Can snooty staff of luxury stores boost sales? What research actually tells us.

By Darima Fotheringham New research by Darren Dahl,  University of British Columbia, and Morgan Ward, Southern Methodist University, “Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers’ Desire for the Brand” received a lot of attention in the press lately. The research shows that condescending attitude of sales representatives at higher end stores can …

Managing the Customer Portfolio to Improve Service and Financial Performance

By Beth Walker and Crina Tarasi Few firms consider “whether all of their individually desirable customers are, from the standpoint of risk, desirable collectively” (Dhar and Glazer 2003). Dr. Beth Walker, Arizona State University, and Dr. Crina Tarasi, Central Michigan University, present the findings of two papers that highlight the importance of considering the likely …

Extended Service Warranties: Why Are They Purchased?

By: Rajiv K. Sinha Warranties have traditionally been used as a means to signal to potential customers that the product is high-quality and to allay customers’ anxiety over purchasing a new product of unknown reliability. However, given large increases in reliability as well as the level of commoditization in consumer electronics markets, the value of …

Quid Pro Quo: Free Online Services in Exchange for User Data

By Dr. Florian v. Wangenheim We all enjoy using Internet services for free: communities, news websites and other web services often do not charge their users. In order to survive, free sites depend on advertising revenues. These can be increased through behavioral targeting, in which the advertiser makes use of information that he has about the …