How online consumer segments differ in long-term marketing effectiveness

Name: How online consumer segments differ in long-term marketing effectiveness
Author: Reimer, K., Rutz, O. J., Pauwels, Koen Hendrik

İsim	How online consumer segments differ in long-term marketing effectiveness
Yazar	Reimer, K., Rutz, O. J., Pauwels, Koen Hendrik
Basım Tarihi:	2014-11
Basım Yeri	- Elsevier
Konu	Long-term effectiveness, Segments, Digital music, Online, Synergy, Advertising, Latent-class segmentation, Vector autoregression
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1094-9968
Kayıt Numarası	f603318a-75d9-4166-85d4-292e38a9dfe5
Lokasyon	Business Administration
Tarih	2014-11
Örnek Metin	Online commerce gives companies not only a growing global sales platform, but also powerful consumers enjoying 24/7 availability, choice proliferation and the power to opt in and out permission-based communication. Unfortunately, our knowledge is limited on long-term marketing effectiveness in this space and on how it differs across customer segments. Managers appear overwhelmed by the combination of rich online data on hundreds of thousands of customers and the typical aggregate-level data on offline marketing spending. This paper is the first to investigate the long-term impact of coupon promotions, TV, radio, print, and Internet advertising across customer segments for a major digital music provider with over 500,000 customers. We first segment customers and subsequently analyze how these segments respond in the long run to different marketing activities when purchasing music downloads. Our findings reveal that the effectiveness of marketing differs across segments, while standard segmentation approaches fail to identify the most valuable catches in a sea of consumers. In contrast to empirical generalizations on consumer packaged goods, heavy users of digital music products are least sensitive to price and most sensitive to TV advertising and to multiple touch points. Light users, the majority of consumers, are price sensitive and tend to opt out of targeted communication. Our research enables managers in the digital media space to target high-value customer segments with the most effective actions.
DOI	10.1016/j.intmar.2014.05.002
Cilt	28

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How online consumer segments differ in long-term marketing effectiveness

Yazar Reimer, K., Rutz, O. J., Pauwels, Koen Hendrik

Basım Tarihi 2014-11

Basım Yeri - Elsevier

Konu Long-term effectiveness, Segments, Digital music, Online, Synergy, Advertising, Latent-class segmentation, Vector autoregression

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1094-9968

Kayıt Numarası f603318a-75d9-4166-85d4-292e38a9dfe5

Lokasyon Business Administration

Tarih 2014-11

Örnek Metin Online commerce gives companies not only a growing global sales platform, but also powerful consumers enjoying 24/7 availability, choice proliferation and the power to opt in and out permission-based communication. Unfortunately, our knowledge is limited on long-term marketing effectiveness in this space and on how it differs across customer segments. Managers appear overwhelmed by the combination of rich online data on hundreds of thousands of customers and the typical aggregate-level data on offline marketing spending. This paper is the first to investigate the long-term impact of coupon promotions, TV, radio, print, and Internet advertising across customer segments for a major digital music provider with over 500,000 customers. We first segment customers and subsequently analyze how these segments respond in the long run to different marketing activities when purchasing music downloads. Our findings reveal that the effectiveness of marketing differs across segments, while standard segmentation approaches fail to identify the most valuable catches in a sea of consumers. In contrast to empirical generalizations on consumer packaged goods, heavy users of digital music products are least sensitive to price and most sensitive to TV advertising and to multiple touch points. Light users, the majority of consumers, are price sensitive and tend to opt out of targeted communication. Our research enables managers in the digital media space to target high-value customer segments with the most effective actions.

DOI 10.1016/j.intmar.2014.05.002

Cilt 28