Abstract

http://ssrn.com/abstract=1989614
 
 

Citations (1)



 


 



How Video Rental Patterns Change as Consumers Move Online


Alejandro Zentner


University of Texas at Dallas - Naveen Jindal School of Management

Michael D. Smith


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Cuneyd Kaya


University of Texas at Dallas

October 10, 2012


Abstract:     
How will consumption patterns change when consumers move from brick-and-mortar to Internet markets? If consumers purchase more niche products online than at brick-and- mortar stores, does this have something to do with the channel or is this solely due to selection effects: the types of consumers who decide to use the Internet channel or the types of products that consumers select to purchase online?

We address these questions using customer-level rental panel data obtained from a national video chain as it was closing many of its local stores. This allows us to observe how behavior changes when consumers are forced to move from brick-and-mortar to online consumption.

Our results suggest that when consumers move from brick-and-mortar to online channels they are significantly more likely to rent “niche” titles relative to “blockbusters.” This suggests that a significant amount of niche product consumption online is due to the nature of the channel, not just due to selection effects.

Number of Pages in PDF File: 34

Keywords: Long Tail, movie rentals, natural experiment, empirical estimation

working papers series


Download This Paper

Date posted: January 23, 2012 ; Last revised: October 23, 2012

Suggested Citation

Zentner, Alejandro and Smith, Michael D. and Kaya, Cuneyd, How Video Rental Patterns Change as Consumers Move Online (October 10, 2012). Available at SSRN: http://ssrn.com/abstract=1989614 or http://dx.doi.org/10.2139/ssrn.1989614

Contact Information

Alejandro Zentner
University of Texas at Dallas - Naveen Jindal School of Management ( email )
P.O. Box 830688
Richardson, TX 75083-0688
United States
Michael D. Smith (Contact Author)
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
Pittsburgh, PA 15213-3890
United States
HOME PAGE: http://www.heinz.cmu.edu/~mds
Cuneyd Kaya
University of Texas at Dallas
2601 North Floyd Road
Richardson, TX 75083
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,156
Downloads: 59
Download Rank: 212,670
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.484 seconds