Xie’s current research interests are emerging technology and service strategy, social networks, word of mouth communication, technology and fashion, independent product information, network effects and standards competition.
Industry Expertise (4)
Information Technology and Services
Areas of Expertise (6)
Independent Product Information and Marketing Strategy
National Culture Effect on New Product Management
Innovation Management and Strategies
Media Appearances (1)
First reviews can set products up for success or failure
Firms generally monitor their online reviews and evaluate their strategies accordingly, Xie explains. “However, they do so by focusing on average rating rather than a single rating, and after the product has sufficient time to be evaluated by consumers. Our research suggests that firms need to pay attention to a special single review (i.e., the first one) as soon as it is posted,” Xie says.
The Effect of Probabilistic Selling on the Optimal Product Mix☆Journal of Retailing
Scott Fay, Jinhong Xie, Cong Feng
2015 Determination of the merchandize assortment is an important decision for retailers since the composition and depth of the product mix greatly impact both unit sales and costs. This paper considers how Probabilistic Selling (PS), an emerging marketing strategy, impacts the type and number of products a retailer should carry. We find that adopting PS can alter the optimal number of products (i.e., encourage the retailer to offer more or fewer products), depending on demand- and supply-side factors. Furthermore, introducing probabilistic goods sometimes increases the optimal degree of product differentiation and sometimes reduces it. Specifically, less differentiated products are warranted if there are either few or many consumers with extreme tastes, but more differentiation is needed otherwise. Our analysis reveals that PS can serve either as a substitute to new product introduction (because it enables a retailer to serve a diverse market at a lower cost) or as a complement to new product introduction (since, under PS, a new product enables a retailer to offer additional probabilistic goods that utilize this new product as one of its components). In sum, our results indicate that a retailer must adjust its merchandize assortment appropriately in order to fully benefit from probabilistic selling.