subscription model as it charged “members” for access to the information they collectively provided on service providers. More recently, companies such as Yelp, TripAdvisor, and Google have started offering free access to their reviews while relying totally on site advertising and service provider fees for their revenues. In 2015, Angie's List collected close to $68 million in membership fees. In January 2016, with recent declines in the growth rate of member numbers, Angie’s List has to decide if it was time to drop the “paid subscription for all” model and introduce a free version of its service to its product line.

    Keywords: Business Model; Internet; Business Growth and Maturation; Service Industry;

    Citation:

    Dolan, Robert J., and Ayelet Israeli. "Angie's List: Ratings Pioneer Turns 20." Harvard Business School Case 517-016, September 2016. (Revised February 2017.) View Details