Date & Time: 11/6/2015 11:00am
Location: 221 One South Main
Speaker: David Bell - Professor of Marketing, Wharton
Topic: Offline Showrooms and Customer Migration in Omni Channel Retail
Omni-channel environments where customers shop online and offline at the same retailer are increasingly ubiquitous and have important new implications for demand generation and operational efficiency. We propose that given choice and opportunity, customers self-select into channels according to their need for visceral product information, i.e., the need to touch, feel, and sample physical products before purchasing. Injecting a new showroom into a market induces customer migration and has significant impacts on channel sales and operational efficiency for all customers within the showroom's trading area. Using quasi-experimental data on showroom openings by WarbyParker.com, the leading online US eyewear retailer, we find that introducing a showroom: (1) increases demand overall and through the online channel as well, (2) improves operational efficiency by increasing conversion on sampling and decreasing returns, and (3) that these effects are amplified for those customers who have the most acute need for the product. Moreover, these effects strengthen with time as the showroom contributes not only to brand awareness but also to what we term channel awareness as well. We verify that these effects are robust to alternative model specifications and sample selection procedures; implications for omni-channel retailing are discussed.
Date & Time: 11/13/15 11:00am
Location: 221 One South Main
Speaker: Yi Xu
Topic: The Impact of Valuation Heterogeneity and Network Structure on Equilibrium Prices in Supply Chain Networks
This paper studies bargaining in two-sided supply chain networks where manufacturers on the demand side purchase an input from suppliers on the supply side. The manufacturers may have heterogeneous valuations on the input sold by the suppliers. In such a supply chain network, a manufacturer and a supplier must have a business relationship or "link" to bargain and trade with each other. However, a firm on one side of the supply chain network might not have a business relationship with every firm on the other side of the supply chain network. We show that valuation heterogeneity, supply and demand balance, and network structure are the main factors that influence the equilibrium prices, trading pattern and surplus allocation in such a supply chain network. Valuation heterogeneity among manufacturers can mitigate unfavorable supply and demand balance to protect some surplus for the manufacturers and leads to higher price dispersion in the supply chain network. We demonstrate that bargaining effectively takes place in smaller subnetworks in a general supply chain network and develop a decomposition algorithm to decompose the general network into these smaller subnetworks, which simplifies the analysis of the general supply chain network significantly. We then identify what types of supply chain networks are competitive so that all trades happen at the same competitive price defined solely according to the aggregate supply and demand balance in the supply chain network and/or efficient so that only manufacturers with the highest valuations are able to trade. We also identify what types of links can be added into a supply chain network to improve its competitiveness and/or efficiency.
Date & Time: TBD
Speaker: Anindya Ghose
Date & Time: 10/23/15 11:00 a.m.
Location: 220 One South Main
Speaker: Fiona Greig
Topic: Using Big Data for the Public Good
Dr. Greig is the Research Director of the JPMorgan Chase Institute, whose core function is to use big data to address questions of social importance. The Institute's projects employ the extensive and varied data available from the bank's businesses to develop answers to questions that relate directly to social good. Dr. Greig will discuss results of several completed and ongoing research projects. One project, "Weathering Volatility," analyzes data from 2.5 million account holders to determine how income and consumption fluctuate on a monthly basis in recent years. The findings highlight low levels of income-consumption correlation, and the lack of sufficient savings buffers for the typical individual. Another ongoing project relates to the household finance and broader economic/social effects of recent fluctuations in energy prices. Dr. Greig will discuss the Institute's work broadly as well as project results.