hero image
Raghunath Rao - The University of Texas at Austin, McCombs School of Business. Austin, TX, US

Raghunath Rao Raghunath Rao

Associate Professor, Department of Marketing | The University of Texas at Austin, McCombs School of Business


An expert on marketing strategy


Areas of Expertise (8)

Industrial Organization Information Economics Marketing Models Durable Goods Markets Sales Management Entrepreneurship & Innovation Incentives Behavioral Decision Theory


Raghunath Rao is an Associate Professor at the McCombs School of Business. His research interests span a variety of marketing topics such as pricing, incentives, behavioral decision theory, sales management and innovation, and marketing models, often in the context of durable goods markets. His research is consistently published in the leading journals of his field, like the Journal of Marketing Research, Marketing Science, and the Journal of Marketing.





loading image loading image



Education (4)

University of Minnesota, Minneapolis: Ph.D., Business Administration 2007

University of Minnesota, Minneapolis: M.S., Applied Economics

Indian Institute of Foreign Trade (New Dehli, India): M.B.A., International Business

National Institute of Technology (Surat, India): B.Eng., Electrical Engineering

Media Appearances (2)

Price-Fixing Lawsuit Highlights E-Books' Effect on Publishing

Texas Enterprise | Big Ideas in Business  online


Rao discusses the dilemma of book publishers, the latest industry to be squeezed by the forces of e-commerce. They’re pushing up e-book prices, in part, to prolong the life of a product that fewer and fewer consumers want: the printed book.

view more

To Fee or Not to Fee: Strategies to Avert a Fee Rebellion

Texas Enterprise | Big Ideas in Business  online


During the Great Recession, cash-strapped corporations started to tack on extra fees to raise revenue without appearing to raise prices. An outright customer rebellion ensued. Rao argues that companies need to change their marketing and pricing strategies to soothe the new mood among fed-up consumers.

view more

Articles (7)

Raghunath Rao Citations Google Scholar


List of top scholarly works by Raghunath Singh Rao.

view more

Conspicuous Consumption and Dynamic Pricing Marketing Science


How do firms develop marketing strategy when consumers seek to satisfy both quality and status-related considerations? We develop an analytical model to study this issue, examining both pricing and product management decisions in markets for conspicuous durable goods.

view more

Bonuses versus Commissions: A Field Study Journal of Marketing Research


Quota-based bonuses and commissions are the two most common incentive compensation plans. In this award-winning paper, the authors uncover differential effects of these plans from a natural field-based experiment of a pharmaceutical firm that switched from a bonus plan to an equivalent commission plan. The intervention led to significant sales productivity improvement. [Winner of the 2014 AMA Sales SIG Excellence in Research Award for Best paper on Sales Management]

view more

More or Less: A Model and Empirical Evidence on Preferences for Under- and Over-Payment in Trade-In Transactions Journal of Marketing Research


When consumers trade in their used model for a new model, the firm faces the choice of paying the consumer a relatively low price for the used model and charging a commensurately low price for the new model or paying a relatively high price for the used model and charging a commensurately high price for the new model. The authors draw from the prospect theory value function to develop a simple analytical model...

view more

Is That Deal Worth My Time? The Interactive Effect of Relative and Referent Thinking on Willingness to Seek a Bargain Journal of Marketing


Prior research on relative thinking has suggested that the willingness to seek a bargain depends not only on the absolute value of the bargain but also on the price of the product. For example, a discount of $10 seems more appealing on a product whose regular price is $20 than a product whose regular price is $60. By invoking the interactive role of consumers' reference prices, the authors delineate the specific conditions under which the same $10 discount can seem less appealing when the price is $20 than when it is $60.

view more

Understanding the Role of Trade-Ins in Durable Goods Markets: Theory and Evidence Marketing Science


The act of trading in a used car as partial payment for a new car resonates with practically all consumers. Such transactions are prevalent in many other durable goods markets, ranging from golf clubs to CT scanners. What roles do trade-ins play in these markets?...

view more

The Fruits of Legitimacy: Why Some New Ventures Gain More From Innovation Than Others Journal of Marketing


This article examines rewards to product introduction by new ventures. The authors argue that the new ventures that gain the most from innovation are those that adopt strategies that give them legitimacy in the eyes of stakeholders.

view more