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Research Summary

The limits of reviews

Consumer reviews are an important source of information in the digital age. Yet there are limits to the role that reviews can play. In a case study, Professor Luca discusses the limits of reviews and how companies can create more comprehensive reputation systems... View Details

2021
Article

Consumer Disclosure

By: Tami Kim, Kate Barasz and Leslie John

As technological advances enable consumers to share more information in unprecedented ways, today’s disclosure takes on a variety of new forms, triggering a paradigm shift in what “disclosure” entails. This review introduces two factors to conceptualize consumer... View Details

Keywords: Disclosure; Passive Disclosure; Information; Internet and the Web; Consumer Behavior; Situation or Environment

August 2015
Case

Yabbly (A)

By: Shikhar Ghosh and Christopher Payton

In November 2013, with less than 10 months of cash on hand, Tom Leung, the founder and CEO of Yabbly, must decide where to focus his resources. His startup, a question-and-answer application for shopping decisions, had benefited from a strong showing at the SXSW... View Details

Keywords: Startup; Mobile; Online Product Reviews; Consumer Products; Business Model; Business Plan; Business Startups; Entrepreneurship; Innovation Strategy; Mobile and Wireless Technology; Internet and the Web; North America; United States; Washington (state, US); Seattle

December 2000
Background Note

Online Retailers

By: Thomas R. Eisenmann and Alastair Brown

Describes online retailers, companies that use the Internet to sell physical goods. Defines online retailers and describes different ways to categorize them. Explores their economic model and value proposition for consumers in comparison with offline retailers. Next,... View Details

Keywords: Business Model; Internet; Retail Industry

06 Mar 2020
Working Paper Summaries

Consumer Protection in an Online World: An Analysis of Occupational Licensing

Keywords: by Chiara Farronato, Andrey Fradkin, Bradley Larsen, and Erik Brynjolfsson; Service

Forthcoming
Article

Who Benefits from Online Gig Economy Platforms?

By: Christopher Stanton and Catherine Thomas

Online labor platforms for short-term, remote work have many more job seekers than available jobs. Despite their relative abundance, workers capture a substantial share of the surplus from transactions. We draw this conclusion from demand estimates that imply workers'... View Details

Keywords: Gig Economy; Knowledge Workers; Online Platforms; Job Search; Governing Rules, Regulations, and Reforms; Wages; Demand and Consumers

May 2018
Article

Using Online Prices for Measuring Real Consumption Across Countries

By: Alberto Cavallo, Erwin Diewert, Robert C. Feenstra, Robert Inklaar and Marcel P. Timmer

We show that online prices can be used to construct quarterly purchasing power parities (PPPs) with a closely matched set of goods and identical methodologies in a variety of developed and developing countries. Our results are close to those reported by the... View Details

Keywords: Purchasing Power Parity; International Economy; Online Prices; Billion Prices Project; Economics; Macroeconomics; Price; Internet and the Web; Spending; Economy; Global Range; Measurement and Metrics

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2013
Article

Where Not to Eat? Improving Public Policy by Predicting Hygiene Inspections Using Online Reviews

By: Jun Seok Kang, Polina Kuznetsova, Yejin Choi and Michael Luca

Restaurant hygiene inspections are often cited as a success story of public disclosure. Hygiene grades influence customer decisions and serve as an accountability system for restaurants. However, cities (which are responsible for inspections) have limited resources to... View Details

Keywords: Safety; Food; Governance Compliance; Mathematical Methods; Applications and Software; Public Administration Industry; Retail Industry; Food and Beverage Industry

December 2000
Background Note

Online Portals

By: Thomas R. Eisenmann and Sanjay Pothen

Describes the online portal business model. Analyzes the model, focusing on the tactics used to acquire new users, turn new users into repeat visitors, and monetize user traffic. Explains portals' revenue and cost drivers and their implications for pursuing aggressive... View Details

Keywords: Business Model; Web Services Industry

21 Mar 2016
HBS Case

Can Customer Reviews Be 'Managed?'

in 2013. Professor Thales Teixeira discusses TripAdvisor’s staggering success, how the company has forced an entire industry to change the way it considers (and purposefully influences) the online review... View Details

Keywords: by Brian Kenny; Advertising; Travel

20 Sep 2004
Research & Ideas

How Consumers Value Global Brands

In 2002, we carried out a two-stage research project in partnership with the market research company Research International/USA to find out how consumers in different countries value global brands. First, we conducted a qualitative study... View Details

Keywords: by Douglas B. Holt, John A. Quelch & Earl L. Taylor

December 2019
Article

The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment

By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira

Many online stores are designed such that shoppers can easily access any available discounted products. We propose that deliberately increasing search frictions by placing small obstacles to locating discounted items can improve online retailers’ margins and even... View Details

Keywords: Online Retailing; Friction; Effor; Search Costs; Price Discrimination; Marketing; Consumer Behavior; Strategy; Price; E-commerce; Retail Industry; Fashion Industry

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Book Review

Review of Consuming Power: A Social History of American Energies, by David E. Nye

By: Nancy F. Koehn

Keywords: Society; History; United States

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February 2009
Background Note

An Introduction to Consumer Credit

By: Peter Tufano

This note reviews a variety of shorter-term consumer credit products in the U.S. with an emphasis on the types of products that low- and moderate-income consumers use. Included here are the following: credit cards, bank overdraft products, payday lending, personal... View Details

Keywords: Credit; Financing and Loans; Personal Finance; United States

2015
Chapter

The Consumer Psychology of Online Privacy: Insights and Opportunities from Behavioral Decision Theory

By: Leslie K. John

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August 2009
Article

Mental Accounting and Small Windfalls: Evidence from an Online Grocer

By: John Beshears and Katherine L. Milkman

We study the effect of small windfalls on consumer spending decisions by comparing the purchases online grocery customers make when redeeming $10-off coupons with the purchases they make without coupons. Controlling for customer fixed effects and other variables, we... View Details

Keywords: Mental Accounting; Windfalls; Marginal Propensity To Consume; Coupons; Marketing Communications; Consumer Behavior; Accounting; Cognition and Thinking; Retail Industry

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2019
Working Paper

The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment

By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira

Many online stores are designed such that shoppers can easily access any available discounted products. We propose that deliberately increasing search frictions by placing small obstacles to locating discounted items can improve online retailers’ margins and even... View Details

Keywords: E-commerce; Online Retailing; Friction; Effor; Search Costs; Price Discrimination; Consumer Behavior; Price; Search Technology

October 1995 (Revised October 1996)
Case

Disney Consumer Products in Lebanon

By: John A. Quelch

The managing director of Disney Consumer Products for Europe and the Middle East is reviewing recent market research in Lebanon regarding the sales potential of Disney licensed products and assessing the pros and cons of several distribution options. View Details

Keywords: Distribution; Multinational Firms and Management; Market Entry and Exit; Brands and Branding; Consumer Products Industry; Lebanon

09 Feb 2012
Sharpening Your Skills

Sharpening Your Skills: Online Marketing

Questions To Be Answered: What's the strategy for managing consumer reviews on my site? Do people watch online video ads?. How can I get more out of my customer loyalty... View Details

Keywords: Re: Multiple Faculty; Technology

January 2020 (Revised April 2020)
Teaching Note

Brandless: Disrupting Consumer Packaged Goods

Brandless, an online direct-to-consumer seller of upscale private-label consumer packaged goods (CPG), offered consumers a limited assortment of values-conscious products delivered directly to their homes with the simplicity of one fixed $3.00 price point that promised... View Details

Keywords: Brand; Brand Management; DTC; Private Label; Groceries; Packaged Food; Personal Care; Startups; Retailing; Amazon; Brands and Branding; Marketing; Marketing Strategy; Business Startups; Disruption; E-commerce; Consumer Products Industry; Consumer Products Industry; United States

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