How Barnes & Noble Can Recover from the Nook’s Downward Spiral

Now that Barnes & Noble and Microsoft have parted ways on a partnership to produce and sell the Nook e-reader, the book retailer is yet again faced with having to reimagine its business model for an increasingly tech-centric world.

For inspiration, it should look no further than the coffee shops inside many of its stores, according to Wharton marketing professor Peter Fader.

"Barnes & Noble doesn't really know who its competition is," said Fader, who is also co-director of the Wharton Customer Analytics Initiative. "It always thought it was Amazon or other companies that are selling books.