Consumer Behavior
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- 15 Feb 2018
- Working Paper Summaries
Can Financial Innovation Solve Household Reluctance to Take Risk?
Structured products are an innovative class of retail financial products with option-like features. This paper provides empirical evidence suggesting that innovative financial products like these can help alleviate loss aversion and thus the low participation of households in risky asset markets.
- 02 Feb 2018
- Working Paper Summaries
Last Place Aversion in Queues
While no one likes standing in line for service, being last intensifies the pain of waiting, doubles the probability of switching queues, and quadruples the chances of leaving the line altogether. Many service settings could be improved if managers actively mitigated last place aversion.
- 18 Sep 2017
- Research & Ideas
'Likes' Lead to Nothing—and Other Hard-Learned Lessons of Social Media Marketing
A decade-and-a-half after the dawn of social media marketing, brands are still learning what works and what doesn't with consumers. Open for comment; Comment(s) posted.
- 24 Jul 2017
- Research & Ideas
People Have an Irrational Need to Complete 'Sets' of Things
People are irrationally motivated to complete arbitrary sets of tasks, donations, or purchases—and organizations can take advantage of that, according to new research by Kate Barasz, Leslie John, Elizabeth Keenan, and Michael Norton. Open for comment; Comment(s) posted.
- 24 May 2017
- Working Paper Summaries
Reinventing the American Wine Industry: Marketing Strategies and the Construction of Wine Culture
Since the 1960s, the United States has seen spectacular growth in wine consumption. This paper explores how businesses reinveted the image of wine. This creation of the new market, like other consumer products, had social and cultural consequences. In the US, wine became a status symbol and a renforcer of social and class divisions.
- 05 Apr 2017
- Research & Ideas
For Women Especially, It Pays to Know What Car Repairs Should Cost
Consumers can negotiate cheaper auto repair prices by convincing service reps they know something about market rates—helping women overcome gender discrimination, according to recently published research by Ayelet Israeli and co-authors. Open for comment; Comment(s) posted.
- 29 Mar 2017
- Research & Ideas
The Story of Why Humans Are So Careless With Their Phones
Consumers act more recklessly with the products they own when better versions become available, according to research by Silvia Bellezza, Joshua M. Ackerman and Francesca Gino. This comic by Josh Neufeld explains. Open for comment; Comment(s) posted.
- 13 Mar 2017
- Research & Ideas
Hiding Products From Customers May Ultimately Boost Sales
Is it smart for retailers to display their wares to customers a few at a time or all at once? The answer depends largely on the product category, according to research by Kris Johnson Ferreira and Joel Goh. Open for comment; Comment(s) posted.
- 06 Mar 2017
- Research & Ideas
Why Comparing Apples to Apples Online Leads To More Fruitful Sales
The items displayed next to a product in online marketing displays may determine whether customers buy that product, according to a new study by Uma R. Karmarkar. Open for comment; Comment(s) posted.
- 06 Dec 2016
- Working Paper Summaries
Assortment Rotation and the Value of Concealment
Assortment rotation is the retailing practice of changing the assortment of products offered to customers throughout a selling season. It is used by both brick-and-mortar and online retailers as a strategy for gaining competitive advantage. This paper studies assortment rotation in product categories such as apparel, accessories, and toys, where consumers typically make multiple purchases during a season. The authors identify and explain a new reason for retailers to frequently rotate their assortment: Consumers may purchase more products throughout the selling season if a retailer conceals a portion of its full product catalog from consumers by rotating its assortment. Aside from its scholarly contributions, the paper provides practical insights to retailers to guide their assortment rotation strategy decisions.
- 09 Nov 2016
- Op-Ed
6 Lessons from Donald Trump's Winning Marketing Manual
Donald Trump's upset election win offers six lessons for marketers looking to beat the odds and overcome powerful competitors, says John A. Quelch. Open for comment; Comment(s) posted.
- 25 Oct 2016
- Working Paper Summaries
'Be Careless with That!' Availability of Product Upgrades Increases Cavalier Behavior Toward Possessions
Contrary to the notion that consumers highly value and care for their possessions, this research demonstrates that consumers may become careless toward owned products when they know there are appealing upgrades coming. Such carelessness is driven by consumers’ strong desire to justify decisions. The findings suggest opportunities for marketers and designers because planned obsolescence might benefit upgrade-minded consumers by making it easier for them to damage or detect functional flaws in owned products.
- 14 Sep 2016
- Research & Ideas
Web Surfers Have a Schedule and Stick to It
Note to web marketers: Consumers won't carve out more time to visit your site. So how do you attract them? Start by understanding their online habits, reports new research by Shane Greenstein and colleagues. Open for comment; Comment(s) posted.
- 24 Aug 2016
- Research & Ideas
Behavioral Economists Can Make You a Healthier Consumer and Smarter Marketer
Video What’s behind the decisions we make, especially when it comes to eating well and losing weight? Can companies motivate employees to make healthier decisions? Leslie John discusses "interventions" to help people make better decisions when it comes to their health. Open for comment; Comment(s) posted.
- 28 Jul 2016
- Op-Ed
Where is TripAdvisor for Doctors?
Would you give your doctor a poor rating just as you might flunk a bad meal or hotel? What if you needed that physician's services again? John A. Quelch discusses why it's difficult to create a TripAdvisor for doctors. Open for comment; Comment(s) posted.
- 11 May 2016
- Research & Ideas
Fix This! Why is it so Painful to Buy a New Car?
Car-buying sends shivers up the backbones of American consumers, so why hasn’t the industry stepped up to create a better experience? Leonard Schlesinger, Jill Avery, and Ryan Buell tell their own war stories and talk about how the battle might yet be won. Open for comment; Comment(s) posted.
- 16 Dec 2015
- Research & Ideas
Why ‘Sleep on It’ No Longer Sounds Like Great Advice
When we have a tough decision to make, we're often encouraged to lie down and clear our heads for the night. But surprising research from Uma R. Karmarkar and colleagues indicates that "sleeping on it" won't help us make the most confident choices. Open for comment; Comment(s) posted.
- 21 Nov 2015
- HBS Case
HBS Cases: Stella McCartney Combines High Fashion with Environmental Values
Fashion designer Stella McCartney is the subject of a recent case study by Anat Keinan showing that luxury and sustainability need not be mutually exclusive. Open for comment; Comment(s) posted.
- 10 Aug 2015
- Research & Ideas
Why a Federal Rule on CEO Pay Disclosure May Get You In Trouble With Customers
The SEC is expected to adopt a rule requiring every public firm to disclose the ratio of the CEO's salary to the median salary of the firm's employees. And it turns out that customers prefer shopping from retailers with low pay ratios, according to new research by Bhavya Mohan, Michael Norton, and Rohit Deshpandé. Open for comment; 6 Comment(s) posted.
Can Consumers Be Saved From Their Misguided Decisions?
Even with a world of information at our fingertips, consumers routinely make bad decisions on everything from investments to health coverage. Can science help? Research by Joshua Schwartzstein and Benjamin Handel. Open for comment; Comment(s) posted.