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Marketing Department's Lecture

Topic:    Showrooming and webrooming: Information externalities between offline and online retailers

Speaker:Bing Jing

Time:     14:00 Oct.25 2017

Place:     Room1008,Mingde Bussiness Building

Abstract:

We study competition between a traditional and an online retailer in the presence of showrooming. Several results are obtained. First, showrooming intensifies competition and lowers both firms' profits, supporting traditional retailers' recent strategy of carrying more exclusive varieties. Second, the traditional retailer's efforts to lower consumer search costs may aggravate showrooming and decrease its profits for intermediate search costs. Third, opening an online store by the traditional retailer expands its demand but intensifies competition, thus lowering its profits under certain conditions. Fourth, when search cost is not high enough, price matching by the traditional retailer may also intensify competition and hurt its profits. Fifth, a returns policy by the online retailer alleviates showrooming but weakly reduces its demand, increasing its profits for intermediate search costs and decreasing its profits otherwise. We then examine how webrooming interacts with showrooming. When webrooming resolves partial match uncertainty it may increase both firms' profits by inducing more consumers to participate.

BIO:

Dr Jing Bing is an Associate Professor of Marketing at CKGSB. He earned his PhD in business administration from the University of Rochester in 2001.
Between 2001 and 2007, he was an Assistant Professor of Information Systems at the Stern School of Business at New York University. Professor Jing's research interests include mass customization, product line design and pricing, product differentiation, word-of-mouth marketing, etc.
His work has appeared in leading scholarly journals such as Management Science, Marketing Science, Quantitative Marketing and Economics, Journal of Economics and Management Strategy, Journal of Management Information Systems, Economics Letters, and Marketing Letters. He served on the editorial board of Marketing Science.