2015 Informs Annual Meeting

WA40

INFORMS Philadelphia – 2015

WA40 40- Room 101, CC Marketing III Contributed Session Chair: Fouad El Ouardighi, ESSEC Business School, BP 105, Cergy Pontoise, 95021, France, elouardighi@essec.fr 1 - Segment’s Competitive Environment and Dynamics of Segment Entry and Segment Exit This study examines how segment’s competitive conditions influence firms’ patterns of segment selection: which segment to enter to and which segment to exit from in the context of business ecosystems. The study showed that high concentration and low density segment attract potential entrants to enter the segment and inhibit incumbents in the segment to exit. However, competitors’ competitive moves might counter this condition. 2 - Optimal Promotion Strategies Krista Foster, PhD Candidate, University of Pittsburgh, Katz Graduate School of Business, 241 Mervis Hall, Pittsburgh, PA, 15260, United States of America, kmf88@pitt.edu, Jennifer Shang Given a portfolio of three products and a fixed pool of consumers, which form of promotion will maximize a seller’s profits? We consider a number of promotional strategies to determine if and when each is strategy is optimal. 3 - The Marketing Dilemma: To Market or Not to Market During a Competitor’s Product Harm Crises Amirhossein Alamdar Yazdi, PhD Student, 121 Presidents Drive, 24 Rolling Green Drive, Amherst, MA, 01003, United States of America, aalamdaryazd@som.umass.edu, Adams Steven What is the impact of advertising on a firm’s performance during unfavorable news coverage of a close competitor? Positive? Likely. Negative? Possible. This study investigates the effect of advertising intensity on a firm’s marketing and financial performance and the moderating influence of a competitor’s product recalls. 4 - Advertising and Quality-Dependent Word-of-Mouth in a Contagion Sales Model Fouad El Ouardighi, ESSEC Business School, BP 105, Cergy Pontoise, 95021, France, elouardighi@essec.fr, Dieter Grass, Richard Hartl, Peter Kort, Gustav Feichtinger The omission of negative evaluations by current customers in contagion sales models and, more importantly, of the originating factors of such negative evaluations, may lead to prescribing of improper communication policy and therefore poor brand building strategy. This paper bridges the gap by suggesting a sales model where both positive and negative word-of-mouth affect the attraction rate of new customers, along with advertising. Setiadi Umar, PhD Candidate, Rutgers Business School, 1 Washington Park, Newark, NJ, 07102, United States of America, setiadi.umar@rutgers.edu, Sengun Yeniyurt

2 - A Simulation Model for the Heart Allocation Process Farhad Hasankhani Kohneh Sh, PhD Graduate Assistant, Clemson University, #4, 129 Freeman Hall, Clemson University, Clemson, SC, 29631, United States of America, fhasank@g.clemson.edu, Amin Khademi Heart failure occurs when a heart loses its ability to properly circulate blood in the body. Over 5.8 million people in the US are suffering from heart failure. Heart transplantation is a life-saving treatment for such patients. The Number of donors, the only source of hearts, is limited, and demand far exceeds supply. In this study we create a simulation model to investigate the impacts of a variety of allocation policies on several outcomes such as expected life-years of the population. 3 - Scheduling with Stochastic Processing Times in a Medical Clinic David Phillips, dphillip@usna.edu, Marcus Colyer, Marisa Molkenbuhr We consider the problem of scheduling patients in a medical clinic. Patients must see one of the clinic’s doctors and some must also receive a scan prior to seeing the doctor. Complications of the problem include stochastic processing times and model selection based on the decision problem of interest. We present models as well as computational results based on both integer programming and approximation algorithms approaches. 4 - Optimal Adjusted Panel Size for Balancing Patient and Physician Risk Zelda Zabinsky, Professor, University of Washington, Industrial and Systems Engineering, Box 352650, Seattle, WA, 98195, United States of America, zelda@u.washington.edu, David Linz, Hao Huang, Paul Fishman, Joseph Heim An issue in healthcare is sizing physician adjusted panels. Patient concerns (wait time, disruption of care, inequitable care) as well as physician concerns (inequitable workload, panel size preference) need to be balanced in any fair strategy for adjusted panel size. This paper proposes a multi-objective optimization model for minimizing the risk of patient and physician concerns that accounts for acute instances of inequality and risk. We provide an efficient frontier for administrative use. WA43 43-Room 103A, CC Choice Modeling Applications in Revenue Management Sponsor: Revenue Management and Pricing Sponsored Session Chair: Adam Elmachtoub, Assistant Professor, Columbia IEOR, 500 West 120th St, New York, NY, United States of America, adam@ieor.columbia.edu 1 - Revenue Managament under the Markov Chain Choice Model Huseyin Topaloglu, Professor, Cornell University, 223 Rhodes Hall, Ithaca, NY, 14853, United States of America, ht88@cornell.edu, Jacob Feldman We consider static assortment, network revenue management and single-leg revenue management problems under the Markov chain choice model. For static assortment problem, we give structural properties of the optimal assortment. For network revenue management, we give a tractable linear programming formulation. For single-leg revenue management, we characterize the optimal policy as a protection level policy. 2 - A Multi-attempt Approximation of Choice Model Hakjin Chung, Stephen M. Ross School of Business, University of Michigan, Ann Arbor, MI, United States of America, hakjin@umich.edu, Boying Liu, Hyun-soo Ahn, Stefanus Jasin We consider the problem of approximating an arbitrary mixture of logits with a series expansion. The degree of the expansion can be interpreted as the number of attempts that a customer is willing to make before leaving the system because his preferred product is not available. There are at least two benefits of using this approximation: the optimization problem becomes tractable and its parameters can be estimated using linear regression. We derive some bounds. 3 - Managing Product Transitions via Strategic Customer Selection Roger Lederman, IBM, T. J. Watson Research Center, Yorktown Heights, NY, United States of America, rdlederm@us.ibm.com, Adam Elmachtoub The talk will discuss tools for shaping demand to better match supply capabilities, with a specific focus on product transitions. We describe a framework for managing transitions, including the role that sales targeting can have in shaping customer decisions. We then formulate as a customer selection problem in which a seller with limited inventories must prioritize sales effort across a set of heterogeneous customers with differing historical patterns of adoption.

WA41 41-Room 102A, CC Healthcare Operations Management Sponsor: Manufacturing & Service Oper Mgmt/Healthcare Operations Sponsored Session

Chair: Andrew Trapp, Assistant Professor, Worcester Polytechnic Institute, 100 Institute Rd., Worcester, MA, 01609, United States of America, atrapp@wpi.edu 1 - Impact of Breast Density on Designing Mammography Screening Policies Mucahit Cevik, University of Wisconsin - Madison, 1513 University Avenue, Madison, WI, 53706, United States of America, cevik2@wisc.edu, Burhaneddin Sandikci Mammography screening is the golden standard for breast cancer screening, but it is also known to be less accurate for women with dense breasts. Therefore, some patients are often referred to receive supplemental screenings. We incorporate the breast density information to the breast cancer screening decisions and use a discrete-time partially observable Markov decision process model to assess the effectiveness of the supplemental screening tests.

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