Selected Publications
How Does the Mobile Channel Reshape the Sales Distribution in E-Commerce?
( Park, Yongjin | Bang, Youngsok | Ahn, Jae-Hyeon )INFORMATION SYSTEMS RESEARCH2020-12
Abstract
Despite the prolitcratiun of studies on sales distributions in e-commerce, little is known about how such a distribution in online markets is affected by the presence of mobile channels, which have become a significant conduit for e-commerce. Using a large transaction data set from a leading e-marketplace in South Korea, this study empirically investigates (1) how the sales distribution in the mobile commerce channel is different from the sales distribution in the traditional personal computer (PC) channel and (2) how mobile commerce channel adoption (as a search and purchase channel) affects e-market users' search intensity and their aggregate sales distribution. Our analysis in comparing the sales distributions between the PC and mobile channels shows that transactions in the mobile channel are more concentrated on "head" products compared with PC channel sales. The subsequent user-level analysis, based on a difference-in-differences approach, reveals that mobile channel adopters search more but are less (more) likely to choose "tail" (head) products. This finding is contrary to our previous belief that more search activities lead to more tail product sales. The relationship between search intensity and head (tail) product sales, however, largely depends on the product categories. In the case of preference goods such as books, CDs, toys, and fashion items, adoption increased e-market users' search activities and resulted in more tail product sales. For quality goods such as PCs, phones, cameras, and digital appliances, however, adoption intensified the search activities but resulted in more head product sales. Finally, for convenience goods such as home supplies and processed foods, adoption discouraged search activities and decreased the choice of tail products. We discuss the theoretical implications of our findings.
Creating Mutual Gains to Leverage a Racially Diverse Workforce: The Effects of Firm-Level Racial Diversity on Financial and Workforce Outcomes Under the Use of Broad-Based Stock Options
( Han, Joo Hun | Shin, DuckJung | Castellano, William G. | Konrad, Alison M. | Kruse, Douglas L. | Blasi, Joseph R. )ORGANIZATION SCIENCE2020-11
Abstract
Despite substantial scholarly attention to workforce demographic diversity, existing research is limited in understanding whether or in what contexts firm-level racial diversity relates to performance and workforce outcomes of the firm. Drawing on social interdependence theory along with insights from social exchange and psychological ownership theories, we propose that the use of broad-based stock options granted to at least half the workforce creates the conditions supporting a positive relationship between workforce racial diversity and firm outcomes. We examine this proposition by analyzing panel data from 155 companies that applied for the "100 Best Companies to Work For" competition with responses from 109,314 employees over the five-year period from 2006 to 2010 (354 company-year observations). Findings revealed that racial diversity was positively related to subsequent firm financial performance and individual affective commitment and was not significantly associated with subsequent voluntary turnover rates, when accompanied by a firm's adoption of broad-based stock options. However, under the nonuse of broad-based stock options, racial diversity was significantly related to higher voluntary turnover rates and lower employee affective commitment, with no financial performance gains. By documenting the beneficial effects of financial incentives in diverse workplaces, this paper extends theory asserting the value of incentives for performance.
When Loyalty Goes Mobile: Effects of Mobile Loyalty Apps on Purchase, Redemption, and Competition
( Son, Yoonseock | Oh, Wonseok | Han, Sang Pil | Park, Sungho )INFORMATION SYSTEMS RESEARCH2020-09
Abstract
Avenues for the delivery of loyalty programs have rapidly shifted from plastic card schemes to mobile app-based initiatives, yet our understanding of the economic value presented by the latter (i.e., loyalty apps) has not kept pace with this development. We examine the effects of loyalty app adoption on customers' offline purchase patterns, reward redemption, and deal-prone behaviors as well as store-level competition in a multivendor loyalty program (MVLP) context, where multiple offline brands collaborate in the operation of point-sharing initiatives. Mobile-driven loyalty apps substantially lower consumer search costs, thereby enhancing on-demand information accessibility and facilitating the monitoring of reward points. Based on a unique data set that comprises information on customers' loyalty app adoption status, loyalty point redemption patterns, and purchase behaviors in MVLP environments, we investigate how the transition from plastic-based programs to loyalty apps influences the out-of-pocket spending and point redemption patterns of consumers. Our findings reveal that the adoption of loyalty apps is associated with an increase in purchases and the predilection for point redemption. Despite these positive outcomes, however, potential adverse consequences may arise in the form of deal-susceptible behaviors and reduced store-specific loyalty. Loyalty app adopters tend to be more vulnerable to deals, with these customers selectively buying highly discounted products of low margin. Additionally, loyalty app consumers visit more stores but spend less in a focal store, thereby diminishing loyalty to this specific store. These results have managerial implications on optimal mobile-based loyalty program designs and implementation, reward-driven platform strategies, and risk management initiatives in an MVLP setting.
Different but Equal? A Field Experiment on the Impact of Recommendation Systems on Mobile and Personal Computer Channels in Retail
( Lee, Dongwon | Gopal, Anandasivam | Park, Sung-Hyuk )INFORMATION SYSTEMS RESEARCH2020-09
Abstract
The benefits of recommendation systems in online retail contexts have received much attention in prior work. Much of this work has been conducted in personal computer (PC)-based settings, although mobile devices are becoming increasingly central to the online shopping experience. It remains to be examined if the effects of recommendation systems in retail differ across these two channels, in terms of customer-level decision outcomes. In this paper, we examine these differences in some detail, studying how product views and sales attributed to a recommendation system are different across mobile and PC-based channels. Further, we examine how the effect of a recommendation system across channels influences sales diversity, an important outcome in the retail industry. We conduct our analysis using a randomized field experiment, conducted in partnership with an online retailing firm in South Korea, where the experimental treatment is access to a recommendation system. Our results show that the use of recommendation systems enhances customer-level outcomes, such as views and sales of recommended products, clickthrough rate, and conversion. More importantly, the marginal impacts of the recommendation system are significantly higher for mobile users, indicating that the higher search costs imposed through mobile devices are more effectively reduced through recommendation systems. With respect to sales diversity, we observe that although the mobile channel leads to more diverse sales, we see no interaction effects of the recommendation system and mobile use on sales diversity. These results provide boundary conditions for the efficacy of recommendation systems in retail contexts where online sales occur across both PC-based and mobile channels. We discuss the managerial implications of these results for online retailers and conclude with opportunities for further research.
Strategic decompositions of normal form games: Zero-sum games and potential games
( Hwang, Sung-Ha | Rey-Bellet, Luc )GAMES AND ECONOMIC BEHAVIOR2020-07
Abstract
We introduce new classes of games, called zero-sum equivalent games and zero-sum equivalent potential games, and prove decomposition theorems involving these classes of games. Two games are "strategically equivalent" if, for every player, the payoff differences between two strategies (holding other players' strategies fixed) are identical. A zero-sum equivalent game is a game that is strategically equivalent to a zero-sum game; a zero-sum equivalent potential game is a potential game that is strategically equivalent to a zero-sum game. We also call a game "normalized" if the sum of one player's payoffs, given the other players' strategies, is zero. One of our main decomposition results shows that any normal form game, whether the strategy set is finite or continuous, can be uniquely decomposed into a zero-sum normalized game, a zero-sum equivalent potential game, and an identical interest normalized game, each with distinctive equilibrium properties.
