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  • 2011
  • Working Paper

Observation Bias: The Impact of Demand Censoring on Newsvendor Level and Adjustment Behavior

By: David F. Drake
In an experimental newsvendor setting we investigate three phenomena: Level behavior — the decision-maker's average ordering tendency; adjustment behavior — the tendency to adjust period-to-period order quantities; and observation bias — the tendency to let the degree... View Details
Keywords: Cost; Consumer Behavior; Decision Making; Prejudice and Bias; Profit
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  • November 1999 (Revised December 1999)
  • Case

Safe Food Act, The: A Consumer Group's Perspective

By: Ray A. Goldberg, Carin-Isabel Knoop and Hal Hogan
The Center for Science in the Public Interest is taking a position on creating a new safety leadership vehicle in the U.S. government. How should it plead its cause? What are the position merits and faults? View Details
Keywords: Food; System; Consumer Behavior; Government and Politics; Safety; Leadership; United States
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  • 2022
  • Working Paper

Consumer Demand with Social Influences: Evidence from an E-Commerce Platform

By: El Hadi Caoui, Chiara Farronato, John J. Horton and Robert Schultz
For some kinds of goods, rarity itself is valued. "Fashionable'" goods are demanded in part because they are unique. In this paper, we explore the economics of rare goods using auctions of limited-edition shoes held by an e-commerce platform. We model endogenous entry... View Details
Keywords: Rare Goods; Scarcity; E-commerce; Consumer Behavior; Auctions
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  • 25 Oct 2016
  • Working Paper Summaries

'Be Careless with That!' Availability of Product Upgrades Increases Cavalier Behavior Toward Possessions

Keywords: by Silvia Bellezza, Joshua M. Ackerman, and Francesca Gino; Telecommunications
  • 10 Jan 2024
  • Research & Ideas

Technology and COVID Upended Tipping Norms. Will Consumers Keep Paying?

percent or less for bad service. That was the expectation up until COVID.” However, “post-COVID,” as businesses came back from pandemic-induced lockdowns, consumer behavior shifted. “Consumers started to... View Details
Keywords: by Anna Lamb, Harvard Gazette
  • 2008
  • Working Paper

Consumer Demand for Prize-Linked Savings: A Preliminary Analysis

By: P. Tufano, Nick Maynard and Jan-Emmanuel De Neve
This paper reports on a small-scale survey of the potential American demand for prize-linked savings accounts, an account that awards prizes as part of the saving product's return. In October 2006, Centra Credit Union launched a prize-linked savings pilot. As part of... View Details
Keywords: Saving; Income; Consumer Behavior; Personal Finance; Investment Return; Banks and Banking; Clarksville
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  • 2014
  • Other Teaching and Training Material

Marketing Reading: Creating Customer Value

By: Sunil Gupta
This Reading explores how firms can create value for their customers. The goal of any business is to delight customers by understanding its customers' needs and to provide products and services to meet those needs. As a result, it is critical to understand what... View Details
Keywords: Consumer Behavior; Consumer Marketing; Customer Experience; Network Effects; Service Profit Chain; Total Customer Value
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  • June 2016
  • Teaching Note

Filene's Basement: Inside a Fired Customer's Relationship

By: Jill Avery and Susan Fournier
How, in a business climate in which building relationships with customers has dominated both managerial thought and marketing budgets, could Filene's Basement have fired a loyal customer, one who was formally and informally recognized as a best customer? This case... View Details
Keywords: CRM; Customer Profitability Analysis; Customer Lifetime Value; Consumer Behavior; Marketing; Marketing Strategy; Customer Focus and Relationships; Brands and Branding; Customer Relationship Management; Retail Industry; United States
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  • 23 Mar 2015
  • Research & Ideas

It’s Called ‘Price Coherence,’ and It’s Surprisingly Bad for Consumers

Consumers often have the following choice: Either buy something directly from a retailer, or buy it indirectly through an intermediary, which partners with the retailer to attract more buyers. Think purchasing a plane ticket straight from... View Details
Keywords: by Carmen Nobel; Retail; Air Transportation; Food & Beverage; Entertainment & Recreation
  • 16 Jun 2015
  • Working Paper Summaries

Paying Up for Fair Pay: Consumers Prefer Firms with Lower CEO-to-Worker Pay Ratios

Keywords: by Bhavya Mohan, Michael I. Norton & Rohit Deshpandé
  • August 2015
  • Article

Cost Conscious? The Neural and Behavioral Impact of Price Primacy on Decision-Making

By: Uma R. Karmarkar, Baba Shiv and Brian Knutson
Price is a key factor in most purchases, but it can be presented at different stages of decision making prior to a purchase. We examine the sequence-dependent effects of price and product information on the decision-making process at both neural and behavioral levels.... View Details
Keywords: fMRI; Retail Promotion; Purchase Decisions; Price; Value; Decision Choices and Conditions; Consumer Behavior; Product Marketing; Retail Industry
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  • 2018
  • Working Paper

Ethical Hedonism? How Consumers' Prosocial Behavior Varies Along the Utilitarian-Hedonic Product Spectrum: Evidence from a Survey Experiment

By: Kristin Sippl
The marketing literature classifies products along a spectrum from utilitarian (e.g. rice) to hedonic (e.g. cannabis), and additionally using terms such as “luxury” and “illicit.” Research in business ethics has proposed a counter-intuitive mismatch between ethics and... View Details
Keywords: Ethics; Luxury; Consumer Behavior; Environmental Sustainability
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  • Article

Inviting Consumers to Downsize Fast-Food Portions Significantly Reduces Calorie Consumption

By: Janet Schwartz, Jason Riis, Brian Elbel and Dan Ariely
Policies that mandate calorie labeling in fast-food and chain restaurants have had little or no observable impact on calorie consumption to date. In three field experiments, we tested an alternative approach: activating consumers' self-control by having servers ask... View Details
Keywords: Food; Labels; Consumer Behavior; Interpersonal Communication; Motivation and Incentives; Health Industry; Food and Beverage Industry
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  • March 2022
  • Article

When Less Is More: Consumers Prefer Brands that Donate More in Relative versus Absolute Terms

By: Elizabeth A. Keenan, Anne V. Wilson and Leslie K. John
When trying to make a good impression on consumers through charitable giving, is it better for brands to maximize the overall dollars they donate or how much they give in relative terms; for example, the proportion of profits? Across five studies we show that consumers... View Details
Keywords: Cause-related Marketing; Charitable Donations; Generosity; Altruism; Philanthropy and Charitable Giving; Brands and Branding; Consumer Behavior
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  • September 2023
  • Article

Consuming Contests: The Effect of Outcome Uncertainty on Spectator Attendance in the Australian Football League

By: Patrick Ferguson and Karim R. Lakhani
Contests that non-contestants consume for entertainment are a fixture of economic, cultural and political life. We exploit injury-induced changes to teams' line-ups in a professional sports setting to examine whether individuals prefer to consume contests that have... View Details
Keywords: Sports; Entertainment; Consumer Behavior
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  • 2016
  • Book

Consumers, Corporations, and Public Health: A Case-Based Approach to Sustainable Business

By: John A. Quelch
The public health footprint associated with corporate behavior has come under increased scrutiny in the last decade, with an increased expectation that private profit not come at the expense of consumer welfare.

Consumers, Corporations, and Public... View Details
Keywords: Consumer; Corporate Culture; Public Health; Consumer Behavior; Marketing Strategy; Corporate Strategy; Health; Innovation and Invention; Innovation and Management; Supply Chain Management; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Consumer Products Industry; Asia; Oceania; North and Central America; Middle East; Latin America; Europe
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  • Working Paper

AI in Disguise—How AI-generated Ads' Visual Cues Shape Consumer Perception and Performance

By: Yannick Exner, Jochen Hartmann, Oded Netzer and Shunyuan Zhang
Generative AI’s recent advancements in creating content have offered vast potential to transform the advertising industry. This research investigates the impact of generative AI-enabled visual ad creation on real-world advertising effectiveness. For this purpose, we... View Details
Keywords: Digital Marketing; AI and Machine Learning; Advertising; Consumer Behavior; Advertising Industry
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  • Article

Consumers' Misunderstanding of Health Insurance

By: George Loewenstein, Joelle Y. Friedman, Barbara McGill, Sarah Ahmad, Suzanne Linck, Stacey Sinkula, John Beshears, James J. Choi, Jonathan Kolstad, David Laibson, Brigitte C. Madrian, John A. List and Kevin G. Volpp
We report results from two surveys of representative samples of Americans with private health insurance. The first examines how well Americans understand, and believe they understand, traditional health insurance coverage. The second examines whether those insured... View Details
Keywords: Behavioral Economics; Simplification; Insurance; Consumer Behavior; Health Care and Treatment; Cognition and Thinking; Insurance Industry; Health Industry; United States
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  • Web

Global Industry Bubble Watch - Behavioral Finance & Financial Stability

Data Global Industry Bubble Watch Download Data Set in Excel View Sector: Consumer Discretionary Consumer Discretionary Consumer Staples Energy Financials Healthcare... View Details
  • July 2015
  • Article

A Behavioral Model of the Popularity and Regulation of Demandable Liabilities

By: Julio J. Rotemberg
Overoptimism regarding one's ability to arrive early in a queue is shown to rationalize deposit contracts in which people can withdraw their funds on demand even if consumption takes place later. Capitalized institutions serving overoptimistic depositors emerge in... View Details
Keywords: Consumer Behavior; Banks and Banking
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