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MARKETING AT CHICAGO 2OO9 MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING ING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES DYNAMICS CHANNEL STRATEGY MANAGEMENT LABS CONSUMER BEHAVIOR D PRICING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES AFF MICS CHANNEL STRATEGY MANAGEMENT MARKETING AT CHICAGO 2009 DYN ING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW PRO BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING ING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES DYNAMICS CHANNEL STRATEGY MANAGEMENT LABS CONSUMER BEHAVIOR PRICING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST EE NT LABS CONSUMER BEHAVIOR DYNAMIC PRICING MARKETING AT CHICAGO 2009 The University of Chicago Booth School of Business 5807 South Woodlawn Avenue Chicago, Illinois 60637 CONTENTS MARKETING AT CHICAGO 2OO9 INTRODUCTION 2 PETER ROSSI, MBA ’80, PHD ’84 p2 ART MIDDLEBROOKS, ’88 ALUMNI 4 DAVID APPEL, AB ’81, MBA ’82 ALUMNI IN THE NEWS “At Chicago, we focus on the fundamental marketing questions. Our commitment to basic research pays off in the classroom and in the careers of our graduates.” p6 RECRUITING 12 DAVE KNOEPFLE, ’03 TOP RECRUITERS AT CHICAGO BOOTH IN 2008 p14 FACULTY 18 JEAN-PIERRE DUBÉ A. YEŞIM ORHUN FACULTY NEWS PETER E. ROSSI, MBA ’80, PHD ’84 JOSEPH T. AND BERNICE S. LEWIS PROFESSOR OF MARKETING AND STATISTICS AND DIRECTOR OF THE JAMES M. KILTS CENTER FOR MARKETING PHD PROGRAM 30 PHD STUDENT NEWS p20 MBA PROGRAM 34 JESSICA LINDOR JAMES L. TYREE AND MAAYAN PINHASSI STUDENT NEWS p36 CURRICULUM 44 PETER CARRILLO, ’98 COURSE DESCRIPTIONS p46 MARKETING AT CHICAGO is published annually by the University of Chicago Booth School of Business. All rights reserved. Copyright 2009. 04-09 / 5M / AN Welcome to Marketing at Chicago 2OO9. MARKETING AT CHICAGO Peter E. Rossi, MBA ’80, PhD ’84 Joseph T. and Bernice S. Lewis Professor of Marketing and Statistics and Director of the James M. Kilts Center for Marketing Chicago Booth is more than a business school, it is a business force. Nowhere is that more evident than in the marketing department. At Chicago we believe that marketing is not a functional “silo” but rather a driver of marketplace value that can integrate, align, and motivate an organization across different disciplines. Art Middlebrooks, ’88 Executive Director of the James M. Kilts Center for Marketing and Adjunct Professor of Marketing This Marketing at Chicago piece from the James M. Kilts Center for Marketing is designed to showcase our unique Chicago approach to marketing for our friends and prospective friends, keeping all informed of new developments, student and alumni achievements, faculty appointments and research, curriculum, and news and insights from recruiters who come here seeking top talent. Focusing on our prospective students, we announce winners of marketing scholarships and fellowships and share career advancements from our former scholars. Here are some highlights. This year we are pleased to announce a major expansion to Chicago Booth’s Marketing Data Center. A.C. Nielsen is providing us with its household panel data, including product purchase information for more than 100,000 households. With this expansion, Chicago Booth will become the premier source of consumer marketing data for all of academia. We anticipate that by late 2009, these data sets will be available for academic use worldwide. The marketing faculty grew and gained further recognition. Pradeep Chintagunta and Jean-Pierre Dubé were identified in an academic study published in the Journal of Marketing as two of the most prolific scholars in marketing from 1982 to 2006, with Pradeep at the top of the list. Ron Goettler joined us from Carnegie Mellon. Ron applies economic models and econometrics to study consumer and firm behavior, with a focus on dynamic issues related to learning, innovation, and product durability. To complement our signature management lab course, we added two more experiential marketing courses. The marketing research and consumer behavior courses expanded their curricula to include “lab” projects from corporate sponsors. This year, more than 40 companies have sponsored marketing projects, enabling students to apply their classroom learning to real-world marketing problems. Thanks to a generous gift from Karen Katen, AB ’70, MBA ’74, the Marketing Mentors Program was launched that pairs up marketing alumni and students. This program provides a unique, valuable benefit to Chicago Booth marketing students by enabling them to learn from alumni experiences, and it gives alumni a way to share their expertise and stay connected. Our marketing fellowship steering committee continues to grow. We are pleased to welcome Karen Seitz, ’86, managing director of Goldman Sachs, and Gary I. Singer, ’78, CEO of Redline Results. This steering committee of 19 senior executives supports our marketing fellowship program, which recently graduated its first class of eight marketing fellows. Finally, BusinessWeek recently ranked Chicago Booth the number-one business school overall, and the number-five school for marketing. Our commitment to marketing is evident in the success of our alumni, students, and faculty. We invite you to browse this publication to share in the achievements of the past year. Peter E. Rossi, MBA ’80, PhD ’84 Director, James M. Kilts Center for Marketing Art Middlebrooks, ’88 Executive Director, James M. Kilts Center for Marketing 2 — 3 MARKETING AT CHICAGO I ALUMNI “What I got from Chicago Booth is a combination of intellectual tools and practice in collaboration, which helped me sort through the multitude of key priorities and figure out what’s going to make a product fly.” DAVID APPEL, AB ’81, MBA ’82 CEO OF VISION, LLC 4 — 5 MARKETING AT CHICAGO I ALUMNI Chicago Booth Marketing Alumni I N T E R V I E W David Appel, AB ’81, MBA ’82 CEO of Vision, LLC Leaving Accenture to work for Orange Glo, the family business, David Appel helped drive OxiClean to lead the U.S. stain remover category, largely through infomercials. Annual revenue exceeded $300 million before the firm was sold to Church & Dwight in 2006. At Vision LLC, he’s launching Blox, a fabric protector; a bamboo clothing company called Global Ghetto Organics; and a chain of pet hotels called Wag. “I love bringing new ideas to market,” Appel says. Innovation at Work: How Infomercials Created a Consumer Product Giant Intellectual Tools and Practice in Collaboration– the Chicago Approach In the 1980s, my parents started Orange Glo, a small company that created cleaning products. It was a traveling demonstration business; my sisters and brother and I were part of it. We went to state fairs, consumer shows, and home shows to sell the products in person. It created a culture of demonstration, of focusing on dirt versus conceptual ideals, and you really had to break through the customer’s resistance. It’s a very down-to-earth selling approach. By the mid-1990s, we started to sell on the Home Shopping Network. Our first time, we sold 2,000 kits of Orange Glo, Orange Clean, and OxiClean in six minutes. We knew we had to advertise but we didn’t have the resources to buy national advertising, so we decided infomercials would let us build awareness while still maintaining some sort of revenue. We were unknowns, so the big producers wouldn’t even return our calls. My dad had met Billy Mays at the Pittsburgh Home Show. Billy helped us break through the clutter, and now he’s a global celebrity. With infomercials, you get great awareness, your costs are reasonable, and people use your product and talk about it. But there aren’t great data services that track infomercial sales, so we were essentially invisible. By the time we hit our first retail shelf, we had a meaningful market share, but nobody knew it. I think of myself as a marketer, but I didn’t become one by going a traditional marketing route. To me, the best marketers understand how to run a brand or a product or a company. My training was finance, marketing, and accounting. What I got from Chicago Booth is a combination of intellectual tools and practice in collaboration, which helped me sort through the multitude of key priorities and figure out what’s going to make a product fly. The Fundamental Questions Still Apply I had a great course in operations research that was about using analytical tools to solve problems that weren’t obviously quantitative. Say we have a capacity constraint and are deciding what to make. We ask questions about margin contribution, but also, what are my strategic goals? What am I trying to achieve? What happens if I run out of a product that families may consider vital versus discretionary, even though I might lose margin? Quantitative tools help you make good marketing decisions. How do you decide what makes a company valuable? You try to create a brand that’s worth something and repeatable and sustainable and has fairly limited competitive threats. Prepared to Lead in a Global Economy In addition to the analytical, multi-disciplinary approach, what’s equally compelling is the school’s international presence; it’s really part of the global community. Also, Chicago Booth fosters entrepre- neurship, continuing to innovate and focus on the most exciting opportunities. Figuring out how to grow in a global economy is something we all need to work on, don’t we? 6 — 7 Through a generous gift from Karen Katen, AB ’70, MBA ’74, the Marketing Mentors Program was launched in 2009. This program supports students interested in marketing careers by pairing them up with Chicago Booth alumni who work in marketing roles. The program is co-sponsored by the Kilts Center, the Office of Alumni Affairs and Development, and the marketing groups for the Full-Time MBA Program and Evening MBA and Weekend MBA programs. “The beauty of mentoring is seeing energetic young people posing new questions and interacting with real-world experience for new learning. We all learn. We all win.” KAREN KATEN, AB ’70, MBA ’74 SENIOR ADVISOR ESSEX WOODLANDS HEALTH VENTURES LLC MARKETING AT CHICAGO I ALUMNI Marketing Mentors Program Students receive career and professional guidance, functional and industry perspectives, and lessons from a Chicago Booth graduate with valuable experiences beyond their own. Alumni inspire marketing students, make an impact by sharing their professional insights, stay connected to Chicago Booth, and receive personal enrichment. We are delighted to have more than 70 alumni and students participating in the first year of this program and look forward to expanding it next year. Alumni Mentors Todd Applebaum, ’06 Brooke Hardin, ’04 Elizabeth Schnitzer, ’06 Ashley Baxter, ’04 Derek Herbst, ’04 Kavitha Sekhar, ’07 Deanna Bordeman, ’06 Maya Herstein, ’07 Marshall Sims, ’06 Elizabeth Bowen, ’07 Katherine Karim, ’05 Saverio Spontella, ’07 Renata Bregstone, ’02 William Lucas, ’02 Sugirtha Stathis, ’06 Dequiana Brooks, ’07 Bevin Madigan, ’01 Suzan Sultan, ’07 Jamie Coleman, ’07 Anil Mansukhani, ’05 AnnaMaria Turano, ’96 Katie Cosgrove, ’05 Kenyata Martin, ’06 Jeremy Vannatta, ’02 Suzy Davidkhanian, ’06 Jim Maurer, ’00 Teja Vora, ’06 Brian Dominguez, ’03 Ekow Mensah, ’07 Jennifer Weinstein, ’00 Adrienne Eltink, ’08 Renu Mevasse, ’04 Ted Wright, ’00 Deborah Glasser, ’05 Matt Pensinger, ’04 Jean Hahn, ’05 Praveen Reddy, ’03 8 — 9 In the past year, our alumni set new standards in the industry, from innovative in-store advertising tools to uniquely satisfying gourmet sweet treats. They were appointed to key positions in top firms and organizations ranging from Estée Lauder to the Chicago Transit Authority. Here is a selection of alumni accomplishments in 2008. in the news and on the move in 2OO8. David Doerksen, ’97, has been appointed vice president, marketing strategy and administration, of Cameco. Headquartered in Saskatoon, Saskatchewan, Canada, Cameco is the world’s largest uranium producer. Kareem Saad, ’04, has been named vice president, Kevin Kiper, AB ’79, AM ’83, MBA ’87, has become marketing officer of Barnes & Thornburg LLP. One of the Midwest’s largest law firms, the company has seven offices in Chicago, Indiana, Michigan, and Washington DC. director of circulation and database marketing of Excelligence Learning Corporation. Headquartered in Monterey, California, the company develops educational products for child-care programs, preschools, elementary schools, and consumers. Targeted consumer ads Olympic start-up Sylvie Biragnet, ’03 (EXP-8), has become executive Dick Buell, ’78, chairman and chief executive of Mark Konjevod, ’07 (XP-76), has a start-up that went Catalina Marketing, a global leader in behaviorbased marketing solutions, was featured in a Wall Street Journal story about a new marketing tool developed by the firm. According to the article, ads printed at checkout that directly target the shopper’s own buying habits are becoming increasingly popular in supermarkets nationwide. Addressing the issue of privacy, Buell told the Journal that the firm doesn’t use or store any data that would identify shoppers. He also mentioned that the service tends to be most effective in driving the consumers to buy more of a product or try newly launched ones. Prior to his position at Catalina Marketing, Buell was COO at Foodbrands America, a $3.6 billion processed food business, and CEO of WS Brands, a holding company within Willis Stein & Partners private equity partnership. for Olympic gold. The Wall Street Journal discussed how his company signed a deal with the U.S. Olympic Committee to make WIN High Performance Sport Detergent the official detergent of the U.S. Olympic team. Konjevod, chief executive of WIN, was a banker and media executive before plunging into the laundry business in 2002. WIN also has won another major endorsement—Nike, whose customer service reps will recommend you buy WIN to take care of smelly workout clothes. director, global skin care marketing, of Estée Lauder Companies Inc. She is based in the cosmetic company’s New York headquarters. A sweet treat Katie Das, ’03, and her handmade-caramel business were featured in the Chicago Reader. Das has “pounded the pavement to get her caramels on shelves in places like Whole Foods, Intelligentsia, Sam’s, and Pastoral, and makes the deliveries herself,” the article said. Das tinkered with a recipe she discovered in France and came up with four flavors for her caramels: lavender, lemon and honey, orange and honey, and chocolate walnut. “She’s already planning to launch another line of sweets based on a recipe from a different part of the world. But she’s keeping the idea to herself for now,” the Reader said. A former marketing manager in new product development at Wrigley, Das said in the article: “I learned a lot about candy marketing and consumer behavior when it comes to indulgence.” Finding the right career Jude Rake, ’87, CEO of Recycled Paper Greetings Inc., went to college to become an engineer, but a Myers-Briggs personality test led him into business management after showing him he’s “someone who likes to take a leadership role, better-suited to a business, not engineering, career,” he said in a Chicago Tribune profile. After four years as an engineer with Bechtel Corp., he came to Chicago Booth to study brand management. “I went to many company presentations and job interviews. With brand management, I liked the ownership and variety, touching every aspect of a business,” he told the Tribune. After earning his MBA, he joined Clorox, then moved to Pepsi International as the marketing and business development manager. He held positions at S.C. Johnson, Kodak, and Fellowes, Inc., before joining the greeting card firm in 2007. Edward Mueller, ’84, has joined Bentley Systems, Incorporated, as chief marketing officer. The software company is headquartered in Exton, Pennsylvania. Damien Duhamel, ’05 (AXP-4), has become man- aging director of KAE Asia, a strategic marketing consultancy that delivers evidence-based marketing advice to Fortune 500 companies. KAE has offices in London, Washington DC, Singapore, and Shanghai, and is listed on the London stock exchange. Jim Von Bruchhaeuser, ’82, has been appointed executive vice president and chief marketing officer at Penn Treaty American Corporation, an insurance company that is headquartered in Allentown, Pennsylvania. Kevin Shifrin, ’91, has been appointed senior vice president of global marketing and business development of Stereotaxis, Inc. He was vice president of global marketing for the firm’s C.R. Bard peripheral vascular division. Based in St. Louis, Missouri, the company makes instrument control equipment for cardiology surgical suites. marketing and business development, of Codon Devices, Inc. The biotechnology company is headquartered in Cambridge, Massachusetts. Rick Carpenter, ’99 (XP-68), has been named chief MARKETING AT CHICAGO I ALUMNI Chicago Booth alumni in marketing were Gustavo Minacci, ’05 (EXP-10), has joined as gen- eral manager sales and marketing of Ideal Standard International. The Brussels-based firm, a leading provider of innovative and design-driven bathroom solutions, was acquired by Bain Capital in November 2007. Minacci is based in Milan. Eric Rodli, ’81, has joined as executive vice president for sales and marketing of DivX, Inc. The San Diego– based company makes digital media technologies. Joseph Paulsen, ’91, has been appointed general manager of integrated marketing services business at Experian. Headquartered in Dublin, Ireland, the company offers such services as credit, marketing, analytics, and internet shopping and credit reports. Maryrose Dombrowski, ’99 (XP-68), has been appointed senior vice president and head of marketing of Southwest Securities. Based in Dallas, the securities clearing and brokerage services provider is the primary subsidiary of SWS Group. Maureen Perou, ’89, has joined as chief marketing officer of Academic Approach. The company, which helps students prepare for standardized testing, has offices in Chicago, New York, and Boston. Ken G Kabira, AB ’85, MBA ’92, has been named executive vice president and chief marketing officer of the Chicago Transit Authority, an independent government agency that is the nation’s second-largest public transportation system. Brendan Sullivan, ’07 (XP-76), has been named chief marketing officer, group director, of Calumet Photographic. Based in Chicago, the company retails high-end photographic and video equipment. 10 — 11 MARKETING AT CHICAGO I RECRUITING “We’re always cultivating our next generation of leaders within the organization, so we want people who are not only good marketers but also good managers—really strong leaders who can come into our organization and make an impact from day one.” DAVE KNOEPFLE, ’03 MARKETING MANAGER WM. WRIGLEY JR. COMPANY 12 — 13 Dave Knoepfle, ’03 Marketing Manager Wm. Wrigley Jr. Company Dave Knoepfle is part of a team from the Wm. Wrigley Jr. Company that began recruiting for brand management at Chicago Booth in 2003. Good Marketers, Strong Leaders Wrigley recruits for brand managers, so we look for people who are passionate about building brands and brand management. But we’re always cultivating our next generation of leaders within the organization, so we want people who are not only good marketers but also good managers—really strong leaders who can come into our organization and make an impact from day one. Recruiting Marketing Talent Recruiting at Chicago Booth allows us to attract a certain type of marketer who has really strong capabilities both in strategic thinking and analytics. That helps diversify our overall talent pool within the organization. In the associates we hire from Chicago Booth, we see incredibly strong analytic and strategic thinking ability, which helps us build stronger brands and maintain our category leadership position. Diverse Backgrounds with Global Market Savvy We see more people with consulting backgrounds and career switchers with analytical skills. In fact, I was one of them. Chicago Booth’s approach to marketing built my strengths and allowed me to make the transition from finance to marketing. The students we interview also have a tremendous amount of interna- MARKETING AT CHICAGO I RECRUITING Chicago Booth Marketing Recruiter I N T E R V I E W tional experience, which we see as one of the strengths at Booth. As a multinational organization with operations in over 100 countries, Wrigley is truly a global company, and we strive to mirror the diversity of our consumers and customers in our workforce as well. Lasting Value in a Changing Marketplace The marketplace is evolving, making Chicago Booth’s approach particularly relevant now. It goes back to ROI. With the economy this tough, having a strong understanding of the P&L for the program you’re putting into place and the return it will give you is key, and Chicago Booth students are trained in that approach. Having people who are well versed in analyzing the business and analyzing the decisions we make is a definite asset at any time, but particularly in a down economy. Strategic, Analytical—and Creative In addition to their superior quantitative skills, the students are terrific at creative thinking—something the senior management sees during campus visits. Handling strategics and analytics is part of the skill set. But that ability to think creatively and to problem solve is one of the things we often hear they’re pleasantly surprised about. 14 — 15 Over 200 firms worked with us to source marketing talent this year. The list ranged from companies in the consumer packaged goods arena, such as Colgate-Palmolive, to financial services, like American Express, to the technology arena, like Apple, to the pharmaceutical industry, including Baxter Healthcare Corporation. Full-time positions were accepted by 38 graduating students and internships were accepted by 58 students. Among the companies recruiting for marketing positions at Chicago Booth: Companies who recruit with Chicago Booth for marketing also include: Abercrombie & Fitch Adobe Systems, Inc. Amazon.com, Inc. Bayer Healthcare Bose Corporation Boston Scientific Corp. BP America Inc. Burger King Corporation Cisco Systems, Inc. Coach Inc. ConAgra Foods Dell Inc. DIRECTV, Inc. Discover Financial Services, LLC E. & J. Gallo Winery East Bay Community Foundation Eaton Corporation eBay, Inc. eHarmony.com Expedia.com Farmers Group, Inc. Fellowes, Inc. Ford Motor Company Gallup Organization Garmin International Genentech, Inc. General Mills, Inc. Ghirardelli Chocolate Company Google, Inc. Harley-Davidson Financial Services, Inc. Institute at the Golden Gate Intel (China) Ltd. Kaplan Higher Education Las Vegas Sands Corporation LexisNexis Group LG Electronics L’Oreal Inc. Mayo Clinic Motorola, Inc. NAVTEQ Corporation Nokia Oracle Corporation Paypal, Inc, an eBay Company Pfizer, Inc. Philips Electronics NA Corp. Progressive Companies Salesforce.com, Inc. SAP America, Inc. Sears Holdings Corporation Staples, Inc. Stax, Inc. Target Corporation Telefonica Chile The Associated Press The Clorox Company The Walt Disney Company Time, Inc. MARKETING AT CHICAGO I RECRUITING Chicago Booth was a top choice for mar keting talent for recruiters in 2OO8. Time Warner Inc. United Airlines, Inc. Warner Bros. Wrigley Company Yahoo! 16 — 17 MARKETING AT CHICAGO I FACULTY “At Chicago Booth, students get access to the very top faculty in the field and learn the fundamentals of how to run a business, which do not change because of trends like the internet or because we’re in a recession. There’s no new set of principles.” JEAN-PIERRE DUBÉ SIGMUND E. EDELSTONE PROFESSOR OF MARKETING 18 — 19 MARKETING AT CHICAGO I FACULTY Chicago Booth Marketing Faculty I N T E R V I E W Jean-Pierre Dubé Sigmund E. Edelstone Professor of Marketing Jean-Pierre Dubé joined the Chicago Booth faculty in 2000. His research interests include marketing decisions such as pricing, advertising and branding, and the role of competitive dynamics. His specific domains of interest include the retail industry and internet marketing. Researching How Industries and Markets Evolve Bringing Research Into the Classroom My recent research focuses on dynamics. Recently, I looked at brand patterns for consumer packaged goods like ground coffee. Two brands, Folgers and Maxwell House, dominate the U.S. market with roughly equal shares of volume sold. However, in some regions, Folgers garners considerably more share than Maxwell House; in other regions, the situation is reversed. With two co-authors, I went through company archives and traced when these brands rolled out in different cities. We did this for several product categories and found that being the first to roll out in these markets, sometimes over a century ago, is a very good predictor of whether a brand has the highest market share in that market today. This incredible degree of persistence is surprising both for academics and for brand managers in these categories. In a follow-up study, I’m working with Matt Gentzkow [associate professor of economics and Neubauer Family Faculty Fellow] and Bart Bronnenberg [professor of marketing at Tilburg University] on why history would persist in the current performance of a brand. We’ve obtained shopping data on 75,000 households across the country from A.C. Nielsen, then surveyed these households about the city where the primary shopper was born, educated, and currently resides. We’re studying whether people buy the brands that are popular where they currently live versus where they grew up; we’re testing whether shoppers take their brand preferences with them when they move to a region that has different brand-buying habits. Chicago may have a reputation of being the sort of place where faculty do research and grudgingly teach because they have to, but that’s not true. The classroom here is taken unbelievably seriously. Faculty work hard to develop and maintain high-quality classes. The advantage to students of having access to very rigorous and top-quality research faculty is the depth of understanding. If you understand and study concepts deeply, it’s a lot easier for you to explain the concept in the classroom. From students, I learn what’s actually happening in the field and how decisions get made, particularly in teaching executives. For instance, we work with an underlying model of how we think people behave. We’ve nailed consumer behavior, but firms don’t always behave the way we would predict with our theories. Our students tell us that in selling a product, for example, employees are rewarded for how much money they make in the next six months. Employees cannot then be expected to make decisions that pay off for the firm several years from today. The very long-term perspective that best serves the firm as a whole and seems natural to the researcher can’t happen in practice. You start realizing, “We missed this in our models.” A Focus on Fundamentals and a Rigorous Approach It’s very simple. We have people who are trained in the fundamentals, especially economics and psychology, and we build from those disciplines. A lot of marketing groups are data rich and work on empirical questions, but what makes Chicago Booth stand out is our rigorous approach. This connection to core discipline training holds you to a certain standard. Also, we have a lot of exposure to disciplines outside of marketing. Everyone is working on marketing problems—advertising, pricing, customer segmentation, customer preferences. These are fundamentals, but we happen to use economics (or psychology) as the basis from which we start forming theories and constructing models. As a result, we publish research not just in marketing journals, but also in the very top economics, statistics, and psychology journals. Consequently, our research has a much broader audience and, hence, a much broader impact. . Developing Market Leaders When it comes to the teaching environment, the dean’s office is really one of the school’s strengths. No one has ever questioned the content of my class or tried to push me to teach specific topics. In fact, faculty hear it’s OK to dial it up. I teach pricing, and every year I try to add something new related to my work experience. While the class content is getting richer each year, it is also getting slightly harder. The students always rise to the challenge. At Chicago Booth, students get access to the very top faculty in the field and learn the fundamentals of how to run a business, which don’t change because of trends like the internet or because we’re in a recession. There’s no new set of principles. 20 — 21 MARKETING AT CHICAGO I FACULTY Chicago Booth Marketing Faculty I N T E R V I E W A. Yesim Orhun Assistant Professor of Marketing After completing her PhD at the University of California at Berkeley in 2006, Yesim Orhun joined the faculty at Chicago Booth as assistant professor of marketing, where she teaches a course in marketing strategy. Her research interests include the interaction of firm strategy and consumer decision making, strategic product positioning, product line decisions, price discrimination, behavioral decision making, and empirical analysis of competitive firm interaction. Teaching Fundamentals First, Tools Later The Classroom Exchange When some students hear “marketing strategy,” they think you have a product and you’re trying to push it onto consumers. But marketing strategy starts even before you have a product. Who are you going to serve with what? Ideally, the customer prefers your product over others, and serving this customer base is the most profitable proposition for you. I teach students to think strategically about any business problem by asking critical questions like, “If I do this, how will the market respond? I want to serve these consumers, but will I get them?” The question is, how do you create value and capture it too? That’s where marketing strategy comes in. I teach fundamentals that come from economics and psychology and how they apply to marketing. After you have a strategy, you talk about tools, like prices, advertising, promotions, distribution. They are all subordinate to the overarching strategy of who you are going to serve, with what value proposition. The tools take the strategy to market. This type of thinking helps students later on in any problem they face. I think Chicago Booth is unique in that we don’t teach them the latest fashion in management. We teach them fundamentals. My course is very much in that vein. We also push our students in thinking about the dilemmas we face as researchers. I bring to class a number of open-ended questions and ask, “What do you think? Let’s debate.” I learn a lot too, such as industry norms. Depending on where students worked, they approach these questions differently, which is a good learning experience for me. For example, with respect to price differentiation, some students said, “What if consumers find out? How will they react?” A strong sense of violation of fairness norms came up in class and we debated it. This issue, in fact, is being debated in the literature today. In my research, I have to make some assumptions. Talking to students makes me think about which assumptions are more valid. Doing Research that Digs Deeper I’m interested in the psychology behind choice—how people make comparisons between different products, or between themselves and other people. Where do these comparisons come from, and how do they affect the decisions people make? Also, how can we make use of this information as managers? I also research how firms compete in product lines or assortments. Prices aren’t the only thing that consumers care about; they also care about product assortment or quality. We know so much about price competition, but it only comes after you have products on the market. Prices depend on competition and positioning in the product space, and we need to understand the competition in that space better. For example, if supermarkets want to trim a product line in a category, they may think about dropping the lowest-revenue products. This is something that managers do. But that might not be optimal; there may be niche consumers who shop there only for these products, but who cross-shop in other categories for very profitable products. Cross-Discipline Environment Supports Novel Research Chicago Booth is a place where I feel extremely confident in pursuing novel and risky projects, exploring ideas that put different literatures together. My work combines economic theory and psychology, and I feel very much at home doing that here. At seminars in a range of areas, the faculty are able to relate to my work, and they’re excited about this cross-field interaction. Chicago Booth has the best faculty in many areas, including marketing. It is a great place to do cutting-edge research. 22 — 23 Research highlights in 2008 reflect the diverse interests and strengths of our faculty. The papers take on a wide range of important current topics in marketing. “Psychological Distancing: Why Happiness Helps You See the Big Picture” Aparna Labroo, associate professor of marketing; and Vanessa Patrick, assistant professor of marketing, University of Georgia The authors propose that a positive mood, by signaling that a situation is benign, might allow people to step back and take in the big picture. As a consequence, a positive mood might increase abstract construal and the adoption of abstract, future goals. In contrast, a negative mood, by signaling not only danger but also its imminence, might focus attention on immediate and proximal concerns and reduce the adoption of abstract, future goals. The authors conducted five experiments. First they demonstrate the basic effect—that positive cues and positive mood evoke abstract construal. Then, in accordance with a construal-level account, they demonstrate that participants in a positive (vs. negative) mood view abstract goals as more important and concrete goals as less important and prefer products with abstract, future-oriented benefits. Finally, they demonstrate that by increasing abstract construal, a positive mood results in an increased adoption of whichever abstract goal is accessible. They argue that these findings are not only compatible with but also offer a new lens through which to view the mood-as-information perspective. “Quantifying the Economic Value of Warranties in the U.S. Server Market” Pradeep Chintagunta, Robert Law Professor of Marketing; and Junhong Chu, assistant professor, NUS Business School, National University of Singapore The authors quantify the economic value of hardware base warranties in the U.S. server market to manufacturers, channel intermediaries, and customers. They further decompose the value of a warranty into its insurance value and its price discrimination value, which are the two main rationales for warranty provision in the server market. They use structural modeling and counterfactual experiments to accomplish the empirical task. They derive a demand model from utility maximization, which accounts for a customer’s risk aversion behavior and heterogeneity. The authors obtain their pricing model from the profit maximization behavior of manufacturers and downstream firms in indirect channels, accounting for the institutional realities in the server market. Their empirical analysis uses quarterly data from 1999 to 2004 on server wholesale prices, retail prices, and sales for direct and indirect channels in the U.S. market. They find that manufacturers and downstream firms benefit from warranty provision and from sorting across heterogeneous customers by offering a menu of warranties. Customers also benefit from manufacturer warranty provision as well as from the menu of warranties offered. The insurance value of warranties increases and the price discrimination value of warranties decreases with warranty duration. “Brand History, Geography, and the Persistence of Brand Shares” Sanjay Dhar, James H. Lorie Professor of Marketing; Jean-Pierre Dubé, Sigmund E. Edelstone Professor of Marketing; and Bart Bronnenberg, professor of marketing, UCLA Anderson School of Management The authors study persistence in the geographic variation in market shares of branded goods in 34 consumer packaged goods industries across the 50 largest U.S. city-markets. Current market shares are higher in markets closest to a brand’s historic cityof-origin than in markets farthest from its cityof-origin. For six industries, they can determine the order of entry among the top brands in each of the 50 U.S. markets. The authors find an “early entry” effect on a brand’s current relative market share and perceived quality across U.S. cities. In most cases, the magnitude of this effect drives the rank-order of market shares and perceived quality levels across cities. The findings suggest that early entry generates a persistent advantage for a firm and therefore plays a role in the formation of the long-run industrial market structure of the CPG industries studied. Suresh Ramanathan, associate professor of marketing; and Sanjay Dhar, James H. Lorie Professor of Marketing Most of the literature on sales promotions focuses on responses to only the promoted brand. Across two experimental studies and one field study, the authors examine how sales promotions may affect the size and composition of the overall shopping basket including non-promoted brands. They show that the framing of the sales promotions (e.g., “Save $x” vs. “Get $x Off”), the nature of the temporal restrictions (immediate expiration date versus future expiration date), and familiarity of bands (well-known versus less familiar) are independent primes for regulatory focus. Further, the authors show that promotional cues, when compatible with each other or with prior regulatory focus, lead to more unrelated purchases in a store. More generally, their research highlights the importance of consistency between positioning strategies retailers use to differentiate themselves and the price promotional strategies that they use. “Online Word-of-Mouth Effects on the Offline Sales of Sequentially Released New Products—an Application to the Movie Market” Pradeep Chintagunta, Robert Law Professor of Marketing; Shyam Gopinath, doctoral student, Kellogg School of Management at Northwestern University; and Sriram Venkataraman, assistant professor of marketing, Goizueta Business School at Emory University The growth of online word-of-mouth (WOM) via user ratings, blogs, etc., has prompted an emerging area of research into the effects of such factors on offline product performance. Measuring the actual effects of such factors on offline sales remains a challenge due to the presence of unobserved factors that can be correlated with both the online WOM measure and the offline sales measure. In this study, the authors measure the effects of online WOM, specifically online user ratings, on offline sales for new products that are sequentially released across geographic markets while accounting for the possible endogeneity of these ratings. They achieve this by exploiting the sequential rollout of products across geographic markets, in conjunction with local market-level information, and by constructing plausible instruments with these data for the user ratings (that are typically available only at the national level). The empirical application is set in the context of the movie industry, where the authors investigate the impact of user ratings (valence, volume, and variance) from sites such as Yahoo! Movies on movie box-office performance. They use a unique data set that has box-office information at the local market level for all movies released between November 2003 and February 2005. They find that mean user ratings (valence) has a significant and positive impact on box-office earnings. Moreover, other online WOM measures (volume and variance) have no significant impact on box-office performance. They compare their estimates obtained using local market-level data with those obtained using aggregate national-level data that are commonly used in the extant online WOM literature. The key finding is that mean rating is not significant in the aggregate level models, a finding that replicates the results in previous studies. These findings provide new managerial insights while also shedding light on the potential limitations of using aggregate national data to measure online WOM effects in this market. MARKETING AT CHICAGO I FACULTY Faculty Research Highlights “The Effect of Sales Promotions on Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions” “The Prominence Effect in Shanghai Apartment Prices” Christopher Hsee, Theodore O. Yntema Professor of Behavioral Science and Marketing; Jean-Pierre Dubé, Sigmund E. Edelstone Professor of Marketing; and Yan Zhang, doctoral candidate A field study conducted in Shanghai identified a robust inconsistency between real estate developers’ desired sales pattern (selling all apartments in a building at similar rates) and the actual sales pattern (selling good apartments faster). The authors explain this inconsistency using Tversky, Sattath, and Slovic’s (1988) prominence principle, according to which buyers, who were in a choice mode, weighed the desirability of floors more heavily than developers, who were in a matching mode when setting prices. This explanation is corroborated by controlled experiments involving potential homebuyers and professional real estate price setters. The research relates an intriguing anomaly originally found in paperand-pencil surveys to a real-world issue in one of the world’s most active markets. These findings also have implications for issues beyond real estate markets. 24 — 25 Faculty Awards Günter Hitsch, associate professor of marketing, won the 2007 Frank M. Bass Award from the Institute of Operations Research and the Management Sciences. The honor goes to the best marketing research derived from a PhD thesis published in one of two highly regarded journals, Marketing Science or Management Science. Hitsch’s research interests include consumer choice and competition, quantitative marketing and industrial organization, and the economics and marketing of new products. “Chicago Booth is a place where I feel extremely confident in pursuing novel and risky projects, exploring ideas that put different literatures together.” A. YEŞIM ORHUN ASSISTANT PROFESSOR OF MARKETING Sanjay Dhar, James H. Lorie Professor of Marketing, received the Hillel J. Einhorn Excellence in Teaching Award from students at Chicago Booth’s Asia campus. The award pays tribute to faculty teaching in the Executive MBA Program. Dhar’s diverse research focuses on issues ranging from marketing management, strategy, and new product development to pricing and purchase incidence. Most Prolific Marketing Scholars Pradeep Chintagunta, Robert Law Professor of Marketing, and Jean-Pierre Dubé, Sigmund E. Edelstone Professor of Marketing, were identified in an academic study published in the Journal of Marketing as two of the most prolific scholars in marketing. In “What Does It Take to Get Promoted in Marketing Academia? Understanding Exceptional Publication Productivity in the Leading Marketing Journals,” the authors examined two data sets: a census of publication activity in the leading marketing journals of 337 scholars in the top 70 institutions who were promoted between 1992 and 2006, and an examination of 2,672 scholars who published 3,492 articles in the four leading marketing journals over the 1982–2006 period. Chintagunta topped the list. Booth, he was associate professor at the Tepper School of Business at Carnegie Mellon University, where he taught for nearly a decade and won an Excellence in Teaching Award. Goettler earned a BA summa cum laude in economics from Miami University and two master’s degrees and a PhD in economics from Yale University. Visiting Faculty Kathleen Vohs is an associate professor of marketing at the University of Minnesota, McKnight Land-Grant Professor, and McKnight Presidential Fellow. She has an extensive background in psychology and applies her understanding of psychological science to business issues to advance new areas of marketing research. Vohs’s research specialties include self-regulation, self-processes, the effects of making choices on selfregulatory ability, and heterosexual sexual relations as predicted by economic principles. During her visit to Chicago Booth, Vohs continued her research, met with faculty, and gave a workshop to faculty and PhD students on her current research. MARKETING AT CHICAGO I FACULTY Faculty News Panle Jia, an assistant professor in economics at MIT, studies the effect of firm entry on market structure, the welfare consequences of patent regulation, and the application of new estimation techniques to empirical studies. At Chicago Booth, she has worked on examining the social inefficiencies of free entry in the real estate market and the impact of economic growth on health in China. Jia also has extended the current dynamic literature and designed a new algorithm that will expand the empirical application of rich and flexible dynamic models. Faculty Named Editors Ann McGill, Sears Roebuck Professor of General New Faculty Ronald Goettler joined the Chicago Booth faculty in 2008 as an assistant professor of marketing. His varied research interests include industrial organization, microeconomics, consumer behavior and learning, applied econometrics, computational methods, and the entertainment industries. Prior to joining Chicago Management, Marketing, and Behavioral Science, was appointed editor of the Journal of Consumer Research. Jean-Pierre Dubé was appointed as an Area Editor for Management Science and for the Journal of Marketing Research. 26 — 27 Chicago Booth faculty typically publish more articles per person in a given year than the faculty at any other business school. Following is a sampling of recent faculty papers. More information about the authors and, in some cases, copies of the papers, can be found at ChicagoBooth.edu/faculty. 2OO8 Marketing Publications Chintagunta, Pradeep, “Quantifying the Benefits of Targeting under Firm Strategic Behavior,” with X. Dong and P. Manchanda, Journal of Marketing Research, forthcoming. Chintagunta, Pradeep, “How Does Assortment Influence Store Choice?” with R. Briesch and J. Fox, Journal of Marketing Research, forthcoming. Chintagunta, Pradeep, “Measuring Marketing-Mix Effects in the Video-Game Console Market,” with H. Nair, Journal of Applied Economics, forthcoming. Chintagunta, Pradeep, “Investigating Consumer Adoption of Related Technology Products,” with M. Agarwal and S. Sriram, Marketing Science, forthcoming (conditionally). Chintagunta, Pradeep, “Information, Learning and Drug Diffusion: The Case of Cox-2 Inhibitors,” with R. Jiang and G. Jin, Quantitative Marketing and Economics, forthcoming (conditionally). Chintagunta, Pradeep, “Nonparametric Discrete Choice Models with Unobserved Heterogeneity,” with R. Briesch and R. Matzkin, Journal of Business and Economic Statistics, forthcoming. Goettler, Ronald, “Informed Traders and Limit Order Markets,” with C. Parlour and U. Rajan, Journal of Financial Economics, forthcoming. Chintagunta, Pradeep, “Advertising Strategies in a Franchise System,” with S. P. Sigue, European Journal of Operational Research, forthcoming. Hitsch, Günter, “Matching and Sorting in Online Dating Markets,” with A. Hortaçsu and D. Ariely, American Economic Review, forthcoming. Chintagunta, Pradeep, “Quantifying the Economic Value of Warranties in the U.S. Server Market,” with J. Chu, Marketing Science, 2009, 28(1), 99-121. Hitsch, Günter, “Do Switching Costs Make Markets Less Competitive?” with J. P. Dubé and P. Rossi, Journal of Marketing Research, forthcoming. Chintagunta, Pradeep, “A Comparison of Within-Household Price Sensitivity Across Online and Offline Channels,” with J. Cebollada and J. Chu, Marketing Science, 2008, 27(2), 283-299. Hitsch, Günter, “Category Pricing with State Dependent Utility,” with J. P. Dubé, P. Rossi, and M. A. Vitorino; Marketing Science, 2008 27(3), pp. 417-29. Dhar, Sanjay, “Brand History, Geography, and the Persistence of Brand Shares,” with B. Bronnenberg and J. P. Dubé, Journal of Political Economy, forthcoming. Labroo, Aparna, “Lay Theories of Emotion Transience and the Search for Happiness: A Fresh Perspective on Affect Regulation,” Journal of Consumer Research, forthcoming. Dhar, Sanjay, “The Effect of Sales Promotions on Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions,” with S. Ramanathan, Journal of Marketing Research, forthcoming (conditionally). Labroo, Aparna, “Providing a Moment of Respite: When a Positive Mood Helps Seeing the Big Picture,” with V. Patrick, Journal of Consumer Research, forthcoming. Dhar, Sanjay, “The Effect of Competitive Advertising Interference on Sales for Packaged Goods,” with P. Danahaer and A. Bonferer, Journal of Marketing Research, 2008, 45(2), 211-225. Dubé, Jean-Pierre, “Brand History, Geography, and the Persistence of Brand Shares,” with S. Dhar and B. Bronnenberg, Journal of Political Economy, forthcoming. Dubé, Jean-Pierre, “Do Switching Costs Make Markets Less Competitive?” with G. Hitsch and P. Rossi, Journal of Marketing Research, forthcoming. Dubé, Jean-Pierre, “Measuring Long-Run Marketing Effects and Their Implications for Long-Run Marketing Decisions,” Marketing Letters, forthcoming. Dubé, Jean-Pierre, “The Prominence Effect in Shanghai Apartment Prices,” with C. Hsee and Y. Zhang, Journal of Marketing Research, 2008, 45(2), 133-144. Dubé, Jean-Pierre, “Category Pricing with State Dependent Utility,” with G. Hitsch, P. Rossi, and M. A. Vitorino, Marketing Science, 2008, 27(3), 417-429. Dubé, Jean-Pierre, “Cross-Brand Pass-Through in Supermarket Pricing,” with S. Gupta, Marketing Science, 2008, 27(3), 324-333. Labroo, Aparna, “Psychological Distancing: Why Happiness Helps You See the Big Picture,” with V. Patrick, Journal of Consumer Research, 2009, 35(5), 800-809. Labroo, Aparna, “The ‘Instrumentality’ Heuristic: Why Metacognitive Difficulty Is Desirable during Goal Pursuit,” with S. Kim, Psychological Science, 2009, 20(1), 127-134. Labroo, Aparna, “Of Frowning Watches and Frog Wines: Semantic Priming and Perceptual Fluency,” with R. Dhar and N. Schwarz, Journal of Consumer Research, 2008, 34(6), 819-831. Orhun, A. Yeşim, Discrete Choice Models of Firms’ Strategic Decisions,” with T. Zhu et al., Marketing Letters, forthcoming. Orhun, A. Yeşim, “Optimal Product Line Design with Context Dependent Preferences,” Marketing Science, forthcoming. Rossi, Peter, “Both Network Effects and Quality Are Important,” Journal of Marketing Research, forthcoming. Rossi, Peter, “Bayesian Analysis of Random Coefficient Logit Models Using Aggregate Data,” with R. Jiang and P. Manchanda, Journal of Econometrics, forthcoming. Rossi, Peter, “A Model for Trade-up and Change in Considered Brands,” with G. Allenby, Marketing Science, forthcoming. Rossi, Peter, “Choice Models in Marketing: Economic Assumptions, Challenges, and Trends,” with S. Chandukala, J. Kim, T. Otter, and G. Allenby, Foundations and Trends in Marketing, forthcoming. MARKETING AT CHICAGO I FACULTY Marketing faculty continued to be prolific publishers in 2OO8. Chintagunta, Pradeep, “Retailer Pricing and Competitive Effects,” with D. Biswas, J. Fan, P. Kopalle et al., Journal of Retailing, forthcoming. Rossi, Peter, “Do Switching Costs Make Markets Less Competitive?” with J. P. Dubé and G. Hitsch, Journal of Marketing Research, forthcoming. Rossi, Peter, “Category Pricing with State Dependent Utility,” with J. P. Dubé, G. Hitsch, and M. A. Vitorino; Marketing Science, 2008 27(3), pp. 417-29. Rossi, Peter, “Teaching Bayesian Statistics to Marketing and Business Students,” with G. Allenby, The American Statistician, 2008, 62, 195-198. Rossi, Peter, “A Semi-Parametric Bayesian Approach to the Instrumental Variable Problem,” with T. Conley, C. Hansen, and R. McCulloch, Journal of Econometrics, 2008, 144(1), 276-305. Zhu, Ting, “Market Structure and Competition in the Retail Discount Industry,” with M. Manuszak and V. Singh, Journal of Marketing Research, forthcoming. Zhu, Ting, “Spatial Competition with Endogenous Location Choices: An Application to Discount Retailing,” with V. Singh, Quantitative Marketing and Economics, 2009, 7(1), 1-35. Zhu, Ting, “Pricing and Market Concentration in Oligopoly Markets,” with V. Singh, Marketing Science, 2008, 27(6), 1020-1035. Ramanathan, Suresh, “The Effect of Sales Promotions on Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions,” with S. Dhar, Journal of Marketing Research, forthcoming (conditionally). Ramanathan, Suresh, “Recalling Past Temptations: An Information-Processing View of the Dynamics of Self-Control,” with A. Mukhopadhyay and J. Sengupta, Journal of Consumer Research, 2008, 35(4), 586-599. 28 — 29 MARKETING AT CHICAGO I PHD PROGRAM “Chicago Booth’s outstanding marketing faculty allows—and encourages—you to be creative in coming up with your own research ideas while providing constant guidance and support.” RENNA JIANG PHD STUDENT 30 — 31 Renna Jiang PhD Candidate With a bachelor’s degree in economics from Tsinghua University, China, Jiang is interested in the various challenges that researchers and practitioners face. For example, in her dissertation, she studies the issue of optimal contracting that is relevant in many economic situations when a “principal” hires an “agent” to undertake certain actions for the former. In another paper, Jiang reflects upon the recent withdrawal of Vioxx and Bextra, two brands of widely used pain medication, and who bears the responsibility of learning about new drugs’ efficacy—the market or manufacturer advertising and FDA updates. Results show the market is able to learn on its own. Jiang also is interested in studying methodological issues, including the development of more efficient statistical procedures for analyzing economic problems. She proposes a new, more effective approach for analyzing aggregate level sales data in a market with differentiated products. Minjung Koo PhD Candidate Koo earned a bachelor’s degree in psychology and English literature from Yonsei University in South Korea. Her main research interest is consumer behavior with a special focus on goals, motivation, and processes of self-regulation. In her dissertation, she examines how focusing on what one has accomplished versus what one has yet to accomplish to attain a goal affects goal pursuit. For example, in the context of reward programs, she finds that emphasizing accumulated purchases to date is more effective at increasing customers’ participation in the program when they are not yet committed to the program, whereas remaining purchases to go is more effective when customers are already committed to the program. In a large-scale field study of actual charitable giving, Koo found that framing information about the campaign’s progress as amount of money donated to date is more effective at increasing contributions among potential donors who are not yet committed to the campaign. Faculty appointments and recent research of past recipients Pankaj Aggarwal, MBA ’01, PhD ’02 Associate Professor of Marketing University of Toronto RECENT RESEARCH: “It’s Not Just Me: The Role of Inferred Distributions of Others in Estimates of Relative Standing,” with A. Gershoff and K. A. Burson, (under review, Journal of Marketing Research). Harikesh Nair, PhD ’05 Assistant Professor of Marketing Stanford University Fletcher Jones Faculty Scholar for 2007–08 Stanford University “Make-Up, Break-Up, or Just Put-Up: The Moderating Role of Relationship Type on Consumer Evaluations in the Face of Unfair Treatment by a Brand,” Journal of Marketing Research, forthcoming. RECENT RESEARCH: “Do I Like it More if You Choose it? The Influence of Brand Relationship on Satisfaction with Self- versus Other-Selected Outcome,” with Simona Botti, Journal of Consumer Research, forthcoming. “Modeling Social Interactions: Identification, Empirical Methods and Policy Implications,” with Wes Hartmann, Puneet Manchanda, Matt Bothner, Peter Dodds, Dave Godes, Karthik Hosanagar, and Catherine Tucker, Marketing Letters, 2008, 19(3), 287-304. “Retail Competition and the Dynamics of Consumer Demand for Tied Goods,” with Wes Hartmann, 2007, conditionally accepted, Marketing Science. Inseong Song, MBA ’01, PhD ’02 Associate Professor of Marketing HKUST Business School RECENT RESEARCH: “Predicting New Customers’ Risk Type in the Credit Card Market,” with Yi Zhao and Ying Zhao, Journal of Marketing Research, forthcoming. Maria Ana Vitorino, MBA ’08, PhD ’08 Assistant Professor of Marketing Wharton School of Business AMA-Sheth Doctoral Consortium Fellow for 2007 RECENT RESEARCH: “Category Pricing with State Dependent Utility,” with Jean-Pierre Dubé, Günter Hitsch, and Peter Rossi, Marketing Science, 2008, 27(3), 417-429. Ying Zhang, MBA ’07, PhD ’07 Assistant Professor University of Texas at Austin MARKETING AT CHICAGO I PHD PROGRAM 2OO8 Kilts Kilts Doctoral Doctoral Fellows Fellows:Where are they now? “Six of One, a Half Dozen of the Other: Expanding and Contracting Numerical Dimensions Produces Preference Reversals,” with K. A. Burson, R. P. Larrick, and J. Lynch Jr. (under second review, Psychological Science). RECENT RESEARCH: “Beyond Privacy: The Role of Psychological Contract Breach in Mediating the Relationships Between Knowledge-Based Marketing Practices and Attitudes,” with David Zweig, Journal of Consumer Research. Simona Botti, MBA ’04, PhD ’04 Assistant Professor of Marketing London Business School RECENT RESEARCH: “Tragic Choices: Autonomy and Emotional Responses in Medical Decisions,” with Kristina Orfali and Sheena S. Iyengar, Journal of Consumer Research, forthcoming. “Choice Under Restrictions,” with Susan Broniarczyk, Gerald Häubl, Ronald Hill, Yanliu Huang, Barbara Kahn, Praveen Kopalle, Donald Lehmann, Joe Urbany, and Brian Wansink, Marketing Letters, 2008, 19 (3-4), 183-99. “Measuring Marketing Mix Effects in the VideoGame Console Market,” with Pradeep Chintagunta and R. Sukumar, Journal of Applied Econometrics, 2009, 24(3). Sridhar Narayanan, PhD ’05 Assistant Professor of Marketing Stanford University RECENT RESEARCH: “Heterogeneous Learning and the Targeting of Marketing Communication for New Products,” with Puneet Manchanda, Marketing Science, forthcoming. “The Dynamics of Self-Regulation,” with Ayelet Fishbach and Minjung Koo, European Review of Social Psychology, forthcoming. “Together or Apart: When Goals and Temptations Complement Versus Compete,” with Ayelet Fishbach, Journal of Personality & Social Psychology, 2008, 94, 547-559. “The Dilution Model: How Additional Goals Undermine the Perceived Instrumentality of a Shared Path,” with Ayelet Fishbach and Arie Kruglanski, Journal of Personality and Social Psychology, 2007, 92, 389-401. “When Thinking Beats Doing: The Role of Optomistic Expectations on Goal-Based Choice,” with Ayelet Fishbach and Ravi Dhar, Journal of Consumer Research, 2007, 34, 567-578. “The Role of Self Selection, Usage Uncertainty, and Learning in the Demand for Local Telephone Service,” with Pradeep Chintagunta and Eugenio Miravete, Quantitative Marketing and Economics, 2007, 5, 1-34. Katherine Burson, MA ’98, MBA ’04, PhD ’04 Assistant Professor of Marketing University of Michigan RECENT RESEARCH: “Can Two Wrongs Make a Right? Accidental Consensus in Predictions of Others’ Preferences Under Uncertainty,” with David Faro and Yuval Rottenstreich, Advances in Consumer Research, 2007, 35. 32 — 33 MARKETING AT CHICAGO I MBA PROGRAM “I liked the fact that recognition of Chicago Booth’s approach to marketing is on the rise.” JESSICA LINDOR CLASS OF 2009 34 — 35 MARKETING AT CHICAGO I MBA PROGRAM Chicago Booth Marketing Student I N T E R V I E W Jessica Lindor Class of 2OO9 Jessica Lindor, who’s concentrating in marketing, has a background in consulting. Planning to switch careers, she chose Chicago Booth to prepare her for her next step. A summer internship at Kraft Foods gave her a taste of consumer packaged goods marketing, one of many experiences launching Lindor on her career as a brand manager. Preparing Myself for Today’s Marketing Challenges I wanted to prepare myself for a new career in marketing. When I spoke to brand managers in the field, the actual work was highly quantitative—and becoming increasingly so. Chicago Booth has taught this forever, so I knew I’d work with lots of data. And the more comfortable you are working with data, the better marketer you can be. I knew Chicago Booth would definitely prepare me for that challenge. Also, I liked the fact that recognition of Chicago Booth’s approach to marketing is on the rise. I knew I’d have access to top faculty. I also felt like I would be able to make more of an impact, especially as the Marketing Group co-chair. With a leadership role, I’d have the opportunity to help shape what the group does. A Career Change: Marketing Strategy I didn’t have any previous marketing experience, but I knew Chicago Booth would help me make a career change. I worked for Deloitte Consulting in the strategy operations division. I got a close look at different industries and also worked on various projects, from health care to the wireless industry. The one thing I really liked about all of my projects was that they dealt with understanding customer needs and figuring out how to make your product meet them, which is marketing strategy. That’s why I chose it as my focus at Chicago Booth. Bringing Innovation to an Internship I was a summer associate brand manager at Kraft, assigned to the California Pizza Kitchen (CPK) brand. In assessing the competition, I looked at what CPK could do to expand its space in the market, what new customers they might go after, or what new regions they might try to expand into. Within three weeks of my presentation, we heard from the sales staff that our competitors were expanding to three places I had predicted. I was also asked to turn an individual serving of barbecued chicken into a three-pack for Costco. Originally, I thought it was fairly simple—taking an existing product and putting it into a bigger package for the customer. Instead, I was also involved with forecasting sales and figuring out when our manufacturer should produce the product. A third assignment was bringing the consumer to life. I came up with the idea of creating a website—a tool that could be used by everybody at Kraft who needed a really good understanding of the consumer. I was on a road show my last week, showing it to people outside the brand team. That felt good because I saw it wasn’t just an intern project, or something only the brand team would use. Coursework Laid the Foundation—Fast Not having come in with marketing knowledge, my fall quarter was key in helping me pick up the terminology and also apply it, which really helped prepare me for internship recruiting. I knew about the four Ps and the 3 Cs and the different frameworks because the marketing strategy course gave me the entire framework for analyzing problems. In spring quarter, I took data driven marketing, which was much more data intensive than anything I’d done before. We used Nielsen data, so I understood what all the terms meant before I got to Kraft. Taught to Question Everything What’s Next: Putting It All Together During the internship, I realized how incredibly comfortable my fellow Chicago Booth students seemed with data and analysis. I think this can be attributed to the analytical nature of the marketing course work as well as the other classes. Since Chicago Booth students are taught to question everything, I think we’re better equipped to think outside the box. I plan to work in brand management at Kraft. What I like about marketing is that you make the recommendations and you have to implement them. People speak at a very high level of what marketing is, and it isn’t until you actually experience what brand managers do that you understand how they facilitate and drive an organization’s impact. 36 — 37 Alexander Ambash, Teresa Ruth Greenlees, Jessica Lindor, Stephanie Terifay, and Kim Chau Vo received Kilts Scholarships for 2008. The $10,000 scholarships are granted to second-year MBA students who demonstrate outstanding academic skills and commitment to pursuing a marketing career. Ambash started his MBA after managing strategy and analysis for four years at the Boston branch of Digitas Inc., the first global interactive agency network. His portfolio of clients included a leading U.S. cable operator, a top U.S. car manufacturer, and the National Football League. Ambash holds a bachelor’s degree in computer science from Yale University. A cum laude graduate from Rollins College, Greenlees launched and steered a small marketing and design firm, which put her on Tampa Bay Business Journal’s list of “30 Under 30.” More recently, she interned at Diageo North America where she developed a marketing plan for the national launch of an innovative product. Previously she worked as a marketing manager at Raymond James Financial, where she was in charge of a $5 million marketing and advertising plan. Lindor received a bachelor’s degree in psychology and economics from Boston College, where she graduated magna cum laude. She worked at Deloitte Consulting as a business analyst for three years before starting her MBA at Chicago Booth. Among other duties, she was involved in market assessment and strategy development for a leading health plan and helped a government agency achieve more transparency in its customer relations. More recently, Lindor interned at Kraft Foods, where she conducted market research and developed an internal website. A Cornell University alumna with a degree in hotel administration, Terifay developed a strong background in the hospitality industry before coming to Chicago Booth. She founded Olive Avenue Market, a 28-employee specialty foods enterprise that combined a high-end culinary retail boutique with a neighborhood café and gourmet kitchen. She also directed the catering activities of a premier California catering company, where she led a team of 557 people in designing and producing largescale events. Vo graduated summa cum laude from Case Western Reserve University with a degree in engineering. Prior to starting her MBA, she spent five years at Eaton Corporation, a Fortune 500 diversified power management company. More recently, Vo transferred her skills to brand management at General Mills, where she will be returning as an associate marketing manager. Kilts Scholars are (From left to right) Kim Chau Vo, Alex Ambash, Theresa Greenlees, Stephanie Terifay, and Jessica Lindor. Marketing Group Benefits Part-Time Students Led by Evening MBA and Weekend MBA students, the Marketing Management and Research Group (MMRG) provides a forum for the exchange of marketing ideas, educates students about topics and trends in the field, and seeks to improve career skills. The group hosted several presentations featuring notable marketing experts. For instance, Brian Reich—author of best-selling book Media Rules! Mastering Today’s Technology to Connect With and Keep Your Audience—held an informal discussion with students about how organizations can use technological innovation. A separate presentation by Marv Pollack, senior vice president of marketing communications at comScore, highlighted the changing dynamics of worldwide internet usage. On the employment scene, the group hosted events that shed light on the skills needed to find the right job and build a successful career. Students involved in on-campus recruiting and those who completed sum- mer internships shared advice and insights with their colleagues in a few career-focused panels. MMRG also hosted a multi-expert panel discussion with brand managers from leading consumer companies about various marketing roles within a consumer packaged goods company. In addition to panel discussions, MMRG helped to sponsor the Kilts Center Marketing Mentor Program by matching more than a dozen Evening MBA and Weekend MBA students with alumni mentors in the marketing field. The group also coordinated the Google Online Marketing Challenge at Chicago Booth, a global student online marketing competition that partnered student teams with small businesses to craft marketing strategies using Google AdWords. The initiative was very popular among Evening MBA and Weekend MBA students, with a total of 17 competing teams. MARKETING AT CHICAGO I MBA PROGRAM Five Students Awarded Kilts Scholarships Full-Time Student Marketing Group Update With leadership from full-time MBA students, the Marketing Group has over 170 members and is one of the fastest-growing and most active student groups on campus. Their mission is to prepare members for career opportunities and trends in marketing, provide a network for social interaction, and promote Chicago Booth as the premier source for marketing talent. The highlight of the group’s activities in 2008 was the Marketing Conference, the largest student-run marketing event at Chicago Booth. Aiming to introduce students to new trends in the field, the conference attracted close to 130 participants, including marketing professionals from such firms as Wrigley, Abbott, American Express, Unilever, and Kraft. Keynote speaker Ann Mukherjee, ’94, vice president of marketing at Frito-Lay North America, highlighted the changing media environment and its effects on brand communication. The Marketing Group was especially active in helping first-year students learn about the recruiting process. From formal workshops to such fun events as “speed dating,” students learned how to best prepare for finding and getting the job they want. The group also arranged mock interviews with such employers as Eli Lilly, Abbott, and Kraft, prior to the actual interviews secured by the students. The classroom experience was enriched by realworld applications through several lunch-and-learn events, as well as store walks. During these activities, first-year students discussed case studies with representatives from top firms and gained new perspectives on how consumer packaged goods firms use shelf space and store promotions in real-world settings. The Marketing Group also played an instrumental role in establishing the first marketing alumni mentorship program with the Kilts Center. More than 25 first-year students have been matched with alumni mentors who will help them academically and professionally. 38 — 39 Responding to an invitation from James Kilts,’74, founder of the Kilts Center for Marketing at Chicago Booth, James L. Tyree agreed to sponsor and provide one-on-one mentoring for Kilts Marketing Fellowship recipient Maayan Pinhassi. Tyree has spent more than 12 years with Abbott. MARKETING AT CHICAGO I MBA PROGRAM James L. Tyree Executive Vice President, Pharmaceutical Products Group Abbott 2008 Marketing Fellow Mentor “To me, mentoring is about improving performance– the individual’s performance and the organization’s. I’m also a strong believer in the power of professional connections. Many leaders attribute their development and career success to early mentoring and guidance. Mentoring is also about giving back. If I can help a talented individual navigate uncharted waters, or provide insights that help a person develop and grow, that’s good for the person and of course good for our business. It’s also fulfilling to me personally. “I had a mentor who not only taught me the pharmaceutical business but also shared his wisdom. He taught me the value of hard work and adaptability, and he showed me the human side of the industry and of working at Abbott. I still rely on these principles today. “I’ve been in the pharmaceutical business for many years, starting first as a business analyst and following with a range of great roles in long-established companies: a biotech start-up, and international and now global pharmaceutical operations at Abbott. As a mentor, my job is to share my experience, knowledge, encouragement, ideas—and also, now with the benefit of hindsight, what I’d do differently. Maayan and I talk regularly about his coursework, projects, career direction, and also about the health care industry in general. “A mentor is very different from a boss or manager. A mentor is an outside, independent, seasoned voice. It’s someone to test ideas with, someone for whom there’s no ‘dumb’ question. I also find that the mentoring relationship lends itself well to straight talk. It’s important to help someone recognize their limitations and redirect them to focus on strengths. “Mentoring is definitely not a one-way street. Maayan was educated and then worked in health care marketing in Israel. So for me, he’s a terrific link to global health care issues, trends, the broader industry – all from the perspective of our next-generation talent. It’s energizing to interact with brilliant and curious young professionals. “For starters, every Chicago Booth student is grounded in Chicago economics. But what I find most unique is the focus on ideas. That’s the value system and it shows. Chicago MBAs overcome business challenges by questioning often long-held beliefs and assumptions, and then working relentlessly to make every possible idea and solution even better.” Maayan Pinhassi 2008 Marketing Fellow Before coming to Chicago Booth, Maayan Pinhassi worked in Israel’s pharmaceutical industry, developing marketing plans and websites for products and doing strategic analysis for Neopharm Israel. He earned a BS in life and medical sciences from Tel Aviv University. Named a 2008 Marketing Fellow, he receives one-on-one mentoring from James L. Tyree, executive vice president of the Pharmaceutical Products Group at Abbott. “I was a captain in the Israeli navy before I began working in the pharmaceutical industry. But I knew that in order to develop as a manager, I needed to get the fundamentals of business, so I came to Chicago Booth. The marketing faculty is the best in the field. And studying here would give me both qualitative and quantitative skills. Coming from a scientific background, that was important. “Having a mentor has given me insight that I couldn’t get any other way. From the beginning, Jim has made himself available to me for anything I need. If I heard something in the news about the pharmaceutical industry or had a question after a class, I could email him or ask him when we met. I’m always amazed by how insightful he is about this industry and how much I can get from even a short conversation with him. “Jim is a very senior manager, so he is able to make Abbott’s resources available to me. For example, in meeting with him and other managers from his organization, I was able to come with concepts that I heard in class—like market segmentation or positioning of the product—and hear from the product manager how Abbott implemented them in real life. Managers as experienced as Jim have incredible insights and knowledge; their perspective from so many years of managerial experience is really something that I couldn’t have found anywhere else. “I also got to meet with the head of U.S. pharmaceutical operations, the vice president of immunology, and the head of HR international pharmaceuticals, and I was able to get their perspective on their job and get to know different sides of Abbott. It’s been an exceptional experience. “Part of being mentored is hearing Jim explain how to plan my long-term career: ‘Be patient. Build your expertise and reputation around certain areas. Gain some international exposure.’ He’s also advised me about classes I should take that would benefit me in the long run. “I know the advice Jim has given me will stay with me throughout my career in the pharmaceutical industry. And as I develop a managerial point of view over the years, being able to discuss it with someone who is already there will influence the way I look at things. I hope to develop a long-term relationship with Jim, to build it in a way that we can both maintain it.” 40 — 41 provide $5O,OOO over two years as well as a mentor—a senior marketing executive who can share expertise and insights into the field. The fellowships, awarded to students entering the Full-Time MBA Program, are underwritten by a challenge grant of $1 million from James M. Kilts, ’74, founding Partner, Centerview Partners, and founder of the Kilts Center for Marketing. The donors, who also serve as mentors, comprise the Marketing Fellowship Steering Committee. 2OO8 Marketing Fellows Mark Cormier Lee S. Hillman Fellowship Cormier was senior product manager at the Canadabased Telus Communications Company. Previously, he did market research and product development strategy at The Boston Consulting Group. Cormier holds a bachelor of arts with honors from the University of Alberta, Canada. Celeste Liou Robin Neifield Fellowship Liou was advanced financial advisor at Ameriprise Financial and territory sales manager for Philip Morris USA. In these positions she managed multi-million dollar accounts. She has degrees in French and business administration (with honors) from the University of California– Berkeley. Marketing Fellowships– Where are they now? Robert Michelassi CS Bhaskar Fellowship Michelassi was an account executive at the international division of Liz Claiborne, Inc., where he first started his career as an intern. He graduated magna cum laude with a degree in social anthropology and a citation in French from Harvard University. Maayan Pinhassi James Tyree Fellowship Pinhassi held various appointments in the Israeli pharmaceutical, education, and military management industries. He was a captain in the Israeli navy. He received a BS in life and medical sciences from Tel Aviv University. Ashwin Chandramouli, ’08 Kraft Foods Associate Brand Manager, Growth Channels and Jack’s Emily Strobel, ’08 Wm. Wrigley Jr. Company Assistant Marketing Manager, Extra Sugar-Free Gum As an associate brand manager he works with functional experts in finance, sales, R&D, and others to help expand and build the businesses he works on— everything from commercializing new products to defining the growth strategies for the following year to presenting monthly business updates to leadership. Since September, she has lead a number of initiatives for the Extra brand including product improvements and packaging redesign. She’s currently working on launching a new flavor for the Extra portfolio. Susan Thuresson Bill and Eleanor Lebowitz Fellowship Thuresson was a supply chain project manager at Abbott Nutrition. Previously she completed Abbott’s Engineering Professional Development Program and worked primarily in the pharmaceutical and diagnostic business. She graduated magna cum laude with a degree in chemical engineering from the University of California–Los Angeles. Welcome to the newest members Karen Seitz, ’86 Partner/Managing Director Goldman Sachs Gary I. Singer, ’78 Founder/CEO Redline Results, LLC Lee S. Hillman, ’79 Co-Chairman President, Liberation Advisory Group, LLC James M. Kilts, ’74 Co-Chairman Founding Partner, Centerview Partners Beth Bronner, ’74 Managing Director, Mistral Capital Management, LLC Pradeep K. Chintagunta Robert Law Professor of Marketing, The University of Chicago Booth School of Business Philip A. Clement, ’70 Managing Partner, The Clement Group Tom Doctoroff, ’89 CEO Greater China and Area Director JWT/Bridge Advertising Co. Ltd M. Carl Johnson III, ’72 SVP/Chief Strategy Officer Campbell Soup Company Karen Katen, AB ’70, MBA ’74 Senior Advisor Essex Woodlands Health Ventures LLC Jerry W. Levin, ’68 Chairman and CEO JW Levin Partners, LLC Ex-Officio Members James W. Lewis, ’70 Chairman, The Geometry Group, Inc. Edward A. Snyder Dean and George Pratt Shultz Professor of Economics, The University of Chicago Booth School of Business William McComb, ’87 CEO and Director, Liz Claiborne, Inc. John Mutch, ’97 (EXP-2) CEO Symark International Robin Neifield, ’84 CEO NetPlus Marketing, Inc Henry Rak, ’70 Founder/Chairman & CEO, Henry Rak Consulting Partners LLC Stacey Kole Deputy Dean and Clinical Professor of Economics, The University of Chicago Booth School of Business Richard Leftwich Deputy Dean and Fuji Bank and Heller Professor of Accounting and Finance, The University of Chicago Booth School of Business MARKETING AT CHICAGO I MBA PROGRAM Marketing Fellowships Marketing Fellowship Steering Committee Members Rishad Tobaccowala, ’82 CEO Denuo James Tyree Executive Vice President Abbott Mark Zmijewski Deputy Dean and Leon Carroll Marshall Professor of Accounting, The University of Chicago Booth School of Business Lakshmi Karanth, ’08 Microsoft Corporation Partner Marketing Manager Group– US Partner Programs Karanth manages programs to deliver the latest Microsoft software to its partners as well as build and grow a robust partner ecosystem. Goksu Nebol-Perlman, ’08 Skye Technologies (London, UK) Product Marketing Manager 42 — 43 MARKETING AT CHICAGO I CURRICULUM “Their energy level was very high. The value you get from students really putting their heart into your project is probably worth $50,000.” PETER CARRILLO, ’98 PRESIDENT OF CARRILLO HOLDINGS, INC. 44 — 45 Peter Carrillo, ’98 President of Carrillo Holdings, Inc. When Peter Carrillo decided to start a gourmet specialty food company in 2007, he drew on his acumen from a decade in investment research and his MBA. For market research, he turned to Chicago Booth marketing students. Guided by faculty in several marketing courses, they produced data that took the launch to a new level. Making Market Research Part of the Coursework I had taken one marketing course, taught by Ann McGill, during my two years at Chicago. Even though I’d been an average student in her course and not focused on marketing, she remembered me from my active class participation. She said, “You should talk to Oleg Urminsky and Suresh Ramanathan,” a couple of professors who turned out to be interested in what we were doing and wanted to incorporate our need for market research into their coursework. In a matter of weeks, it went from that idea to a meeting at their offices to drafting a plan for working with student groups. Oleg used it during winter quarter, and Suresh used it in the spring. High-Quality Research, Students with Talent and Passion Their energy level was very high. The value you get from students really putting their heart into your project is probably worth $50,000. They really want to do good work and are willing to go to limits you don’t often see in the private sector. For instance, I said, “See if you can find a local gourmet store that will let you set up taste tests with customers.” They picked the best sales person of the group, talked a couple stores into doing some samplings, and got really good first-hand feedback on the product. One demo was at a store that sold high-end cooking equipment. Over two hours one evening, they surveyed women who had come there to take a cooking class and who fully analyzed the product from the packaging all the way down to the flavor and texture. They augmented that type of MARKETING AT CHICAGO I CURRICULUM Chicago Booth Marketing Course Sponsor I N T E R V I E W anecdotal study with larger sample size studies as well. That’s the kind of data I was looking for. Their Quantitative Background is Second Nature Chicago Booth students joke that they can put a financial edge to anything, and that includes the marketing students. They work with data results and sample sizes, and when you become more knowledgeable at statistics and regression analysis, you become good at figuring out how you get better conclusions without cheating the data. For example, in their study, they used filter questions like, have you bought salsa in the last six months? If someone answered “no,” he’d be eliminated from the sample size. Anybody without a quantitative background may not think to do that. But for Chicago Booth students it’s second nature. Actionable Results One of the things we wanted people to know was that the products were all natural and had no sugar. But all of the students’ studies showed no one was really getting that from the label. I moved up the words “all natural” and “no sugar” but subsequent research the next quarter showed that still wasn’t working. We increased the size a bit and made the type kind of a shiny gold, which gave it a 3-D effect, and that worked better. That was directly from the students’ work. I might not have picked that up for quite a while. And it would be a significant expense to have a marketing firm do this for me. I have truly enjoyed being a part of this experience and have received far more back than I was able to give. 46 — 47 offers a full range of courses taught by award-winning faculty. Classes take a cross-disciplinary perspective in order to prepare students for roles where marketing integrates with other business functions to drive growth. Teaching methods focus on fundamental principles, cases, and experiential learning to equip Chicago Booth students for successful marketing and general management leadership roles. Marketing Strategy (core) A Management Lab student team partnered with Barclays in Dubai 2OO8–O9 Management Labs Projects FA L L 2 0 0 8 Abbott Abbott asked a Chicago Booth team to evaluate alternative approaches adopted by global pharmaceutical companies to developing production and distribution capabilities in India. The objective of the project was to help Abbott identify a sustainable growth strategy in the region. The team reported to and received substantive feedback from James L. Tyree, executive vice president, Pharmaceutical Products Group, and from John Larson, General Manager, Neuroscience. UOP LLC, a Honeywell Company A Chicago Booth team investigated improvements to UOP’s pricing methods. UOP delivers cuttingedge technology to the petroleum refining, gas processing, petrochemical production, and other major manufacturing industries. The discoveries made by UOP scientists and engineers provide customers such tangible benefits as higher yields, higher quality products, reduced raw materials costs, and enable energy efficient and environmentally friendly technologies and operational flexibility. WINTER 2009 Moffitt Cancer Center The Moffitt Cancer Center asked a Chicago Booth team to evaluate its technology portfolio and the organizational structure it uses to sell, out-license, or form startups around its technology. The center is the nation’s fastestgrowing National Cancer Institutedesignated cancer center, and the third-largest cancer center in the U.S. based on outpatient volume. The University of Chicago Office of Civic Engagement As part of the university’s plan to form a long-term partnership with the residents and community organizations of the Washington Park neighborhood, and with the City of Chicago, the Office of Civic Engagement turned to the Management Labs for help. The team worked with community stakeholders to formulate and implement a cohesive social, cultural, and economic development vision for the community over the next two to 20 years. SPRING 2009 Barclaycard US Recent rule changes made by the Federal Reserve promise to alter the competitive landscape of the United States credit card industry. In this context, Barclaycard US asked a Chicago Booth team to project the consequences of these rule changes for the industry and their longitudinal impact on a designated set of competitors, and to formulate and assess new product concepts for the new market. The student team reported its findings to the CMOs of Barclaycard US and Barclays Global Retail and Commercial Banking group. Honeywell International Honeywell Tridium, a division of Honeywell International focused on the health care industry, asked a Chicago Booth team to evaluate opportunities for the firm in the health care sector, and to define a strategy for penetrating the market successfully. The student team focused on automation, a new business opportunity that allows multi-vendor medical equipment in hospitals, clinics, or first-responder kits to exchange instructions and information. The Chicago Booth team reported to the president of Tridium and to the CMO of the $1.5 billion Honeywell ECC division. 2OO8–O9 Marketing Project Sponsors Tools/Knowledge Electives Marketing Decision Electives Implementation and Industry Electives Consumer Behavior* Developing New Products and Services Laboratory in New Product and Strategy Development: Management Labs* Data-Driven Marketing Pricing Strategies Marketing of Services Marketing Research* Integrated Brand Communications* Quantitative Marketing Research Methods Going to Market: Channel Strategy MARKETING AT CHICAGO I CURRICULUM Chicago Booth’s marketing curriculum Experiential Education *Experiential “lab” courses Several marketing classes include company-sponsored projects that enable students to apply their classroom knowledge to real-world marketing problems. The following companies sponsored marketing projects during the past year: 2008 Carrillo Holdings, Inc. Sodexho Deloitte Consulting U.S. Embassy in Oslo, Norway/Association of Norwegian Students Abroad 2009 AeroGrow Consumer Products Carrillo Holdings, Inc. Chicago Public Radio DesignerAtHome.com Evive.com Febreze (P&G) GE Healthcare Hospira Mediaflo.com Mundelein Preschool Press Ganey TrashCo./Flings Vanguard 48 — 49 37000 Marketing Strategy 37106 Marketing Research This course introduces the substantive and functional aspects of marketing management. Specific course goals are as follows: (1) to introduce students to marketing strategy and the elements of marketing analysis: customer analysis, competitor analysis, and company analysis; (2) to familiarize students with the elements of the marketing mix (product strategy, pricing, advertising and promotion, and distribution), and to enhance their problem-solving and decision-making abilities in these operational areas of marketing; and (3) to use marketing case studies to provide an opportunity (both written and oral) to develop, present, and defend a student’s own recommendations, and to examine and discuss the recommendations of others critically. Marketing research is an organized way of gathering and analyzing information for decision-making purposes. The course is structured from the point of view of the marketing manager, consultant, or entrepreneur who needs the skills to determine the scope and direction of research activities conducted on their behalf. Through lectures, individual exercises, cases, and a team project, we cover the full marketing research process— defining research objectives; choosing a research methodology, questionnaire and sampling design; data collection; data analysis; and implementation. Students get a toolkit of different approaches and techniques to address research questions and a detailed understanding of the advantages and limitations of each method. Examples are drawn from real-world marketing problems. This course covers how qualitative and quantitative aspects of marketing research help managers address such marketing problems as estimating market potential, segmenting the market to identify target customers, improving advertising and pricing policies, and designing and positioning new products. Students can develop a critical eye for marketing research, an appreciation for its potential contributions and limitations, and an understanding of how to choose the right research approach. 37101 Consumer Behavior In this course, we will use theories of consumer behavior to develop a managerial decision framework for the development and launch of new products, segmentation, brand management, and ultimately managing the customer experience and customer relationships. Special emphasis will be placed on creativity and its role in the development of new ideas. 37102 Quantitative Marketing Research Methods This course introduces students who seek positions in general management, consulting, and marketing (e.g. product/brand management, marketing research, marketing strategy) to marketing strategy research methods used by corporations. These methods assist in the development of marketing strategies (product positioning/differentiation, market segmentation) and in optimizing marketing mix decisions (for example, new product design, optimizing advertising spending). The course demonstrates what marketing research can do for marketing decision making. Students will become better customers of marketing research services and be able to conduct their own marketing research. 37103 Data-Driven Marketing The availability of data on actual market behavior of consumers is revolutionizing the way marketing is conducted as well as the way in which marketing activities are planned and evaluated. The goal of 37103 is to introduce students to these new data sources and provide a set of compatible analytic tools. We will focus primarily on scanner, direct marketing, and web browsing data. 37201 Developing New Products and Services The primary purpose of this course is to provide marketers with an in-depth understanding of new product development practices, including direction setting, customer needs identification, idea generation, concept development, product design, test marketing and scale-up, and commercialization. This course will cover business-to-business new products and consumer-based new products including recent case experiences from household consumer products, telecommunication services, building products, internet services, travel services, and utility services. Students will learn about and apply tools for effective new product development. This course will also highlight the different roles and functions required for new product development, including marketing, market research, R & D, sales, finance, manufacturing, etc. 37202 Pricing Strategies How does a firm determine the price of a new product? How does a firm assess whether the current price 37203 Integrated Brand Communications Marketing communication is an important component of the marketing mix, and one that is undergoing rapid changes with the development of new media, growth of internet marketing, and globalization. In this course, we develop an understanding of the process of developing and managing an integrated marketing communication campaign for a product or service. Although issues relating to planning and evaluating advertising strategy and sales promotion will receive the most attention, we also briefly discuss direct (including business-to-business) marketing and some current issues and trends in marketing communications such as the growth of web-based advertising and the emergence of ad-avoidance technologies. The course is intended not only for students interested in pursuing a career in brand management, marketing research, and/or advertising management, but also more broadly for those interested in a consulting career or a marketing career path to general management. The perspective taken in the course is typically that of a category/brand manager/ strategy planner, with underpinnings of psychological theories. The course employs a mix of case discussions and lectures/class discussions. Whereas class lectures and discussions provide an exposition of key concepts, class participation and case analysis are a vital aspect of learning and provide an opportunity to apply the theories, concepts, and analytical devices developed in the lectures. 37205 Going to Market: Managing Channel Strategy How should a firm go to market? That is, how can an institution effectively and efficiently transmit value from points of conception, extraction, and/ or production to points of consumption? Product proliferation, media fragmentation, retailer power, and the internet have conspired to place a premium on strategic channel design and management. This course offers a framework to understand the issues and trade-offs that firms face as they design and manage their distribution channels. The framework can be used for consumer product sales, businessto-business sales, and sales of services. We will apply it to topics such as managing channel conflict, direct vs. indirect sales, strategic alliances, joint ventures, and franchising. 37303 Marketing of Services Services, which now account for over 70 percent of the U.S. GDP, have distinct characteristics that make them challenging to market and sell. This course provides the framework for understanding the unique requirements including marketing strategy, the services marketing mix, service delivery, and quality control. The course covers business-tobusiness and consumer-based services using recent examples from telephony, banking, mutual funds, fast food, airlines, hotels, internet services, health care, and management consulting, emphasizing how marketing approaches differ by industry. Students will learn to apply key frameworks including a services marketing system, customer segment pyramid, brand architecture, brand positioning, supplementary service mix, revenue management and price “fences,” lifetime customer value analysis, managing physical evidence, service blueprinting, service quality “gap” model, customer satisfaction measurement, standardization versus customization of service delivery, service recovery strategies, and service guarantees. The course also covers selling and marketing such professional services as consulting and investment banking services. MARKETING AT CHICAGO I CURRICULUM Marketing Courses is appropriate? What is price leadership? What is value pricing? These are just some of the questions we will address in pricing strategies. The course is a blend of analytic marketing techniques, marketing strategy, and economic theory. In the Chicago Booth curriculum, this course is a natural complement to 33001, 37000, and 42001. A combination of cases, lectures, and empirical applications are used in the class. You can expect to get your hands dirty working with real data, analyzing managerial pricing problems. In addition, the course offers a general framework for developing pricing strategies. 37701 Laboratory in New Product and Strategy Development I This course complements Chicago Booth’s strong training in business theory by providing a problem-solving experience for a small but diverse group of students. The course accelerates the process by which students learn to manage themselves and others when developing solutions to real-world business problems. It provides students with tools for solving complex problems and detailed feedback regarding their performance as managers, team players, and problem solvers. Students who complete this course report they learn a great deal about their abilities as business professionals and find themselves better prepared to manage complex problems and situations in the workplace. 50 — 51 37702 Laboratory in New Product and Strategy Development II Occasionally a client sponsors a project that extends over two quarters. This is the second half of such a two-quarter project. Refer to the description of 37701 above for a description of this course. 37800 Marketing Management (Executive MBA) This course introduces the substantive and functional aspects of marketing management. Specific course goals are as follows: (1) to introduce students to marketing strategy and the elements of marketing analysis: customer analysis, competitor analysis, and company analysis; (2) to familiarize students with the elements of the marketing mix (product strategy, pricing, advertising and promotion, and distribution), and to enhance their problem-solving and decision-making abilities in these operational areas of marketing; and (3) to use marketing case studies to provide an opportunity (both written and oral) to develop, present, and defend a student’s own recommendations, and to examine and discuss the recommendations of others critically. The course employs a balanced mix of case discussions and lectures/class discussions. Class lectures and discussions provide an exposition of key concepts, and wherever possible are supported by research on current marketing practices. The case studies provide an opportunity to apply the theories, concepts, and analytical devices developed in the lectures. 37902 Advanced Marketing Theory: Quantitative Perspective This course is meant for PhD students with marketing as their dissertation or minor area. The focus of the course is on understanding the methods currently available for analyzing household purchase behavior using scanner panel data. The course begins with an introduction to the various aspects of household purchase behavior and the econometric models currently available to study them. The remainder of the course will focus on specific advances in such analyses. These include, but are not limited to, the study of purchases across product categories, the analysis of dynamic purchase behavior, and accounting for price endogeneity in such models. 37903 Advanced Marketing Theory: Behavioral Science Approach This is a PhD-level seminar. We will discuss two general topics: (a) an introduction to recent consumer behavior research, especially related to behavioral decision theory, and (b) an overview of experimental research methods. The format of the class will be similar to a research workshop, where students present their analyses on assigned readings, and the other participants serve as discussants and consultants. The professor acts as a moderator and pundit. Students also are expected to generate and present their own research ideas and write a paper for the course. 37904 Marketing Topics: Bayesian Applications in Marketing and MicroEconometrics This course will cover a comprehensive introduction to Bayesian inference with special emphasis on micro-data and marketing applications. The course will be based on the instructor’s textbook. Topics include: Bayesian Essentials, Practical MCMC methods, Hierarchical Models, Non-standard Priors, Models for data with Discrete Components, Bayesian treatment of Simultaneity, and Dirichlet Process Priors. The course will also emphasize statistical computing in R. For all models and topics discussed in the course, examples of R/C code will be provided. In the homework, students will be asked to modify existing R code and write their own code to extend some of the ideas covered in class. R is the most important statistical language which is similar to, but with more extensive capabilities, as MATLAB. Marketing Faculty Pradeep K. Chintagunta Robert Law Professor of Marketing Aparna Labroo Associate Professor of Marketing Sanjay K. Dhar James H. Lorie Professor of Marketing Ann L. McGill Sears Roebuck Professor of General Management, Marketing, and Behavioral Science Jean-Pierre Dubé Sigmund E. Edelstone Professor of Marketing and Neubauer Family Faculty Fellow Robert W. Fogel Charles R. Walgreen Distinguished Service Professor of American Institutions Jonathan K. Frenzen Clinical Professor of Marketing Zvi Gilula Adjunct Professor of Statistics Arthur Middlebrooks Adjunct Professor of Marketing A. Yeşim Orhun Assistant Professor of Marketing Joann Peck Visiting Assistant Professor of Marketing Suresh Ramanathan Associate Professor of Marketing Ronald Goettler Assistant Professor of Marketing Peter E. Rossi Joseph T. and Bernice S. Lewis Professor of Marketing and Statistics Günter J. Hitsch Associate Professor of Marketing Oleg Urminsky Assistant Professor of Marketing Christopher K. Hsee Theodore O. Yntema Professor of Behavioral Science and Marketing Ting Zhu Assistant Professor of Marketing Abel P. Jeuland Charles H. Kellstadt Professor of Marketing Visit the Kilts Center for Marketing at ChicagoBooth.edu/kilts MARKETING AT CHICAGO 2OO9 MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING ING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES DYNAMICS CHANNEL STRATEGY MANAGEMENT LABS CONSUMER BEHAVIOR D PRICING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES AFF MICS CHANNEL STRATEGY MANAGEMENT MARKETING AT CHICAGO 2009 DYN ING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW PRO BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST MANAGEMENT LABS CONSUMER BEHAVIOR DYNAMIC PRICING ADVERTISING ING MARKETING FELLOWS KILTS SCHOLARS NEW PRODUCT BEST PRACTICES DYNAMICS CHANNEL STRATEGY MANAGEMENT LABS CONSUMER BEHAVIOR PRICING ADVERTISING PULSING MARKETING FELLOWS KILTS SCHOLARS NEW BEST PRACTICES AFFECT DYNAMICS CHANNEL STRATEGY MANAGEMENT LAB SUMER BEHAVIOR DYNAMIC PRICING ADVERTISING PULSING MARKETING FEL SCHOLARS NEW PRODUCT BEST PRACTICES AFFECT DYNAMICS CHANNEL ST EE NT LABS CONSUMER BEHAVIOR DYNAMIC PRICING MARKETING AT CHICAGO 2009 The University of Chicago Booth School of Business 5807 South Woodlawn Avenue Chicago, Illinois 60637