A Review of Choice Modeling in the Marketing-Operations Management Interface

Musalem, Andrés; Olivares, Marcelo; Borle, Sharad; Che, Hai; Conlon, Christopher T.; Girotra, Karan; Gupta, Sachin; Misra, Kanishka; Mortimer, Julie Holland; Vulcano, Gustavo; Zheng, Fanyin

doi:10.2139/ssrn.3018732

Cited by 5 publications

(4 citation statements)

References 85 publications

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“…This literature has examined issues such as retailer assortment, pricing, and inventory decisions (Iyer and Bergen 1997; Musalem et al. 2017) or contractual design in the distribution channel (Min hoi, Rabinovich, and Richards 2019, Guajardo et al. 2012, Iyer and Bergen 1997, Stern and El‐Ansary 1996).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In the supply chain management literature, there has been significant attention devoted to the coordination and interaction between retailers and manufacturers (e.g., Iyer andBergen 1997, Xiao andYang 2008). This literature has examined issues such as retailer assortment, pricing, and inventory decisions (Iyer and Bergen 1997;Musalem et al 2017) or contractual design in the distribution channel (Min hoi, Rabinovich, and Richards 2019, Guajardo et al 2012, Iyer and Bergen 1997, Stern and El-Ansary 1996. However, our understanding of the impact of dealer service quality on manufacturers remains very limited.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success

Golara

Dooley

Mousavi

2021

Production and Operations Management

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M ost automobile manufacturers use franchised dealers to distribute their products and to perform sales-related and after-sales services. However, the link between dealers' service quality and manufacturer performance is not well understood. Some studies suggest that these services' quality affects product sales, repeat sales, and brand reputation. Others posit that dealer services are a commodity, and their quality may only affect sales in the extremes. We constructed data representing sales and service quality ratings of 1078 U.S. automobile dealerships over a year in five different car classes. We find that the quality of after-sales services positively influences sales of the brand in the dealer's region. Manufacturers whose dealers struggle with after-sales services take a hit in market share even in markets where they enjoy superior competitive status. We also find that sales-related services gain importance in highly competitive markets where the manufacturer has few dealers and competitors have many.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success

Golara

Dooley

Mousavi

2021

Production and Operations Management

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“…CBRM is a new family of techniques that can account for passenger behavior dependent on the characteristics of the offered alternatives available in the chosen scenario. They present a wide array of benefits and have been studied in detail in the literature (Weatherford and Ratliff, 2010;Musalem et al, 2017;Strauss et al, 2018). One of the main benefits of CBRM is that it overcomes the independent demand assumption, which supposes that the demand for different products is independent of the set of offered products.…”

Section: Choice Based Revenue Management Systemsmentioning

confidence: 99%

CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management

Fukushi

Delgado

Raveau

et al. 2022

Transportation Research Part A: Policy and Practice

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“… 5 5 More generally, in operations management, there is disproportionately less empirically driven research as compared with studies that develop analytical/numerical models (e.g., Musalem et al. 2017). …”

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confidence: 99%

An Empirical Analysis of Intra‐Firm Product Substitutability in Fashion Retailing

Ergin

Gümüş

Yang

2022

Production and Operations Management

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T his study offers an empirical investigation of inventory and sales dynamics in a large-scale retail network setting. We infer the impact of product shortages on sales in neighboring outlets using unique data from a large fast fashion retailing chain and an Instrumented Difference-in-Differences (DDIV) methodology. Our analysis reveals that sales for a particular item at a focal store increases when that same item experiences stock-outs in neighboring stores. Our empirical findings suggest that there is substitutability across stores, and that this substitutability is the strongest in the period when the stock-out is observed for the first time, and decreases as time passes following the stock-out. In order to assess the implications of considering the impact of stock-outs on inventory allocation, we develop an optimization model that is calibrated using parameters estimated via our earlier DDIV analysis. The simulation analysis confirms that revenues markedly improve on average by 6% under low demand variance and by 14% under high demand variance when neighboring stock-out information is taken into account for sales forecasting while optimizing initial inventory allocations. Finally, we conduct sensitivity analysis to evaluate how these potential revenue improvements vary with turnover, product price, and inventory.

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A Review of Choice Modeling in the Marketing-Operations Management Interface

Cited by 5 publications

References 85 publications

Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success

Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success

CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management

An Empirical Analysis of Intra‐Firm Product Substitutability in Fashion Retailing

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