Research Projects

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Competitive Strategy in Marketing ( 2018 )

Assistant Professor Jeffery Cai
: Marketing
The frontlines of quantitative marketing have progressed rapidly along both empirical and analytical dimensions. The former is now riding the wave of big data provided generously by consumers and the advancement of technology, and oftentimes concerns itself with the “how much” question. My specialization in the latter, known as analytical or game theoretic modelling, advances our understanding of counterintuitive – hence interesting – and increasingly relevant marketing phenomenon through tackling the “why” and “how” questions. Let me provide a few examples. Why do firms, who are intense rivals in a market, sometimes collaborate with each other to take on a weaker rival in another market? How is it that horizontal rivals form an R&D alliance, knowing that there will be downstream product market implications? What type of alliance structures are more stable, and why is that the case? Why do certain retailing practices, which may seem odd at first glance (e.g., a dominant retailer like Walmart delegating important marketing decisions to a manufacturer like P&G,) actually work in practice? And why do certain practices by sales force managers (e.g., performance posting) work under certain circumstances, but not others? The above are examples of marketing phenomena that I am currently examining. Together with other related questions, these form the cornerstones of my research program. The work of an analytical modeller revolves around elements such as robustness and parsimony. These are also elements that practitioners appreciate – a better understanding of “competitive strategy in marketing” will yield useful managerial implications.
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