We study physicians' prescription choices when uncertainty about drug efficacy is resolved through two channels: firms' marketing activities (e.g., detailing) and patients' experiences with the drugs. We first provide empirical evidence that suggests the well-understood information incentive for...

Targeting - setting marketing policy differentially for different customers or segments - is an important marketing practice. Previous approaches to quantifying the benefits from targeting have typically calibrated a response model and used the variation in response parameter estimates to...

This paper documents the existence of the direct and indirect (via word-of-mouth) effects of service quality on new customer acquisition, usage and retention using behavioral data from the launch of a new video on demand type service. For this technology, service quality - the quality of the...

We propose a new likelihood-based estimation method for the sequential search model. By allowing search costs to be heterogeneous across consumers and products, we can directly compute the joint probability of the search sequence and the purchase decision when consumers are searching for the...

We evaluate whether and how branded TV product placement affects sales for cigarette brands. We use data on product placement from TV shows and data on retail sales of cigarettes to estimate a demand model that incorporates the level of product placement exposure for each cigarette brand. We...

Governments worldwide have spent billions of dollars on monetary incentives for consumers,such as tax credits, to encourage the adoption of eco-friendly (“green”) products. However, thereis little consensus regarding the effectiveness of tax credit incentives in increasing green...

We investigate the roles of the level and variability in quality in driving customer retention for a new service. We present model-free evidence that while high average quality helps in retaining customers, high variability leads to higher termination rates. Apart from these main effects, we use...

Using a dataset in which we observe the specific individuals in a household making choices, we study differences in purchase behaviors within and across households in five grocery categories. We develop a choice model that recovers utility parameters from individuals' choices while allowing for...

Most buyers are unaware that dealers can mark up interest rates for auto loans regardless of buyers' risk profiles, potentially leading to gender discrimination in the third most prevalent consumer debt category in the U.S. Using individual transaction-level data from a 20% random sample of U.S....