Luc R. Wathieu

5 Results

 

An Empirical Approach to Understanding Privacy Valuation

Luc Wathieu and Allan Friedman

What do consumers value and why? Researchers on privacy remain stumped by a "privacy paradox." Consumers declare that they value privacy highly, yet do not take steps to guard it during transactions. At the same time, consumers feel unable to enact their preferences on privacy. Clearly, scholars need a more nuanced understanding of how consumers treat information privacy in complex situations. To test the hypothesis that there is a homo economicus behind privacy concerns, not just primal fear, Wathieu and Friedman conducted an experiment based on a real-world situation about the transmission of personal information in the context of car insurance. Their experiment was based on a previous case study about marketing processes that use membership databases of trusted associations (such as alumni associations) to channel targeted deals to members through a blend of direct mail and telemarketing. Read More

Fixing Price Tag Confusion

Luc R. Wathieu

"Partitioned" price tags that include a main price plus additional charges (Lamp: $70, Bulb, $5, Shipping: $15) may be confusing your customers at best or even causing them to reject the product, warns HBS professor Luc Wathieu. When is an all-inclusive price the best bet? Read More

The Framing Effect of Price Format

Marco Bertini and Luc R. Wathieu

How do consumers evaluate different pricing scenarios? This study looks at different pricing models to see which is more likely to result in positive customer perception. Specifically, the authors look at all-inclusive pricing (e.g., the price of a chair is $85.95 including shipping) versus partitioned pricing (e.g., the price of a chair is $81 and shipping is $4.95). When consumers are presented with a partitioned price, they place an exaggerated weight on their evaluation of each individual component. Read More

The Basics of Consumer Marketing in Asia

Confronting a per-capita income in China that varies from as low as $380 to as high as $5,000, brands face a special challenge gaining headway. At this panel, experts discussed the secrets of price competition and market research. Said one, "Our best tools are our two legs." Read More

Let Customers Call the Shots

Luc R. Wathieu

Opt-in advertising, interactive TV, group buying clubs—these are all examples of cutting-edge intermediaries that are changing the rules for both marketers and consumers. HBS professor Luc Wathieu and research associate Michael Zoglio explain what they mean for you. Read More