The growth of e-commerce, accelerated by the covid-19 pandemic, have fundamentally changed how companies commercialize their products. To remain competitive, many retail companies must transition parts of, or their entire, selling process to the internet. This poses the challenge of creating a website which satisfies as many of the needs of the consumer as possible, whilst still being accessible and easy to use. The usability of a website, which essentially is the perceived quality of a user experience, affects both to what extent customers experience satisfaction and to what extent they perform purchases.The purpose of this study was both to examine the relationship between selling strategies, such as the decoy effect and the compromise effect, and perceived usability of an e-commercewebsite, as well as determining how effective said selling strategies are for increasing purchase amount.By creating a high usability e-commerce website for phone cases and related products and then performing user tests in which 42 individuals were asked to perform purchase scenarios in which they were or were not exposed to selling strategies, the correlation between the perceived usability and the effectiveness of selling strategies were investigated. The 42 user tests showed no correlation between the effectiveness of the selling strategies and the perceived usability of the website. An increase in the perceived usability did however correlate to an increase in average purchase amount, and the selling strategies did increase the average purchase amount when applied. The lack of correlation between perceived usability and the effectiveness of selling strategies were inconsistent with the initial hypothesis. The discussion of this paper addresses potential explanations to the result. Several parts of the study can be altered to eliminate or mitigate identified error sources in the method. The extent to which these error sources affected the results of this study is not conclusively established, but several future improvements can be made to continue this academic inquiry, which is considered both relevant and of increasing importance.

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This paper contains two parts. First, we study the decoy effect (especially for the compromise decoy effect) by the experiments where the subjects face the trade-off of inflation and unemployment. As earlier studies show that the compromise decoy is not good as dominated decoy, we try to explore factors of determining compromise effect. Second, we investigate the factors affecting the subjects¡¦ preference over unemployment and inflation. In Part 1, we explore how to enhance the compromise decoy effect by changing the relative location among target, compromise, and decoy. It emerges that the distance between target and decoy, the distance between target and competitor, and the existence of the dominated decoy all affect the size of the compromise decoy effect. In Part 2, we explore the relation of subjects¡¦ preference over inflation and unemployment and their personal characteristics, such as location of hometown, the attitude toward risk, political participation, ideology, household income, knowledge of related terminology, whether to take related course or not, and friends¡¦ and relatives¡¦ unemployment status, and so on. Though the direction of effects is in line with our conjecture, the level of significance is not high enough.

We build a variety of customer booking choice models for a major airline that operates in a very competitive origin-destination market. Some of the models are aimed at incorporating unobserved heterogeneous customer preferences for different departure times. The estimation results show that including these factors into choice models dramatically affects price sensitivity estimates, and therefore matters. We present a stochastic trust region algorithm for estimating ML-type models that involve high-dimensional integrals. The algorithm embeds two sampling processes: (i) a data sampling process and (ii) a Monte Carlo sampling process, and the algorithm dynamically controls sample sizes based on the magnitude of the errors incurred due to the two sampling processes. The first-order convergence is proved based on generalized uniform law of large numbers theories for both the average log-likelihood function and its gradient. The efficiency of the algorithm is tested with real data and compared with existing algorithms. We also study how a specific behavioral phenomenon, called the decoy effect, affects the decisions of sellers in product assortment competition in a duopoly. We propose a discrete choice model to capture decoy effects, and we provide a complete characterization of the Nash equilibria and their dependence on choice model parameters. For the cases in which there are multiple equilibria, we consider dynamical systems models of the sellers responding to their competitors using Cournot adjustment or fictitious play to study the evolution of the assortment competition and the stability of the equilibria. We provide a simple geometric characterization of the dynamics of fictitious play for 2×2 games that is more complete than previous characterizations.

Diploma thesis deals with topic of given phenomena of behavioural economics. Specifically, it deals with endowment effect, decoy effect and paradox of choice. The goal of the thesis is to verify influence of given phenomena of behavioural economics in practice. Research part deals with analysis of the phenomena which influence decision-making in financial or economic issues and causes individual to behave irrationally and not like Homo oeconomicus. In an analytical part are then given phenomena verified by method of quantitative analysis in real market on given company. Quantitative analysis deals predominantly with breakdown of customer reactions on marketing strategies of given company in defined period. Integral part of the thesis is based on executed research draw practical recommendations for examined company.

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Submitted by Guilherme Leão (guilherme89leao@gmail.com) on 2013-08-08T20:52:46Z No. of bitstreams: 1 dissertação guilherme_final_.pdf: 1058270 bytes, checksum: 4c6f6359e94a68739ede38306bf6ab14 (MD5) / Approved for entry into archive by ÁUREA CORRÊA DA FONSECA CORRÊA DA FONSECA (aurea.fonseca@fgv.br) on 2013-08-13T16:25:58Z (GMT) No. of bitstreams: 1 dissertação guilherme_final_.pdf: 1058270 bytes, checksum: 4c6f6359e94a68739ede38306bf6ab14 (MD5) / Approved for entry into archive by Marcia Bacha (marcia.bacha@fgv.br) on 2013-08-15T13:08:22Z (GMT) No. of bitstreams: 1 dissertação guilherme_final_.pdf: 1058270 bytes, checksum: 4c6f6359e94a68739ede38306bf6ab14 (MD5) / Made available in DSpace on 2013-08-15T13:08:59Z (GMT). No. of bitstreams: 1 dissertação guilherme_final_.pdf: 1058270 bytes, checksum: 4c6f6359e94a68739ede38306bf6ab14 (MD5) Previous issue date: 2012-08-29 / Several models and neoclassical economic theories are based on the principles of rationality of individuals. However, many studies have shown how these principles can be flawed in numerous contexts. This research aimed to contribute to this literature by developing an experiment conducted with undergraduate students , testing applications of rationality biases, known as Decoy Effect and Anchor Effect . We analyzed 142 questionnaires that apparently sought to profile the students by asking questions about their preferences for job opportunities by analyzing various aspects (remuneration, stability, workload and chances of professional growth ). Throughout the issues, however, decoys and anchors were inserted . As a result, we found that when looking for a job , most students predominantly valued the chances of professional growth and the remuneration offered by the job , while the workload was the attribute less weight ed in their decisions. While the rest of their responses were quite consistent with the outlined profile, the bias of rationality proved influential. The decoys used led to changes in responses 7 - 8%, while the use of anchors have been shown to influence the minimum amount by which the re spondents would accept a paid service, violating the principles of rationality. / Diversos modelos e teorias econômicas neoclássicas se baseiam nos princípios de racionalidade dos indivíduos. No entanto, muitos estudos vêm mostrando como tais princípios podem ser falhos em diversos contextos. Esta pesquisa buscou contribuir com tal literatura através do desenvolvimento de um experimento realizado com alunos de graduação no qual foram testadas aplicações dos vieses de racionalidade conhecidos como Efeito Chamariz e Efeito Âncora. Foram analisados 142 questionários que aparentemente visavam traçar o perfil dos estudantes através de perguntas sobre suas preferências quanto a oportunidades de emprego considerando múltiplos aspectos (remuneração, estabilidade, carga horária e chances de crescimento profissional). Ao longo das questões, no entanto, foram inseridas âncoras e chamarizes. Como resultados, observamos que, ao procurar um emprego, a maioria dos estudantes valoriza principalmente as chances de crescimento profissional e a remuneração oferecida pelo trabalho, ao passo que a carga horária é o atributo de menor peso em suas decisões. Embora o restante de suas respostas fosse bastante coerente com o perfil traçado, os vieses de racionalidade se mostraram influentes. Os chamarizes usados levaram a alterações nas respostas de 7 a 8%, enquanto que o uso de âncoras se mostraram capazes de influenciar o valor mínimo pelo qual os respondentes aceitariam prestar um serviço, violando os princípios de racionalidade.