Although Advance Selling and Probabilistic Selling differ in both motivation and implementation, we argue that they share a common characteristic - both offer consumers a choice involving buyer uncertainty. We develop a formal model to examine the general economics of purchase options that...

This research investigates a newly observed online pricing practice in which a seller frames a price premium as a discount by simultaneously increasing the price and introducing a list price, a scheme we call “Premium and List Price Synchronization” (PLPS). By analyzing longitudinal data of...

While extant literature of network effects suggests the importance of the competitors' support to the innovator's new technology in markets with network effects, it is largely unknown HOW the innovator competitively interacts with its supporting firms. This paper empirically examines price...

This paper develops a model relating innovation success to the level of interfunctional conflict and conflict resolution methods. The model suggests a concave relationship between performance and the level of interfunctional conflict among marketing, R&D, and manufacturing. It also conjectures...

As a new type of word-of-mouth information, online consumer product review is an emerging market phenomenon that is playing an increasingly important role in consumers' purchase decisions. This paper argues that online consumer review, a type of product information created by users based on...

Technology transfer to low-cost locations offers global firms an opportunity to reduce their variable costs involved in serving emerging markets. However, such moves may also make imitation by local competitors easier. As a consequence, technology transfer may create competition in the local...

Product reviews by third parties are growing in popularity. This paper examines when and how a manufacturing firm should adapt its marketing strategies to such reviews. For example, should a firm receiving an unfavorable review reduce its price or adjust its advertising? Should a winning product...

This paper defines a unique type of product or service offering, termed , and analyzes a novel selling strategy, termed (PS). A probabilistic good is not a concrete product or service but an offer involving a probability of getting any one of a set of multiple distinct items. Under the...

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 in a capacity-constrained service—i.e., collecting cancellation fees from advance buyers who cancel, and...

This paper examines four alternative product strategies available to an innovating firm in markets with network effects: single-product monopoly, technology licensing, product-line extension, and a combination of licensing and product-line extension. We address three questions. First, what...