consumer behavior - Publications - Faculty & Research

24 Feb 2014
Research & Ideas

Busting Six Myths About Customer Loyalty Programs

There are three ways to differentiate in retailing: location, location, and location. The problem is that as markets mature, location becomes less potent as a competitive advantage because the consumer has a growing abundance of... View Details

Keywords: by Marcel Corstjens & Rajiv Lal; Consumer Products; Consumer Products

17 Jun 2016
Op-Ed

Companies Need to Start Marketing Security to Customers

good enough. The range of safety risks has expanded and consumers everywhere are trying new products and experiences they aren't familiar with. Marketers must do more to educate consumers about safe View Details

Keywords: by John A. Quelch; Entertainment & Recreation

24 Oct 2012
Research & Ideas

Want People to Save More? Send a Text

weight loss, work-out routines, or disease management to environmentally friendly behavior or reaching goals at work, Pomeranz says. "Any area of regular activity for which people tend to procrastinate is where it could work." View Details

Keywords: by Kim Girard

2021
Working Paper

Closing Costs, Refinancing, and Inefficiencies in the Mortgage Market

By: David Hao Zhang

In the US, borrowers often finance the price of mortgage origination by agreeing to higher mortgage rates for a given principal amount. I show that for standard fixed-rate, prepayable mortgages this contractual feature has two consequences. First, it leads to increased... View Details

Keywords: Mortgage Market; Refinancing; Mortgages; Consumer Behavior

Citation

November–December 2020
Article

Lifting the Veil: The Benefits of Cost Transparency

By: Bhavya Mohan, Ryan W. Buell and Leslie K. John

Firms do not typically disclose information on their costs to produce a good to consumers. However, we provide evidence of when and why doing so can increase consumers’ purchase interest. Specifically, building on the psychology of disclosure and trust, we posit that... View Details

Keywords: Cost Transparency; Disclosure; Field Experiment; Cost; Trust; Consumer Behavior

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19 Jul 2004
Research & Ideas

Your Customers: Use Them or Lose Them

It's easy to deliver lousy service. Examples are too numerous to mention and let's not ruin the day, shall we? But imagine this: How about living in a world where companies treat you, as a customer, nicely and it benefits them as well as you? Such companies exist, says... View Details

Keywords: by Martha Lagace

September–October 2020
Article

Managing Churn to Maximize Profits

By: Aurelie Lemmens and Sunil Gupta

Customer defection threatens many industries, prompting companies to deploy targeted, proactive customer retention programs and offers. A conventional approach has been to target customers either based on their predicted churn probability or their responsiveness to a... View Details

Keywords: Churn Management; Defection Prediction; Loss Function; Stochastic Gradient Boosting; Customer Relationship Management; Consumer Behavior; Profit

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1996
Chapter

Commercial Technology: Imaginative Understanding of User Needs

By: D. A. Leonard and J. Doyle

Keywords: Information Technology; Service Delivery; Consumer Behavior; Perception; Business Ventures

Citation

May 2022
Article

Complex Disclosure

By: Ginger Zhe Jin, Michael Luca and Daniel Martin

We present evidence that unnecessarily complex disclosure can result from strategic incentives to shroud information. In our lab experiment, senders are required to report their private information truthfully, but can choose how complex to make their reports. We find... View Details

Keywords: Disclosure; Experiments; Naiveté; Overconfidence; Corporate Disclosure; Policy; Information; Complexity; Strategy; Consumer Behavior

2018
Working Paper

Ethical Hedonism? The Diffusion of Fair Trade and Ecological Certifications to Luxury, Lifestyle and Illicit Goods.

By: Kristin Sippl

Book project exploring ethical consumption options in four understudied lifestyle sectors: jewelry, cannabis, pets and plastics. View Details

Keywords: Ethics; Spending; Consumer Behavior; Age; Luxury

Citation

01 Dec 2003
News

Selling Digital Privacy

If regulation won’t stop privacy invasion, what will? HBS professor John Deighton has an answer that involves convincing companies to pay us consumers to use our private information. Instead of relying on regulators to protect our privacy... View Details

Keywords: Colleges, Universities, and Professional Schools; Educational Services

02 Nov 2020
What Do You Think?

Is Antitrust Just a Quaint Notion in the Digital Age?

Joel put it, “Though I get the point that their behavior excludes competitors, the consumer would seem to benefit for now. What I wonder is why there is not more aggressive enforcement where the View Details

Keywords: by James Heskett; Consumer Products; Consumer Products; Consumer Products; Consumer Products; Consumer Products; Consumer Products

1999
Chapter

Frequency Programs in Service Industries

By: J. A. Deighton

Keywords: Customer Focus and Relationships; Consumer Behavior; Service Industry

Citation

May 2021
Article

Is No News (Perceived as) Bad News? An Experimental Investigation of Information Disclosure

By: Ginger Zhe Jin, Michael Luca and Daniel Martin

This paper uses laboratory experiments to directly test a central prediction of disclosure theory: that strategic forces can lead those who possess private information to voluntarily provide it. In a simple sender-receiver game, we find that senders disclose favorable... View Details

Keywords: Communication Games; Disclosure; Unraveling; Experiments; Information; Product; Quality; Communication; Consumer Behavior

01 Dec 1996
News

On Eve of Transition, Alumni Conference Set for Hong Kong

widespread belief that Greater China which encompasses the People's Republic of China, Taiwan, and Hong Kong is a huge, open market of 1.2 billion consumers who will buy anything that any business has ever wanted to sell. That is not the... View Details

Keywords: Elaine Gottlieb

March 2021
Article

Active Choice, Implicit Defaults, and the Incentive to Choose

By: John Beshears, James J. Choi, David Laibson and Brigitte C. Madrian

Home-delivered prescriptions have no delivery charge and lower copayments than prescriptions picked up at a pharmacy. Nevertheless, when home delivery is offered on an opt-in basis, the take-up rate is only 6%. We study a program that makes active choice of either home... View Details

Keywords: Active Choice; Defaults; Implicit Defaults; Incentives; Consumer Behavior; Decision Choices and Conditions; Motivation and Incentives

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March 2018
Article

How Context Affects Choice

By: Raphael Thomadsen, Robert P. Rooderkerk, On Amir, Neeraj Arora, Bryan Bollinger, Karsten Hansen, Leslie John, Wendy Liu, Aner Sela, Vishal Singh, K. Sudhir and Wendy Wood

Due to its origins in the literature on judgment and decision-making, context effects in marketing are construed exclusively in terms of how choices deviate from utility maximization principles as a function of how choices are presented (e.g., framing, sequence,... View Details

Keywords: Decision Making; Decision Choices and Conditions; Situation or Environment; Consumer Behavior

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2016
Article

Buying to Blunt Negative Feelings: Materialistic Escape from the Self

By: Grant Edward Donnelly, Masha Ksendzova, Ryan Howell, Kathleen Vohs and Roy F. Baumeister

We propose that escape theory, which describes how individuals seek to free themselves from aversive states of self-awareness, helps explain key patterns of materialistic people’s behavior. As predicted by escape theory, materialistic individuals may feel dissatisfied... View Details

Keywords: Materialism; Escape; Self; Negative Emotions; Self-awareness; Emotions; Consumer Behavior; Identity; Motivation and Incentives

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