Consumers often have a choice between products that are convenient or easy- to-use and products that offer greater functionality but are less convenient. When making a purchase that involves a longer time frame, consumers are likely to choose functionality. They are willing, for example, to take the time to learn the sophisticated software that will let them digitize the […]
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Companies are making and selling socially responsible products, hoping to benefit from the social conscious of their customers. Previous research on what customers are willing to pay for social responsibility has been mixed — while in many cases, the studies confirm the opportunity for a significant premium, a smaller number of researchers have found little […]
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When consumers buy two products bundled together, do they see the value of the bundle as the sum of the two values, or is it even more — do consumers see the value of the bundle as more than the sum of the two parts? According to new research, it’s neither. In fact, bundling an […]
Plummeting advertising revenues have led many online content providers to experiment with additional sources of revenue. Most often, firms aim to compensate for a loss in advertising revenues by charging consumers for access to online content. However, such a choice is not straightforward since subscription fees typically deter customers, further reducing advertising revenues. Acknowledging the […]
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The apparel industry (which includes clothing, footwear, accessories, etc.) is one of the world’s largest, due partly to the relatively low barriers to entry. According to Euromonitor International, there were more than 1,400 retail brands at the start of 2013. All of these brands are concerned about meeting growing demands and getting their collections out […]
Read More… from Fast Fashion Retailing – Transforming Operations Management
The colour red has long been associated with pleasure, and its effects have long been the subject of research. Studies have suggested that it serves as a ‘heuristic cue’ or shortcut when people make judgments and decisions. (In 2008, for example, researchers found that sports referees assign more points to competitors wearing red than those […]
According to Mirko Kremer of Pennsylvania State University, Benny Mantin of the University of Waterloo and Anton Ovchinnikov of the University of Virginia’s Darden School of Business, there are two types of consumers. The first type is what they call “myopic consumers.” These consumers buy a product as soon as that product is priced at […]
Read More… from Myopic Pricing Strategies Lose Seasonal Sales
For many strategic decisions such as product development or market expansion, retailers have access to sophisticated information on which to base these decisions. When it comes to customer service, however, the information is less complete. Retailers may have extensive data on customer purchases, for example, but no data on how long those customers stood in […]
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In a typical negotiation process, one of the parties will make an opening or first offer, which is then met by the recipient of that first offer. Prior research has shown that negotiators ‘anchor’ on this first offer, which means that the resulting settlement will be biased toward the first offer. Four academics from Columbia […]
Read More… from Precise First Offers in Negotiations Vs Rounding
