DavidBell– TheWhartonSchoolSantiagoGallino– TuckSchoolofBusiness
ToniMoreno– KelloggSchoolofManagement
July2013– LBS– London,UK
POMSAppliedResearchChallenge– POMS25th AnnualConference
May2014
20May2014 2InventoryShowroomsandCustomerMigration
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www.netgrocer.com
www.diapers.com
www.warbyparker.com
www.yihaodian.com
www.bonobos.com
20May2014 4InventoryShowroomsandCustomerMigration
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TraditionalOnlineRetailing
HomeTry– OnProgram
Select any five pairs of glasses
They’ll ship them to you for free
You’ll have five days to try out the
frames
VisitaShowroom
Locate one of the 20 Showrooms Visit the
Showroom
Decide on your glassesSurf the web
20May2014 15InventoryShowroomsandCustomerMigration
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Time
Sales
Control
Treatment
ACTION
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•– WedefinedtheareasundertheinfluenceofashowroombymeasuringthedistancefromeachZIPcodetoeachWPshowroom.WeassumethatZIPcodeswithin30milesoftheshowroomareundertheshowroominfluence.
•– WPprovidedtheidentificationfor
thoseHTOthatconvertedintoasalesWP identification
20May2014 19InventoryShowroomsandCustomerMigration
2256ZIPcodeswereincludedintheanalysis;921ZIPcodeshaveashowroomwithin30miles.
20May2014 20InventoryShowroomsandCustomerMigration
IsthelogarithmofthetotalsalesZIPcodei onweekt.
Indicatesifatlocationi onweekt therewasashowroomopen.
FixedeffectsforeachZIPcodei andforeachweekt
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HTO Sales5.0%
Web Sales3.5%
Total Sales8.8%
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TraditionalOnlineRetailing
HomeTry– OnProgram
VisitaShowroom
20May2014 23InventoryShowroomsandCustomerMigration
HTO Orders7.8%
HTO Repeat1.5%
WEBReturns1.2%
20May2014 24InventoryShowroomsandCustomerMigration
•
– newcustomersareaddedandothersmigrate.
•– thediscrepancybetweenwhattheyknowaboutaproductbeforebuyingitandwhattheylearnwhenitisdelivered.
•
20May2014 25InventoryShowroomsandCustomerMigration
•
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