Management Insights, a regular feature of the journal, is a digest of important research in business, management, operations research, and management science. It appears in every issue of the monthly journal Management Science.
“Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition” is by Erik Brynjolfsson of MIT, Yu (Jeffrey) Hu of Purdue University, and Mohammad S. Rahman of the University of Calgary.
The authors ask how Internet retailers compete with brick-and-mortar retailers and how this competition varies across different products. Internet retailers are deeply concerned about the competition with local retailers and vice versa.
The paper measures the strength of the competition that Internet retailers face from local stores and shows how it varies across products with varying levels of consumer search costs.
The authors find that niche products sold by Internet retailers are largely immune to competition from brick-and-mortar retailers, whereas competition is much more intense for popular products.
The authors point out that Internet retailers that pursue a “niche” strategy can be almost immune from competing with local stores. They also recommend that Internet retailers vary their promotional strategies and product offerings based on geographic locations of consumers.
The current issue of Management Insights is available at http://mansci.journal.informs.org/cgi/reprint/55/11/iv. The full papers associated with the Insights are available to Management Science subscribers. Individual papers can be purchased at http://institutions.informs.org. Additional issues of Management Insights can be accessed at http://www.informs.org/site/ManSci/index.php?c=11&kat=Manawgement+Insights.
The other Insights in the current issue are:Inference from Streaks in Random Outcomes: Experimental Evidence on Beliefs in Regime Shifting and the Law of Small Numbers by Elena Asparouhova, Michael Hertzel, Michael Lemmon
The special MBA issue published by BusinessWeek includes Management Science and three other INFORMS journals in its list of 20 top academic journals that are used to evaluate business school programs. Financial Times includes Management Science and four other INFORMS journals in its list of academic journals used to evaluate MBA programs.About INFORMS
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