A strategy used by firms in industries such as wireless is to bundle several services into a service plan and administer a nonlinear price with different marginal prices for different usage levels. Moreover firms offer a menu of service plans targeting different consumer segments to implement...

This paper reports the results of a longitudinal study of a beverage distributor who initiated a customer satisfaction program with its entire customer base of different types of retailers. We use a broad-based measure of customer satisfaction tailored to the company's operations, and we compute...

Firms design quality-price pairs to satisfy heterogeneous consumers. Apart from the core product attributes consumers gain utility through other marketing mix variables such as advertising that is affective and evokes positive feelings. An interesting question is whether a firm should use such...

When consumers perceive that a firm's price or markup is unfairly high, they become less willing to purchase that firm's product. Hence, one might intuit that the existence of such fair-minded consumers would tend to induce firms to reduce their prices, lowering their profits and increasing the...

In this article, the authors offer a methodology to decompose the effects of price promotions into brand switching, stockpiling, and change in consumption by explicitly allowing for consumer heterogeneity in brand preferences and consumption needs. They develop a dynamic structural model of a...

This paper examines the information-sharing behavior of firms in a distribution channel context. While information sharing among firms can occur in a horizontal (among competitors) or vertical (channel members) context, previous attempts at modeling information sharing has primarily been...

Retargeting is a popular digital advertising strategy that involves sending targeted messages to consumers who have either expressed an interest in a category or in a specific firm’s products. There are two major forms of retargeting: site-retargeting and search-retargeting. Site-retargeting...

We study how adopting co-branded credit cards affects customers’ behavioral loyalty with the brand in the context of the airline industry. Specifically, we explore three dimensions of loyalty that may be affected: the amount of money spent on the airline, loyalty-points redemption, and...

When a firm introduces a product with new features, some consumers may find it difficult to assess their valuations for these new attributes. Their purchase decisions made under such uncertainty may lead to post-purchase regret. It has been experimentally shown that consumers anticipate their...

We investigate how manufacturers' advertising competition, when advertising has a dynamic impact on the goodwill that affects market demand, interacts with the price competition in a manufacturer-retailer channel. Specifically, we examine the strategic choices made by manufacturers, the role of...