The Perishability of Online Grocers*

In this article we explore the profitability of different operations models used by online grocers and develop a linear demand model in a competitive setting to better understand the trade‐offs made by two competing online grocers in choices for distribution strategy (leverage or direct) and product focus (perishable or nonperishable). We find that the results derived in the duopoly setting are different from those in a monopolistic setting. Specifically, we determine that there is a threshold value for the secondary competitive effects in the demand function that determines how the prices and profitability of an online grocer will be affected by the supply chain length of its competitor. There is also a threshold value for the ratio of supply chain lengths of the two competitors that determines whether product perishability increases or decreases profits. We demonstrate that the existence of this threshold is robust when considering capacity constraints. Further, we show, assuming that supply chain length can be optimized, how the relative size of the infrastructure change cost (when compared with that of the competitor) coupled with the perishability of the product determines the profitability of an investment leading to a shorter supply chain.     

User reward programs in online social media

Online social media (OSMs) have become a popular and growing Internet phenomenon, as exemplified by the millions of followers of websites like YouTube, Twitter, and Facebook. Given the Internet’s ease of access and the high degree of competition to attract users to these sites, a question arises as to whether OSMs should develop revenue-sharing programs as a way to reward their contributing users. We present an ex ante asymmetric duopoly OSM game, where heterogeneous users are either active or passive with respect to each OSM. The game includes two steps: First, the OSMs simultaneously announce their rewards for active users; and second, based on their preference, users choose their level of contribution with respect to each OSM. We show that this game has a unique Nash equilibrium in pure strategies, and we identify the conditions under which a symmetric equilibrium exists, despite the asymmetry between the OSMs. Moreover, at equilibrium, no user chooses to contribute content exclusively to the less favourable OSM, even when the more favourable firm shares a lower reward than the less favourable firm. Furthermore, in some circumstances, a higher asymmetry can diminish the net revenue of the more favourable firm and vice versa.     

A Bayesian Analysis of Synchronous Distance Learning versus Matched Traditional Control in Graduate Biostatistics Courses

Distance learning can be useful for bridging geographical barriers to education in rural settings. However, empirical evidence on the equivalence of distance education and traditional face-to-face (F2F) instruction in statistics and biostatistics is mixed. Despite the difficulty in randomization, we minimized intra-instructor variation between F2F and online sections in seven graduate-level biostatistics service courses in a synchronous (live, real time) fashion; that is, for each course taught in a traditional F2F setting, a separate set of students were taught simultaneously via online learning technology, allowing for two-way interaction between instructor and students. Our primary objective was to compare student performance in the two courses that use these two teaching modes. We used a Bayesian hierarchical model to test equivalence of modes. The frequentist mixed model approach was also conducted for reference. The results of Bayesian and frequentist methods agree and suggest a difference of less than 1% in average final grades. Finally, we discuss barriers to instruction and learning using the applied online teaching technology.     

Personality traits and bidding behavior in competing auctions

We study strategic behavior in an “alternating recognition” model of English auctions with competing sellers, which mimics a structure that is common in online marketplaces such as eBay. To relate decision making in our experimental setting to individual differences, we measure subjects’ personality with the Big-Five Trait Taxonomy. Our results suggest that personality has meaningful predictive power in explaining bidding behavior but only for female subjects. Further, females also earn more than males and the gender gap in earnings is large and significant. Finally, personality indirectly affects earnings through the choice of strategies but has no direct effect on earnings, controlling for strategies. This is an important result in that it demonstrates the mechanism through which personality matters in our setting.     

Challenges and solutions for marketing in a digital era

Internet usage continues to explode across the world with digital becoming an increasingly important source of competitive advantage in both B2C and B2B marketing. A great deal of attention has been focused on the tremendous opportunities digital marketing presents, with little attention on the real challenges companies are facing going digital. In this study, we present these challenges based on results of a survey among a convenience sample of 777 marketing executives around the globe. The results reveal that filling “talent gaps”, adjusting the “organizational design”, and implementing “actionable metrics” are the biggest improvement opportunities for companies across sectors.     

Online authority communication during an epidemic: A Finnish example

Social media are creating new challenges for authority communications during crises, such as a pandemic. This study examined Finnish citizens’ opinions about authorities as crisis managers during the swine flu epidemic of 2009-2010 and examined the success of authority intervention to online discussion forums. Through a content analysis carried out at the discussion forums, the study showed that though authorities are highly trusted in general in Finland, this trust is not extended to the online environment. Online, civilians did not trust authorities and the protective actions taken. Moreover, the authorities’ intervention to the discussion forums aimed at correcting false information and shaping opinions seemed to fail, as the intervention was carried out too late and with too little resources. The paper calls for more proactive authority communication that would establish a dialogue with citizens before a crisis to ensure credibility during difficult times.     

Modeling Reputation as a Time‐Series: Evaluating the Risk of Purchase Decisions on eBay*

Reputation systems based on buyer feedback play an important role in today's online markets. In this article, we provide a rigorous methodology to establish a relationship between a seller's feedback history and risk of default. We validate this method against eBay's reputation system, using a dataset of terminated users (Not‐A‐Registered‐User or NARU) and the feedback left for them by buyers. By treating feedback rating data as a function of time, we characterize the tendency of change in seller feedback ratings in order to predict the behavior of a seller. We find that NARU sellers have significantly more negative feedback in their final weeks. Applying functional principal component analysis and classification tree methods, we find that when projecting the feedback data to an appropriate space, NARU and non‐NARU sellers can be distinguished at better than 92% accuracy. We use this to provide a quantitative mechanism for evaluating the risk of trading with a seller who has less than perfect feedback, and offer advice on how much a buyer should offer to pay, given an asking price on a commodity item and a seller's feedback history.     

Estimating Social Influences from Social Networking Sites—Articulated Friendships versus Communication Interactions

Despite the ubiquity of social networking sites, the online social networking industry is in search of effective marketing strategies to better profit from their established user base. Social media marketing strategies build on the premise that the social network of online users can be predicted and social influences among online users can be estimated. However, the existence of various heterogeneous social interactions on social networking sites presents a challenge for social network prediction and social influence estimation. In this article we draw upon the literatures on self‐presentation on social networking sites and signaling in online social networking to categorize six heterogeneous online social interactions on social networking sites into two types—articulated friendships and communication interactions. This article provides empirical evidence for the differences between articulated friendships and communication interactions and the corresponding articulated and communication networks. In order to compare the impacts of the social influences based on these two networks, we utilize support vector machines to build a classifier to predict virtual community membership and we further estimate the marginal effects of these social influences using a two‐stage probit least squares method. We find significant explanatory power of social influences in predicting virtual community membership. Although the communication network is much sparser than the articulated network, social influences based on the communication network achieve similar performance as the articulated network. These findings provide important implications for social media marketing as well as the management of virtual communities.     

网络新闻媒体的媚俗化现象及其治理对策

随着互联网的发展和普及,网络新闻媒体已经成为人们获取信息的一个重要渠道。作者阐述了在商业利益驱动下,网络新闻媒体出现的媚俗化现象。由于媒介消费主义的兴起,商业性网络新闻媒体所持的新闻业务方针、从业者的业务素质和作风都受到了强烈影响,此即网络新闻媚俗化的主要成因。因而应从政策和规范的制订、完善培训与认证制度以及加强监督等方面,应对网络新闻的媚俗化问题。     

Sports PR in message boards on Major League Baseball websites

Message boards are possible places for sports fans to actively express and exchange their opinions. The purpose of this study is to explore the typology of message board uses on sports websites. The analysis of 1350 topics on eight Major League Baseball teams’ websites for 10 days revealed that: (1) the cognitive need of using message boards in a sports organization's website was an outstanding motivation; (2) sharing opinions was a new motivation category (compared to traditional uses and gratifications) that was found to be dominant; and (3) winning teams and losing teams’ message boards were significantly different in terms of number of topics, number of users, and optimism score; however, messages seemed to be optimistic. Implications for public relations practitioners suggest that the message board is an excellent monitoring tool for them as well as a fine communication tool between sports organizations and fans.