The Effectiveness of Customized Promotions in Online and Offline Stores

  title={The Effectiveness of Customized Promotions in Online and Offline Stores},
  author={Jie Zhang and Michel Wedel},
  journal={Journal of Marketing Research},
  pages={190 - 206}
This study investigates the effectiveness of customized promotions at three levels of granularity (mass market, segment specific, and individual specific) in online and offline stores. The authors conduct an empirical examination of the profit potential of these customized promotion programs with a joint model of purchase incidence, choice, and quantity and through optimization procedures for approximately 300 conditions. They find that (1) optimization procedures lead to substantial profit… 

Tables from this paper

Live shopping promotions: which categories should a retailer discount to shoppers already in the store?

Digitalization allows retailers to target customers with personalized promotions when they enter the store. Although traditional promotional retailer objectives, such as store visit, become obsolete

Comparison of Consumer Response to Online and Offline Marketing

With the advent of significant changes in technology, this article has analyzed the online and offline marketing strategies. The purpose of this study is to identify different marketing strategies in

The effectiveness of personalized marketing in online banking: A comparison between search and experience offerings

This study reports the results of personalized online promotions in a context where personalization has not been researched before – in online banking. Genuine online bank customers were shown

The Impact of an Item-Based Loyalty Program on Consumer Purchase Behavior

The authors conduct an empirical investigation of a new retail loyalty program (LP), called an item-based loyalty program (IBLP), in which price discounts are replaced by reward point promotions that

On consumer choice patterns and the net impact of feature promotions

Customer‐centric category selection for mobile and print promotions in loyalty reward programs

In their loyalty reward programs, large retailers adopt category‐specific targeted promotions as an effective means to increase shoppers' basket values. However, neither the literature nor observed

Consumer choice models on the effect of promotions in retailing

This doctoral thesis contains three empirical essays regarding the effect of promotions on consumer choices in a retailing context. The first essay studies the scheduling of featured price cuts for

The effect of price promotions on consumer shopping behavior across online and offline channels: differences between frequent and non-frequent shoppers

It is found that promotions have a higher impact on offline than in online purchases, and a moderating effect of purchase frequency in the category, in the sense that frequent customers are more influenced by promotions than infrequent customers.

Targeted Promotions on an E-Book Platform: Crowding Out, Heterogeneity, and Opportunity Costs

Targeted promotions based on individual purchase history can increase sales. However, the opportunity costs of targeting to optimize promoted product sales are poorly understood. A series of



Customizing Promotions in Online Stores

It is demonstrated that the proposed customization method could greatly improve the effectiveness of current promotion practices, and the implications for retailers and consumer packaged goods companies in the age of Internet technology are discussed.

The Category-Demand Effects of Price Promotions

Although price promotions have increased in both commercial use and quantity of academic research over the last decade, most of the attention has been focused on their effects on brand choice and

The Decomposition of Promotional Response: An Empirical Generalization

Price promotions are used extensively in marketing for one simple reason-consumers respond. The sales increase for a brand on promotion could be due to consumers accelerating their purchases i.e.,

A Comparison of Online and Offline Consumer Brand Loyalty

In this study we compare consumer brand loyalty in online and traditional shopping environments for over 100 brands in 19 grocery product categories. The online purchase data come from a large

Do we care what others Get? A Behaviorist Approach to Targeted Promotions

Increased access to individual customers and their purchase histories has led to a growth in targeted promotions, including the practice of offering different pricing policies to prospective, as

Price Discrimination using in-Store Merchandising

The authors compare the effectiveness of in-store coupons and straight off-the-shelf price discounts (bonus buys), in generating incremental sales and profits for the retailer. In five field tests,

Customer Channel Migration

The authors develop a model of customer channel migration and apply it to a retailer that markets over the Web and through catalogs. The model identifies the key phenomena required to analyze

How Dynamic Consumer Response, Competitor Response, Company Support, and Company Inertia Shape Long-Term Marketing Effectiveness

Long-term marketing effectiveness is a high-priority research topic for managers, and emerges from the complex interplay among dynamic reactions of several market players. This paper introduces