A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price and in the second, the firm does. We show that without a commitment mechanism, the two price points ...

Green marketing subsumes greening products as well as greening firms. In addition to manipulating the 4Ps (product, price, place and promotion) of the traditional marketing mix, it requires a careful understanding of public policy processes. This paper focuses primarily on promoting products by employing claims about their environmental attributes or about firms that manufacture and/or sell the...

Although it is evident that sales of team licensed merchandise (TLM) contribute to the overall consumption of sport, research efforts that comprehensively describe what triggers the consumption of TLM is lacking (Lee, Trail, Kwon, & Anderson, 2011). Therefore, based on multiple theories (i.e., values theory, identity theory, attitude theory, and satisfaction theory) and other concepts that infl...

We propose a way of creating product maps with self-organizing maps (SOMs) for purchase decision making. We previously proposed a way of purchase decision support using SOMs and the Analytic Hierarchy Process (AHP). We provided several class boundaries, which divided the input features into several classes before creating self-organizing product maps. Because the number of classes and their bou...

C negative information about a product increase sales, and if so, when? Although popular wisdom suggests that “any publicity is good publicity,” prior research has demonstrated only downsides to negative press. Negative reviews or word of mouth, for example, have been found to hurt product evaluation and sales. Using a combination of econometric analysis and experimental methods, we unify these...

In this paper, we propose an approach of dynamic pricing where buyers purchase decision is dependent on multiple preferred purchase attributes such as product price, product quality, after sales service, delivery time, sellers’ reputation. The approach requires the sellers, by considering the five attributes, to set an initial price of the product with the help of their prior knowledge about pr...

Emotions are compelling human experiences and product designers can take advantage of this by conceptualizing emotion-engendering products that sell well in the market. This study hypothesized that product attributes influence users' emotions and that the relationship is moderated by the adherence of these product attributes to purchase criteria. It was further hypothesized that the emotional e...

Upselling is offering an additional product to a customer who just made a purchase. Most catalogers and online sellers in addition to some traditional retailers use upselling. One of the reasons that firms use upselling is to clear inventories of slow-moving items. We investigate the pricing and discounting questions for such an item, which we call the promotional product. In our model, an arri...

Markdown as a pricing modality is ubiquitous in retail whereas everyday-low-price (EDLP) remains relatively rare (despite its several advantages, such as simplicity). Using a stylized model, we explore whether and why retailers can use either of these pricing modalities as an effective defense against a competitor entering the market with the alternative pricing modality to sell an identical pr...