Consumers with higher income often spend more on luxury goods. As a result, lower-income consumers who seek to increase their perceived income status may be motivated to purchase conspicuous luxury goods. They may also desire to emulate the visible consumption displayed by their wealthier peers....

This Online Appendix provides supporting materials to Historical Memory and Brand Preference (Chen and Zhong, 2019).We study how the historical memories of war affect consumer choices of brands from different country-of-origins in the context of the Chinese automotive market. Our research design...

Governments all over the world have invested tens of billions of dollars in car scrappage programs to fuel the economy in 2009. We investigate the German case using a unique micro transaction dataset covering the years 2007 to 2010. Our focus is on the incidence of the subsidy, i.e., we ask how...

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

This study examines attention effects in the market for hybrid vehicles. We show that local media coverage, gasoline price changes and unprecedented record gasoline prices have a significant causal impact on the consumers’ attention. As attention is not directly observable, we analyze online...

In many markets, consumers visit stores and physically inspect products before making purchase decisions. We view the inspection of a product at a retail location as a search for product fit. We quantify the cost and benefit from searching for product fit using a discrete choice model of demand...

Netnography i.e. the systematic observation and analysis of online communities to generate insights for an innovation process, has been established as a method of user innovation in consumer goods industries. In this study we apply this technique for the first time in the context of a complex,...

Globalization has provided many companies with new opportunities for growth and efficiency. This requires them to operate successfully across cultural and social borders. These can be stumbling blocks to internationalization and have been found to cause frequent errors and delays for...

Globalization has led to exciting new business opportunities around the globe. Still, national and cultural boundaries have not evaporated into a "borderless world." Several studies have identified so-called liabilities of foreignness that arise from a lack of embeddedness and roots in the host...