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on Marketing |
| By: | Sendhil Mullainathan; Joshua Schwartzstein; Andrei Shleifer |
| Abstract: | We present a model of coarse thinking, in which individuals group situations into categories, and transfer the informational content of a given message from situations in a category where it is useful to those where it is not. The model explains how uninformative messages can be persuasive, particularly in low involvement situations, and how objectively informative messages can be dropped by the persuader without the audience assuming the worst. The model sheds light on product branding, the structure of product attributes, and several puzzling aspects of mutual fund advertising. |
| JEL: | G23 L15 M31 M37 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12720&r=mkt |
| By: | Roberto Fuentes; Rubén Hernández-Murillo; Gerard Llobet |
| Abstract: | In this paper we study the determinants of the decision of U.S. banks to create a transactional website for their customers. We show that although bank-specific characteristics (such as the volume of deposits) are important, competition plays a prominent role. In more competitive markets banks are more likely to adopt earlier. Even more important, banks adopt earlier in markets where their competitors have already adopted. A contribution of this paper is to study the adoption decision over time using a panel of commercial banks. We also contribute to the literature by adapting a measure of competition related to the choices of competitors that a bank faces in each market. |
| Keywords: | Internet banking |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2006-058&r=mkt |
| By: | Andersson, Patric (Dept. of Business Administration, Stockholm School of Economics); Engelberg, Elisabeth (Dept. of Business Administration, Stockholm School of Economics) |
| Abstract: | This paper was motivated by a paucity of research addressing how consumer decision-making is related to beliefs about money and different modes of reasoning. To investigate this issue, data were collected from 142 participants, who filled out questionnaires involving scales aimed to measure affective and rational purchase approaches, intuitive and analytical decision-making styles, as well as money attitudes. One finding was that consumers interchangeably rely on affective and rational approaches when interacting with the marketplace. Another finding was that those approaches were not only related to either intuitive or analytical decision-making styles but also to money attitudes. The findings are argued to provide an impetus to continuous investigation of the role of decision-making styles and money beliefs for consumer choice modes. |
| Keywords: | affect; attitudes to money; consumer choice; decision-making; intuition; shopping orientation; reasoning |
| Date: | 2006–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:hastba:2006_013&r=mkt |
| By: | James H. Love; Stephen Roper; Giovanni Mangiarotti |
| Abstract: | Cross-functional teams play a potentially important part in the innovation process enabling knowledge sharing, the development of trust and overcoming spatial and organizational barriers. Using a supermodularity approach, we focus on potential complementarities which may arise when cross-functional teams are used in different elements of the innovation process in UK and German manufacturing plants. Using optimal combinations of cross-functional teams in the innovation process increases innovation success in the UK by 29.5 per cent compared to 9.5 per cent in Germany. Patterns of complementarity are complex, however, but are more uniform in the UK than in Germany. The most uniform complementarities are between product design and development and production engineering, with little synergy evident between the more technical phases of the innovation process and the development of marketing strategy. In strategic terms, our results suggest the value of using cross-functional teams for the more technical elements of the innovation process but that the development of marketing strategy should remain the domain of specialists. |
| Keywords: | Innovation; cross-functional terms; complementarities; UK; Germany |
| JEL: | O15 O31 O32 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:06-27&r=mkt |
| By: | Grigoriev Alexander; Loon Joyce van; Uetz Marc; Vredeveld Tjark (METEOR) |
| Abstract: | We consider a revenue maximization problem where we are selling a set of m items, each of which available in a certain quantity (possibly unlimited) to a set of n bidders. Bidders are single minded, that is, each bidder requests exactly one subset, or bundle of items. Each bidder has a valuation for the requested bundle that we assume to be known to the seller. The task is to find an envy-free pricing such as to maximize the revenue of the seller. We derive several complexity results and algorithms for several variants of this pricing problem. In fact, the settings that we consider address problems where the different items are `homogeneous'' in some sense. First, we introduce the notion of affne price functions that can be used to model situations much more general than the usual combinatorial pricing model that is mostly addressed in the literature. We derive fixed-parameter polynomial time algorithms as well as inapproximability results. Second, we consider the special case of combinatorial pricing, and introduce a monotonicity constraint that can also be seen as `global'' envy-freeness condition. We show that the problem remains strongly NP-hard, and we derive a PTAS - thus breaking the inapproximability barrier known for the general case. As a special case, we finally address the notorious highway pricing problem under the global envy-freeness condition. |
| Keywords: | operations research and management science; |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2006050&r=mkt |