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New research in consumer behavior from Harvard Business School faculty on issues including behavioral economics, brand loyalty, and how consumers determine the worth of a product.
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From Sweetheart to Scapegoat: Brand Selfie-Taking Shapes Consumer Behavior

by Reto Hofstetter, Gabriela Kunath, and Leslie K. John

Using a dataset of more than 280,000 user reviews on Yelp, this paper describes a series of eight studies exploring how brand selfie-taking affects consumers’ behavior and sense of connection toward a brand.

Consumer Protection in an Online World: An Analysis of Occupational Licensing

by Chiara Farronato, Andrey Fradkin, Bradley Larsen, and Erik Brynjolfsson

This paper uses new data collected by a digital platform to study the role of occupational licensing laws on individual choices and market outcomes. Results suggest that more stringent licensing laws restrict competition but do not lead to improvements in customer satisfaction.

Does Apple Anchor a Shopping Mall? The Effect of the Technology Stores on the Formation of Market Structure

by Doug J. Chung, Kyoungwon Seo, and Reo Song

How do technology stores, particularly those owned by Apple and Microsoft, affect retail sales and market dynamics at malls? Through modeling and simulation, the authors found that these stores helped malls draw more high-income consumers, supporting the entry of upscale stores and exit of midscale and discount stores.

Do TV Debates Sway Voters?

by Danielle Kost

As Democratic presidential candidates face off at the podium, Vincent Pons reports that TV debates don’t influence voters. Open for comment; Comment(s) posted.

‘Chick Beer’ for Women? Why Gender Marketing Repels More Than Sells

by Dina Gerdeman

Just how far will women go to avoid products labeled "for women?" Research by Leslie K. John and colleagues explores why gender marketing usually offends the very people a company is trying to attract. Open for comment; Comment(s) posted.

Rituals Strengthen Couples. Here’s Why They’re Good for Business, Too

by Dina Gerdeman

Couples with deliberate rituals feel more satisfied with their relationships, says research by Michael I. Norton and Ximena Garcia-Rada. Can businesses benefit? Open for comment; Comment(s) posted.

How Transparency into Internal and External Responsibility Initiatives Influences Consumer Choice

by Ryan W. Buell and Basak Kalkanci

Three studies examined how firms can use transparency into social and environmental responsibility initiatives to differentiate themselves in the consumer market. Results show that transparency into internal, responsible operations practices can increase sales at least as much as transparency into external, corporate social responsibility practices, if not more so.

Mitigating the Negative Effects of Customer Anxiety Through Access to Human Contact

by Michelle A. Shell and Ryan W. Buell

Firms increasingly deploy self-service technologies (SSTs) to manage customer interfaces that are inherently stressful. For example, patients may be asked to use kiosks to check themselves into hospitals. This study finds that customer anxiety during SST transactions can reduce customers’ trust in the service provider. Operational design choices may help.

The Impacts of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment

by Donald Ngwe, Kris J. Ferreira, and Thales Teixeira

This paper challenges the logic that making it easier for consumers to search across a wide assortment of products is the best strategy for online retailers. Experiments show that adding extra search costs to find discounted items can improve gross margins and sales by increasing the number of items inspected and serving as a self-selecting price discrimination mechanism among customers.

What’s the Antidote to Surveillance Capitalism?

by James Heskett

SUMMING UP: As companies increasingly build business models around our personal data, what can be done to fight back? James Heskett's readers suggest there are no easy answers. Open for comment; Comment(s) posted.

Relative Performance Transparency: Effects on Sustainable Choices

by Ryan W. Buell, Shwetha Mariadassou, and Yanchong Zheng

Encouraging consumers to purchase a more sustainable product or use resources more responsibly is a key challenge for society. This paper discusses experiments involving more than 7,000 participants to shed light on how information and its presentation regarding sustainable performance can be a tool for enhancing sustainable choices in practice.

On Target: Rethinking the Retail Website

by Dina Gerdeman

Target is one big-brand retailer that seems to have survived and even thrived in the apocalyptic retail landscape. What's its secret? Srikant Datar discusses the company's relentless focus on online data. Open for comment; Comment(s) posted.

E-Santa: Is Retail Ready for Digital Christmas?

by Sean Silverthorne

The retail industry is in such a spin over multichannel strategy, mall closings, and big brand shutterings, to name a few pressures, that even Santa can't keep track of it all. Here is recent Harvard Business School research on digital trends shaping how we shop and sell. Open for comment; Comment(s) posted.

Could Big Data Replace the Creative Director at the Gap?

Re: Ayelet Israeli

Is it time to throw out the creative director and rely on big data to predict what consumers want to wear next? Assistant Professor Ayelet Israeli discusses how Gap CEO Art Peck considers a bold idea to boost sales. Open for comment; Comment(s) posted.

Opportunistic Returns and Dynamic Pricing: Empirical Evidence from Online Retailing in Emerging Markets

by Chaithanya Bandi, Antonio Moreno, Donald Ngwe, and Zhiji Xu

Dynamic pricing is widely applied in industries like airline ticketing, ride-sharing, and online retailing. This paper identifies two downsides of dynamic pricing: opportunistic returns and strategic choice of payment method. The impact can be significant and has implications for managers and researchers.

Shipping Fees and Product Assortment in Online Retail

by Chaoqun Chen and Donald Ngwe

This study highlights a strong link between an online retailer’s product assortment decisions and shipping policies in determining purchase outcomes and profits. Consumers are less sensitive to shipping fees than to product prices, but free shipping for orders above the minimum is a strong motivator for increasing average basket sizes.

The Legacy of Boaty McBoatface: Beware of Customers Who Vote

by Michael Blanding

Companies that encourage consumers to vote online should be forewarned—they may expect more than you promise, according to research by Michael Norton, Leslie John, and colleagues. Open for comment; Comment(s) posted.

Bargain Hunters Beware: A Store's 'Original Price' Might Not Be After All

by Michael Blanding

Retailers often compare a "sale" price to the original price. Donald Ngwe says consumers should be skeptical of those original prices — and so should regulators. Open for comment; Comment(s) posted.

That Costs HOW Much?

by Sean Silverthorne

Beyond the attributes of the product itself, price is probably the leading determinant of success in the marketplace. What does it takes to get the price right? Open for comment; Comment(s) posted.

Learning to Become a Taste Expert

by Kathryn A. Latour and John A. Deighton

How should we learn to discriminate a fine wine or chocolate? Tradition says use a flavor wheel and map the taste into vocabulary. We find that works for novices, but, beyond a point, it is counterproductive. Enthusiasts perform more like experts when they abandon language and just “draw the shape” of the taste.