Marketing Seminar（2016-07）
Title:Demand Dynamics in the “Rental-by-Mail” Business Model
Speaker: Yacheng Sun,University of Colorado at Boulder
Time: Wednesday 8, June 13:30-15:00
Place: Room217, Guanghua Building 2
Abstract:
We develop an integrated model for consumption and purchase decisions in the Rental-by-Mail (RBM) business model, which features closed loop delivery and quota-based subscription pricing. The model captures two distinct types of consumer dynamics: short-term dynamics in consumption decisions, and long-term dynamics in purchase decisions. Applying this model to a unique panel data provided by an RBM firm, we find that consumers trade off immediate and future consumption opportunities, accounting for the nontrivial turnaround time entailed by mail delivery. Furthermore, consumers trade off a higher payment and a larger set of consumption opportunities. The Bayesian estimation framework uncovers substantial heterogeneity in consumer preferences, such as price sensitivities and switching costs. We further conduct counterfactual analyses to investigate how consumers react to alternative product design and speed of delivery (or turnaround time) and the implications for firm profitability. Investigating the case of digital delivery, we find that firm profitability can be significantly reduced.
Introduction:
Yacheng Sun is Assistant Professor of Marketing at Leeds School of Business, University of Colorado at Boulder. Yacheng’s research involves applying dynamic structural and game-theoretical models to study consumers’ decision-making processes in the contexts of internet-based services, customer rewards programs and online platforms, and using the consumer-side insights to inform the firm’s marketing mix decisions. Recently, he is interested in conducting field experiments with insurance customer in order to understand the effectiveness of price and non-price levers in increasing safety awareness and reducing risky driving behaviors. Yacheng’s research has been published at Marketing Science and the Journal of Consumer Research. Yacheng has taught undergraduate-level Pricing and Channel Strategies, Marketing Research, and PhD-level empirical models in Marketing. He was nominated for the Franscona Teaching Award at the Leeds School of Business in 2015.
Your participation is warmly welcomed!
用户登录
伟易博首页
