All researches in a row (8-13)
Course Digital and social media strategies
Status Done
Tags
Semester Semester 5
Type
Files
Lecture 8 - Email Marketing
About
Personalization in email marketing
Targeted promotions (discounts)
Personalization in Email Marketing: The role of Noninformative
Advertising Content ~ Sahni, Wheeler and Chintagunta (2018)
Want to find out if adding personalized content improves email effectiveness
Matters because:
Most businesses engage in the practice
Email marketers have access to this information
Can impact consumer response via “psychological mechanisms”:
A = drawing attention to the email
O = shaping opinions of receiver/positive cue
E = increased elaboration (via recipient processing)
Opens = increased with A,O,E
All researches in a row (8-13) 1
, Un-subscriptions = increase under A, decrease under O and E
Leads = increase under O and E, more evidence for E when discount mentioned
Randomized control trail, varying personalization & across contexts (3 first
experiments)
Then evaluate the effects by using test of proportions & regression
Control group: no name in subject line
Treatment group: name in subject line
First 3 experiments (focusing on acquiring new customers, re-engaging old ones,
monthly newsletters)
To show that the main effect is generalizable over across different contexts
Experiment 4 to identify whether the mechanisms relate to
Increased elaboration OR serving as a positive cue (not mentioning DICSOUNT
SIZE for spam)
Doing via a 2x2 design experiment
Finding: personalized emails increase engagement via increased elaboration
mechanism
Remaining issues
Long run impacts of advertising (e.g. impact on brand perception) unknown/not
researched
Is still effective when all companies personalize?
Do Targeted Discount Offers Serve as Advertising? Evidence
from 70 Field Experiments ~ SZC (2017)
All researches in a row (8-13) 2
, What are the effects of targeted email offers
70 experiments targeting over 100 individuals
Treatment: receiving an offer (discount)
Control: not receiving an offer (discount)
2 ways discounts could impact consumer purchases:
1. Treated as coupons, targeting price sensitive consumers
2. Generating attention to the company, the advertising effect
Average expenditure increases by 37.2% when targeting with discount
90% of this is NOT on redeeming coupons (often on items where discount
does not apply)
The effect spills over to category (MLB major league baseball) not
eligible for discounts
Consistent with a reminder effect
Effects also where consumers do not use the offer
Effects largest when (correlations):
More transactions in the past
Longer since last transaction
People spent more on average for up to 4 weeks after offer sent
Practical implication: firm can gain from targeted promotions without having to
incur the costs associated with the discounts
Need to investigate generalizability
Summary
All researches in a row (8-13) 3
, Email personalization matters
Mechanism at play is via increased message processing of consumers
Emails with discounts lead to increased spending
Often on items where the discount does not apply
Lecture 9 - Online Markets
About:
Online retail increased variety
Price dispersion offline vs online markets
Market power Amazon (large online retailers)
Digital paywall design
Consumer welfare gains from online variety ~ Quan & Williams
(2018)
What is the additional value to consumers created by the increase in variety
(long tail, better matching niche tastes) provided by online retail?
We need to understand (overlooked in previous work, which claims (vary!) large
consumer welfare benefits of online long tails);
How does demand vary within and across locations?
Does local brick and mortar retail already cater to demand for variety and
local tastes?
$1 Billion worth of shoe transactions
(time of sale, zip code, product characteristics, reviews)
Augmented with assortment of brick and mortar retailers
Using statistical method: estimate demand “primitives”
Counterfactual analysis (suppose a different world)
Local assortment targets local demand (tastes)
All researches in a row (8-13) 4
Course Digital and social media strategies
Status Done
Tags
Semester Semester 5
Type
Files
Lecture 8 - Email Marketing
About
Personalization in email marketing
Targeted promotions (discounts)
Personalization in Email Marketing: The role of Noninformative
Advertising Content ~ Sahni, Wheeler and Chintagunta (2018)
Want to find out if adding personalized content improves email effectiveness
Matters because:
Most businesses engage in the practice
Email marketers have access to this information
Can impact consumer response via “psychological mechanisms”:
A = drawing attention to the email
O = shaping opinions of receiver/positive cue
E = increased elaboration (via recipient processing)
Opens = increased with A,O,E
All researches in a row (8-13) 1
, Un-subscriptions = increase under A, decrease under O and E
Leads = increase under O and E, more evidence for E when discount mentioned
Randomized control trail, varying personalization & across contexts (3 first
experiments)
Then evaluate the effects by using test of proportions & regression
Control group: no name in subject line
Treatment group: name in subject line
First 3 experiments (focusing on acquiring new customers, re-engaging old ones,
monthly newsletters)
To show that the main effect is generalizable over across different contexts
Experiment 4 to identify whether the mechanisms relate to
Increased elaboration OR serving as a positive cue (not mentioning DICSOUNT
SIZE for spam)
Doing via a 2x2 design experiment
Finding: personalized emails increase engagement via increased elaboration
mechanism
Remaining issues
Long run impacts of advertising (e.g. impact on brand perception) unknown/not
researched
Is still effective when all companies personalize?
Do Targeted Discount Offers Serve as Advertising? Evidence
from 70 Field Experiments ~ SZC (2017)
All researches in a row (8-13) 2
, What are the effects of targeted email offers
70 experiments targeting over 100 individuals
Treatment: receiving an offer (discount)
Control: not receiving an offer (discount)
2 ways discounts could impact consumer purchases:
1. Treated as coupons, targeting price sensitive consumers
2. Generating attention to the company, the advertising effect
Average expenditure increases by 37.2% when targeting with discount
90% of this is NOT on redeeming coupons (often on items where discount
does not apply)
The effect spills over to category (MLB major league baseball) not
eligible for discounts
Consistent with a reminder effect
Effects also where consumers do not use the offer
Effects largest when (correlations):
More transactions in the past
Longer since last transaction
People spent more on average for up to 4 weeks after offer sent
Practical implication: firm can gain from targeted promotions without having to
incur the costs associated with the discounts
Need to investigate generalizability
Summary
All researches in a row (8-13) 3
, Email personalization matters
Mechanism at play is via increased message processing of consumers
Emails with discounts lead to increased spending
Often on items where the discount does not apply
Lecture 9 - Online Markets
About:
Online retail increased variety
Price dispersion offline vs online markets
Market power Amazon (large online retailers)
Digital paywall design
Consumer welfare gains from online variety ~ Quan & Williams
(2018)
What is the additional value to consumers created by the increase in variety
(long tail, better matching niche tastes) provided by online retail?
We need to understand (overlooked in previous work, which claims (vary!) large
consumer welfare benefits of online long tails);
How does demand vary within and across locations?
Does local brick and mortar retail already cater to demand for variety and
local tastes?
$1 Billion worth of shoe transactions
(time of sale, zip code, product characteristics, reviews)
Augmented with assortment of brick and mortar retailers
Using statistical method: estimate demand “primitives”
Counterfactual analysis (suppose a different world)
Local assortment targets local demand (tastes)
All researches in a row (8-13) 4
