W analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women’s apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers for small sizes. Further investigation suggests that these consumers perceive that the price premium is unfair. Overall, premiu...

Direct marketing is an important tool in the promotion mix of companies, amongst which direct mailing is crucial. One approach to improve direct mail targeting is response modeling, i.e. a predictive modeling approach that assigns future response probabilities to customers based on their history with the company. The contributions to the response modeling literature are three-fold. First, we in...

Abstract Modern call centers require precise forecasts of and e-mail arrivals to optimize staffing decisions ensure high customer satisfaction through short waiting times the availability qualified agents. In dynamic environment multi-channel contact, organizational decision-makers often rely on robust but simplistic forecasting methods. Although literature indicates that incorporating addition...

A key question for Internet commerce is the nature of competition with traditional brick-andmortar retailers. Although traditional retailers vastly outsell Internet retailers in most product categories, research on Internet retailing has almost entirely neglected this fundamental dimension of competition. How and where can Internet retailers win this battle? To answer this question, we collect ...

11 Chapter