The Effectiveness of Customized Promotions in Online and Offline Stores

@article{Zhang2009TheEO,
  title={The Effectiveness of Customized Promotions in Online and Offline Stores},
  author={Jie Zhang and Michel Wedel},
  journal={Journal of Marketing Research},
  year={2009},
  volume={46},
  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… 

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