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  • 2024
  • Working Paper

Consumer Inertia and Market Power

By: Alexander MacKay and Marc Remer
We study the pricing decisions of firms in the presence of consumer inertia. Inertia, which can arise from habit formation, brand loyalty, and switching costs, generates dynamic pricing incentives. These incentives mediate the impact of competition on market power in... View Details
Keywords: Consumer Inertia; Market Power; Dynamic Competition; Demand Estimation; Consumer Behavior; Markets; Performance; Competition; Price
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  • 10 May 2019
  • Working Paper Summaries

Consumer Inertia and Market Power

Keywords: by Alexander MacKay and Marc Remer
  • March 2002 (Revised July 2002)
  • Case

TiVo in 2002: Consumer Behavior

Brodie Keast is anxious to understand the sharp contrast between the inertia of prospects and the deep emotional response shown by converted users of TiVo. After an overview of the company's situation and problems, the case focuses on different kinds of data (sales... View Details
Keywords: Consumer Behavior; Television Entertainment; Entertainment and Recreation Industry
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  • 05 Jun 2019
  • Research & Ideas

If Your Customers Don't Care What You Charge, What Should You Charge?

motorists represent the prevalence of “consumer inertia” in the retail gas market. Consumer inertia is the tendency of some customers to buy or continue buying a product, even when superior options exist.... View Details
Keywords: by Kristen Senz; Energy
  • Research Summary

Formulating technology commercialization strategies

Even if young organizations succeed in acquiring the specialized talent necessary to further develop a recently-discovered technology, they may face an uncertain path in commercializing the original invention. Initial conceptions of what might constitute a useful... View Details

  • 27 May 2014
  • First Look

First Look: May 27

consumers make complementary choices in purchase decisions (e.g., chips and salsa), product inter-operabilities (smartphones and networks), and dynamic decisions (current exercise and future healthcare consumption). Multiple View Details
Keywords: Sean Silverthorne
  • 15 Oct 2014
  • Research & Ideas

Apple Pay’s Technology Adoption Problem

when several other similar services with big name sponsors such as Google have failed to gain much traction? Apple has a chicken-and-egg game to solve. Consumers won't use the service unless it's in use at a compelling number of stores.... View Details
Keywords: by Dina Gerdeman; Technology; Retail
  • 29 Jan 2019
  • First Look

New Research and Ideas, January 29, 2019

2018. Drawing on perspectives from both the historical and business literatures, speakers debated the historical success and future opportunities for voluntary business actions to advance sustainability. Roadblocks include misaligned incentives, missing institutions,... View Details
Keywords: Dina Gerdeman
  • 16 Jan 2018
  • First Look

First Look at New Research and Ideas, January 16, 2018

and Kate Barasz Abstract—Data gathered on the web has vastly enhanced the capabilities of marketers. With people regularly sharing personal details online and internet cookies tracking every click, companies can now gain unprecedented insight into individual View Details
Keywords: Sean Silverthorne
  • 02 Jun 2003
  • Research & Ideas

Stuck in Gear: Why Managers Don’t Act

threats, Sull reminds the readers. Change also comes in the form of shifts in regulation, consumer preferences, and overall competitive dynamics. "Managers often equate inertia with inaction—a passive... View Details
Keywords: by Martha Lagace
  • 12 Nov 2014
  • Op-Ed

A Challenge to the New Congress: Pass Housing Finance Reform

mortgage should continue as the backbone of the new system. It helps keep monthly payments low, and protects consumers from interest-rate volatility. Given the recent extreme economic stress, Uncle Sam must stand behind these mortgages in... View Details
Keywords: by Nicolas Retsinas & Rob Couch; Construction; Real Estate
  • 18 Sep 2018
  • First Look

New Research and Ideas, September 18, 2018

of products and sell each product infrequently. At the same time, consumer browsing information is typically tracked by online retailers and is much more abundant than purchase data. We propose a demand model that caters to this type of... View Details
Keywords: Dina Gerdeman
  • 27 Sep 2011
  • First Look

First Look: September 27

through the orchestration and integration of existing assets to overcome inertia and path dependence, is a core dynamic capability. While promising, research on dynamic capabilities and ambidexterity has not yet been able to specify the... View Details
Keywords: Sean Silverthorne
  • 12 Mar 2006
  • Research & Ideas

Global Poverty Needs a Global Answer

future? George C. Lodge: Bureaucratic inertia is strong. Big organizations do not like change. There is considerable mutual suspicion among MNCs, NGOs, and multilateral organizations. They are all busy doing what they are doing. There are... View Details
Keywords: by Cynthia Churchwell
  • 01 Jul 2008
  • First Look

First Look: July 1, 2008

of rapid profit improvement. The question facing CEO Thomas J. Wilson was how to maintain the momentum. This case tracks the evolution of Allstate's strategy over 20 years, examining the logic behind the strategic changes, and the challenges of implementing them. It... View Details
Keywords: Martha Lagace
  • 30 Jun 2009
  • First Look

First Look: June 30

of specialized routines. Perturbation creates opportunities for organizations to invoke exploratory, general-purpose problem-solving routines. In mature organizations, exogenous perturbations become increasingly scarce to the point that exploration is stifled and View Details
Keywords: Martha Lagace
  • 14 Sep 2010
  • First Look

First Look: September 14, 2010

point that exploration is stifled and inertia sets in. We suggest that mature organizations can sustain exploration by deliberately inducing perturbations in their own processes. Our theory yields testable hypotheses about the... View Details
Keywords: Sean Silverthorne

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