Behavioral Segmentation - Publications - Faculty & Research - Harvard Business School

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June 2020
Background Note

Customer Management Dynamics and Cohort Analysis

By: Elie Ofek, Barak Libai and Eitan Muller

The digital revolution has allowed companies to amass considerable amounts of data on their customers. Using this information to generate actionable insights is fast becoming a critical skill that firms must master if they wish to effectively compete and win in today’s... View Details

Keywords: Cohort Analysis; Customers; Analytics and Data Science; Segmentation; Analysis; Customer Value and Value Chain

2018
Working Paper

Patent Trolls: Evidence from Targeted Firms

By: Lauren Cohen, Umit G. Gurun and Scott Duke Kominers

We provide the first large-sample evidence on the behavior and impact of non-practicing entities (NPEs) in the intellectual property space. We find that on average, NPEs appear to behave as opportunistic “patent trolls.” NPEs sue cash-rich firms—and target cash in... View Details

Keywords: Patent Trolls; NPEs; PAEs; Innovation; Patents; Ethics; Lawsuits and Litigation; Innovation and Invention; Corporate Finance

December 2019
Article

Patent Trolls: Evidence from Targeted Firms

By: Lauren Cohen, Umit Gurun and Scott Duke Kominers

We provide the first large-sample evidence on the behavior and impact of nonpracticing entities (NPEs) in the intellectual-property space. We find that, on average, NPEs appear to behave as opportunistic “patent trolls.” NPEs sue cash-rich firms and target cash in... View Details

Keywords: Patent Trolls; Innovation; Patents; Lawsuits and Litigation; Ethics; Innovation and Invention

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December 15, 2015
Article

Don't Turn Your Sales Team Loose Without a Strategy

By: Frank V. Cespedes and Steve Thompson

When formulating a strategy, markets and segments are typically important categories. But only customers buy. Hence, for most firms, de facto strategy and much resource allocation are the aggregate result of the deals their salespeople close. However, few firms clarify... View Details

Keywords: Strategy; Salesforce Management

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January 1985 (Revised June 1993)
Case

Turner Construction Co.

By: Frank V. Cespedes

In June, 1984, a vice president at Turner Construction Co. must decide whether to approve a construction project being considered by one of Turner's territorial offices and how to manage that territory general manager's apparent reluctance to pursue another account... View Details

Keywords: Organizational Structure; Projects; Market Entry and Exit; Integration; Contracts; Marketing Strategy; Sales; Business or Company Management; Business Offices; Geographic Location; Construction Industry

February 2021 (Revised July 2024)
Case

White Claw: Defending Market Share as Competition Encroaches

By the end of 2019, two brands accounted for 84% of hard seltzer sales, a segment that had recently taken the U.S. beer market by storm, growing from $3 million in 2015 to over $2.7 billion by the start of the summer of 2020. White Claw was the dominant market leader... View Details

Keywords: Brand Management; Alcoholic Beverages; Beer/brewing Industry; Brand Positioning; Growth; Competitive Positioning; Consumer Products; Beverage Industry; Value Proposition; Marketing; Brands and Branding; Competition; Product Positioning; Competitive Strategy; Consumer Behavior; Consumer Products Industry; Food and Beverage Industry; United States

2013
Working Paper

Where do the Most Active Customers Originate and How Can Firms Keep Them Engaged?

By: Clarence Lee, E. Ofek and Thomas Steenburgh

In this paper, we study how firms offering Web services can acquire and develop an active customer base. We focus on two basic questions. First, how does the method of customer acquisition affect the way customers use the service to meet their own needs and to interact... View Details

Keywords: Customer Engagement; Adoption Routes; Hidden Markov Models; Search; Word-of-Mouth; Digital Media; Customer Relationship Management; Internet and the Web; Mathematical Methods; Consumer Behavior; Entrepreneurship; Marketing Reference Programs; Web Services Industry

October 2002
Supplement

NerveWire: A Tale of Two Executives

By: Nitin Nohria

A series of five segments that include NerveWire, Inc., A Day in the Life of Malcolm Frank, A Day in the Life of Kirk Arnold, Employee Observations of Malcolm and Kirk, and Malcolm and Kirk Discuss Co-Leadership. View Details

Keywords: Employees; Leadership; Organizations; Performance Evaluation; Behavior

August 2021 (Revised September 2022)
Case

Patch Technology: Making It Easy to Do the Right Thing

By: Tomomichi Amano, Robert J. Dolan and Carol Zhang

In 2021, the growing threat of climate change pushed companies around the world to understand that significant behavioral change was necessary. While many recognized that decreasing emissions was critical, more sophisticated players such as Microsoft began to recognize... View Details

Keywords: Environmental Management; Marketing; Digital Platforms; Climate Change

April 2024
Article

Detecting Routines: Applications to Ridesharing CRM

By: Ryan Dew, Eva Ascarza, Oded Netzer and Nachum Sicherman

Routines shape many aspects of day-to-day consumption. While prior work has established the importance of habits in consumer behavior, little work has been done to understand the implications of routines—which we define as repeated behaviors with recurring, temporal... View Details

Keywords: Ride-sharing; Routine; Machine Learning; Customer Relationship Management; Consumer Behavior; Segmentation

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26 Jan 2016
First Look

January 26, 2016

local ethnic populations and identify a causal link between local networks and firm trade. We also show that firms are more likely to acquire target firms, and report increased segment sales, in countries to which they are connected.... View Details

Keywords: Sean Silverthorne

July–August 2013
Article

A Joint Model of Usage and Churn in Contractual Settings

By: Eva Ascarza and Bruce G.S. Hardie

As firms become more customer-centric, concepts such as customer equity come to the fore. Any serious attempt to quantify customer equity requires modeling techniques that can provide accurate multiperiod forecasts of customer behavior. Although a number of researchers... View Details

Keywords: Churn; Retention; Contractual Settings; Access Services; Hidden Markov Models; RFM; Latent Variable Models; Customer Value and Value Chain; Consumer Behavior

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February 2019 (Revised July 2019)
Case

Sales Force Management at Nobel Ilac

By: Doug J. Chung and Gamze Yucaoglu

Nobel Ilac was a Turkish generic pharmaceutical company marketing more than 100 drugs in 20 countries and, as of 2017, had over 2,500 employees worldwide. Nobel had implemented a transformation strategy—more specifically, a customer segmentation plan—whereby the sales... View Details

Keywords: Sales Strategy; Compensation; Employee Retention; Recruiting; Pharmaceuticals; Salesforce Management; Strategy; Organizational Design; Human Resources; Compensation and Benefits; Employees; Retention; Recruitment; Pharmaceutical Industry; Turkey

Detecting Routines: Applications to Ridesharing CRM

Routines shape many aspects of day-to-day consumption. While prior work has established the importance of habits in consumer behavior, little work has been done to understand the implications of routines--which we define as repeated behaviors with recurring, temporal... View Details

September 1974 (Revised April 1975)
Case

Ocean Spray Cranberries, Inc. (B)

A consumer attitude survey involving more than 1,000 cranberry users has been conducted. Multivariate statistical procedures including factor analysis, cluster analysis and multiple discriminant analysis have been employed to suggest four attitude segments in the... View Details

Keywords: Surveys; Product Positioning; Mathematical Methods; Consumer Behavior; Agriculture and Agribusiness Industry; Food and Beverage Industry

August 2022
Background Note

Retail Media Networks

By: Eva Ascarza, Ayelet Israeli and Celine Chammas

In 2022, retail media was one of the fastest growing segments in digital advertising. A retail media network (RMN) allows a retailer to use its assets for advertising. Retailers set up an advertising business by allowing marketers to buy advertising space across their... View Details

29 Oct 2008
Research & Ideas

The Next Marketing Challenge: Selling to ’Simplifiers’

used only by businesses. As the world economy slumps, one consumer segment will grow faster than ever. The Simplifiers have four characteristics: First, they perceive that they have more stuff than they need. Sure, they may collect... View Details

Keywords: by John Quelch; Retail; Consumer Products; Entertainment & Recreation

2023
Working Paper

The Market for Sharing Interest Rate Risk: Quantities and Asset Prices

By: Ishita Sen, Umang Khetan, Jane Li and Ioana Neamtu

We study the extent of interest rate risk sharing across the financial system using granular positions and transactions data in interest rate swaps. We show that pension and insurance (PF&I) sector emerges as a natural counterparty to banks and corporations: overall,... View Details

Keywords: Interest Rates; Investment Funds; Banks and Banking; Insurance; Investment Banking; Risk and Uncertainty

June 2016
Teaching Note

HubSpot: Lower Churn through Greater CHI

By: Jill Avery, Asis Martinez Jerez and Thomas Steenburgh

HubSpot, a web marketing startup selling inbound marketing software to small- and medium-sized businesses, is under pressure from its venture capital partners to rapidly acquire new customers and to maintain a low level of customer churn. The B2B SaaS company is in the... View Details

Keywords: CRM; Customer Acquisition; Customer Retention; Churn Management; SaaS Business Models; Customer Lifetime Value; Venture Capital; Startup; Software; Monitoring And Control; Marketing; Customer Relationship Management; Marketing Strategy; Accounting; Technology Industry; United States

August 2007 (Revised March 2008)
Case

Fiyta - The Case of a Chinese Watch Company

By: Regina M. Abrami, William C. Kirby, F. Warren McFarlan, Luc R. Wathieu, Gao Wang, Fei Li and Tracy Manty

Fiyta had long been on of China's foremost watch brands. However, as China's economy began to improve and the livelihood of many Chinese rose with it, their tastes began to change. Exposed to more luxurious foreign brands, many Chinese strived to purchase a Swiss or... View Details

Keywords: Brands and Branding; Product Marketing; Product Positioning; Demand and Consumers; Consumer Behavior; Consumer Products Industry; Electronics Industry; China

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