Firms in durable good product markets face incentives to intertemporally price discriminate, by setting high initial prices to sell to consumers with the highest willingness to pay, and cutting prices thereafter to appeal to those with lower willingness to pay. A critical determinant of the profitability of such pricing policies is the extent to which consumers anticipate future price declines,...

We develop a behavioral axiomatic characterization of exponentially discounted utility (EDU) over consumption streams. Given is an individual agent’s behavior in the market: assume a finite collection of purchases across periods. We show that such behavior satisfies a “revealed preference axiom” if and only if there exists a EDU model (a discount rate per period and a concave utility function o...

E-commerce researchers and managers have known for some time that Long-Tail effects on pricing and product purchase are an important way in which internet retail differs from traditional “brick & mortar” businesses. These Long Tail effects are often directly attributed to lower search costs. Using a transaction-level model we provide important evidence that the principal impact of a reduction i...

In recent years, a number of new payment solutions have been introduced with little success. The solutions have mostly been technology driven at the cost of convenience and value to the consumer. In this research in progress we investigate what characteristics of mobile payment solutions increase or decrease consumers' willingness to adopt these solutions. We also specify managerial implication...

This study analyzes consumer purchasing behavior of organic fresh fruits and vegetables using the 2006 Nielsen Homescan panel. An ordered logit model was estimated to quantify the impacts of economic and socio-demographic factors on the probability of a household belonging to a specific organic user group—devoted, casual, or nonuser. Results suggest that price and income, to some extent, affect...

This study was designed to understand which factors influence consumer hesitation or delay in online product purchases. The study examined four groups of variables (i.e., consumer characteristics, contextual factors perceived uncertainty factors, and medium/channel innovation factors) that predict three types of online shopping hesitation (i.e., overall hesitation, shopping cart abandonment, an...

Acknowledgements: The authors appreciate the comments and suggestions from Tina Lowrey, the anonymous reviewer, and the participants of the 25 th Advertising and Consumer Psychology Conference. Video-cued thought protocols – A method for tracing cognitive processes at the point of purchase The store plays a crucial role in consumer decision making. Many purchases are decided management in retai...

As arts organizations frequently seek purchases and donations from the same consumers, one of their challenges is identifying which consumers are likely to become donors in the future. With all of the data currently available, many organizations are looking to their databases to predict future consumer behavior. In the customer relationship management literature, models have been developed that...

This paper is concerned with the choice of metrics for social cost-benefit analysis and dynamic welfare comparisons. We show that behind the intertemporal welfare maximization in a utilitarian framework, there is always a money wealth measure that can serve as a substitute for the maximized utility wealth. Thus, under the non-arbitrage course of discount rates, the choice between utility and mo...

We consider a strategic online social network that controls information flows between agents in a social learning setting. Agents on the network select among products of competing firms of unknown quality. The network sells advertising to firms. We consider display advertising, which is standard firm-to-consumer advertising, and social advertising, in which agents who purchased that firm’s prod...