Rethinking Ricardian "Sum of Enjoyments": Gains from Trade in a Co-Creational Economy

The Ricardian principle of comparative advantage has long been at the foundation of a wide range of economic models. In the new Internetworked economy where co-creational experiences of value is rapidly gaining momentum, the vision of this principle has weakened. We provide a framework to align economic thinking on the principle of comparative advantage with co-creational value creation embedded at the core. We show how patterns of specialization and the resultant gains from trade, within or across borders, must be sensitive to value gained through co-creational experiences. In particular, an individual’s co-creational experience of value is at the foundation of what we posit as the principle of comparative co-creationaladvantage.http://deepblue.lib.umich.edu/bitstream/2027.42/101120/1/1211_Chakrabarti.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/101120/4/1211_Chakrabarti.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/101120/5/1211_Dec13_Ramaswamy.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/101120/7/1211_Oct14VRamaswamypdf.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/101120/9/1211_Jan2015VRamaswamy.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/101120/11/1211_Ramaswamy_May2015.pdfDescription of 1211_Ramaswamy_May2015.pdf : May 2015 revision (new title)Description of 1211_Jan2015VRamaswamy.pdf : SUPERSEDED: January 2015 revisionDescription of 1211_Oct14VRamaswamypdf.pdf : SUPERSEDED: October 2014 revisionDescription of 1211_Dec13_Ramaswamy.pdf : SUPERSEDED: Dec 2013 revisionDescription of 1211_Chakrabarti.pdf : SUPERSEDED: Nov 2013 updateDescription of 1211_Chakrabarti.pdf : SUPERSEDE

Co-creation experiences: The next practice in value creation

Consumers today have more choices of products and services than ever before, but they seem dissatisfied. Firms invest in greater product variety but are less able to differentiate themselves. Growth and value creation have become the dominant themes for managers. In this paper, we explain this paradox. The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences. Informed, networked, empowered, and active consumers are increasingly co-creating value with the firm. The interaction between the firm and the consumer is becoming the locus of value creation and value extraction. As value shifts to experiences, the market is becoming a forum for conversation and interactions between consumers, consumer communities, and firms. It is this dialogue, access, transparency, and understanding of risk-benefits that is central to the next practice in value creation.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/35225/1/20015_ftp.pd

Coupon characteristics and redemption intentions: A segment-level analysis

The authors investigate how different segments of consumers react to different coupon characteristics, such as face value and method of distribution. They utilize a latent segmentation approach to identify the underlying segments. The empirical analysis suggests that different segments of consumers place varying emphasis with regard to economic benefits, psychic benefits, effort costs, and substitution costs. A further examination of the derived segments with respect to consumer correlates such as psychological, attitudinal, behavioral, and demographic characteristics reveals that coupon-related consumer characteristics, rather than demographics, exhibit significant and meaningful differences across these segments. Implications of the segment-level analysis for evaluating coupon drops and managing promotional expenditures are also discussed. © 1998 John Wiley & Sons, Inc.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/34943/1/5_ftp.pd

Effects of Brand Local and Nonlocal Origin on Consumer Attitudes in Developing Countries

Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/142164/1/jcpy83.pd

Modeling Methods for Discrete Choice Analysis

This paper introduces new forms, sampling and estimation approaches fordiscrete choice models. The new models include behavioral specifications oflatent class choice models, multinomial probit, hybrid logit, andnon-parametric methods. Recent contributions also include new specializedchoice based sample designs that permit greater efficiency in datacollection. Finally, the paper describes recent developments in the use ofsimulation methods for model estimation. These developments are designed toallow the applications of discrete choice models to a wider variety ofdiscrete choice problems.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47225/1/11002_2004_Article_138116.pd

A spatial interaction model for deriving joint space maps of bundle compositions and market segments from pick-any/J data: An application to new product options

We propose an approach for deriving joint space maps of bundle compositions and market segments from three-way (e.g., consumers x product options/benefits/features x usage situations/scenarios/time periods) pick-any/J data. The proposed latent structure multidimensional scaling procedure simultaneously extracts market segment and product option positions in a joint space map such that the closer a product option is to a particlar segment, the higher the likelihood of its being chosen by that segment. A segment-level threshold parameter is estimated that spatially delineates the bundle of product options that are predicted to be chosen by each segment. Estimates of the probability of each consumer belonging to the derived segments are simultaneously obtained. Explicit treatment of product and consumer characteristics are allowed via optional model reparameterizations of the product option locations and segment memberships. We illustrate the use of the proposed approach using an actual commercial application involving pick-any/J data gathered by a major hi-tech firm for some 23 advanced technological options for new automobiles.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47207/1/11002_2004_Article_BF00434905.pd

Latent class metric conjoint analysis

A latent class methodology for conjoint analysis is proposed, which simultaneously estimates market segment membership and part-worth utilities for each derived market segment using mixtures of multivariate conditional normal distributions. An E-M algorithm to estimate the parameters of these mixtures is briefly discussed. Finally, an application of the methodology to a commercial study (pretest) examining the design of a remote automobile entry device is presented.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47104/1/11002_2004_Article_BF00994135.pd

A maximum likelihood method for latent class regression involving a censored dependent variable

The standard tobit or censored regression model is typically utilized for regression analysis when the dependent variable is censored. This model is generalized by developing a conditional mixture, maximum likelihood method for latent class censored regression. The proposed method simultaneously estimates separate regression functions and subject membership in K latent classes or groups given a censored dependent variable for a cross-section of subjects. Maximum likelihood estimates are obtained using an EM algorithm. The proposed method is illustrated via a consumer psychology application.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/45751/1/11336_2005_Article_BF02294647.pd

The New Frontier of Experience Innovation

As competition intensifies and profit margins shrink, managers are under overwhelming pressure to create value. Traditional prescriptions such as cost reduction, reengineering and outsourcing, while critically important, cannot solve the problem. The need to innovate is greater than ever, but the focus of innovation must change, say the authors. Managers are discovering that neither value nor innovation can any longer be successfully and sustainably generated through a company-centric, product-and-service-focused prism. By synthesizing societal trends and early experimentation in companies such as General Motors, LEGO and Medtronic, the authors paint a picture of the "next practices" of innovation in which the locus of value creation will inevitably shift from products and services to "experience environments." The intent of experience innovation is not to improve a product or service, per se, but to enable the co-creation of an environment in which personalized, evolvable experiences are the goal, and products and services are a means to that end. Profitable company growth will then result from individual consumers co-creating their own unique value, supported by a network of companies and consumer communities. From that perspective, say the authors, managers must learn to view existing and emerging technologies not as enhancers of products, features and functions, but as facilitators of experiences. They offer examples of how technological capabilities such as miniaturization, networked communication and adaptive learning are fostering experience innovation at companies such as Sony, Apple, Microsoft and TiVo, illustrating their contention that technology will be the key facilitator of the nascent trend toward experience innovation