David Bell - Faculty Research in Knowledge@Wharton

New Retail Strategies: Offering a Better Fit for Today's Careful Consumers

Wed, 31 Aug 2011 15:20:29 EST

Retailers looking for growth in today's economy might pick up a lesson or two from Coca-Cola's futuristic Freestyle vending machines, which offer customers 125 customizable beverage choices. According to Wharton faculty and retail experts, creating excitement, tapping into social networks, giving people a chance to customize their own product and empowering customers are important retail strategies in today's economy, where one out of five people in the United States is either unemployed or underemployed and consumers remain reluctant to spend.

Want to Rent out That Spare Room? The Growing Popularity of 'Collaborative Consumption'

Thu, 25 Aug 2011 16:24:25 EST

At the core of the new trend of "collaborative consumption" is the idea that technologies like the Internet and smartphones can help consumers monetize assets that they own -- their home or car, for example -- in ways that were previously difficult or downright impossible. But as these services grow in popularity, they face challenges, not the least of which is the ability to ensure the safety and security of the assets that consumers are renting out.

Can J.C. Penney's New CEO Reinvent the Department Store?

Wed, 20 Jul 2011 15:33:36 EST

As engineer of Apple's winning retail strategy, Ron Johnson created a juggernaut that reaped both profits and positive buzz. But can he do the same with the department store, a retail format that many feel is becoming antiquated? As the newly named CEO of J.C. Penney, Johnson will be tasked with crafting a new niche for an American institution. Experts say doing that successfully requires more than leveraging gee-whiz technology.

Many-stop Shopping? How Niche Retailers Are Thriving on Internet 2.0

Wed, 11 May 2011 16:38:59 EST

A decade after pets.com and a string of other early Internet specialty retailers collapsed, a new wave of start-ups -- enabled by the power of cloud computing, advanced delivery systems and deep social relationships with customers -- is shaping e-commerce. From diapers and eyeglasses to pool tables and, yes, pet products, entrepreneurs are developing specialty businesses to compete alongside one-stop shopping giants like Amazon.com and Walmart.com.

Nickeled and Dimed: Is It Possible to 'Over-fee' Consumers?

Wed, 13 Apr 2011 15:12:20 EST

When a business faces extra costs or other hits to the bottom line, these costs are often passed on to the consumer. Increasingly, in industries such as financial services and the airlines, the hits take the form of ancillary fees. And in some cases, the charges are for services that were once free, such as checking baggage on a flight or opening a checking account. Yet businesses that impose fees need to tread carefully, experts say, because customers will quickly revolt if the extra costs are perceived to be unreasonable.

Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites

Wed, 10 Nov 2010 14:15:08 EST

Groupon -- from the words "group" and "coupon" -- negotiates deeply discounted deals with businesses and alerts its legion of e-mail subscribers to the offer. Since its founding in 2008, Groupon has amassed 25 million subscribers in 29 countries, and a host of competing sites have crowded the market hoping to tap into the potential of "social" commerce. But are group buying sites just a passing fancy? And what should they do to stand out from the pack and achieve long-term sustainability?

Can Twitter Promote Itself into Profitability?

Wed, 26 May 2010 16:26:29 EST

Last month, Twitter unveiled "Promoted Tweets," a new ad system the company hopes will turn the service into a profitable endeavor. Though much talked about, Twitter faces a set of intertwined business conundrums. How can it help businesses create a level of engagement with consumers that turns tweets into a useful tool for marketing and customer service? How can Twitter then parlay those efforts into a viable, income-producing strategy for itself? Wharton experts and others say finding a successful model for the Promoted Tweet is only one of the challenges the company must overcome to avoid the fate of former "next big things" like Netscape, Excite or Pets.com.

Geography Lesson: Why Internet Retailers Should Pay Attention to Where Potential Customers Live

Wed, 17 Mar 2010 17:58:09 EST

While the Internet holds immense promise for reaching retail customers far beyond traditional trading areas, new Wharton research indicates that old world dynamics, such as neighbors sharing word-of-mouth recommendations, can still have powerful effects on Internet sales.

Company Stores vs. Independent Retailers: Clash or Peaceful Coexistence?

Wed, 28 Oct 2009 17:19:29 EST

Microsoft dipped its toe into retail waters this month by opening its first company store as a way to showcase the latest and greatest in PCs, Zunes and Xbox consoles. But computer companies aren't the only manufacturers moving into the retail space, says Wharton marketing professor David Bell. Whether it's handbags from Coach, shoes from Nike or suits from Ralph Lauren, consumers increasingly have the choice to buy products either at stores operated by manufacturers or from independent retailers. Bell recently co-authored a research paper looking into competition between company stores and independent retailers in the same market.

Not on the List? The Truth about Impulse Purchases

Wed, 07 Jan 2009 16:53:55 EST

Retailers and manufacturers of consumer goods have long believed that most grocery store purchases are unplanned, and that showy displays will push more goods into shopping carts. The displays may help sales, but the underlying assumption -- that most grocery store sales are impulse buys -- is wrong, according to a new research paper co-authored by Wharton marketing professor David Bell.

Losing Their Cool: The Downside of Expanding Hot Social Networking Sites

Wed, 20 Sep 2006 15:51:08 EST

Facebook, a social networking site known as an online meeting place for college and high school students, is opening its doors to more people in an effort to grow beyond its current nine million registered users. Could such a move end up blurring the company's focus and diluting its brand? Are there better ways to expand?

Wal-Mart: Is There a Downside to Going Upscale?

Wed, 14 Jun 2006 15:41:34 EST

After saturating its target market of working class, bargain-hunting consumers, Wal-Mart is ratcheting up its low-price strategy to appeal to more upscale shoppers by expanding its merchandise lines to include organic foods, better wines, high-end consumer electronics and new fashion-oriented apparel. It's an approach that carries some risk, say Wharton faculty and analysts, but that is dictated by intense competition and the lack of other opportunities for growth.

If You Were in Charge, How Would You Market These Products?

Wed, 31 May 2006 14:49:23 EST

With more and more advertising vehicles crowding today's marketing environment -- including traditional print, television and radio ads, product placements, Internet buzz, viral campaigns and cell phone messaging -- marketers have new opportunities to reach vast pools of potential customers. But the tangle of options also requires any successful marketing plan to take into account the nature of the product, its durability in the public's mind and the advertising budget needed to make it all work. As Wharton professor David Bell notes: It's very hard to find "the one big lever that can reach a whole lot of people in a way that is cost-effective." Knowledge@Wharton asked four Wharton marketing professors how they would go about launching two hypothetical products, a summer blockbuster movie and a cell phone.

MySpace, Facebook and Other Social Networking Sites: Hot Today, Gone Tomorrow?

Wed, 03 May 2006 15:07:25 EST

Popular social network sites, including MySpace and Facebook, are changing the human fabric of the Internet and have the potential to pay off big for investors, but -- given their youthful user base -- they are unusually vulnerable to the next new fad. As quickly as users flock to one trendy Internet site, they can just as quickly move on to another with no advance warning, according to Wharton faculty and Internet analysts, who offer some ideas on how these new sites can both increase user loyalty and generate revenues.

How the Offer of 'Free Shipping' Affects On-line Shopping

Wed, 19 Apr 2006 16:18:31 EST

The phrase "free shipping" is like a siren song to many who shop on the Internet. For whatever reason, a free shipping offer that saves a customer $6.99 is more appealing to many than a discount that cuts the purchase price by $10, says Wharton marketing professor David Bell. Bell noticed this phenomenon a few years ago while doing research for an online grocery store, and the observation prompted him to look more closely at the ways Internet retailers use shipping charges -- or the lack thereof -- as a promotional tool. The result is a recent paper titled, "Free Shipping and Repeat Buying on the Internet: Theory and Evidence," by Bell and colleagues Skander Essegaier from Koc University and Yinghui Yang from the University of California at Davis.

Sirius Satellite Radio and Howard Stern Go Ear to Ear with XM

Wed, 22 Feb 2006 16:56:24 EST

Since announcing on October 6, 2004, that it had signed Howard Stern to a five-year deal, Sirius Satellite Radio has added approximately 2.7 million subscribers and become a household name in the satellite radio world. The tab: Close to $700 million. Is Stern worth it? Can the popular and raunchy talk show host catapult Sirius ahead of rival XM Satellite Radio, or are there other issues to consider, such as the threat of new technologies, the need to provide good content, and the continuing popularity of conventional radio? Wharton faculty and others debate the different strategies of Sirius and XM and the challenges that both face.

Attention Shoppers: Great Deals in Retail Mergers

Wed, 30 Mar 2005 10:07:57 EST

Federated Department Stores' acquisition of The May Department Stores will give the company added national scope and reduce costs, and may even result in some short-term savings for consumers. But Federated will still face the challenges of department store retailing, which has been in decline for decades, according to Wharton faculty and retail analysts. Some predict more consolidation in the industry and a greater effort by stores to better position themselves against both high- and low-end competitors.

What's the Buzz About Buzz Marketing?

Wed, 12 Jan 2005 15:15:21 EST

There's a new marketing catchphrase that's getting rave word-of-mouth reviews. From articles in the popular press to conversations in the classroom, huge companies to boutique marketing firms, suddenly it seems you can't talk about new products without addressing 'buzz marketing.' "People are buzzing about buzzing," says Wharton marketing professor Barbara Kahn who adds, along with others, that word-of-mouth marketing has long been recognized as a way to influence consumer behavior. What's new about buzz marketing is the structure and hype surrounding it and the attempts to measure its effectiveness on sales.

How "Social Contagion" Affects Consumers' Willingness to Try Online Retailers

Wed, 20 Oct 2004 15:58:19 EST

For traditional retailers, location, location, location is an all-too-familiar mantra, with stores made or broken by factors such as traffic flow, demographics and parking. But what about the brave, new and often perilous world of Internet retailing, where the physical location of a store is meaningless? How, when customers and competitors are geographically dispersed, does an online retailer's customer base evolve? A recent study by Wharton marketing professor David R. Bell, entitled "Social Contagion and Trial on the Internet: Evidence from Online Grocery Retailing," offers some intriguing answers.

Which Customers Are Worth Keeping and Which Ones Aren't? Managerial Uses of CLV

Wed, 30 Jul 2003 00:00:00 EST

Managers have long been interested in weeding out customers that they consider to be less profitable than others. The question is, how do managers determine who belongs in that group? According to several Wharton marketing professors, there is no easy answer, despite new and increasingly sophisticated efforts to measure what is called �Customer Lifetime Value� (CLV) � the present value of the likely future income stream generated by an individual purchaser. CLV, it turns out, is hard to calculate and harder to use.

Pay-for-Performance Trade Promotions Can Ease Friction Between Manufacturers and Retailers

Wed, 29 Aug 2001 00:00:00 EST

Durk Jager, former head of Procter & Gamble�s U.S. operations, recently characterized the existing trade promotion system between manufacturers and retailers as �impossibly inefficient.� Wharton marketing professor David Bell and Xavier Dreze from UCLA�s Anderson School of Management, couldn�t agree more. Their solution is a variation on a relatively new type of trade promotion known as �pay-for-performance.�

How Store Location and Pricing Structure Affect Shopping Behavior

Wed, 05 Jul 2000 14:31:49 EST

As a shopper, do you prefer large stores with low prices in an inconvenient location, or smaller stores that are near your home and offer good customer service? Retailers � from Wal-Mart to the corner hardware store - want to know. A new study by two Wharton researchers and a colleague from UCLA analyzes the decisions shoppers make, and suggests ways in which retailers can use this information to improve store performance.