A retailer following a competition-based dynamic pricing strategy tracks competitors' price changes and then must answer the following questions: (1) Should we respond? (2) If so, respond to whom? (3) How much of a response? (4) And on which products? The answers require unbiased measures of...

Consider a retailer using sponsored search marketing together with dynamic pricing. The retailer’s bid on a search keyword affects the retailer’s rank among the search results. The higher the rank, the higher the customer traffic and the customers’ willingness-to-pay will be. Thus, the...

The popularity of online retailing has created great opportunities and challenges for retailers. A key challenge faced by many retailers is to choose between the clicks, the bricks-and-mortar, and the bricks-and-clicks strategies. In this paper, we develop a comprehensive framework for selecting...

Online retailers can adopt generous return policies to entice customers to buy and try new products. In this paper we show how an online retailer can utilize product returns to segment customers based on their individual valuations of a product, and therefore to engage in profitable third-degree...