Consumer Attention, Search and Decision-Making in Hypercomplex Decision Environments
28 Nov 2024
14:30 -16:00
Times are shown in local time.
Open to: All
Room W2.02 (Cambridge Judge Business School)
Trumpington St
Cambridge
CB2 1AG
United Kingdom
Join our Marketing seminar
Speaker: Professor Tülin Erdem, NYU Stern School of Business
About the seminar topic
Do consumers search the brands they know more or less frequently than the brands they are unfamiliar with? In this paper, we attempt to answer this question using data from an experiment with 2 novel features:
- survey information on consumers’ prior brand ownership, familiarity with each brand, and prior experience using different product features
- eye-tracking data capturing search behaviour at a very granular level
We find consumers are generally more likely to search and buy brands they own and are familiar with, highlighting the importance of accounting for prior information. For this reason, we develop a search model in which both the information obtained during the search process and the information possessed by consumers prior to search are allowed to influence search and purchase decisions. Our model contributes to prior work by modelling search at the brand and attribute level within a Bayesian learning framework.
Using this model, we then quantify the impact of prior information on consumer choices, as well as document the estimation bias arising when prior information is absent from the model. Finally, through a series of counterfactuals, we explore the managerial value of prior information data.
Speaker bio
Tulin Erdem joined New York University Stern School of Business as a Leonard N Stern School Professor of Business and Professor of Marketing in July 2006.
Before joining Stern in 2006, Tulin Erdem has also been the E T Grether Professor of Business Administration and Marketing at the Haas School of Business, University of California at Berkeley, where she served also as the Associate Dean for Academic Affairs and the Marketing Group Chair, and the PhD Director at the Haas School of Business.
She has received best paper awards, as well major research grants, including two major National Science Foundation grants. She served as an AE at Marketing Science, Journal of Consumer Research and Quantitative Marketing and Economics. She was the editor-in-chief of the Journal of Marketing Research (2009-2012).
Tulin Erdem also served as the President of INFORMS Marketing Society (ISMS). She is an ISMS fellow and an MSI Academic Fellow. Tulin Erdem has a BA (Bogazici University) and MA in Economics and PhD in Business Administration (University of Alberta.
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No registration required. If you have any questions about this seminar, please email Luke Slater.