hero image
Krista Li - Indiana University, Kelley School of Business. Bloomington, IN, US

Krista Li Krista Li

Assistant Professor of Marketing | Indiana University, Kelley School of Business

Bloomington, IN, UNITED STATES

Krista Li is an expert in the fields of product design and behavior-based targeting.





loading image


Kelley Faculty Research: Krista Li on Product Design and Marketing




Krista Li is an Assistant Professor of Marketing at the Kelley School of Business, Indiana University. Her areas of expertise include product design and behavior-based targeting.

Industry Expertise (2)

Direct Marketing Education/Learning

Areas of Expertise (5)

Empirical Modeling Game Theory Product Design Behavior-Based Targeting Behavioral Industrial Organization

Accomplishments (8)

Marketing Science Institute Young Scholar Research Grant


Mary Kay/AMS Dissertation Proposal Competition, Finalist


Dean's Award for Outstanding Research, Mays Business School, Texas A&M University


Inaugural AMS Doctoral Consortium Fellow


Dean's Award for Outstanding Teaching, Mays Business School, Texas A&M University


AMA-Sheth Doctoral Consortium Fellow, Northwestern University


INFORMS Doctoral Consortium Fellow, Emory University


INFORMS Doctoral Consortium Fellow, Boston University


Education (3)

Texas A&M University: Ph.D., Marketing 2016

Yale University: M.A., International Relations & Economics 2004

Lingnan University: B.A., Marketing 2002

Articles (5)

Pricing and Product Design for Vice Goods: A Strategic Analysis Marketing Science


The rising obesity epidemic is a worldwide concern for consumers, firms, and policy makers. One reason for the rise in obesity is consumers’ over-consumption of vice goods such as cookies, crackers, and soft drinks. Some authors have suggested that firms have incentives to make vice goods unhealthier and to encourage over-consumption. There are calls for regulations to ensure that firms make such products healthier by reducing harmful ingredients and provide nutritional information. Furthermore, public policy makers have begun to educate consumers to avoid over-consumption by using strategies such as pre-purchase planning. In this paper, we investigate how firms selling vice goods should respond to the growing concerns about obesity. We analyze how firms should adjust prices and product design to cater to consumers with self-control problems and obesity concerns.

view more

Behavior-Based Pricing in Marketing Channels Marketing Science


With behavior-based pricing (BBP), firms use customers’ purchase history data to price discriminate between past and new customers. Prior research has examined BBP in a non-channel setting. In this paper, we investigate BBP in a channel setting in which manufacturers sell to customers through exclusive retailers. We examine how channel members’ adoption of BBP affects wholesale and retail prices, profits, consumer surplus, and social welfare. We find that BBP decreases channel members’ profits when retailers use BBP and manufacturers use uniform pricing. However, BBP increases channel members’ profits when manufacturers and retailers use BBP. In addition, BBP by retailers alone increases consumer surplus, whereas BBP by manufacturers and retailers decreases consumer surplus.

view more

Status Goods and Vertical Line Extensions Production and Operations Management


Conspicuous consumption of status goods signals consumers’ status and grants status value to them. In this article, we examine how firms selling status goods make vertical line extension decisions when they take consumers’ status preferences into account. Analyzing an incumbent's vertical line extensions when it faces a threat of entry, we find that status preferences can make unprofitable extensions profitable. Moreover, without status preferences, an incumbent can introduce line extensions to crowd out the competitor's profit and deter entry. However, with status preferences, introducing line extensions can increase the competitor's profit and attract entry. We also find that incumbents should introduce downward extensions when they are monopolists and upward extensions when they face competition from lower‐quality entrants.

view more

The Effects of a Product's Aesthetic Design on Demand and Marketing Mix Effectiveness: The Role of Segment Prototypicality and Brand Consistency Journal of Marketing


A product’s physical appearance is difficult to quantify, and the impact of product appearance on demand has rarely been studied using market data. The authors adopt a recently developed morphing technique to measure a product’s aesthetic design and investigate its effect on consumer preference. Drawing upon categorization theory, the authors consider the effects of three dimensions of aesthetic design—segment prototypicality (SP), brand consistency (BC), and cross-segment mimicry (CSM)—and their moderating effects on marketing mix effectiveness in a unified framework. The empirical analysis uses a unique, large data set consisting of 202 car models from 33 brands sold in the United States from 2003 to 2010. The authors find that consumer preference peaks at moderate levels of SP and BC and that economy-segment products benefit from CSM of luxury products.

view more

Behavior-Based Pricing: An Analysis of the Impact of Peer-Induced Fairness Management Science


Firms tracking consumer purchase information often use behavior-based pricing (BBP), i.e., price discriminate between consumers based on preferences revealed from purchase histories. However, behavioral research has shown that such pricing practices can lead to perceptions of unfairness when consumers are charged a higher price than other consumers for the same product. This paper studies the impact of consumers’ fairness concerns on firms’ behavior-based pricing strategy, profits, consumer surplus, and social welfare. Prior research shows that BBP often yields lower profits than profits without customer recognition or behavior-based price discrimination. By contrast, we find that firms’ profits from conducting BBP increase with consumers’ fairness concerns. When fairness concerns are sufficiently strong, practicing BBP is more profitable than without customer recognition. However, consumers’ fairness concerns decrease consumer surplus. In addition, when consumers’ fairness concerns are sufficiently strong, they reduce inefficient switching and improve social welfare.

view more