Consider a seller who faces two customer segments with differing valuations of quality of a durable product. Demand is stationary and knos-n. the technology exists to release two products simultaneously, and the seller car1 commit in advance to subsequent prices and qualities. Should he introduce two differentiated products at once or one at a time? Undcr the simultaneous strategy, the lowcr qu...

This paper develops and empirically validates customer shopping motives taking account of customer channel selection in multichannel systems. As each channel is associated with certain advantages and disadvantages from a customer’s perspective, we develop – based on behavioral considerations – a customer typology to classify different segments of customers. This enables us to empirically analyz...

Achieving competitive advantage and price premiums in many technology-based markets requires the incorporation of current technology in new products. To do so, firms in hyper-competitive environments increasingly plan and design their products concurrent with the independent development and validation of underlying technologies. Simultaneous validation of a core technology has important implica...

Achieving competitive advantage and price premiums in many technology-based markets requires the incorporation of current technology in new products. To do so, firms in hyper-competitive environments increasingly plan and design their products concurrently with the independent development and validation of underlying technologies. The simultaneous evolution of a core technology has important im...

We develop a new framework for location of competitive facilities by introducing non-constant expenditure functions into spatial interaction location models. This framework allows us to capture two key effects – market expansion and cannibalization – within the same model. We develop algorithmic approaches for finding optimal or near-optimal solutions for several models that arise from choosing...

Opaque selling is a mechanism whereby a seller conceals product or price information from buyers prior to purchase. Over time opaque intermediaries, such as Hotwire and Priceline.com, have emerged as an established distribution channel for the travel industry. The opaque channel has two countervailing effects: it can increase sales by attracting price-sensitive travelers who may otherwise not p...

The implicit promise of a partnership in loyalty program (LP) is that the partners will gain new customers and LP reinforce to focal partners. Although may be encouraged cross-purchase from (which create positive synergies), they can also switch among without forfeiting rewards lead cannibalization sales partners). To explore these cross-partner effects, we analyze evolution customer purchases ...

Over the last 30 years, the Chilean government deregulated the higher education market. As a result, universities massively expanded their network of campuses, which intensified the competition between institutions and rapidly increased enrollment. In 1990, most Chilean universities were public, and concentrated their activity around one region. Over the following 20 years, the number of privat...