Kusum L. Ailawadi

CHARLES JORDAN 1911 TU'12 PROFESSOR OF MARKETING

Research Interests

  • Kusum's research uses rigorous econometric methods to answer managerially important questions about how marketing policy affects performance. Most of her work is empirical in nature and is aimed at gaining broad, generalizeable insights into the determinants of performance. She draws on a variety of data sources to do this, often using multiple sources within a single study. For instance, she uses secondary sources like COMPUSTAT, CRSP, scanner panels, and point-of-purchase retail data, as well as primary data from surveys and field experiments. Within the umbrella of econometric models of performance she works in three distinct streams:

MANUFACTURER-RETAILER INTERACTION
AND RELATIVE PERFORMANCE

The first stream focuses on the strategic interaction and balance of power between manufacturers and retailers, and the impact on their relative performance. Kusum's work questions the conventional wisdom that power has shifted towards retailers as a result of increased promotions, store brands, and the availability of scanner data. She provides empirical evidence that retail market power, as measured by profit, has not increased and investigates the leverage that advertising, promotion, and store brands provide in the interaction of retailers with manufacturers and in their performance.

Click here for a list of Kusum's papers in this research stream.

MARKET RESPONSE TO ADVERTISITING AND PROMOTION

The second stream examines response of consumers and competitors to marketing mix changes and to major policy changes. For instance, Kusum studies the effect of promotion on consumption of a product category and on the profitability of a retailer; the impact of private label share on retail margins and store loyalty; the impact of long-term advertising and promotion policy changes on market share; incumbent retailer response to the entry of a major market player like Wal-Mart; and consumer response to changes in gas prices.

Click here for a list of Kusum's papers in this research stream.

MARKET SHARE, COSTS, AND PROFITABILITY

The third stream deals with the relationship between market share, marketing spending, and profitability. Kusum identifies the cost components of a business through which market share can provide leverage, quantifies the econometric biases that arise in modeling the definitional relationship of these cost components with profitability and provides a simple methodology to avoid these biases; and uses this methodology to gain insights into the nature of the unobserved variables that are known to play a key role in the profitability of market share leaders.

Click here for a list of Kusum's papers in this research stream.

Tuck School of Business at Dartmouth
100 Tuck Hall
Hanover, NH 03755
Tel: 603-646-2845
Fax: 603-646-1308
kusum.l.ailawadi@dartmouth.edu