INFORMS: What inspired you to research this particular topic?

NGWE: I found it interesting that brands are split between those that sell at outlet malls and those that don’t. And even among brands that have outlet stores, there’s a variety of product assortment strategies: some sell old products, some sell the same products at regular stores, and some sell products made specifically for the outlet channel. For some brands the outlet channel represents more than half of revenues, so it’s pretty critical to get it right.

INFORMS: Did any of your results surprise you?

NGWE: I was most surprised by how similar outlet store shoppers are to regular store shoppers in terms of income and other observable factors (shown in my data). I had this idea that regular store shoppers, who happily buy at full price, would be much wealthier, but as it happens the difference was mostly in preference—how far people are willing to travel and what they are willing to spend, regardless of income.

INFORMS: What is the most important take-away you hope readers will learn from your paper?

NGWE: Many people think of outlet stores as harmful to the image of high-end brands. While that might be partly true, the most important takeaway from the paper is that having outlet stores allows firms to introduce new products more frequently in their main channels. Therefore, the dual channel strategy actually allows brands to boost both quality and prices where their core customers are concerned.

INFORMS: Tell us about the process of writing this paper.

NGWE: I obtained the data from a large fashion company while I was a graduate student. The company was interested in having more eyes look at their database, and I was looking for data that could be used to study price discrimination, so it was good timing for both sides. The more I worked on the paper the more my focus shifted from forming links to the theory of price discrimination to arriving at a realistic model of how the firm makes decisions, particularly where product assortment is concerned. The main results of the paper come from exploring how optimal decisions on product assortment vary according to outlet store deployment and shopper preference structures.

INFORMS: Why was it important for you to publish in Marketing Science?

NGWE: I felt that Marketing Science was the best outlet for the paper, given the paper’s methodology and empirical application. I was very glad that the review team was receptive to the paper, and that they had great ideas for ways to improve the work.

INFORMS: Tell us a little about what you are working on now.

NGWE: I’m working on a few projects that explore related themes in online retail. In one project, I look at how the kind of market segmentation achieved through outlet stores can be obtained in online retail, where travel distances are no longer relevant. I find that increasing search frictions by requiring more clicks to locate and purchase discounted items relative to full price items can result in a similar kind of sorting between consumer types and result in higher margins for online sellers. In another project, I’m exploring how free shipping incentives influence how online consumers assemble their purchase baskets, and what this implies for the seller’s optimal assortment strategy and shipping policy.

INFORMS: How do you yourself keep up-to-date on the latest research in your field?

NGWE: The usual—attending conferences and browsing through journals. I have been on the junior faculty recruiting committee at my department for the past few years, and that has also been a great way to get exposed to the latest and most exciting research.

INFORMS: What about your career might surprise us?

NGWE: When I started grad school I completely intended to write a dissertation in macroeconomics. I’m not sure if that is surprising to anyone else, but it is surprising to me.

INFORMS: When you’re not using your OR superpowers to try to make the world a better place, what are some of the ways you like to spend your time?

NGWE: I spend quite some time around the Charles River, which runs between Boston and Cambridge, running, kayaking, and sailing. In the winter I spend most of my time looking for heat sources.

INFORMS: As an INFORMS member, what benefit do you find most useful?

NGWE: Having access to journals both within my field of marketing and in related fields provides a rich source of ideas and references.

INFORMS: What is the best advice you can give to students in your field?

NGWE: Choose research projects that can sustain your interest for a long time, as these are long-lived commitments.

INFORMS: Which social network do you use most and why?

NGWE: Facebook, because it’s what my mother, who lives overseas, uses to get in touch with me.

INFORMS: If you were a Microsoft Office program, which one would you be?

NGWE: I am having such a hard time answering this question that I think that makes me Clippy, the virtual assistant from Office 97.