Asymmetric Consumer Learning and Inventory Competition

We develop a model of consumer learning and choice behavior in response to uncertain service at the marketplace. Learning could be asymmetric, i.e., consumers may associate different weights with positive and negative experiences. Under this consumer model, we characterize the steady-state distribution of demand for retailers given that each retailer holds constant in-stock service level. We then consider a non-cooperative game at the steady-state between two retailers competing on the basis of their service levels. Our model yields a unique pure strategy Nash equilibrium. We show that asymmetry in consumer learning has a significant impact on the optimal service levels, market shares and profits of the retailers. When retailers have different costs, it also determines the extent of competitive advantage enjoyed by the lower cost retailer.Operations Management Working Papers Serie

A study of the causal relationship between IT governance inhibitors and its success in Korea enterprises

노트 : Proceedings of the 41st Hawaii International Conference on System Sciences - 2008 행사명 : 41st Hawaii International Conference on System Sc

BIM-Based Construction Information Management Framework for Site Information Management

Projects in the construction industry are becoming increasingly large and complex, with construction technologies, methods, and the like developing rapidly. Various different types of information are generated by construction projects. Especially, a construction phase requires the input of many resources and generates a diverse set of information. While a variety of IT techniques are being deployed for information management during the construction phase, measures to create databases of such information and to link these various different types of information together are still insufficient. As such, this study aims to suggest a construction information database system based on BIM technology to enable the comprehensive management of site information generated during the construction phase. This study analyzed the information generated from construction sites and proposed a categorization system for structuring the generated information, along with a database model for storing such structured information. Through such efforts, it was confirmed that such a database system can be used for accumulating and using construction information; it is believed that, in the future, the continual accumulation and management of construction information will allow for corporate-level accumulation of knowledge as opposed to the individual accumulation of know-how

Why Private Labels Show Long-Term Market Share Evolution

Previous research has shown that most consumer packaged goods markets are in long-run competitive equilibrium. In most categories, a given brand’s market share is stationary, showing remarkable stability over long time horizons (10 years). This empirical generalization has been attributed to consumer inertia and to competitive reaction elasticities that lead to offsetting marketing spending which nullify attempts by one brand to take unilateral action to increase share. We find a clear exception to this rule — during the period 1987-94 the retailer’s private label consistently showed positive market share evolution. In 225 consumer packaged goods categories, private labels trended upward 86% of the time. The trend persisted even after controlling for marketing spending by both national and store brands. We consider the viability of alternative explanations including changes in consumer and national brand behavior and find that none of them can adequately account for the trend in private label share. We offer an analytical explanation and empirical support for why private labels can grow even though national brands shares are relatively stable. We argue that the retailer is in the best position to opportunistically appropriate different sources of category growth because not only does it control it own marketing spending, it also exerts some influence over the ultimate marketplace spending of their national brand competitors