Designing Context-Based Marketing: Product Recommendations Under Time Pressure

2021 ◽  
Author(s):  
Kohei Kawaguchi ◽  
Kosuke Uetake ◽  
Yasutora Watanabe
Keyword(s):  
Context Effect ◽  
Time Pressure ◽  
Consideration Set ◽  
Price Discounts ◽  
Vending Machines ◽  
Consumer Segment ◽  
Consumer Attention ◽  
Product Recommendations ◽  
Total Sales ◽  
Actual Policy

We study how to design product recommendations when consumers’ attention and utility are influenced by time pressure—a prominent example of the context effect—and menu characteristics, such as the number of recommended products in the assortment. Using unique data on consumer purchases from vending machines on train platforms in Tokyo, we develop and estimate a structural consideration set model in which time pressure and recommendations can influence attention and utility. We find that time pressure reduces consumer attention but increases utility. Time pressure moderates the effect of recommendations for the attention of both recommended and nonrecommended products and utility for recommended products. Moreover, the number of total recommendations increases consumer attention in general, but in a diminishing way. In our counterfactual simulations, we find that the revenue-maximizing number of recommendations decreases with time pressure and that optimizing recommending products to accommodate time pressure by a greedy algorithm increases total sales volume by 3.7% relative to the actual policy, 0.6% points more than traditional consumer-segment-based targeting policy. This effect is larger than 10% price discounts, which increases the revenue only by 0.4% at the margin. This paper was accepted by Matthew Shum, marketing.

Impact of Healthy Vending Machine Options in a Large Community Health Organization

2017 ◽  
Vol 32 (6) ◽  
pp. 1425-1430 ◽  
Author(s):  
Ravi Grivois-Shah ◽  
Juan R. Gonzalez ◽  
Shashank P. Khandekar ◽  
Amy L. Howerter ◽  
Patrick A. O’Connor ◽  
...  
Keyword(s):  
Patient Care ◽  
Community Health ◽  
Financial Impact ◽  
Nutrition Information ◽  
Sales Revenue ◽  
Large Community ◽  
Vending Machines ◽  
Health Organization ◽  
The Impact ◽  
Total Sales

Purpose: To determine whether increasing the proportion of healthier options in vending machines decreases the amount of calories, fat, sugar, and sodium vended, while maintaining total sales revenue. Design: This study evaluated the impact of altering nutritious options to vending machines throughout the Banner Health organization by comparing vended items’ sales and nutrition information over 6 months compared to the same 6 months of the previous year. Setting: Twenty-three locations including corporate and patient-care centers. Intervention: Changing vending machine composition toward more nutritious options. Measures: Comparisons of monthly aggregates of sales, units vended, calories, fat, sodium, and sugar vended by site. Analysis: A pre–post analysis using paired t tests comparing 6 months before implementation to the equivalent 6 months postimplementation. Results: Significant average monthly decreases were seen for calories (16.7%, P = .002), fat (27.4%, P ≤ .0001), sodium (25.9%, P ≤ .0001), and sugar (11.8%, P = .045) vended from 2014 to 2015. Changes in revenue and units vended did not change from 2014 to 2015 ( P = .58 and P = .45, respectively). Conclusion: Increasing the proportion of healthier options in vending machines from 20% to 80% significantly lowered the amount of calories, sodium, fat, and sugar vended, while not reducing units vended or having a negative financial impact.

A Behavioral Characterization of the Drift Diffusion Model and Its Multialternative Extension for Choice Under Time Pressure

2020 ◽  
Vol 66 (11) ◽  
pp. 5075-5093 ◽  
Author(s):  
Carlo Baldassi ◽  
Simone Cerreia-Vioglio ◽  
Fabio Maccheroni ◽  
Massimo Marinacci ◽  
Marco Pirazzini
Keyword(s):  
Diffusion Model ◽  
Time Pressure ◽  
Model Misspecification ◽  
Drift Diffusion Model ◽  
Drift Diffusion ◽  
Consideration Set ◽  
Successful Model ◽  
Axiomatic Analysis ◽  
Multialternative Choice ◽  
Behavioral Characterization

In this paper, we provide an axiomatic foundation for the value-based version of the drift diffusion model (DDM) of Ratcliff, a successful model that describes two-alternative speeded decisions between consumer goods. Our axioms present a test for model misspecification and connect the externally observable properties of choice with an important neurophysiologic account of how choice is internally implemented. We then extend our axiomatic analysis to multialternative choice under time pressure. In a nutshell, we show that binary DDM comparisons of the alternatives, paired with Markovian exploration of the consideration set, approximately lead to softmaximization. This paper was accepted by Manel Baucells, decision analysis.

Building Market Structures from Consumer Preferences

1996 ◽  
Vol 33 (3) ◽  
pp. 293-306 ◽  
Author(s):  
Lee G. Cooper ◽  
Akihiro Inoue
Keyword(s):  
Consumer Preferences ◽  
Ideal Point ◽  
Data Types ◽  
Consideration Set ◽  
Market Structures ◽  
Car Market ◽  
Building Market ◽  
Consumer Segment ◽  
Specific Rule ◽  
Using Data

The authors present a model that maps competitive market structures by identifying the preference structure of each consumer segment. By marrying two different data types—switching probabilities and attribute ratings—their model divides a market into several homogeneous sub-markets in which consumers consider a distinctive subset of brands (consideration set or competitive group) with a segment-specific rule for attribute evaluations and a segment-specific ideal point. Using data published in Harshman and colleagues’ (1982) work, the authors examine the U. S. car market and find brand-loyal segments for all car types except those favored by first-time buyers, a universal market, and five switching segments that consider car groups differing in the nation of origin, size, and luxury level. Breaking the switching segment into finer partitions gives a better account of the data than the Colombo-Morrison model or an asymmetric generalization of that model. The authors advocate the development of marketing goals with respect to each of the segment maps in the hope that it will lead to more synergistic marketing strategies for brands encountering multifaceted competition.

scholarly journals Factors That Influence the Selling of Milk Through Milk Vending Machines

2014 ◽  
Vol 62 (4) ◽  
pp. 641-650 ◽  
Author(s):  
Hana Doležalová ◽  
Kamil Pícha ◽  
Josef Navrátil ◽  
Aneta Bezemková
Keyword(s):  
Czech Republic ◽  
Milk Consumption ◽  
Consumer Awareness ◽  
Technical Problems ◽  
The Czech Republic ◽  
Weak Support ◽  
Vending Machines ◽  
Milk Market ◽  
Total Sales ◽  
The Eu

The aim of this paper is to assess the current situation in the sale of milk through vending machines in the context of the previous period of the decline in milk consumption, the transition of the Czech Republic towards the market economy, the transformation of agriculture, the entry into the EU and the concentration in the milk market and to define the basic motivational factors and barriers of the development of this distribution path. Technical problems with sales, intent to diversify milk selling and aiming the high profitability of the sale are the reasons for operating vending machines that are correlated with the share of this selling channel on producers' total sales of milk. Vending machines are inhibited by misinformation from state authorities; other problems are weak support by media and low consumer awareness. The expectations of the operators concerning the development of the situation of the milk vending machines are rather optimistic: 36% of them expect an increase in sales, 48% expect the stagnation and only 16% expect the decrease.

scholarly journals Factors Affecting Choice in A Multi-Stage Model: The Influence of Saliency and Similarity on Retrieval Set and the Implication of Context Effect on Consideration Set

2009 ◽  
Vol 11 (3) ◽  
pp. 361
Author(s):  
Eric Santosa
Keyword(s):  
Decision Making ◽  
Experimental Study ◽  
Context Effect ◽  
Stage Model ◽  
Consumer Decision Making ◽  
New Paradigm ◽  
Consideration Set ◽  
Factors Affecting ◽  
Subject Design ◽  
Multi Stage

While it is considered a new paradigm in consumer research, the multi-stage model of consumer decision-making remains unclear as to whether brands are easily retrieved. Likewise, the process of consideration, after particular brands are successfully retrieved, is still in question. This study purports to investigate the effects of saliency and similarity on the ease of retrieval. In addition, referring to some studies of context effect, the effects of attraction, compromise, and assimilation are examined to observe whether they contribute to consideration. A within-subject design is employed in this study. Previously, three preliminary studies are arranged to determine the dominants, new entrants, attributes, and other criteria nominated in the experimental study. The results turn out to be supporting the hypotheses.

Deciding the Adequacy of a Set of Tests for an Specific Assessment Situation. Decision-making Strategies

1996 ◽  
Vol 12 (1) ◽  
pp. 14-22
Author(s):  
R. Esteve ◽  
A. Godoy
Keyword(s):  
Decision Making ◽  
Time Pressure ◽  
Response Mode ◽  
Information Load ◽  
Variable Pattern ◽  
Mode Effects ◽  
Moderator Effects ◽  
Specific Assessment ◽  
Information Board ◽  
Decision Importance

The aim of the present paper was to test the effects of response mode (choice vs. judgment) on decision-making strategies when subjects were faced with the task of deciding the adequacy of a set of tests for a specific assessment situation. Compared with choice, judgment was predicted to lead to more information sought, more time spent on the task, a less variable pattern of search, and a greater amount of interdimensional search. Three variables hypothesized as potential moderators of the response mode effects are also studied: time pressure, information load and decision importance. Using an information board, 300 subjects made decisions (choices and judgments) on tests for a concrete assessment situation, under high or low time pressure, high or low information load, and high or low decision importance. Response mode produced strong effects on all measures of decision behavior except for pattern of search. Moderator effects occurred for time pressure and information load.

Speeded Paper-Pencil Sustained Attention and Mental Speed Tests

2008 ◽  
Vol 29 (4) ◽  
pp. 205-216 ◽  
Author(s):  
Stefan Krumm ◽  
Lothar Schmidt-Atzert ◽  
Kurt Michalczyk ◽  
Vanessa Danthiir
Keyword(s):  
Sustained Attention ◽  
Time Pressure ◽  
Factor Model ◽  
Higher Order ◽  
Future Research ◽  
Perceptual Speed ◽  
Speed Factor ◽  
Close Relationship ◽  
Task Processing ◽  
Order Factor

Mental speed (MS) and sustained attention (SA) are theoretically distinct constructs. However, tests of MS are very similar to SA tests that use time pressure as an impeding condition. The performance in such tasks largely relies on the participants’ speed of task processing (i.e., how quickly and correctly one can perform the simple cognitive tasks). The present study examined whether SA and MS are empirically the same or different constructs. To this end, 24 paper-pencil and computerized tests were administered to 199 students. SA turned out to be highly related to MS task classes: substitution and perceptual speed. Furthermore, SA showed a very close relationship with the paper-pencil MS factor. The correlation between SA and computerized speed was considerably lower but still high. In a higher-order general speed factor model, SA had the highest loading on the higher-order factor; the higher-order factor explained 88% of SA variance. It is argued that SA (as operationalized with tests using time pressure as an impeding condition) and MS cannot be differentiated, at the level of broad constructs. Implications for neuropsychological assessment and future research are discussed.

Breaking Routines: A Study on Time Pressure

2004 ◽  
Author(s):  
Sandra Ohly ◽  
Sabine Sonnentag
Keyword(s):  
Time Pressure
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