The scope of this article is to explore the transaction profitability of frequent and sporadic buyers in the e-commerce arena. Evidence in relationship marketing literature stressing the impact of purchase frequency on customer transaction profitability as well as recent academic research challenging this approach and pointing out the importance of sporadic clients is analyzed and presented. A ...

Despite the prevalent use of loyalty programs, there is limited evidence on the long-term effects of such programs, and their effectiveness is not well established. The current research examines the long-term impact of a loyalty program on consumers’ usage levels and their exclusive loyalty to the firm. Using longitudinal data from a convenience store franchise, the study shows that consumers w...

ESSAYS ON MARKET DYNAMICS IN THE PRESENCE OF LEARNING Xi Weng George Mailath I investigate how the presence of learning affects the market dynamics in three different market settings. The first chapter studies how the interplay of individual and social learning affects price dynamics. I consider a monopolist selling a new experience good over time to many buyers. Buyers learn from their own pri...

Group buying is a form of electronic commerce that is growing quickly. There are many group buying sites on the Internet. Group buying is a commercial transaction in which the unit price of goods changes with the number of buyers, and a buyer can purchase goods at a low price if many buyers participate in group buying. There are several group-buying sites that are selling similar (or the same) ...

Using matched survey and transaction data on 1,500 buyers, we investigate how different types of search and purchasing behavior affect transaction prices in auto retailing. Our results are consistent with the predictions of information economics and bargaining theory. Buyers pay less if they obtain an offer from a competing dealer (0.6% of purchase price), if they are informed about the specifi...

Customer loyalty or repeat purchasing is critical for the survival and success of any store. By focusing on online stores, this study investigates the repeat purchase intention of experienced online buyers based on means-end chain theory and prospect theory. In the research model, both utilitarian value and hedonic value are hypothesised to affect repeat purchase intention positively. Perceived...

The original double auction studies of supply and demand markets established their strong efficiency and equilibrium convergence behavior using economically unsophisticated and untrained subjects. The results were unexpected because all individual costs and values were private and dependent entirely on the market trading process to aggregate the dispersed information into socially desirable out...

We study monopolistic pricing, with a capacity constraint, of a good that loses its value after three periods. In each period a continuum of buyers, each of whom might be one of two types, enter. Each of the buyers chooses either to make a purchase as soon as they enter, or to wait for a lower price. The price path is found to be strictly non-decreasing, u-shaped or horizontal for different pro...

After entering into supply contracts, ...rms often later renegotiate the terms of those contracts. For example, ...rms that obtain market demand information after signing supply contracts may bene...t by renegotiating the contracts to allow buyers facing poor market conditions to purchase less than their contractual commitment and allowing buyers facing favorable conditions to purchase more. Co...

Buyers are typically unaware of the full set of offers when making a purchase. This paper examines how international trade interacts with this problem of incomplete information. Sellers must communicate their offers through costly price posting, but cannot reach all buyers. Consequently, no market clearing price exists, and sellers randomize over an equilibrium price distribution. Letting selle...