Showing papers in "ERIM report series research in management Erasmus Research Institute of Management in 2008"

Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms

Abstract: textPrior studies have emphasized that structural attributes are crucial to simultaneously pursuing exploration and exploitation, yet our understanding of antecedents of ambidexterity is still limited. Structural differentiation can help ambidextrous organizations to maintain multiple inconsistent and conflicting demands; however, differentiated exploratory and exploitative activities need to mobilized, coordinated, integrated, and applied. Based on this idea, we delineate formal and informal senior team integration mechanisms (i.e. contingency rewards and social integration) and formal and informal organizational integration mechanisms (i.e. cross-functional interfaces and connectedness) and examine how they mediate the relationship between structural differentiation and ambidexterity. Overall, our findings suggest that the previously asserted direct effect of structural differentiation on ambidexterity operates through informal senior team (i.e. senior team social integration) and formal organizational (i.e. cross-functional interfaces) integration mechanisms. Through this richer explanation and empirical assessment, we contribute to a greater clarity and better understanding of how organizations may effectively pursue exploration and exploitation simultaneously to achieve ambidexterity.

Ergonomics Contributions to Company Strategies

Abstract: textManagers usually associate ergonomics with occupational health and safety and related legislation, not with business performance. In many companies, these decision makers seem not to be positively motivated to apply ergonomics for reasons of improving health and safety. In order to strengthen the position of ergonomics and ergonomists in the business and management world, we discuss company strategies and business goals to which ergonomics could contribute. Conceptual models are presented and examples are given to illustrate: 1) the present situation in which ergonomics is not part of regular planning and control cycles in organizations to ensure business performance, and 2) the desired situation in which ergonomics is an integrated part of strategy formulation and implementation. In order to realize the desired situation, considerable changes must take place within the ergonomics research, education and practice community by moving from a health ergonomics paradigm to a business ergonomics paradigm, without losing the health and safety goals.

Automatic Term Identification for Bibliometric Mapping

Abstract: textA term map is a map that visualizes the structure of a scientific field by showing the relations between important terms in the field. The terms shown in a term map are usually selected manually with the help of domain experts. Manual term selection has the disadvantages of being subjective and labor-intensive. To overcome these disadvantages, we propose a methodology for automatic term identification and we use this methodology to select the terms to be included in a term map. To evaluate the proposed methodology, we use it to construct a term map of the field of operations research. The quality of the map is assessed by a number of operations research experts. It turns out that in general the proposed methodology performs quite well.

Brain Mechanisms of Persuasion: How "Expert Power" Modulates Memory and Attitudes

Abstract: textHuman behavior is affected by various forms of persuasion. The general persuasive effect of high expertise of the communicator, often referred to as "expert power", is well documented. We found that a single exposure to a combination of an expert and an object leads to a long-lasting positive effect on memory for and attitude towards the object. Using functional magnetic resonance imaging (fMRI), we probed the neural processes predicting these behavioral effects. Expert context was associated with distributed left-lateralized brain activity in prefrontal and temporal cortices related to active semantic elaboration. Furthermore, experts enhanced subsequent memory effects in the medial temporal lobe (i.e. in hippocampus and parahippocampal gyrus) involved in memory formation. Experts also affected subsequent attitude effects in the caudate nucleus involved in trustful behavior, reward processing and learning. These results may suggest that the persuasive effect of experts is mediated by modulation of caudate activity resulting in a re-evaluation of the object in terms of its perceived value. Results extend our view of the functional role of the dorsal striatum in social interaction and enable us to make the first steps toward a neuroscientific model of persuasion.

Time Slot Management in Attended Home Delivery

Abstract: textMany e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present two fully-automated approaches that are capable of producing high-quality delivery time slot offerings in a reasonable amount of time. Computational experiments reveal the value of these approaches and the impact of the environment on the underlying trade-offs.

Can the Office Environment Stimulate a Manager’s Creativity?

Abstract: This paper explores whether the manager’s physical office work environment can stimulate the manager’s creativity A total of 60 managers from a large manufacturing company participated in the study They rated the creativity potential and physical elements of office environments shown in 25 photographs The results indicate that offices differ in terms of creativity potential Compared to offices with low creativity potential, offices with high creativity potential have lower complexity, more plants, bright lighting conditions, windows, cooler colors, and a computer facility The results suggest that a good interior design of manager’s office environment could stimulate a manager’s creativity and could therefore contribute to an organization’s innovation

Global Tactical Cross-Asset Allocation: Applying Value and Momentum Across Asset Classes

Abstract: textIn this paper we examine global tactical asset allocation (GTAA) strategies across a broad range of asset classes. Contrary to market timing for single asset classes and tactical allocation across similar assets, this topic has received little attention in the existing literature. Our main finding is that momentum and value strategies applied to GTAA across twelve asset classes deliver statistically and economically significant abnormal returns. For a long top-quartile and short bottom-quartile portfolio based on a combination of momentum and value signals we find a return of 12% per annum over the 1986-2007 period. Performance is stable over time, also present in an out-of-sample period and sufficiently high to overcome transaction costs in practice. The return cannot be explained by potential structural biases towards asset classes with high risk premiums, nor the Fama French and Carhart hedge factors. We argue that financial markets may be macro inefficient due to insufficient ‘smart money’ being available to arbitrage mispricing effects away.

Entrepreneurship, Economic Growth and Policy in Emerging Economies

Abstract: textEntrepreneurship has emerged as an important element in the organization of economies. This emergence did not occur simultaneously in all developed countries. Differences in growth rates are often attributed to differences in the speed with which countries embrace entrepreneurial energy. This led to the political mandate to promote entrepreneurship. Hence, a clear and organized view is needed of what the determinants and consequences of entrepreneurship are. The present contribution tries to provide this view with a particular view on emerging economies. Entrepreneurship, its drivers and its consequences can be best understood using the model of the Entrepreneurial Economy which explains the functioning of the modern economy. This model differs from that of the earlier Managed Economy. Policies in emerging economies should aim at combining the two models.

On the Nature of a Cooperative: A System of Attributes Perspective

Abstract: In the 1950s and 1960s there was a debate about the nature of an agricultural cooperative: the cooperative as extension of the farm, the cooperative as vertical integration or the cooperative as a firm. We revisit this debate with various concepts from the theory of the firm that have been formulated since 1990. Two concepts shed light on this debate: the enterprise as a system of attributes and the delineation of a governance structure in terms of ownership rights, control rights and income rights. We argue that viewing the cooperative as a system of attributes integrates these three views. It emphasizes that a cooperative is a firm in itself, with many input suppliers as owners. The feature of many input suppliers as owners implies that the behavioral differences between a cooperative and an investor owned firm have to be addressed by highlighting the unique aspects of the stakeholder owning the enterprise.

Measuring Productivity Change without Neoclassical Assumptions: A Conceptual Analysis

Abstract: The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behaviour and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all of the usual, neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.

CBPRS: A City Based Parking and Routing System

Abstract: textNavigational systems assist drivers in finding a route between two locations that is time optimal in theory but seldom in practice due to delaying circumstances the system is unaware of, such as traffic jams Upon arrival at the destination the service of the system ends and the driver is forced to locate a parking place without further assistance We propose a City Based Parking Routing System (CBPRS) that monitors and reserves parking places for CBPRS participants within a city The CBPRS guides vehicles using an ant based distributed hierarchical routing algorithm to their reserved parking place Through means of experiments in a simulation environment we found that reductions of travel times for participants were significant in comparison to a situation where vehicles relied on static routing information generated by the well known Dijkstra’s algorithm Furthermore, we found that the CBPRS was able to increase city wide traffic flows and decrease the number and duration of traffic jams throughout the city once the number of participants increased

Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender

Abstract: textThis paper investigates why women’s self-employment rates are consistently lower than those of men. It has three focal points. It discriminates between the preference for self-employment and actual involvement in self-employment using a two (probit) equation model. It makes a systematic distinction between different ways in which gender influences the preference for and actual involvement in self-employment (mediation and moderation). It includes perceived ability as a potential driver of self-employment next to risk attitude, self-employed parents and other socio-demographic drivers. A representative data set of more than 8,000 individuals from 29 countries (25 EU member states, US, Norway, Iceland and Liechtenstein) is used (the 2004 Flash Eurobarometer survey). The findings show that women’s lower preference for becoming self-employed plays an important role in explaining their lower involvement in self-employment and that a gender effect remains that may point at gender-based obstacles to entrepreneurship.

Do Foreign Greenfields Outperform Foreign Acquisitions or Vice Versa? An Institutional Perspective

Abstract: textPrior studies of the comparative performance of greenfields and acquisitions have advanced competing arguments, with some arguing that greenfields should outperform acquisitions because acquisitions are costlier to integrate, and others that acquisitions should outperform greenfields because greenfields suffer from a liability of newness. Moreover, while the costs of integration and the liability of newness are at their greatest during a subsidiary’s first years, prior studies have tested their competing arguments on samples containing older subsidiaries. We extend these prior studies by (1) developing an institutional theory-based framework that simultaneously considers the costs of integration and the liability of newness, (2) recognizing that both types of costs vary with the level of subsidiary integration, and (3) focusing on the stage of their life during which subsidiaries predominantly incur these costs. To measure subsidiary performance, we ask managers of Dutch multinationals how their ex ante performance expectations compare to the subsidiary’s ex post performance during its first two years. Analyzing a sample of 191 foreign subsidiaries and controlling for entry mode self-selection and other factors, we find that acquisitions outperform greenfields at low and intermediate levels of subsidiary integration, but that greenfields outperform acquisitions at higher integration levels.

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Abstract: Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?” Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.

Interpersonal Relationships Moderate the Effect of Faces on Person Judgments

Abstract: textPrevious research suggests that people form impressions of others based on their facial appearance in a very fast and automatic manner, and this especially holds for trustworthiness. However, as yet, this process has been investigated mostly in a social vacuum without taking interpersonal factors into account. In the current research, we demonstrate that both the relationship context that is salient at the moment of an interaction and the performed behavior, are important moderators of the impact of facial cues on impression formation. It is shown that, when the behavior of a person we encounter is ambiguous in terms of trustworthiness, the relationship most salient at that moment is of crucial impact on whether and how we incorporate facial cues communicating (un)trustworthiness in our final evaluations. Ironically, this can result in less positive evaluations of interaction partners with a trustworthy face compared to interaction partners with an untrustworthy face. Implications for research on facial characteristics, trust, and relationship theories are discussed.

Coevolutionary Competence in the Realm of Corporate Longevity: How Long-lived Firms Strategically Renew Themselves

Abstract: Understanding the phenomena of corporate longevity and self-renewing organizations has become an important topic in recent management literature. However, the majority of the research contributions focus on internal determinants of longevity and self-renewal. Using a coevolutionary framework, the purpose of this chapter is to address the dynamic interaction between organizations and environments in the realm of sustained strategic renewal, i.e. corporate longevity. To this end, we will focus on the competence of long-lived firms to coevolve due to the joint effect of managerial intentionality and environmental selection pressures. Building on coevolutionary framework, we develop a conceptual framework that highlights an organization's coevolutionary competence. Two longitudinal case studies are presented illustrating the arguments.

The Value of Analogical Reasoning for the Design of Creative Sales Promotion Campaigns: A Case-Based Reasoning Approach

Abstract: Many marketing problems, such as the design of marketing communication campaigns and the development of new products, require creative solutions. Such problems are typically weakly-structured and underspecified (open-ended). The authors investigate the potential of analogical reasoning as a decision support principle for this type of problems. They carry out experiments in a case-based reasoning (CBR) environment. The application domain is the design of sales promotion campaigns. The authors demonstrate that providing decision makers with analogies leads to more creative campaigns. Providing analogies is most effective for decision makers with a low creative ability. Furthermore, solutions become better when decision makers have a larger set of analogies to choose from. Far analogies have the potential of generating more novel solutions than near analogies, but there is a higher threshold for using them. Interestingly, decision makers do not recognize the contribution of the analogies to the quality of their solution. On the practical side, the authors provide an effective tool for supporting decision making in weakly-structured marketing problem areas.

Applying Revenue Management to the Reverse Supply Chain

Abstract: textWe study the disposition decision for product returns in a closed-loop supply chain. Motivated by the asset recovery process at IBM, we consider two disposition alternatives. Returns may be either refurbished for reselling or dismantled for spare parts. Reselling a refurbished unit typically yields higher unit margins. However, demand is uncertain. A common policy in many firms is to rank disposition alternatives by unit margins. We show that a revenue management approach to the disposition decision which explicitly incorporates demand uncertainty can increase profits significantly. We discuss analogies between the disposition problem and the classical airline revenue management problem. We then develop single period and multi-period stochastic optimization models for the disposition problem. Analyzing these models, we show that the optimal allocation balances expected marginal profits across the disposition alternatives. A detailed numerical study reveals that a revenue management approach to the disposition problem significantly outperforms the current practice of focusing exclusively on high-margin options, and we identify conditions under which this improvement is the highest. We also show that the value recovered from the returned products critically depends on the coordination between forward and reverse supply chain decisions.

Including Item Characteristics in the Probabilistic Latent Semantic Analysis Model for Collaborative Filtering

Abstract: textWe propose a new hybrid recommender system that combines some advantages of collaborative and content-based recommender systems. While it uses ratings data of all users, as do collaborative recommender systems, it is also able to recommend new items and provide an explanation of its recommendations, as do content-based systems. Our approach is based on the idea that there are communities of users that find the same characteristics important to like or dislike a product. This model is an extension of the probabilistic latent semantic model for collaborative filtering with ideas based on clusterwise linear regression. On a movie data set, we show that the model is competitive to other recommenders and can be used to explain the recommendations to the users.

Science and Technology-based Regional Entrepreneurship in the Netherlands: Building Support Structures for Business Creation and Growth Entrepreneurship

Abstract: textIn this contribution we develop a theoretical framework derived from the national system of innovation literature and the subsequent criticisms voiced by regional scientists and industry/technology experts who emphasize the importance of the intermediate subnational and sectoral levels to analysing science- and technology-based regional entrepreneurship in the Netherlands. The national system of innovation of the Netherlands, and its specifics and peculiarities, and the country’s general entrepreneurship policy, and the most important policy and support initiatives are subsequently discussed. Based on a desire to overcome the knowledge paradox between fundamental research and market needs and on the recognition that the Netherlands lags behind other countries when it comes to innovative entrepreneurship, various changes and initiatives were recently introduced in the Netherlands. The impression is of an overambitious national government with numerous programmes, schemes and agencies involved, sometimes working with each other but at other times separately as well, and its effectiveness can be questioned. Serious paperwork and preparation is involved in the participation in most programes and, together with the complexity of these programmes and policies, small and young entrepreneurs are neither informed, ready or well-equipped; some of them are not even interested in participating in those schemes.

Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes

Abstract: textPrior marketing literature has overlooked the role of regulatory regimes in explaining international sales growth of new products This paper addresses this gap in the context of new pharmaceuticals (15 new molecules in 34 countries) and sheds light on the effect regulatory regimes have on new drug sales across the globe Based on a time-varying coefficient model, we find that differences in regulation substantially contribute to cross-country variation in sales One of the regulatory constraints investigated, ie manufacturer price controls, has a positive effect on drug sales The other forms of regulation such as restrictions of physician prescription budgets and the prohibition of direct-to-consumer advertising tend to hurt sales The effect of manufacturer price controls is similar for newly launched and mature drugs In contrast, regulations on physician prescription budget and direct-to-consumer advertising have a differential effect for newly launched and mature drugs While the former hurts mature drugs more, the latter has a larger effect on newly launched drugs In addition to these regulatory effects, we find that national culture, economic wealth, introduction timing, lagged sales and competition, also affect drug sales Our findings may be used as input by managers for international launch and sales decisions They may also be used by public policy administrators to compare drug sales in their country to other countries and to assess the role of regulatory regimes therein

Climbing the Entrepreneurial Ladder: The Role of Gender

Abstract: textWe investigate whether women and men differ with respect to the steps they take in the entrepreneurial process, distinguishing between five successive steps described by the following positions: (1) "never thought about it"; (2) "thinking about starting up a business"; (3) "taking steps to start a business"; (4) "running a business for less than three years"; (5) "running a business for more than three years". This paper provides insights into the manner in which women and men climb the entrepreneurial ladder and the factors that influence their position on the ladder. We use data from the 2006 "Flash Eurobarometer survey on Entrepreneurship" consisting of more than 10,000 observations for 25 member states of the European Union, Norway, Iceland and the United States. Findings suggest that for men it is easier to climb the ladder and that this may be attributed partly to their higher tolerance of risk.

Choosing Attribute Weights for Item Dissimilarity using Clikstream Data with an Application to a Product Catalog Map

Abstract: textIn content- and knowledge-based recommender systems often a measure of (dis)similarity between items is used. Frequently, this measure is based on the attributes of the items. However, which attributes are important for the users of the system remains an important question to answer. In this paper, we present an approach to determine attribute weights in a dissimilarity measure using clickstream data of an e-commerce website. Counted is how many times products are sold and based on this a Poisson regression model is estimated. Estimates of this model are then used to determine the attribute weights in the dissimilarity measure. We show an application of this approach on a product catalog of MP3 players provided by Compare Group, owner of the Dutch price comparison site http://www.vergelijk.nl, and show how the dissimilarity measure can be used to improve 2D product catalog visualizations.

The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior

Abstract: Two experiments show that a shortage of self-regulatory resources results in more risk aversion in mixed-gamble (gain/loss) situations. The findings support a dual process view that distinguishes between a rational and an affective information processing system, in which self-regulatory resources are the necessary fuel for the rational system. Depending on the expected values of risk seeking versus risk averse behavior, ego depletion can have negative (experiment 1) as well as positive (experiment 2) consequences for investment behavior.

Sales and Sincerity: The Role of Relational Framing in Word-of-Mouth Marketing

Abstract: textIn the current research, we study relationship norms in a word-of-mouth marketing context. The presence of a financial incentive for a recommendation implies that the word-of-mouth behavior may be driven by ulterior motives. This setting triggers both friendship (Equality Matching; EM) and sales (Market Pricing; MP) relationship norms. However, the evaluation of the recommendation depends crucially on the relationship norm activated during the interaction. We show that, compared to MP relationship norms, activating EM norms leads to less sincere agent evaluations, but at the same time to higher intentions to comply with the target offer. We show that these norms can be activated outside awareness and influence our evaluations of interaction partners in a cognitively efficient manner. A second study shows that disclosing the financial motive has a positive effect on agent evaluations, but only when the recommendation target can devote full attention to the interaction.

Cross-National Logo Evaluation Analysis: An Individual Level Approach

Abstract: textThe universality of design perception and response is tested using data collected from ten countries: Argentina, Australia, China, Germany, Great Britain, India, the Netherlands, Russia, Singapore, and the United States. A Bayesian, finite-mixture, structural-equation model is developed that identifies latent logo clusters while accounting for heterogeneity in evaluations. The concomitant variable approach allows cluster probabilities to be country specific. Rather than a priori defined clusters, our procedure provides a posteriori cross-national logo clusters based on consumer response similarity. To compare the a posteriori cross-national logo clusters, our approach is integrated with Steenkamp and Baumgartner’s (1998) measurement invariance methodology. Our model reduces the ten countries to three cross-national clusters that respond differently to logo design dimensions: the West, Asia, and Russia. The dimensions underlying design are found to be similar across countries, suggesting that elaborateness, naturalness, and harmony are universal design dimensions. Responses (affect, shared meaning, subjective familiarity, and true and false recognition) to logo design dimensions (elaborateness, naturalness, and harmony) and elements (repetition, proportion, and parallelism) are also relatively consistent, although we find minor differences across clusters. Our results suggest that managers can implement a global logo strategy, but they also can optimize logos for specific countries if desired.

The Inefficient Use of Macroeconomic Information in Analysts' Earnings Forecasts in Emerging Markets

Abstract: textThis paper presents empirical evidence that security analysts do not efficiently use publicly available macroeconomic information in their earnings forecasts for emerging market stocks. Analysts completely ignore forecasts on political stability, while these provide valuable information for firm-level earnings growth. Analysts do incorporate output growth forecasts, but these actually bear no relevant information for firm-level earnings growth. Inflation forecasts are taken into account correctly. In addition, the information environment appears to be crucially important in emerging markets, as we find evidence that analysts handle macroeconomic information in a better way for more transparent firms.

Overoptimism among Founders: The Role of Information and Motivation

Abstract: textThis study empirically investigates factors that influence overoptimism across nascent entrepreneurs. We distinguish between two main groups of determinants (information, motivation) and three types of overoptimism (income, psychological burden, leisure time). Findings indicate that entrepreneurs who have relevant business information are more realistic and that entrepreneurs with a high level of general knowledge, acquired through education or previous (unrelated) entrepreneurial experience, are more overoptimistic. External advice and business planning do not appear to limit subsequent overoptimism. Entrepreneurs are less overoptimistic about the pecuniary or non-pecuniary benefits of self-employment when these benefits are closely related to the initial motivation for starting up the business.

Projected Destination Images on African Websites: Upgrading Branding Opportunities in the Global Tourism Value Chain

Abstract: This paper explores whether websites that offer a global audience virtual access to watering holes in game parks afford African nations opportunities to diminish their international isolation as tourism destinations. The present analysis examines a sample of almost 450 tourism websites representing Rwanda, Uganda and Mozambique. Two aspects are studied in particular: the websites’ technical and social infrastructures, including website ownership and networks, and website content, i.e. the projected destination image and opportunities to bridge the main supplier-consumer gaps in the global tourism value chain. The findings indicate that there is substantial foreign involvement in Africa’s online tourism infrastructure; furthermore, that the current projected images tend to reproduce foreign stereotypes. It concludes that the potential for upgrading branding capabilities could be sourced in indigenous African cultural attributes, both high and low culture, and in contexts of the past and the contemporary. Free Keywords tourism industry, global value chain, dynamic image formation, Rwanda, Uganda, Mozambique, upgrading Availability The ERIM Report Series is distributed through the following platforms: Academic Repository at Erasmus University (DEAR), DEAR ERIM Series Portal Social Science Research Network (SSRN), SSRN ERIM Series Webpage Research Papers in Economics (REPEC), REPEC ERIM Series Webpage Classifications The electronic versions of the papers in the ERIM report Series contain bibliographic metadata by the following classification systems: Library of Congress Classification, (LCC) LCC Webpage Journal of Economic Literature, (JEL), JEL Webpage ACM Computing Classification System CCS Webpage Inspec Classification scheme (ICS), ICS Webpage

Demand Management Opportunities in E-fulfillment: What Internet Retailers Can Learn from Revenue Management

Abstract: textIn this paper, we explain how Internet retailers can learn from proven revenue management concepts and use them to reduce costs and enhance service. We focus on attended deliveries as these provide the greatest opportunities and challenges. The key driver is service differentiation. Revenue management has shown that companies can do much better than a one-size-fits-all first-come-first-serve strategy when selling scarce capacity to a heterogeneous market. Internet retailers have strong levers at their disposal for actively steering demand, notably the offered delivery time windows and their associated prices. Unlike traditional revenue management, these demand management decisions affect both revenues and costs. This calls for a closer coordination of marketing and operations than current common practice.