This paper shows the benefits of high inventory turnover in responding to demand shocks. We identify quantity- and price-responsiveness as two mediating mechanisms that distinguish how high- and low-inventory-turnover retailers (HIT and LIT retailers, respectively) can manage demand shocks....

Data-driven decision-making (DDD) is rapidly transforming modern operations. The availability of Big Data, advances in data analytics tool, and rapid gains in processing power enable firms to make decisions based on data, rather than intuition. Yet, most firms still allow managers to override...

CRM refers to processes that involve interaction with end-users or customers. The increased emphasis on CRM today stems from changes in the business environment, availability of large amounts of data and advances in information technology. Outsourcing of customer relationship management (CRM)...

Although the goal of a product recall program is to enhance safety, there is little known about whether firms learn from product recalls. This study tests the direct effect of product recalls on future accidents and future recall frequency and indirect effect through future product reliability...

How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., catalog, store, Web, multichannel) and product category? We develop a conceptual model and hypotheses about the moderating effects of two key product category characteristics -- hedonic...

This study examines the performance consequences of web personalization (WP), a type of personalization in which web content is personalized and recommendations are offered based on customer preferences. Despite the growing popularity of personalization, there is a dearth of research at the firm...

Multichannel retailing is the set of activities involved in selling merchandise or services to consumers through more than one channel. Multichannel retailers dominate today’s retail landscape. While there are many benefits of operating multiple channels, these retailers also face many...

In this paper we test the predictive power of abnormal inventory growth to forecast retailers’ earnings. We demonstrate an inverted-U relationship between abnormal inventory growth and one-year ahead earnings per share for retailers. We find this relationship to be robust to different measures...

Excess inventory announcement is an important issue as it has a huge negative impact on stock returns of the announcing firm. Many firms claim that they announce the buildup of excess inventory because of external factors such as sluggish sales. In contrast, theoretical literature in operations...