Stephen Hoch - Faculty Research in Knowledge@Wharton

Technological Evolution Stirs a Publishing Revolution

Wed, 05 Aug 2009 16:41:52 EST

According to Wharton faculty who follow the complicated, emotionally fraught subject of how we buy and sell literature, devices such as Amazon's Kindle and an on-demand book-printing machine called Espresso are helping to upend longstanding customs in the slow-to-change business of book publishing.

On Shaky Ground: Commercial Real Estate Faces Financial Tremors

Wed, 22 Jul 2009 15:41:58 EST

As the global recession drags on, new concerns are rising about commercial real estate. Loans taken out during the boom years are coming due, but commercial property owners are contending with higher vacancy rates, lower rents and a less-than-receptive environment for refinancing their obligations. Industry analysts and politicians suggest that commercial real estate is about to become the next high-profile casualty in the ongoing economic meltdown. "The shoe has already dropped," says one Wharton real estate professor.

How About Free? The Price Point That Is Turning Industries on Their Heads

Wed, 04 Mar 2009 14:25:43 EST

Giving products away -- think Adobe Reader or access to online news -- has become a legitimate business model on the Internet and even beyond. Once companies accept that price need not be tied to the cost of production and begin thinking creatively, new possibilities emerge -- even for offline products, according to Wharton faculty and others. Welcome to the world of "freeconomics."

The Shopper of Tomorrow: Trading Down

Wed, 18 Feb 2009 17:51:20 EST

Attention Shoppers: We no longer have the following items -- "a sense of entitlement," "conspicuous consumption" and "a golden period of luxury." At least that is the word from Wharton faculty and other experts who point to a new logic that is defining not just what U.S. consumers buy, but how they view the shopping experience.

The Mall Pall: Have America's Biggest Shopping Centers Lost Their Allure?

Wed, 10 Dec 2008 17:25:28 EST

While shopping malls once epitomized America's consumer society, new Wharton research suggests that these days, shoppers find the mall environment predictable and uninspiring, plus it's hard to park and there aren't enough restaurants. The research, conducted by Wharton's Jay H. Baker Retailing Initiative and The Verde Group, offers mall developers some suggestions on how they can respond to consumer complaints -- without spending a lot of money.

Pajamas and Popcorn: Retailers Face a Less-than-Festive Holiday Shopping Season

Wed, 29 Oct 2008 13:34:46 EST

As Wall Street unravels and the economy confronts its crucial holiday spending season, consumers cannot be expected to prop up retailers as they have in past downturns. Even luxury stores, whose customers have been immune in recent years to retail price sticker shock, are expected to take a hit this time, according to Wharton faculty and consumer analysts. As one commentator notes: "It will be a lean Christmas."

On the Clock: Are Retail Sales People Getting a Raw Deal?

Wed, 01 Oct 2008 17:54:21 EST

Ann Taylor Stores -- a New York-based retailer of upscale women's clothing -- is using a new computer scheduling system that assigns the busiest and most desirable hours to employees with the strongest sales numbers. Those with less success on the selling floor get far fewer and less desirable hours when new schedules are posted. While systems like these can help improve productivity, Wharton faculty and others warn that they are no substitute for hands-on management when it comes to dealing with workers.

Hot Today, Not Tomorrow: Retailers Face the Terrible Teens

Wed, 03 Sep 2008 17:03:03 EST

New York-based teen apparel retailer Aéropostale has had a bullish summer, with second-quarter net income rising 43% over the previous year. Meanwhile, other teen-focused retailers, including The Gap and Abercrombie & Fitch, have suffered losses. Experts from Wharton and elsewhere suggest that teen retailers are competing intensely for attention in hard economic times, even as these new conditions are giving rise to a changing landscape of winners and losers.

A Precarious Road: How Retailers Can Navigate Inflation's Hazards

Wed, 06 Aug 2008 17:31:38 EST

Retailers are in a tough situation, locked between rising product costs and a limited ability to raise their prices. Even cost-savvy market leaders such as Costco are having a difficult time. But Wharton faculty say that handled carefully, the current inflationary period may actually be a business opportunity for some companies. The key: Forgetting some of the old rules of retailing.

The Hard Sell: How to Market Products That Are No Longer Popular

Wed, 30 Apr 2008 17:36:16 EST

Condos in Miami, traditional music stores, gas-guzzling cars, pharmaceuticals that get unfavorable press, foods made with trans fats: All marketers, from time to time, confront products that, for whatever reason, become difficult to sell. What strategies should companies follow to reposition their products in ways that might attract new audiences, or at least retain existing ones? One answer: segmenting. "There are so many different kinds of customers out there. You just need to find them," says one Wharton expert.

'Men Buy, Women Shop': The Sexes Have Different Priorities When Walking Down the Aisles

Wed, 28 Nov 2007 15:54:06 EST

When it comes to shopping, women are from Nordstrom's and men are from Sears. Women are happy to meander through sprawling clothing and accessory collections or detour through the shoe department. For men, shopping is a mission. They are out to buy a targeted item and flee the store as quickly as possible, according to a new study by Wharton's Jay H. Baker Retail Initiative and the Verde Group, a Toronto consulting firm. The study's findings have implications for retailers that are looking for ways to tailor their goods and services to specific segments of the shopping population.

The Holiday Shopping Outlook: I Saw Mommy Dissing Santa Claus

Wed, 14 Nov 2007 15:20:43 EST

When Wal-Mart starts its holiday markdowns three weeks before Thanksgiving, you know it will be a tough Christmas season. The Arkansas-based discount chain, a bellwether for U.S. retailing, usually holds off on its "door buster" sales until the day after Thanksgiving, traditionally the year's busiest shopping day. This year, Wal-Mart decided that it couldn't afford to wait. No wonder, say scholars at the Wharton School and retail analysts. A host of economic worries -- plus concerns over toy recalls -- has this year shaping up to be a lump-of-coal shopping experience. Here is what retailers -- and shoppers -- can expect.

The Price Is Right, but Maybe It's Not, and How Do You Know?

Wed, 03 Oct 2007 14:47:58 EST

When Apple dropped the price of its iPhone by a third after only two months on the market, even its most loyal buyers complained bitterly, forcing CEO Steve Jobs to apologize and offer a partial rebate. According to Wharton faculty and analysts, the iPhone episode reflects an evolving marketplace where innovation, fierce competition and globalization are changing strategic approaches to pricing. Meanwhile, pricing is gaining new interest as management looks for ways to increase revenues after years of focusing their attention on downsizing and cost-cutting.

When a Black Tee Shirt Is More than a Black Tee Shirt: Why Brands Aren't Losing Their Luster

Wed, 05 Sep 2007 15:46:23 EST

As sales of Apple's iPod, Coca-Cola and North Face clothing show, despite serious challenges from private label manufacturers and low-price global production, branding remains an important way for consumers to choose among products in a crowded marketplace. Brands are a short-hand means of conveying quality and lower risk, according to Wharton faculty and marketing analysts, and they also play a growing role in building consumers' identities. But, these experts add, with little room to compete on cost, brands will need to be vigilant when it comes to differentiating themselves from increasingly sophisticated competitors.

Trouble in Toyland: New Challenges for Mattel -- and 'Made in China'

Wed, 22 Aug 2007 13:17:32 EST

Mattel's recall of more than 10 million toys in the U.S. over the past three weeks has done more than focus attention on the company's wide array of products, which include such household names as Elmo, Ernie, Big Bird, Barbie and Batman. It has also further raised public awareness of quality control problems in China and the relentless push to cut costs along every step of the supply chain. Knowledge@Wharton looks at Mattel's response to the crisis, its potential liability and the consequences for China.

Are Your Customers Dissatisfied? Try Checking Out Your Salespeople

Wed, 16 May 2007 15:35:19 EST

The sales associate, noticing the approach of a customer, is suddenly intent on restocking merchandise or discussing when she will take her next break -- anything to avoid actual contact with the shopper. It's the type of behavior that dominates the list of complaints cited in the second annual Retail Customer Dissatisfaction Study. The study, conducted by Wharton's Jay H. Baker Retail Initiative and the Verde Group, found that disinterested, ill-prepared and unwelcoming salespeople lead to more lost business and bad word-of-mouth than any other management challenge in retailing.

Love Those Loyalty Programs: But Who Reaps the Real Rewards?

Wed, 04 Apr 2007 15:13:23 EST

At American Airlines' AAdvantge e-shopping site, more than 200 vendors -- including Bergdorf Goodman, Home Depot and Petco -- offer bonus miles to shoppers. At the Apple Store, a dollar spent earns one mile, while Hallmark pays 10 miles for each $1 in sales. Continental's OnePass program allows members to earn two miles for every $1 paid for electricity from Gexa Energy of Houston. The list goes on. But while the number of programs is increasing, they don't always provide a big payout for all their participants, according to Wharton marketing faculty.

Retailers Are Trying to Avoid the Christmas Crunch, but Consumers Aren't Buying It

Wed, 13 Dec 2006 15:19:43 EST

"Black Friday" -- the day after Thanksgiving that signals the start of the holiday shopping season in the U.S. -- was particularly charged this year, marked by midnight store openings and brawls over scarce sale items. Despite the hoopla, retailers are expected to post only modest gains this month, according to Wharton faculty and retail analysts. A key problem, they note, is that shoppers continue to procrastinate on holiday purchases, despite highly visible, early-season marketing promotions. The one area where sales are moving at a brisk pace: online retail.

What Impact, If Any, Will Higher Minimum Wages Have on Retailers and Low-income Workers?

Wed, 06 Sep 2006 15:05:02 EST

The struggle to raise pay for low-income workers, once fought in agricultural fields and on factory floors, is moving to the aisles of big retailers in Chicago where large national chains like Wal-Mart and Target may be forced to offer higher wages along with every-day low prices. While retailers complain the legislation may lead them to stall plans for new downtown stores, Wharton faculty say Chicago's proposed living wage law is largely symbolic and would have little real impact on large retail chains or their employees. Some argue that it also won't have much impact on poverty.

The Lowdown on Customer Loyalty Programs: Which Are the Most Effective and Why

Wed, 06 Sep 2006 14:30:41 EST

When making a purchase, a consumer has a choice between using frequent-flier miles, cash, or some combination thereof. Which will he or she choose? Another consumer has an opportunity to participate in a special program to get a free car wash after paying for a certain number of washes. What's the best way for the car-wash owner to motivate the customer to participate? Such questions are serious business for airlines, hotel chains, credit-card companies and other corporations that offer loyalty programs to customers. Wharton marketing professor Xavier Drèze and Joseph C. Nunes of the University of Southern California's Marshall School of Business have spent several years studying how these programs can be structured to generate the most revenue for companies offering them.

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.

Beware of Dissatisfied Consumers: They Like to Blab

Wed, 08 Mar 2006 08:41:52 EST

When consumers have a bad shopping experience, they are likely to spread the word, not to the store manager or salesperson, but to friends, family and colleagues. Overall, if 100 people have a bad experience, a retailer stands to lose between 32 and 36 current or potential customers. These are some of the conclusions of The Retail Customer Dissatisfaction Study 2006, conducted by The Jay H. Baker Retailing Initiative at Wharton and The Verde Group, a Toronto consulting firm, in the weeks before and after Christmas 2005. The biggest source of consumer dissatisfaction? Parking lots.

'Tastes Great, Less Filling, and Perfect with Cheese': Beer Tries to Brew Up a New Image

Wed, 25 Jan 2006 15:13:16 EST

Can an industry that has spent a fortune on TV ads featuring mud wrestlers and talking frogs suddenly change its stripes to appeal to the wine-and-cheese, single-malt Scotch crowd? The makers of Budweiser and other brands of beer hope so. Anheuser-Busch and its competitors are developing an industry-wide marketing campaign aimed at overhauling the image of the humble beer and staunching its declining share of the alcoholic beverage market. But Wharton faculty members say that such a radical makeover might be too tall an order, even though the effort could enhance the appeal of microbreweries and perhaps some mass-market beers, like Michelob, that have already carved out a higher-end image.

Christmas Creep: The Shopping Season Is Longer, but Is It Better?

Wed, 01 Mar 2006 17:04:17 EST

Call it "Christmas creep." Holiday decorations are going up earlier in stores with each passing year, seasonal merchandise gets stocked on shelves soon after Halloween, and Christmas-related commercials are appearing on TV long before Santa Claus makes his way through Manhattan in the Macy's Thanksgiving Day parade. But is a longer Christmas season good for retailers? The phenomenon of an ever-earlier Christmas season is a boon to the people responsible for supply-chain management, according to operations experts at Wharton. But Wharton marketing scholars and other analysts say an extended Christmas season is something of a mixed bag. It may hold advantages, disadvantages -- or even no advantages -- for store owners.

Farewell, Peter Drucker: A Tribute to an Intellectual Giant

Wed, 30 Nov 2005 15:55:06 EST

Decades ago, Peter F. Drucker single-handedly began the exploration of what he called "the dark continent of management." That exploration, which gave birth to the field of management, came to an end on November 11 when Drucker passed away at age 95. Wharton professors point out that Drucker's most important contributions are grounded in his writings on management and marketing. Despite his death, his legacy and impact as a role model will last.

Spreading Yourself Too Thin: The Atkins Diet and Other Fads

Wed, 19 Oct 2005 16:43:39 EST

The July bankruptcy of Atkins Nutritionals, the company founded by diet guru Robert Atkins, signalled the end of a low-carbohydrate craze some observers say is unrivalled in food marketing. At its peak, during 2003-2004, some 30 million Americans were following the Atkins diet, and 20% of shoppers said they had started buying certain products specifically because they were low-carbohydrate. Yet like any product fad -- from Pet Rocks to Beanie Babies -- the Atkins craze was marked by a rapid rise in popularity and an equally rapid decline. Knowledge@Wharton looks at the different patterns that fads follow, what factors cause their rise and fall, and what role consumers play in promoting, and then abandoning, the latest trend.

What Consumers -- and Retailers -- Should Know about Dynamic Pricing

Wed, 27 Jul 2005 16:50:59 EST

According to a recent study, 64% of consumers who shop on the Internet do not know that "it is legal for an online store to charge different people different prices at the same time of day." Yet dynamic pricing is not new. Retailers have been using it for years in ways that benefit not just themselves but also their customers. The challenge is to establish dynamic pricing in ways that lead to profitability rather than price wars. As one expert noted, companies should "engage in flexible pricing practices in order to honor their responsibilities to their shareholders. If retailers charge a flat, low price to make everyone happy, they're leaving a lot of money on the table."

When Will the Apparel Quota System Finally Go Out of Style?

Wed, 29 Jun 2005 16:12:24 EST

When import quotas on textile products coming into the United States ended January 1, 2005, under World Trade Organization agreements signed 10 years earlier, a flood of clothing poured in from China. Within months, the U.S. responded with restrictions on Chinese apparel imports. Yet according to Wharton faculty and industry executives, these restrictions will only delay, not end, the global move toward quota-free garment trade.

Boy Meets Girl: Gillette and P&G Hook up Their Brands

Wed, 30 Mar 2005 10:14:19 EST

The merger between Procter & Gamble and Gillette comes with the obvious chemistry of male and female product lines, but the two companies also share a culture of innovation and a history of cooperation, according to Wharton faculty and industry analysts. The combined entity will have annual sales of $60 billion and more than 200 brands. Of those 200, 21 have sales of more than $1 billion a year. Such increased market clout raises questions about the new company's impact on other consumer goods manufacturers, on retailers, and on brand strategy in general.

Sears-Kmart Merger: Is It a Tough Sell?

Fri, 14 Jan 2005 14:56:16 EST

According to the CEOs of Sears, Roebuck and Kmart Holding, their plan to merge into a giant $55 billion retail company will produce stronger brands, greater efficiencies in operations and higher returns than either company could achieve standing alone. Not everyone sees the wisdom of the deal, however. "Here you have two retailers who are doing badly right now and who don't really see a clear way to pull themselves out of the downward spiral," says Wharton marketing professor Stephen J. Hoch. "It's hard to fathom how combining them is suddenly going to produce a new entity that will do better. That's tough to do, especially because the competition, including Wal-Mart and Target, isn't exactly standing still."

Tiffany & Co: A Case Study in Diamonds and Social Responsibility

Wed, 17 Nov 2004 17:06:54 EST

"Minerals should - and can - be extracted, processed and used in ways that are environmentally responsible." Those words, coming from Michael J. Kowalski, chairman and CEO of Tiffany & Co., set the stage for a discussion last week of the luxury jeweler and specialty retailer's recent efforts to bring about industry reform. Kowalski spoke to a Wharton marketing class that looked at such issues as how Tiffany should proceed in its campaign to promote responsible mining, what the campaign might do to its brand equity, and how the public commitment to reform could affect consumers and shareholders.

A Growing Corporate Club: The Founding Felon

Wed, 25 Aug 2004 14:35:51 EST

Along with Martha Stewart, some of the biggest names in the current wave of corporate criminal cases are company founders – Kenneth Lay of Enron, Bernie Ebbers of WorldCom, John Rigas of Adelphia Communications, Steve Madden, founder of the shoe company that bears his name, and Sam Waksal of Imclone Systems. While most founders are never even summoned to court, they have a deep connection to their companies, making those firms especially vulnerable if their founders turn out to be felons, according to Wharton faculty and other experts.

Low-carb, High-carb: What's a Baker/Pasta Maker to Do?

Wed, 16 Jun 2004 15:47:10 EST

With the public’s appetite for low-carbohydrate food products on the rise, what is the right strategy for a baker or spaghetti maker these days: Buck the trend or join in the feast? Marketing experts at Wharton say the answer will depend on what manufacturers of breads, pastries, pasta and other high-carb foods think about the future of the low-carb craze. If they feel it’s a temporary fad, then it’s smart not to spend a lot of money launching a low-carb product line to supplement their existing high-carb offerings. But if they feel the low-carb trend represents a permanent shift in dietary habits, they should go ahead and produce low-carb alternatives. What’s clear is that where finicky consumers and diet fads are concerned, there are no easy answers.

Wal-Mart's Mega-Growth Continues, But Is its Image Getting a Bit Tarnished?

Wed, 21 Apr 2004 14:29:08 EST

Wal-Mart’s appearance for the third time in a row at the top of the Fortune 500 list of largest

U.S.

companies would seem to confirm what many have long suspected: This retailing behemoth is all-powerful and unstoppable. But industry experts and others are beginning to scrutinize some of Wal-Mart’s latest initiatives and its critics point to recent complaints about the company’s labor practices and hardball negotiating tactics. Others warn that Wal-Mart is not invulnerable to the same trends that have forced at least 25 major chain stores to close their doors since 1980.

State-of-the Art in Direct Mail: Getting Ever Closer to the Customer

Wed, 24 Mar 2004 16:24:15 EST

After adapting to the Internet and now facing a backlash against spam, direct marketers and traditional retailers are fine-tuning their advertising mix, searching for new strategies and technologies to build customer relationships. Wharton marketing experts and others look at what works, and what doesn’t, in the competitive race for more sophisticated and demanding consumers.

Cherry Picking: The Weapon of Choice for Price-conscious Consumers

Wed, 14 Jan 2004 13:38:57 EST

Do cherry pickers – those consumers who are extremely sensitive to price and go from store to store to pick the best-priced items and leave the rest – really save a lot of money? A recent paper by Wharton marketing professor Stephen J. Hoch and Edward J. Fox, a marketing professor at the Cox School of Business at Southern Methodist University, found that consumers not only save money but that the savings are enough to offset the time it takes to do the extra shopping. In addition, the researchers found, a substantial number of shoppers are savvy and diligent enough to make cherry picking pay off.

Retailers Expect Strong Holiday Shopping

Wed, 05 Nov 2003 14:18:18 EST

Chances are good that Santa Claus will leave a nice gift under the tree of

America

’s retailing industry this holiday season, but stores shouldn’t expect anything too extravagant. While the consensus view of experts at Wharton and elsewhere is that holiday sales will be up this year compared with 2002, several factors, including the absence of a hot new toy or electronic gizmo, suggest that it will be a respectable, not a blockbuster, season.

The Wal-Mart Empire: A Simple Formula and Unstoppable Growth

Wed, 09 Apr 2003 00:00:00 EST

For the second year in a row Wal-Mart topped Fortune magazine�s list of largest companies and is also the magazine�s most-admired firm, the first time one company has shared both honors since the annual survey began in 1955. The giant retailer continues to expand worldwide, planting giant supercenters as well as new neighborhood-scale markets in its attempt to offer more and more goods to a wider array of shoppers. But Wharton faculty and outside analysts note that Wal-Mart still faces a few challenges, ranging from its own centralized operations to union opposition to problems with local zoning boards.

Royal Ahold's Royal Hold Up

Sun, 09 Feb 2003 00:00:00 EST

Europe, it would seem, is not immune to large-scale accounting scandals that, until recently, have been a symbol of U.S. corporate greed. A case of Enron-style financial accounting fraud recently rocked Royal Ahold, the Dutch food retailer and distributor that became the world�s third-largest grocer through an aggressive, and apparently ill-fated, acquisition strategy. In a pattern all-too familiar to U.S. investors, Ahold�s announcement that it had overstated earnings followed promises of 15% growth, a goal that ultimately became unreachable.

Why Big-box Retailers Often Fumble in Their Global Growth Strategies

Wed, 26 Feb 2003 00:00:00 EST

In the growing world of global retail, merchandising behemoths are no longer confined by domestic boundaries. Formats vary, but many of the industry players operate so-called big-box retailers, such as discount stores, category killers, outlet stores and warehouse clubs, some occupying more than 200,000 square feet of space. How good are companies like Wal-Mart, Home Depot and Carrefour at selling abroad? Should their focus be on knowing the customer or on selling a unique concept?

Is the Happy Meal over for McDonald�s?

Wed, 18 Dec 2002 00:00:00 EST

Despite its stature as a global mega-brand, with 30,000 restaurants and 46 million customers a day, McDonald�s can�t seem to supersize its earnings. Sales and profit growth at the pioneering global fast-food business has stalled and the company�s shares are trading at seven-year lows. Last month, McDonald�s announced it would record its first quarterly loss ever, following a disastrous price war with U.S. burger rivals. The question now for McDonald�s is how to build on the formula that has made it the king of the fast food business for more than 40 years.

Can Holiday Shoppers Save the Economy?

Tue, 03 Dec 2002 00:00:00 EST

November's Black Friday ritual � which begins with shoppers lining up outside shopping malls at dawn and ends with left-over merchandise strewn up and down store aisles � has become an integral part of the Thanksgiving weekend. This year the stakes for retailers are higher than usual. Can consumers, who are credited with keeping the economy afloat during a nearly two-year stock market slump, spend enough this holiday season to tip retailers� books from red ink to black? Or will too many discounts, sales and specials drain off much-needed retail profits?

Kmart�s 20-Year Identity Crisis

Wed, 30 Jan 2002 00:00:00 EST

Kmart shoppers may have been surprised at the decision by the 40-year-old discount chain to file for bankruptcy-court protection on January 22. But the company�s decline was anything but sudden and its future is anything but certain, say three members of Wharton�s marketing department. They point to a long history of poor marketing decisions and an ill-advised acquisitions strategy.

Marketing Ethics in a Post-Terrorist Economy: What is the Right Pitch?

Wed, 21 Nov 2001 00:00:00 EST

Following the events of Sept. 11, marketers and advertisers must reconsider not only what products they sell but how they sell them � all against a backdrop of the War On Terror, the Anthrax scare and a badly slumping economy. What approach can companies and ad agencies adopt that is both ethical and effective? Wharton faculty, and the manufacturer of one uniquely American product, offer some suggestions.

No Crystal Ball � or Historical Precedent � Can Help Predict Consumer Confidence

Wed, 26 Sep 2001 00:00:00 EST

How the events of September 11 will affect consumer spending and saving is anyone�s guess, although in the short-term at least, the arrows seem to be pointing down. Whether consumers regain their confidence depends on a number of factors, say Wharton faculty and industry representatives. A stable stock market, a return to routine and a restored sense of security could all help generate a rebound.

How Deception, Reputation and E-mail Can Affect Your Negotiating Strategy

Wed, 23 May 2001 00:00:00 EST

How widespread is deception in negotiation and how can you detect it? What are the pros and cons of using e-mail during the negotiating process? How does a good, or bad, reputation influence the outcome of a negotiation? In a new book entitled �Wharton on Making Decisions,� three faculty members discuss these issues and offer advice on how to improve your bargaining ability.

Webvan Finds that Shopping for Food Online Hasn�t Clicked with Consumers

Mon, 19 Mar 2001 14:05:38 EST

Given the dismal record of American companies that offer online grocery shopping, it should come as no surprise that the last big player, Webvan Group Inc., is on the ropes as well. Is this a business that simply cannot work, or did Webvan just do it wrong? Wharton faculty offer some opinions.

How Bad Decisions Can Lead to Billion-Dollar Mistakes

Thu, 22 Feb 2001 15:57:06 EST

�What is the cost of poor decisions?� asks a new book by Wharton faculty entitled, Wharton on Making Decisions. Drawing on examples that include Barings Bank trader Nick Leeson and the explosion of the Challenger space shuttle, editors Stephen Hoch and Howard Kunreuther show how a �complex web� of poor decision making can be expensive and/or tragic. The editors and 14 other faculty members look at the decision-making process from the perspective of both individuals and groups.

Taking Stock of Supermarket Retail Performance

Wed, 08 Nov 2000 14:40:25 EST

To shoppers at a typical supermarket, it might appear that new merchandise always appears to replace the old in time for their weekly visit. But a lot is actually going on behind the scenes. Food and other consumer goods manufacturers know that more than 70% of purchase decisions are made in the stores. They want to be tuned into retailers� marketing and selling strategies. On the flip side, retailers have a job to do - sell products. They, too, benefit from measurements of their sales performance. A new paper from Wharton marketing professor Stephen J. Hoch, marketing professor Sanjay K. Dhar at the Graduate School of Business, University of Chicago, and Nanda Kumar, a professor at the University of Texas at Dallas, analyzes the factors that determine which retailers are doing better in terms of unit and dollar sales and why.

Three Marketing Lessons from the Love Bug

Wed, 24 May 2000 14:45:39 EST

Millions of users are recovering from last Thursday�s swift, silent attack of the Love Bug virus. For the past few days, newspaper pages and television screens have been filled with accounts from Manila, as the hunt continues for the hacker who unleashed the pandemic that crippled corporations and governments around the world. And yet, one of the most fascinating aspects of the Love Bug was the speed of its global proliferation. According to experts, it flashed around the world in just two hours. As CEOs and marketing directors ponder global marketing strategies for their products, can they learn any positive lessons from the Love Bug�s global odyssey? Three Wharton professors believe they can.