Segmented switchers and retailer pricing strategies

Empirical studies reveal a surprisingly wide variety of price promotion strategies among retailers, even among Internet sellers of undifferentiated homogenous goods such as books and music CD’s. Several empirical findings remain puzzling, particularly that within the same market some small retailers decide to deeply discount, while other small retailers forgo the price-sensitive switchers and price high to play their niche. We present theoretical and empirical analyses that address these varied pricing strategies. Our model of three asymmetric firms shows that under multiple switcher segments, where different switchers compare prices at different retailers, firm-specific loyalty is not sufficient to explain the variety of retailer pricing strategies. We demonstrate that a retailer’s pricing strategy is driven by the ratio of the size of switcher segments for which the retailer competes to its loyal segment size. The relative switcher-to-loyal ratios among retailers explain when a firm is more or less inclined to discount deeply or frequently. We thereby identify when a small firm finds it optimal to play the niche and price high, despite having few loyals, or to discount and go for the switchers. Our analysis reveals several interesting findings, such as a small firm that benefits from strategically limiting its access to switchers. The results of two empirical studies confirm our model’s predictions for varied retailer pricing strategies in the context of Internet booksellers

APIs and Your Privacy

Application programming interfaces, or APIs, have been the topic of much recent discussion. Newsworthy events, including those involving Facebook’s API and Cambridge Analytica obtaining information about millions of Facebook users, have highlighted the technical capabilities of APIs for prominent websites and mobile applications. At the same time, media coverage of ways that APIs have been misused has sparked concern for potential privacy invasions and other issues of public policy. This paper seeks to educate consumers on how APIs work and how they are used within popular websites and mobile apps to gather, share, and utilize data. APIs are used in mobile games, search engines, social media platforms, news and shopping websites, video and music streaming services, dating apps, and mobile payment systems. If a third-party company, like an app developer or advertiser, would like to gain access to your information through a website you visit or a mobile app or online service you use, what data might they obtain about you through APIs and how? This report analyzes 11 prominent online services to observe general trends and provide you an overview of the role APIs play in collecting and distributing information about consumers. For example, how might your data be gathered and shared when using your Facebook account login to sign up for Venmo or to access the Tinder dating app? How might advertisers use Pandora’s API when you are streaming music? After explaining what APIs are and how they work, this report categorizes and characterizes different kinds of APIs that companies offer to web and app developers. Services may offer content-focused APIs, feature APIs, unofficial APIs, and analytics APIs that developers of other apps and websites may access and use in different ways. Likewise, advertisers can use APIs to target a desired subset of a service’s users and possibly extract user data. This report explains how websites and apps can create user profiles based on your online behavior and generate revenue from advertiser-access to their APIs. The report concludes with observations on how various companies and platforms connecting through APIs may be able to learn information about you and aggregate it with your personal data from other sources when you are browsing the internet or using different apps on your smartphone or tablet. While the paper does not make policy recommendations, it demonstrates the importance of approaching consumer privacy from a broad perspective that includes first parties and third parties, and that considers the integral role of APIs in today’s online ecosystem

The contribution of data mining to information science

The information explosion is a serious challenge for current information institutions. On the other hand, data mining, which is the search for valuable information in large volumes of data, is one of the solutions to face this challenge. In the past several years, data mining has made a significant contribution to the field of information science. This paper examines the impact of data mining by reviewing existing applications, including personalized environments, electronic commerce, and search engines. For these three types of application, how data mining can enhance their functions is discussed. The reader of this paper is expected to get an overview of the state of the art research associated with these applications. Furthermore, we identify the limitations of current work and raise several directions for future research

The Effect of Word of Mouth on Sales: Online Book Reviews

We examine the effect of consumer reviews on relative sales of books on Amazon.com and BarnesandNoble.com. We find that 1) reviews are overwhelmingly positive at both sites, but there are more reviews and longer reviews at Amazon.com, 2) an improvement in a book's reviews leads to an increase in relative sales at that site, and 3) the impact of 1-star reviews is greater than the impact of 5-star reviews. The results suggest that new forms of customer communication on the Internet have an important impact on customer behavior.

Recommendation, collaboration and social search

This chapter considers the social component of interactive information retrieval: what is the role of other people in searching and browsing? For simplicity we begin by considering situations without computers. After all, you can interactively retrieve information without a computer; you just have to interact with someone or something else. Such an analysis can then help us think about the new forms of collaborative interactions that extend our conceptions of information search, made possible by the growth of networked ubiquitous computing technology. Information searching and browsing have often been conceptualized as a solitary activity, however they always have a social component. We may talk about 'the' searcher or 'the' user of a database or information resource. Our focus may be on individual uses and our research may look at individual users. Our experiments may be designed to observe the behaviors of individual subjects. Our models and theories derived from our empirical analyses may focus substantially or exclusively on an individual's evolving goals, thoughts, beliefs, emotions and actions. Nevertheless there are always social aspects of information seeking and use present, both implicitly and explicitly. We start by summarizing some of the history of information access with an emphasis on social and collaborative interactions. Then we look at the nature of recommendations, social search and interfaces to support collaboration between information seekers. Following this we consider how the design of interactive information systems is influenced by their social elements

People in the E-Business: New Challenges, New Solutions

[Excerpt] Human Resource Planning Society’s (HRPS) annual State of the Art/Practice (SOTA/P) study has become an integral contributor to HRPS’s mission of providing leading edge thinking to its members. Past efforts conducted in 1995, 1996, 1997, 1998, and 1999 have focused on identifying the issues on the horizon that will have a significant impact on the field of Human Resources (HR). This year, in a divergence from past practice, the SOTA/P effort aimed at developing a deeper understanding of one critical issue having a profound impact on organizations and HR, the rise of e-business. The rise of e-business has been both rapid and dramatic. One estimate puts the rate of adoption of the internet at 4,000 new users each hour (eMarketer, 1999) resulting in the expectation of 250 million people on line by the end of 2000, and 350 million by 2005 (Nua, 1999). E-commerce is expected to reach $1.3 trillion by 2003, and of that, 87 percent will go to the business to business (B2B) and 13 percent to the business to consumer (B2C) segments, respectively (Plumely, 2000)

Empirical Studies on Global Product Reviews

This dissertation comprises three interconnected essays investigating the impact of global reviews on Amazon.com and their significance for consumer behavior and decision-making. The first chapter analyzes the interplay between economic policy uncertainty (EPU) and global review sharing, focusing on Nike products available on the platform. The study finds that higher levels of USA EPU negatively affect product review rates, while China EPU positively influences review rates. EPU volatility also impacts the sharing of non-English and English reviews, influencing sales and review-sharing behavior. The research also explores the effect of global reviews on customer decision-making for products at different lifecycle stages, revealing that early-stage products benefit from global reviews, while popular products may be overwhelmed by them. The second chapter investigates the impact of product origin information on product review rates, particularly examining mentions of made-in USA/China in customer reviews. The study uncovers that Made in China mentions positively influence review rates, while Made in USA mentions have no significant impact. Economic uncertainty in both countries leads to decreased review rates and scores. Understanding the relationship between product origin and customer behavior can help businesses optimize marketing strategies and enhance customer satisfaction. The third chapter explores how review language diversity, specifically English and Spanish reviews, influences customer behavior on Amazon.com. The study finds that an increase in Spanish reviews positively affects future review scores and encourages Spanish-speaking customers to contribute reviews. English reviews positively influence the review rate for both English and Spanish-speaking customers. Overall, these essays shed light on the nuanced effects of EPU, product origin information and review language diversity on customer behavior and decision-making on Amazon.com. The findings offer valuable insights for businesses to strategically leverage global reviews, optimize marketing efforts, and cater to diverse language preferences, ultimately enhancing customer experiences and business performance in a globalized marketplace