Refocusing Loyalty Programs in the Era of Big Data: A Societal Lens Paradigm

Big data and technological change have enabled loyalty programs to become more prevalent and complex. How these developments influence society has been overlooked, both in academic research and in practice. We argue why this issue is important and propose a framework to refocus loyalty programs in the era of big data through a societal lens. We focus on three aspects of the societal lens-inequality, privacy, and sustainability. We discuss how loyalty programs in the big data era impact each of these societal factors, and then illustrate how, by adopting this societal lens paradigm, researchers and practitioners can generate insights and ideas that address the challenges and opportunities that arise from the interaction between loyalty programs and society. Our goal is to broaden the perspectives of researchers and managers so they can enhance loyalty programs to address evolving societal needs

Discrete and Continuous Representations of Unobserved Heterogeneity in Choice Modeling

We attempt to provide insights into how heterogeneity has been and can be addressed in choice modeling. In doing so, we deal with three topics: Models of heterogeneity, Methods of estimation and Substantive issues. In describing models we focus on discrete versus continuous representations of heterogeneity. With respect to estimation we contrast Markov Chain Monte Carlo methods and (simulated) likelihood methods. The substantive issues discussed deal with empirical tests of heterogeneity assumptions, the formation of empirical generalisations, the confounding of heterogeneity with state dependence and consideration sets, and normative segmentation.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/46977/1/11002_2004_Article_230988.pd

Choice Models and Customer Relationship Management

Customer relationship management (CRM) typically involves tracking individual customer behavior over time, and using this knowledge to configure solutions precisely tailored to the customers' and vendors' needs. In the context of choice, this implies designing longitudinal models of choice over the breadth of the firm's products and using them prescriptively to increase the revenues from customers over their lifecycle. Several factors have recently contributed to the rise in the use of CRM in the marketplacePeer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47023/1/11002_2005_Article_5892.pd

Analyzing consumer response to innovation : the concept of preference inertia

This research introduces the concept of preference inertia as a tool for understanding consumer response to innovations. This concept postulates that consumers may hesitate in preferring innovations over an existing product even though the innovations elicit superior evaluations. Preference inertia is examined within the context of the actual development of a Health Maintenance Organization (HMO). The manifestation of preference inertia by the HMO's potential enrollee population is explained using general attitude and demographic factors. The concept is then included in a linear attitude model of consumer response. Results and implications are discussed

A Market Response Model for Coupon Promotions

An econometric market response model for measuring the effect of coupon promotions upon market share is developed and estimated. In addition to the brand's own couponing efforts, the model takes into account retailer promotions for the brand as well as competitive couponing activity. The model is multi-equation, simultaneous, and is estimated using scanner panel data. Results indicate that coupons have a pronounced effect upon market share, although the effect varies from brand to brand and may not be strong enough for some brands for couponing to be profitable in the short term.market response models, sales promotion, couponing, coupon profitability

The Use of Simulation to Test Theories of Bargaining in a Business Context

The purpose of this research is to demonstrate how simulation can be used to empirically test theories of bargaining in a business context. Business negotiations are private, complex and multi-issue; there are thus limitations to investigating them through field study. The advantage of simulation as a theorytesting methodology is that it can provide a rich context while at the same time permit experimental control and measurement. In particular, this research demonstrates how simulation can be used to test a game- theoretic model of bargaining. The experiment reported here is highlighted by the use of multiattribute preference measurement and an experimental design that allows a rigorous test of the game-theoretic model as well as unconfounded estimation of bargaining skill and situational power effects. The results of this research support the game theoretic model. Implications for educators and practitioners are discussed