Not All Debt Is Created Equal: On the Mental Accounting of Debt FormsJun 26, 2019 Eesha Sharma, Dartmouth College, Stephanie Tully, University of Southern California, and Cynthia Cryder, Washington University, 2019, 19-121-06
Consumers are less likely to think of credit (versus loans) as "money to be repaid" rather than "money to be spent." These mental representations are consequential - they influence consumer willingness to incur debt and concerns about repaying.
Tuition Myopia: Myopic Focus on the Costs of Higher Education Induces Intertemporal TradeoffsJun 21, 2019 Haewon Yoon, Indiana University, Yang Yang, University of Florida, and Carey Morewedge, Boston University, 2019, 19-120-06
Is calculating lifetime ROI the right way to think about college costs? Six studies show that financially-impatient consumers prefer low-cost, low-return colleges over high-cost, high-return colleges, thus failing to maximize their lifetime earnings.
Why Digital Goods Are Valued Less Than Physical GoodsJun 14, 2019
Carey Morewedge, Boston University
Many digital goods such as souvenir photographs, books, and films are substantive innovations relative to their physical counterparts. Despite this, consumers may ascribe less value to digital than to physical versions of the same good.
Get Multichannel Distribution (Approximately) RightJun 12, 2019 Kusum L. Ailawadi, Dartmouth College
With the plethora of choices available today, it is more important than ever for brands to select and organize their distribution channels in a way that delivers the experience shoppers demand, while generating the volumes and margins for everyone in the channel that are needed to sustain the business.
Last Place Aversion in QueuesMay 17, 2019 Ryan W. Buell, Harvard University, 2019, 19-118-05
Last-place aversion is consequential for customer satisfaction and firm profits - customers who are last in line are twice as likely to switch or renege from the queue. Queue transparency can help. So can "eliminating" last place - experimentally ensuring that no one ever perceived themselves to be in last place reduced defections by 43.5%.
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