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  • April 2021
  • Article

A Model of Multi-Pass Search: Price Search Across Stores and Time
By: Navid Mojir and K. Sudhir
In retail settings with price promotions, consumers often search across stores and time. However, the search literature typically only models one pass search across stores, ignoring revisits to stores; the choice literature using scanner data has modeled search across...  View Details
Keywords: Consumer Search; Multi-pass Search; Price Search; Store Search; Spatial Search; Temporal Search; Spatiotemporal Search; Dynamic Structural Models; MPEC; Price Promotions; Store Loyalty; Consumer Behavior; Price; Spending; Marketing; Mathematical Methods
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  • January–February 2020
  • Article

Consumer Reactions to Drip Pricing
By: Shelle Santana, Steven Dallas and Vicki Morwitz
This research examines how drip pricing—a strategy whereby a firm advertises only part of a product’s price upfront and then reveals additional mandatory or optional fees/surcharges as the consumer proceeds through the buying process—affects consumer choice and...  View Details
Keywords: Drip Pricing; Pricing; Consumer Protection; Hidden Fees; Price; Consumer Behavior; Perception
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  • December 2019
  • Article

The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment
By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira
Many online stores are designed such that shoppers can easily access any available discounted products. We propose that deliberately increasing search frictions by placing small obstacles to locating discounted items can improve online retailers’ margins and even...  View Details
Keywords: E-commerce; Online Retailing; Friction; Effor; Search Costs; Price Discrimination; Marketing; Consumer Behavior; Strategy; Price; Retail Industry; Fashion Industry
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  • November 2019
  • Article

When and Why Defaults Influence Decisions: A Meta-analysis of Default Effects
By: Jon M. Jachimowicz, Shannon Duncan, Elke U. Weber and Eric J. Johnson
When people make decisions with a pre-selected choice option—a “default”—they are more likely to select that option. Because defaults are easy to implement, they constitute one of the most widely employed tools in the choice architecture toolbox. However, to decide...  View Details
Keywords: Choice Architecture; Defaults; Default Effects; Decision Making; Behavior; Analysis
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  • August 2019
  • Article

When and How to Diversify—A Multicategory Utility Model for Personalized Content Recommendation
By: Yicheng Song, Nachiketa Sahoo and Elie Ofek
Sometimes we desire change, a break from the same or an opportunity to fulfill different aspects of our needs. Noting that consumers seek variety, several approaches have been developed to diversify items recommended by personalized recommender systems. However,...  View Details
Keywords: Recommender Systems; Personalization; Recommendation Diversity; Variety Seeking; Collaborative Filtering; Consumer Utility Models; Digital Media; Clickstream Analysis; Learning-to-rank; Consumer Behavior; Media; Customization and Personalization; Strategy; Mathematical Methods
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  • June 2019
  • Article

Brokers vs. Retail Investors: Conflicting Interests and Dominated Products
By: Mark Egan
I study how brokers distort household investment decisions. Using a novel convertible bond dataset, I find that consumers often purchase dominated bonds—cheap and expensive versions of otherwise identical bonds coexist in the market. The empirical evidence suggests...  View Details
Keywords: Brokers; Fiduciary Standard; Consumer Finance; Structured Products; Household; Investment; Decisions; Motivation and Incentives; Conflict of Interests
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  • 2019
  • Working Paper

The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment
By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira
Many online stores are designed such that shoppers can easily access any available discounted products. We propose that deliberately increasing search frictions by placing small obstacles to locating discounted items can improve online retailers’ margins and even...  View Details
Keywords: E-commerce; Online Retailing; Friction; Effor; Search Costs; Price Discrimination; Consumer Behavior; Price; Search Technology
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  • 2019
  • Working Paper

Large-Scale Demand Estimation with Search Data
By: Tomomichi Amano, Andrew Rhodes and Stephan Seiler
In many online markets, traditional methods of demand estimation are difficult to implement because assortments are very large and individual products are sold infrequently. At the same time, data on consumer search (i.e., browsing) behavior are often available and are...  View Details
Keywords: High-dimensional Data; Demand Estimation; Consideration Sets; Consumer Search
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  • June 2018
  • Article

Personal and Social Usage: The Origins of Active Customers and Ways to Keep Them Engaged
By: Clarence Lee, Elie Ofek and Thomas Steenburgh
We study how digital service firms can develop an active customer base, focusing on two questions. First, how does the way that customers use the service postadoption to meet their own needs (personal usage) and to interact with one another (social usage) vary across...  View Details
Keywords: Customer Engagement; Adoption Routes; Word-of-Mouth; Digital Marketing; Bayesian Estimation; Customers; Communication; Consumer Behavior; Marketing; Online Technology; Data and Data Sets
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  • 2017
  • Article

Frictions or Mental Gaps: What's Behind the Information We (Don't) Use and When Do We Care?
By: Benjamin Handel and Joshua Schwartzstein
Consumers suffer significant losses from not acting on available information. These losses stem from frictions such as search costs, switching costs, and rational inattention, as well as what we call mental gaps resulting from wrong priors/worldviews, or relevant...  View Details
Keywords: Information; Consumer Behavior
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  • March 2017 (Revised July 2019)
  • Case

Interline Brands: Don't Stop Believing
By: Nori Gerardo Lietz and Ricardo Andrade
Interline Brands, a leading distributor of residential housing maintenance and repair parts and equipment in the U.S., had just held its November 2014 board meeting. The meeting had been productive but not without some soul searching for both the company’s management...  View Details
Keywords: Private Equity Exit; Consumer Goods; IPO; Private Equity; Initial Public Offering; Decision Choices and Conditions
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  • November 2016 (Revised October 2018)
  • Case

IguanaFix
By: Frank V. Cespedes, Thomas R. Eisenmann, Maria Fernanda Miguel and Laura Urdapilleta
IguanaFix is a rapidly scaling Latin American startup that provides an online platform connecting consumers with home improvement contractors. The founders have acquired customers through both B2C and B2B methods. But in seeking to grow and scale the business, they now...  View Details
Keywords: Entrepreneurial Marketing; Home Improvement Services; Marketing Management; Scaling; Entrepreneurship; Marketing; Sales; Online Advertising; Latin America
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  • 2016
  • Article

Peer-to-Peer Markets
By: Liran Einav, Chiara Farronato and Jonathan Levin
Peer-to-peer markets such as eBay, Uber, and Airbnb allow small suppliers to compete with traditional providers of goods or services. We view the primary function of these markets as making it easy for buyers to find sellers and engage in convenient, trustworthy...  View Details
Keywords: Peer-to-peer; Online Platforms; Matching; Innovation; Market Platforms; Marketplace Matching; Market Design; Search Technology; Technology Adoption; Network Effects; Market Entry and Exit
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  • March 2016
  • Supplement

Advertising Experiments at RestaurantGrades
By: Weijia Dai, Hyunjin Kim and Michael Luca
This exercise provides students with a data set consisting of results from a hypothetical experiment, and asks students to make recommendations based on the data. Through this process, the exercise teaches students to analyze, design, and interpret experiments. The...  View Details
Keywords: Experimental Methods; Analytics; Social Media; Web Technology; Marketing; Digital Marketing; Analysis; Performance Effectiveness
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  • March 2016 (Revised February 2020)
  • Teaching Note

Advertising Experiments at RestaurantGrades
By: Michael Luca, Weijia Dai and Hyunjin Kim
This exercise provides students with a data set consisting of results from a hypothetical experiment, and asks students to make recommendations based on the data. Through this process, the exercise teaches students to analyze, design, and interpret experiments. The...  View Details
Keywords: Advertising Campaigns; Marketing; Digital Marketing; Analysis; Performance Effectiveness
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  • March 2016 (Revised March 2020)
  • Exercise

Advertising Experiments at RestaurantGrades
By: Michael Luca, Weijia Dai and Hyunjin Kim
This exercise provides students with a data set consisting of results from a hypothetical experiment, and asks students to make recommendations based on the data. Through this process, the exercise teaches students to analyze, design, and interpret experiments. The...  View Details
Keywords: Analysis; Online Advertising
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  • August 2015
  • Case

Yabbly (A)
By: Shikhar Ghosh and Christopher Payton
In November 2013, with less than 10 months of cash on hand, Tom Leung, the founder and CEO of Yabbly, must decide where to focus his resources. His startup, a question-and-answer application for shopping decisions, had benefited from a strong showing at the SXSW...  View Details
Keywords: Startup; Mobile; Online Product Reviews; Consumer Products; Business Model; Business Plan; Business Startups; Entrepreneurship; Innovation Strategy; Mobile and Wireless Technology; Internet and the Web; North America; United States; Washington (state, US); Seattle
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  • September 2014 (Revised June 2017)
  • Case

Google Inc. in 2014
By: Benjamin Edelman and Thomas R. Eisenmann
Describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation. Reviews Google's recent strategic initiatives and the threats they pose to selected competitors. Asks what Google should do next.  View Details
Keywords: Search Engines; Google; Online Advertising; Internet and the Web; Network Effects; Business Model; Competition; Digital Marketing; Information Technology Industry; Advertising Industry
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  • September 2014
  • Case

Google Inc. in 2014 (Abridged)
By: Benjamin Edelman and Thomas R. Eisenmann
Describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation. Reviews Google's recent strategic initiatives and the threats they pose to Yahoo, Microsoft, and others. Asks what Google should do next.  View Details
Keywords: Search Engines; Google; Online Advertising; Internet and the Web; Network Effects; Business Model; Competition; Information Technology Industry; Advertising Industry
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  • September 2014
  • Article

The Interrelationships Between Brand and Channel Choice
By: Scott Neslin, Kenshuk Jerath, Anand Bodapati, Eric T. Bradlow, John A. Deighton, Sonja Gensler, Leonard Lee, Elisa Montaguti, Rahul Telang, Raj Venkatesan, Peter C. Verhoef and Z. John Zhang
We propose a framework for the joint study of the consumer's decision of where to buy and what to buy. The framework is rooted in utility theory where the utility is for a particular channel/brand combination. The framework contains firm actions, the consumer search...  View Details
Keywords: Brand Choice; Channel Choice; Utility Theory; Marketing; Decision Choices and Conditions; Consumer Behavior; Learning; Electronics Industry; Auto Industry; Information Technology Industry; Telecommunications Industry; Aerospace Industry
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