Download Seung Hwan “Shawn” Lee

Seung Hwan “Shawn” Lee
Whitman School of Management
Syracuse University
721 University Ave., Suite 311
Syracuse, NY 13244-2450
Phone: 1-(315) 708-8115
Email: [email protected]
Website: http://shslee.weebly.com
EDUCATION
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Ph.D. in Marketing, Syracuse University (NY, US)
(Expected Graduation: May, 2017)
M.S. in Marketing, Seoul National University (Seoul, Korea)
Aug, 2009
B.S. in Electrical Engineering, Seoul National University (Seoul, Korea)
Feb, 2007
RESEARCH INTERESTS
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Substantive: Pricing, Price Perceptions, High-Tech/Digital Marketing, Channel Management,
Online Negotiations
Methods: Applied Game Theory, Econometric Data Analysis
DISSERTATION (ABD status)
Committee: Dr. Scott Fay (Chair), Dr. Eunkyu Lee, Dr. Tridib Mazumdar, Dr. S.P. Raj
(Proposal defense date: July 21, 2015)
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Essay 1: “Why Offer Lower Prices to Past Customers? Inducing Favorable Social Price
Comparisons to Enhance Customer Retention”
Studies how social price comparison may induce different price discrimination strategies,
namely whether to offer lower prices to existing customers or to new ones.
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Essay 2: “Price Promotion Depth and Frequency in Subscription Services”
Studies the optimal price promotion depth and frequency, taking into account both the
reference price effect and social price comparison effect of promotions on customers.
WORKING PAPERS & WORK IN PROGRESS
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Lee, S.H.S., Fay, S., “Why Offer Lower Prices to Past Customers? Inducing Favorable Social
Price Comparisons to Enhance Customer Retention” (Invited for 2nd round revision to
Quantitative Marketing and Economics)
Lee, S.H.S., Fay, S., “Price Promotion Depth and Frequency in Subscription Services”
(Preliminary Draft Available, target: Marketing Science)
Lee, S.H.S., Lee, E. Mazumdar, T., “Other Customers’ Price Information and Service
Subscription Renewal” (Data from Wharton Customer Analytics Initiative, Preliminary Draft
Available, target: Journal of Marketing)
Lee, S.H.S., Fay, S., “Exclusive Contents Creation and Service Payment” (Manuscript in
preparation, target: Marketing Science)
PUBLICATIONS
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Fay, S., Seung Hwan S. Lee (2015), "The role of customer expectations in name-your-own-price
markets", Journal of Business Research, 68(3), 675-683.
(Case Study) Sang-Hoon Kim, So-Youn Shim, Seung Hwan Lee, Eun-hei Joo (2008), “SK
Telecom: Transition Toward the 3rd Generation of Mobile Industry,” Korea Business Review,
12(1), 59-82
AWARDS AND HONORS
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AMA-Sheth Foundation Doctoral Consortium Fellow, London Business School, 2015
ISMS Doctoral Consortium Fellow, Emory University, 2014
Quantitative Marketing and Structural Econometrics Workshop Fellow, Duke University, 2013
Doctoral Fellowship, Syracuse University, 2011 – Present
Summer Research Fellowship, Syracuse University, 2012, 2014, 2015
Distinction on Ph.D. Comprehensive Examination, Syracuse University, 2013
Scholarship for Teaching Assistantship, Seoul National University, 2007-2008
CONFERENCES AND PRESENTATIONS
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“Price Perception and Service Renewal”, WCAI symposium, Mar. 2016, Wharton
“The Influence of Social Price Comparisons on Behavior-Based Pricing”
- Ninth Annual UT Dallas FORMS Conference, February 2015, The University of Texas
at Dallas
- INFORMS Marketing Science Conference, June 2014, Emory University
- Marketing Research Workshop, May 2014, Syracuse University
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“The Effects of Corporate Social Responsibility on the Product-harm Crisis and the Brand
Attitude”, Korean Academic Society of Business Administration Annual Meeting 2008, Jeju,
Korea
TEACHING EXPERIENCE
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Teaching Interests: Marketing Research, High-Tech Marketing, Marketing Strategy (Pricing,
New Product Development), Online/Digital Marketing, Marketing Management
 Instructor (full-course), Syracuse University: (Undergraduate) Marketing Research
 Teaching Assistant, Syracuse University
- (MBA) Pricing Strategy for Products and Services (Dr. Tridib Mazumdar: Fall 2014)
- (MBA) Marketing Research (Dr. Tridib Mazumdar: Spring 2013)
- (Undergrad) Marketing Research (Dr. Amiya Basu: 2013, Professor Gerald Edmonds: 2012)
 Teaching Assistant, Seoul National University
- (Grad) High-Tech Marketing (Dr. Sang-Hoon Kim)
- (Grad) New Product Development and Product Management (Dr. Sang-Hoon Kim)
- (Undergrad) Marketing Management (Dr. Sang-Hoon Kim)
- Business Case Developed for MBA course (2008): “Movie Marketing of Showbox”
PROFESSIONAL EXPERIENCE (Total of 4.5 years in ICT Business)
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Marketing Consultant, Kiwoom Securities (Online stock brokerage), Seoul, Korea, 2011
Assistant Marketing Manager, Korea Telecom (Telecommunications), Seoul, Korea, 2009-2010
Market Analyst and Engineer, Korea Hi-NET (ERP Software), Seoul, Korea, 2002-2005
PROGRAMMING SKILLS
MATHEMATICA, MATLAB, STATA, R, SQL, JAVA, C++
SELECTED GRADUATE LEVEL COURSEWORK
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Marketing Theory
Doctoral Marketing Seminar I
High-Tech Marketing*
New Product Development and Product Management*
Database Marketing*
Consumer Behavior*
Promotion Management*
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Microeconomics and Game Theory
Marketing Models in Distribution Channels
Doctoral Marketing Seminar II
Game Theory and Marketing*
Microeconomics
Survey Microeconomic Theory
Power System Economics*
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(Tridib Mazumdar)
(Sang-Hoon Kim)
(Sang-Hoon Kim)
(Byungdo Kim)
(Jaeil Kim)
(Youjae Yi)
(Eunkyu Lee)
(Scott Fay)
(Wujin Chu)
(Jerry S. Kelly)
(Lourenço Paz)
(Yong Tae Yoon)
Econometrics and Statistics
Marketing Models Seminar
(Dinesh Gauri)
Spatial and Panel Data Econometrics (audit)
(Badi H. Baltagi)
Economics of Networks
(Eleonora Patacchini)
Econometrics II
(Badi H. Baltagi)
Econometrics I
(Jan Ondrich)
Bayesian Methods in marketing Course (audit at Cornell Univ.) (Asim Ansari)
Empirical I/O Seminar (audit at Univ. Rochester)
(P. B. Ellickson & R. McDevitt)
Asymptotic Theory and Spatial Econometrics
(Chihwa Kao)
Statistical Inference
(Hyune-Ju Kim)
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Econometrics
(Keunkwan Ryu)
Mathematical Statistics*
(Woo Chul Kim)
*
indicates courses taken at Seoul National University, all other coursework completed at
Syracuse University (except were indicated otherwise)
REFERENCES
Scott Fay (Chair)
Associate Professor of Marketing
Syracuse University
Whitman School of Management
721 University Ave.
Syracuse, NY 13244-2450
(315) 443 3456, [email protected]
Eunkyu Lee
Tridib Mazumdar
Professor of Marketing
Syracuse University
Whitman School of Management
Professor of Marketing
Syracuse University
Whitman School of Management
721 University Ave.
Syracuse, NY 13244-2450
(315) 443 3429, [email protected]
721 University Ave.
Syracuse, NY 13244-2450
(315) 443 3453, [email protected]
RESEARCH ABSTRACTS
“Why Offer Lower Prices to Past Customers? Inducing Favorable Social Price
Comparisons to Enhance Customer Retention” with Scott Fay
(Analytical Modeling, invited for 2nd round revision to Quantitative Marketing and Economics)
Price discrimination policies vary widely across companies. Some firms offer new customers the lowest
price; others give preferential prices to their past customers. We contribute to the literature on price
discrimination in behavior-based pricing by exploring how customers’ social price comparisons, i.e.,
comparing one’s price to that received by similar peers, impact the optimal structure of price discrimination.
We posit that, after having made an initial purchase with a certain firm, customers believe they are entitled
to preferable prices (relative to the prices offered to new customers, i.e., those who lack a previous
relationship with the firm). Such price comparisons have a negative (positive) impact on customers’
transaction utility if the existing customer’s price is higher (lower) than the new customer’s price. Using an
analytical model with vertically-differentiated firms, we show that the low-quality firm will reward past
customers with relatively low prices when social price comparisons have a sufficiently large impact on
utility. Furthermore, we find that social price comparisons lead to a reduction in competition for new
customers. Thus, both firms earn higher profit than when social price comparisons are made rather than
when such concerns are absent. This is a somewhat counterintuitive finding since, in equilibrium, at least
one firm will charge a higher price to existing customers than to new ones, and thus lead to their customers
experiencing disutility from social price comparisons. Finally, we show that these results are robust to
situations in which customers are forward-looking or incur switching costs.
(Status: Preparing for resubmission)
“Other Customers’ Price Information and Service Subscription Renewal” with Eunkyu
Lee & Tridib Mazumdar (Empirical Data Analysis, target journal: Journal of Marketing)
Customers’ responses to an offered price can help a firm assess customer reservation values. The difference
between one’s reservation value and the price will determine transaction satisfaction, which is an important
metric for predicting customer repurchasing decisions and word-of-mouth behavior. However, when
different prices are offered for an identical product, price comparisons can also impact transaction
satisfaction. Such pricing comparisons are especially pertinent for subscription-based software services, for
which pricing strategies are often very volatile, thus generating significant price dispersion among similar
customers for an identical product. In our empirical study, we infer each customer’s transaction satisfaction
using social price comparison variables and find that social price comparisons significantly influence
service renewal decisions. Focusing on individual service renewal decisions, we find that, surprisingly, not
only lower prices, but also higher prices paid by other customers may trigger unfair price perceptions and
decrease renewal probability. We also find that price insensitive customers are less prone to be influenced
by perceptions that prices are unfair. (Status: Preliminary Draft Available)
“Price Promotion Depth and Frequency in Subscription Services” with Scott Fay
(Analytical Modeling, target journal: Marketing Science)
Although price promotions typically increase revenue in the short-run, firms and managers who are
interested in sustainable growth should also be very mindful of the impact of price promotions on longterm profit. In this paper, we consider the direct and indirect consumer behavioral impacts from price
promotions. We focus on how price discounts’ depth and frequency influence reference prices and price
comparisons in service industries. A consumer’s internal reference price decreases with more frequent price
promotions and also with the depth of price discounts. Social price comparisons influence transaction utility
when existing customers compare their price to the one charged to new customers. Both of these effects
decrease consumers’ repurchase probability and thus undermine long-term profit. Firms can mitigate these
effects by offering fewer promotions with smaller discounts. However, such actions reduce firms’ ability
to attract new customers. We identify the optimal promotion strategy that accounts for both the short-term
and long-term impacts of promotions. We find that the optimal promotion frequency and depth depends on
the relative strength of social price comparisons and reference prices. When social price comparisons are
strong (relative to the reference price effect), a firm should offer deep promotions on an infrequent basis;
when social price comparisons are weak, a firm should use frequent, but shallow discounts.
(Status: Preliminary Draft Available)
“The role of customer expectations in name-your-own-price markets” with Scott Fay
(Analytical Modeling & Empirical Data Analysis, Published in Journal of Business Research)
This research analyzes how consumers' bidding costs and expectations about the threshold price impact a
Name-Your-Own-Price (NYOP) retailer. We find that an NYOP retailer's profit may increase if consumers
learn the product's true price threshold distribution. Inaccurate expectations can be detrimental to the firm
either if consumers are too optimistic (i.e., expect the threshold price to be lower, on average, than really
is) OR if consumers are overly pessimistic (i.e., expect the price threshold to be much higher than it is in
reality). Furthermore, if customers accurately anticipate the true distribution of threshold prices, a seller
may benefit from either (1) rejecting profitable bids in order to induce higher expectations of the threshold
price (and thus higher bids) or (2) accepting bids below its costs (in order to raise participation rates). Using
data from a real-world NYOP retailer, we find that bidding behavior is consistent with our analytical
predictions.
(Status: Published)
“Exclusive Contents Creation and Service Payment” with Scott Fay (Analytical Modeling,
target journal: Marketing Science)
Video contents are rapidly shifting their distribution channel from TV to Internet, where service providers
are competing fiercely. What is interesting is that the pricing strategy of these service firms seem to be
connected to how much exclusive (original) contents they provide. We offer insights into why and when a)
a firm with many exclusive contents will offer no-ad(advertisement) fixed payment, and b) a firm with less
exclusive contents will offer ad-included fixed payment. Exclusive contents provide competitive edge over
non-original ones, creating greater network effects of customers, since non-original contents are distributed
through multiple channels. Non-exclusive shows are typically distributed through traditional video contents
providers(e.g. Television stations) in advance, thus ad inclusion strategy incorporating relatively smaller
amount of advertisements compared to traditional channels is applied. This strategy enables firm to earn
revenue through ad diversifying income source and lower the fixed payment to attract more customers. In
this paper, we show under certain conditions a service firm’s contents strategy couples with each pricing
structures. Furthermore, we seek conditions when the service firm has incentive to offer its exclusive
contents by pay-per-view.
(Status: Initial model)