A Review of Choice Modeling in the Marketing-Operations Management Interface

31 Pages Posted: 16 Aug 2017

See all articles by Andres Musalem

Andres Musalem

Universidad de Chile

Marcelo Olivares

Columbia University - Columbia Business School - Decision Risk and Operations; University of Chile - Engineering Department

Sharad Borle

Rice University

Hai Che

Indiana University - Kelley School of Business

Christopher T. Conlon

Columbia University

Karan Girotra

Cornell Tech; Cornell SC Johnson College of Business

Sachin Gupta

Cornell University - Samuel Curtis Johnson Graduate School of Management

Kanishka Misra

University of Michigan, Stephen M. Ross School of Business; University of Michigan at Ann Arbor

Julie H. Mortimer

Boston College; National Bureau of Economic Research (NBER); Harvard University - Department of Economics

Gustavo Vulcano

Universidad Torcuato Di Tella - School of Business

Fanyin Zheng

Columbia University - Columbia Business School

Date Written: August 4, 2017

Abstract

The operations management discipline has made substantial progress developing analytical models to help firms make tactical and strategic decisions (e.g., inventory control, assortment planning). The application of these models to real contexts requires several inputs, such as an estimate of the benefits and costs of various levels of the operational decision under study. It is often the case that the associated benefits depend on how customers react to changes in the operational decisions being modeled. This in turn requires an empirical validation of the consumer model that serves as an input when making operation decisions. Bringing together researchers from economics, marketing and operations management, this paper reviews and discusses recent findings in terms of modeling and empirically validating consumer choices in response to operational decisions. We structure this discussion along four major operational decisions and issues: product variety (including inventory and assortment), service capacity, pricing and supply chain coordination. For each of these areas, we review recent work and identify challenges that we believe are important to address in future research aimed at connecting operations management research to practice.

Keywords: Choice Models, Marketing-Operations Interface, Econometrics, Empirical Research

Suggested Citation

Musalem, Andres and Olivares, Marcelo and Borle, Sharad and Che, Hai and Conlon, Christopher T. and Girotra, Karan and Gupta, Sachin and Misra, Kanishka and Mortimer, Julie H. and Vulcano, Gustavo and Zheng, Fanyin, A Review of Choice Modeling in the Marketing-Operations Management Interface (August 4, 2017). Kelley School of Business Research Paper No. 17-60; Columbia Business School Research Paper No. 17-85. Available at SSRN: https://ssrn.com/abstract=3018732 or http://dx.doi.org/10.2139/ssrn.3018732

Andres Musalem (Contact Author)

Universidad de Chile ( email )

Beauchef 851
Santiago
Chile

HOME PAGE: http://www.dii.uchile.cl/~amusalem

Marcelo Olivares

Columbia University - Columbia Business School - Decision Risk and Operations ( email )

3022 Broadway
Uris Hall, #417
New York, NY 10027
United States

HOME PAGE: http://www.columbia.edu/~mo2338/index.htm

University of Chile - Engineering Department ( email )

Republica 701 Santiago
Chile

Sharad Borle

Rice University ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

Hai Che

Indiana University - Kelley School of Business ( email )

1309 East Tenth Street
Indianapolis, IN 47405-1701
United States

Christopher T. Conlon

Columbia University ( email )

420 W 118th St
New York, NY 10027
United States

Karan Girotra

Cornell Tech ( email )

111 8th Avenue #302
New York, NY 10011
United States

HOME PAGE: http://www.girotra.com

Cornell SC Johnson College of Business ( email )

Ithaca, NY 14850
United States

HOME PAGE: http://www.girotra.com

Sachin Gupta

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

Kanishka Misra

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

University of Michigan at Ann Arbor ( email )

500 S. State Street

Julie H. Mortimer

Boston College ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States
617-552-3676 (Phone)

HOME PAGE: http://fmwww.bc.edu/ec/mortimer.php

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

Gustavo Vulcano

Universidad Torcuato Di Tella - School of Business ( email )

Avda Figueroa Alcorta 7350
Buenos Aires, CABA 1428
Argentina

Fanyin Zheng

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

HOME PAGE: http://www.fanyinzheng.com

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