Showing papers by "J. Jeffrey Inman published in 2013"

The Effect of In-Store Travel Distance on Unplanned Spending: Applications to Mobile Promotion Strategies

Abstract: Typically, shoppers' paths only cover less than half of the areas in a grocery store. Given that shoppers often use physical products in the store as external memory cues, encouraging shoppers to travel more of the store may increase unplanned spending. Estimating the direct effect of in-store travel distance on unplanned spending, however, is complicated by the difficulty of collecting in-store path data and the endogeneity of in-store travel distance. To address both issues, the authors collect a novel data set using in-store radio frequency identification tracking and develop an instrumental variable approach to account for endogeneity. Their analysis reveals that the elasticity of unplanned spending on travel distance is 57% higher than the uncorrected ordinary least squares estimate. Simulations based on the authors' estimates suggest that strategically promoting three product categories through mobile promotion could increase unplanned spending by 16.1%, compared with the estimated effect o...

Deconstructing the “First Moment of Truth”: Understanding Unplanned Consideration and Purchase Conversion Using In-Store Video Tracking

Abstract: Retailers and manufacturers are keenly interested in understanding unplanned consideration and purchase conversion, but data that capture in-store product consideration have been unavailable in the past. In the current research, the authors use in-store video tracking to collect a novel data set that records shopping behavior at the point of purchase, including product consideration. In conjunction with an entrance survey of purchase intentions, they conduct several descriptive analyses that focus on the incidence, category propensity, behavioral characteristics, and outcome of unplanned consideration. The results reveal several new empirical insights. First, the authors find significant category-level complementarities between planned items and unplanned considerations, which they capture using a latent category map. Second, planned consideration and unplanned consideration differ in key behavioral characteristics (e.g., likelihood of purchase, time of occurrence, number of product touches). Third, great...

Mispredicting Others’ Valuations: Self-Other Difference in the Context of Endowment

Abstract: The authors argue that people systematically fail to predict how much others in the same role (i.e., owner or buyer) value an object due to self-other differences in valuation arising from intra-role empathy gaps. Across five studies in an endowment context, owners consistently underestimate the average selling price demanded by other owners, whereas buyers overestimate the average purchase price offered by other buyers by over 20%. Participants, however, make more accurate predictions of the valuation of others in the same role when either (a) an external influence (i.e., similarity priming) or (b) their high cognitive and emotional tendency to connect with others leads to a reduction in empathy gaps. Implications for theory and practice are discussed.

Mispredicting Others’ Valuations: Self-Other Difference in the Context of Endowment

Abstract: The authors argue that people systematically fail to predict how much others in the same role (ie, owner or buyer) value an object due to self-other differences in valuation arising from intra-role empathy gaps Across five studies in an endowment context, owners consistently underestimate the average selling price demanded by other owners, whereas buyers overestimate the average purchase price offered by other buyers by over 20% Participants, however, make more accurate predictions of the valuation of others in the same role when either (a) an external influence (ie, similarity priming) or (b) their high cognitive and emotional tendency to connect with others leads to a reduction in empathy gaps Implications for theory and practice are discussed