Marketing Science articles from January 2007

Marketing Science archives from January 2007

Does good marketing cause bad unemployment?
January 1, 2007... Questionable methods for increasing nominal wages reduce real wages (i.e., buying power) by creating inflation, shortages, lower quality, and long-term unemployment. To increase real wages (i.e., the ability to buy more), economic principles...

Service escape: profiting from customer cancellations.
January 1, 2007... This paper explores the benefits of letting customers escape from prepurchased service contracts by offering refunds for cancellations. We show that such a policy creates opportunities for multiple selling in a capacity-constrained...

Spiffed-up channels: the role of spiffs in hierarchical selling organizations.
January 1, 2007... We study a channel relationship in which manufacturer(s) use independent sales representatives (rep firms), which employ salespeople to do the actual selling. We show that commission-only payments by manufacturers to rep firms lead to...

Cross-market network effect with asymmetric customer loyalty: implications for competitive advantage.
January 1, 2007... Across-market network effect exists in many industries (e.g., newspaper publishing, media, software) in which a seller sells both a primary and a secondary product (e.g., a newspaper publisher sells newspapers to readers and advertising space...

Coupons versus rebates.
January 1, 2007... This paper examines a key difference between two promotional vehicles, coupons and rebates. Whereas coupons offer deals up front, with the purchase of the product, rebates can be redeemed only after purchase. When consumers experience uncertain...

When do price thresholds matter in retail categories?
January 1, 2007... Marketing literature has long recognized that brand price elasticity need not be monotonic and symmetric, but has yet to provide generalizable market-level insights on threshold-based price elasticity, asymmetric thresholds, and the sign and...

Product line design and production technology.
January 1, 2007... In this paper we characterize the impact of production technology on the optimal product line design. We analyze a problem in which a manufacturer segments the market on quality attributes and offers products that are partial substitutes....

Price as a stimulus to think: the case for willful overpricing.
January 1, 2007... Consumers aware of a new benefit will often experience uncertainty about its personal relevance or usage value. This paper shows that the decision to deliberate further to resolve this uncertainty and reach a polarized judgment of personal...

A neurocognitive model of advertisement content and brand name recall.
January 1, 2007... We introduce a new (point process) model of learning and forgetting, inspired by the structures of the brain, that we apply to model long-term memory for advertising and brand name recall. Recall-probability functions derived from the model are...