Twitter, Facebook, discussion blogs, review sites – consumers are out there talking about businesses and products, and those business should be paying attention. How can marketers monitor these online conversations use it to their advantage? [VIDEO]
Michel Wedel, the Pepsico Professor of Consumer Science at the Robert H. Smith School of Business, was named a 2013-2014 Distinguished Scholar-Teacher by the University of Maryland. Wedel is one of only five faculty members recognized campus-wide in the prestigious program, which honors tenured faculty who have demonstrated outstanding accomplishments as educators and notable achievements in their respective fields.
College Park, Md. – September 10, 2013 – The undergraduate business program at the University of Maryland’s Robert H. Smith School of Business jumped to No. 18 in the nation in the latest edition of U.S. News & World Report’s “America’s Best Colleges,” published today. The Smith School placed 8th among public universities and again ranked highly in a number of business specialty categories. Smith’s Management Information Systems and Supply Chain Management/Logistics programs are listed among the nation’s top 10, and a total of seven areas are listed among the nation’s top 25.
This summer, academic experts and business leaders from 28 countries gathered in Taiwan for the 22nd annual Frontiers in Service Conference, sponsored by the Center for Excellence in Service (CES) at the University of Maryland, College Park.
At the helm of CareFirst BlueCross BlueShield for nearly six years, Chet Burrell finds himself poised at the forefront of health care reform in the U.S. The intersection of health care and business has never been more important, which is why you should join Burrell for this year’s first CEO@Smith presentation.
Hear first-hand from the mid-Atlantic region’s leading health benefit services provider, then get answers to your own questions during the later Q&A segment.
Dinner will be provided. Business attire is suggested.
The following adjunct faculty members teach in the Marketing department at the University of Maryland's Robert H. Smith School of Business.
- Simon Bensimon
- Gaurav Bhalla
- Howard Bomstein
- Marjorie Bonavia
- Katherine Boyle
- Jeb Brown
- Bagher Fardanesh
- Robert Fiddler
- Ron Hill
- Nancy Kaplan
- Juhi Naithani
- Richard Newman
- Megan Rhee
Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy
Roland T. Rust, University of Maryland
Valarie A. Zeithaml, University of North Carolina
Katherine N. Lemon, Boston College
Winner 2002 Berry-AMA Book Prize for the Best Book in Marketing
This award is given to exceptional marketing books that have set the standard for excellence and that were published within the previous three years.
2000, The Free Press
Customer Equity Driver™
Download the new Customer Equity Driver™ demo software plus two cases -- free-to-use for non-commercial and educational purposes.
The companion to the award-winning book, Driving Customer Equity™, the demo version of this software is now available for download. This application and the two cases also included are excellent resources for teaching the practical uses of the customer equity approach.
Roland T. Rust, University of Maryland
Valarie A. Zeithaml, University of North Carolina
Katherine N. Lemon, Boston College
Technical Details (Journal Article):
*Rust, Roland T., Katherine N. Lemon and Valarie A. Zeithaml (2004), "Return on Marketing: Using Customer Equity to Focus Marketing Strategy," Journal of Marketing, 68 (1), 109-127.
* Robert D. Buzzell Best Paper Award, 2003, awarded for an earlier version of the paper, entitled, "Driving Customer Equity: Linking Customer Lifetime Value to Strategic Marketing Decisions." Previously known as the MSI Best Paper Award, the Buzzell Award is awarded by the Marketing Science Institute to honor papers that have made a significant contribution to marketing practice and thought. It also serves to signal the kind of writing and research that is of lasting value to corporate marketing executives.
- After downloading, unzip the file. You will need a zip/unzip program like WinZip to do this. To download a free copy of WinZip, click here.
- Run setup.exe to start the installation procedure, then follow the instructions displayed on your screen.
- Also included in the download are two cases, in Word .doc format.
Welcome to The Smith Report, a short audio podcast that will help keep you informed about current news and events at the Smith School. The podcast is less than 10 minutes long and is produced by the Office of Marketing Communications.
Smith MBAs take on a variety of challenging internships over the summer to build their skills and make professional connections.
In this issue of the Smith Report, Jessica Galimore, MBA Candidate 2014, tells us about working as a Summer Associate at Deloitte Consulting in Rosslyn, VA.
First Annual Marketing Academic Research Colloquium (MARC)
Friday, May 6, 2011University of Maryland, College Park
The Marketing Department of Robert H. Smith School of Business at the University of Maryland is proud to invite you to the first Marketing Academic Research Colloquium (MARC) on Friday, May 6, 2011 at the University of Maryland, College Park. It will bring together leading marketing scholars from the Joseph M. Katz School of Business at the University of Pittsburgh, Smeal College of Business at Penn State University, Tepper School of Business at Carnegie-Mellon University, and the Robert H. Smith School of Business at the University of Maryland.
We hope MARC will provide opportunities for a high level of interaction among participants, leading to the generation of cutting-edge research ideas and fruitful collaborations. To represent a diverse set of ideas and approaches at the colloquium, we have asked four speakers -- one from each school, to present a paper with a behavioral, quantitative or managerial focus (or an interdisciplinary one). We are limiting our schedule to four talks to allow time for an in-depth discussion of each paper. Listed below are the four speakers, their topics, and an abstract of their presentation.
Further, to encourage our Ph.D. students to participate in the colloquium, the program will feature a student poster session at our concluding cocktail reception -- an excellent opportunity to learn more about the ongoing research in each school. The Ph.D. students presenting a poster are listed below.
University of Maryland"Optimizing Service Productivity"
To increase service productivity, many companies utilize automation more extensively, to reduce the use of labor. However, the greater use of automation does not always result in higher service quality, and the effectiveness of automation in providing service hinges on how advanced the technology level is. Departing from the standard perspective in which productivity is simply treated as an output measure of firm performance, we propose service productivity as a strategic decision variable—that is, the firm manages the service productivity level to maximize profits. We develop a theory of optimal service productivity that explains when the optimal productivity level will be higher or lower, and distinguishes between short-term effects of service productivity, due to labor-automation tradeoffs, and long-term effects, due to the advance of technology. The theory, together with the existing literature, inspires the development of three testable empirical hypotheses, which are confirmed using data from more than 700 service companies in two time periods. The research shows that service productivity should be lower when factors (e.g., higher profit margin, higher price) motivate the provision of better service quality, and that service productivity should be higher when factors (e.g., higher market concentration, higher wages) discourage the provision of better service quality. Our empirical results also provide preliminary evidence that large service companies may tend to be too productive, relative to the optimal level, and if so, should place less emphasis (in the short run) on cost reduction through automation and more emphasis on service quality.
Pennsylvania State University"Revealing the Downside of Remedy Marketing"
In a series of papers, my co-authors and I have investigated the impact of "remedy marketing" on consumer behavior. Remedies are products or services that promise to mitigate risk; examples include smoking cessation aids, debt consolidation loans, and weight management drugs. Like traditional risk-avoidance messages, advertisements for remedies aim to reduce risk--by advocating use of the branded product promoted by the marketers. Ironically, however, we find that remedy messages instead increase risky behavior--a boomerang effect with negative consequences for consumer welfare. In recent research, we explore ways to mitigate the boomerang--focusing on debt consolidation loans in the financial domain and weight management drugs in the health domain. Findings from a series of experiments suggest that interventions targeting the (erroneous) lay beliefs that underlie the boomerang can be used to "undo" the negative consequences of remedy marketing.
Carnegie Mellon University"Firm Strategies in the "Mid Tail" of Platform-Based Retailing"
While millions of products are sold on its retail platform, Amazon.com itself stocks and sells only a small fraction of them. Most of these products are sold by third-party sellers, who pay Amazon a fee for each unit sold. Empirical evidence clearly suggests that Amazon tends to sell high-demand products and leave long-tail products for independent sellers to offer. We investigate how a platform owner such as Amazon, facing ex ante demand uncertainty, may strategically learn from these sellers’ early sales which of the “mid-tail” products are worthwhile for its direct selling and which are best left for others to sell. The platform owner’s “cherry-picking” of the successful products, however, gives an independent seller the incentive to mask any high demand by lowering his sales with a reduced service level (unobserved by the platform owner). We analyze this strategic interaction between the platform owner and the independent seller using a game-theoretic model with two types of sellers — one with high demand and one with low demand. We show that it may not always be optimal for the platform owner to identify the seller’s demand. Interestingly, the platform owner may be worse off by retaining its option to sell the independent seller’s product whereas both types of sellers may benefit from the platform owner’s threat of entry. The platform owner’s entry option may reduce the consumer surplus in the early period though it increases the consumer surplus in the later period. We also investigate how consumer reviews influence the market outcome.
University of Pittsburgh"Understanding In-Store Decision Making Using Real-time Shopper Tracking"
Companies have recently become quite interested in shopper decision-making. The recent trend toward shopper marketing makes it imperative to better understand how shoppers make decisions and the role of marketing stimuli therein. Researchers are beginning to answer this call through research to explicate the drivers of shopper decisions (e.g., Inman, Winer, and Ferraro 2009). Developments in technology have enabled researchers to track shopper movements and assess their eye movements en vivo, and has launched the nascent field of "neuromarketing". This presentation will describe three studies in this domain. In the first study, Huang et al. (2011a) couple RFID technology with in-store intercepts to track shoppers' paths and their in-store decisions. We then employ instrumental variable regression to estimate that the elasticity of unplanned purchase on travel distance is 1.44, which is 53% higher than the uncorrected OLS estimate. Based on our econometric framework, we explore the potential of using location-based mobile app strategies and product placement strategies to increase unplanned purchases. We find that by strategically promoting a single additional product category to each shopper, unplanned spending could be increased by as much as 28%. In contrast, changing product location only has a limited effect on increasing unplanned spending. In the second study, we supplement RFID and in-store intercept data with eye tracking in order to assess the drivers of consideration of unplanned purchases and the factors that result in the conversion from unplanned consideration to unplanned purchase (Huang et al. 2011b). Finally, an upcoming study that combines in-store intercepts, eyetracking, and ambulatory EEG will be overviewed.
Zac Arens, University of MarylandThe Rebound of the Forgone Alternative
Sara Loughran Dommer, University of Pittsburgh Blending In by Standing Out? The Paradox of Self-Differentiating with Brands to Signal a Desire to Belong
Frank Germann, Pennsylvania State UniversityWhen Bad Things Happen to Good Brands: Product Recalls and the Moderating Role of Brand Equity
Didem Kurt, University of Pittsburgh Lost Your License to Spend? The Moderating Role of Savings on the Licensing Effect of Basket Composition on Impulsive Spending
Ted Matherly, University of MarylandIs What You Feel What They See? Fluency and Identity SignalingHyoryung Nam, University of MarylandSocial Tag Maps: A New Approach for Understanding Brand Association Networks
Alok Saboo, Pennsylvania State University Stock Market Rewards for Customer and Competitor Orientations: The Case of Initial Public Offerings
Amin Sayedi , Carnegie Mellon UniversityTraditional versus Sponsored Search Advertising: Tradeoffs Between BuildingYour Brand and Poaching Your Competitor's Customers
Tuba Pinar Yildirim, University of PittsburghUser-generated Content in News Media
Center for Complexity in Business Seminar Speaker
Friday, March 18 ~ 1:30 p.m.1505 Van Munching Hall
Damon RagusaPresident and CEOThinkVine
Complexity in Practice: Utilizing an Agent-based Modeling Framework to Defragment the Media Landscape
Abstract: Over the past 10 years, agent-based models have merely scratched the service to becoming an accepted technique in approaching and solving business problems. With some early success in the areas of distribution and supply chain optimization, agent-based models have yet to catch on as they have within other areas of scientific inquiry. By every defensible definition, consumer markets are complex adaptive systems. So why haven’t techniques from the complexity sciences become more pervasive within the marketing sciences? Where do opportunities lie to advance new approaches? ThinkVine CEO, Damon Ragusa, will answer these questions as well as describe the success ThinkVine is having in applying an agent-based modeling framework to help companies manage the increasingly fragmented media world.ThinkVine has been implementing approaches such as neural networks, genetic algorithms and agent-based modeling systems for the past 10 years into the marketing sciences. Damon will share experiences from his 20+ year career in marketing science and describe how ThinkVine has developed an innovative approach to look at marketing optimization problems, how it has managed to sell a new approach into top companies against well entrenched competitors and where it believes agent-based systems will go into the future of marketing analytics.
Department of Marketing Seminar Speaker
Friday, March 18 ~ 10:30 a.m.1335 Van Munching Hall
Preyas DesaiSpencer R. Hassell Professor of Business AdministrationFuqua School of BusinessDuke University
The Strategic Role of Exchange Programs
Abstract: Over the last several years, a relatively new form of promotion is being adopted by retailers: the exchange program. In these programs, consumers turn in an old item and get store credit or a gift card toward another purchase in the store. To analyze the impact of exchange programs in a competitive setting, we assume that two firms first decide its policy on whether or not to offer an exchange program. If a firm does not offer an exchange program, it simply chooses a retail price for the new good. On the other hand, if it offers an exchange program, it chooses not only the retail price for the new good but also the price compensation for the exchange. In terms of consumers, based on their valuations of the old and new goods, there are two types of consumers: low valuation and high valuation. Each consumer has an old good that can potentially be used in an exchange program. Based on the prices, consumers decide whether to purchase and, if it is offered, whether to participate in the exchange program. In deciding whether to participate in the exchange program, consumers evaluate the costs and benefits of turning in the old product and getting a new one. For the new product, consumers consider the quality and the price. On the other hand, consistent with behavioral decision theory, we assume that consumers view their old product as a part of their endowment. As a result, consumers incur a loss that is equivalent to their mental book value when they turn in their old product. Furthermore, even though consumers are compensated for their old product, loss aversion suggests that, holding dollar amounts constant, consumers feel a greater pain from relinquishing their good than the benefit of receiving payment for the exchange. We find that whether the retailers offer an exchange program depends on the proportion of low valuation consumers in the market and their valuations of the old and new goods. The equilibrium outcome can be both offering or not offering exchange, neither offering exchange as a Prisoners' Dilemma, and coordination equilibria.