Kumar’s research is focused on understanding how information technology affects the behavior of organizations, individuals and the interactions between them.
Industry Expertise (4)
Areas of Expertise (12)
How Online Product Recommendations Affects Customer Demand
How Technology Can Be Used to Remedy Societal Problems
Technology Enabled Multi-channel Business Operations
Information Systems and Operations Management
Business Value of Information Technology
Online Product Networks
Digital Good Markets
Media Appearances (1)
Is the future of department stores off-price? Macy's Backstage opens in Tampa
Tampa Bay Times online
University of Florida professor Anuj Kumar wonders if that redundancy could cannibalize the full-price store. Kumar, who studies the impacts of e-commerce, also suspects most of the Backstage items have thin margins compared to the regular stock. So, he posed, will the added foot traffic make it so discount shoppers are more likely to shop the regular merchandise? If not, Macy's Backstage stores will have to get a lot of new customers to make up the lower margins. "Some of these more unconventional ideas get very different results," he said.
Digitization and Divergence: Online School Ratings and Segregation in AmericaSSRN
Sharique Hasan, Anuj Kumar
2019 We analyze whether widespread online access to school-performance information affected economic and social segregation in America. We leverage the staged rollout of GreatSchools.org school ratings from 2006-2015 to answer this question. Across a range of outcomes and specifications, we find that the mass availability of school ratings has accelerated divergence in housing values, income distributions and education levels as well as the racial and ethnic composition across communities. Affluent and more educated families were better positioned to leverage this new information to capture educational opportunities in communities with the best schools. An unintended consequence of better information was less, rather than more, equity in education.
Why Do Stores Drive Online Sales? Evidence of Underlying Mechanisms from a Multichannel RetailerInformation Systems Research
Anuj Kumar, Amit Mehra, Subodha Kumar
2018 We utilize the event of store opening by a large apparel retailer and use customer-level data to estimate the effect of store presence on the online purchase behavior of its existing customers. We find that the retailer’s store openings resulted in an increase in online purchases from such customers. Drawing on the theory of planned behavior and prospect theory, we propose two mechanisms to explain this complementary effect of store presence on online purchases by existing customers. These mechanisms are the store engagement effect—customers making higher online purchases because of higher engagement from store interactions—and the store return effect—reduced risk of online purchase because of the option of store returns. We provide direct empirical evidence of these mechanisms on customer-level data. We further show that these effects increase as customers’ distances from the retailer’s store reduce because of the store openings. Our findings have significant implications for multichannel retailers.
Electronic Markets and Geographic Competition Among Small, Local FirmsInformation Systems Research
Brent Kitchens, Anuj Kumar, Praveen Pathak
2017 We study the impact of electronic markets on small, boutique firms selling presence goods or services—goods or services that must be consumed at the selling firm’s location. These firms have recently begun to compete on electronic markets by selling goods and services through local daily deal sites, such as Groupon and LivingSocial. We extract publicly available activity and spatial information from Groupon, LivingSocial, Google Maps, and Flickr to construct a unique panel data set to study daily deals offered by restaurants and spa vendors in geographical clusters of concentration in 167 distinct cities. This data set allows us to examine the effect of location on the competition vendors face in electronic markets. We find that as vendors in a particular geographical cluster participate in electronic markets, local competition increases and other vendors in that cluster join the electronic market and deepen discounts in response. However, vendors in other clusters in the same city remain relatively unaffected. We further analyze vendor ratings from Yelp and other infomediaries, to show that lesser known and low-quality vendors utilize the advertising effect of electronic markets to increase their awareness among customers. We further test the moderating effect of horizontal and vertical differentiation among firms in geographical clusters on competition in electronic markets, using measures extracted from UrbanSpoon.com. We find that clusters having lower differentiation experience higher competitive effects of firms joining the electronic market. Our findings provide empirical validation of the analytical results in existing literature in an important and understudied context: competition among small businesses selling presence goods and services. Our results have implications for firms and electronic market platforms.
The Demand Effects of Joint Product Advertising in Online VideosManagement Science
Anuj Kumar, Tan Yinliang
2015 Joint product display in videos may help customers to not only evaluate the attributes of products that can influence their individual demands (direct effect) but also learn about the complementarity between them that may cause additional correlation in their demands (spillover effect). To estimate the demand effects, we introduced videos displaying apparel with matching accessories for a few randomly selected apparel on a fashion retailer’s website. We found that introducing a video resulted in a 14.5% increase in apparel sales and a 28.3% increase in accessories sales. The estimated increase in accessories sales was largely attributed to the spillover effect of videos. Moreover, introducing videos with other product promotions resulted in a significantly higher effect of videos on product demands. Overall, we show how video display of related products can increase their demands in an online product network.
Information Discovery and the Long Tail of Motion Picture ContentManagement Information Systems Quarterly
Anuj Kumar, Michael D Smith, Rahul Telang
2014 Recent papers have shown that, in contrast to the long tail theory, movie sales remain concentrated in a small number of hits. These papers have argued that concentrated sales can be explained, in part, by heterogeneity in quality and increasing returns from social effects. Our research analyzes an additional explanation: how incomplete information may skew sales patterns. We use the movie broadcast on pay-cable channels as an exogenous shock to the availability of information, and analyze how this shock changes the resulting sales distribution. Our data show that the pay-cable broadcast shifts the distribution of DVD sales toward long tail movies, suggesting an information spillover from the broadcast. We develop a learning-based movie discovery model to precisely quantify the two mechanisms of movie discovery: word-of-mouth from previous sales and information spillover from broadcast. We use this model to estimate the lost DVD sales due to incomplete information. Our study contributes to the literature by analyzing how information provided in one channel can change the assortment of the same products demanded in another channel.