IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v53y2020ics0969698918307987.html
   My bibliography  Save this article

Personalized digital marketing recommender engine

Author

Listed:
  • Behera, Rajat Kumar
  • Gunasekaran, Angappa
  • Gupta, Shivam
  • Kamboj, Shampy
  • Bala, Pradip Kumar

Abstract

E-business leverages digital channels to scale its functions and services and operates by connecting and retaining customers using marketing initiatives. To increase the likelihood of a sale, the business must recommend additional items that the customers may be unaware of or may find appealing. Recommender Engine (RE) is considered to be the preferred solution in these cases for reasons that include delivering relevant items, hence improving cart value, and boosting customer engagement. The paper describes a model for delivering real-time, personalised marketing information concerning the recommended items for online and offline customers, using a blend of selling strategies: up-selling, cross-selling, best-in-class-selling, needs-satisfaction-selling and consultative-selling. The model further defines the e-marketplace by clustering items, customers and unique selling proposition (USP), and then gathering, storing, and processing transactional data, and displaying personalised marketing information to support the customer in their decision-making process, even when purchasing from large item spaces. An experimental study using a quantitative research methodology was conducted in a mid-size healthcare retailer, based out of India, to determine the tangible benefits. The model was tested with 100 online customers and, with the adoption of the proposed methodology, the results indicated growth in average monthly revenue (33.49%), Average Order Value (AOV) (32.79%) and Items per Order (IPO) (1.93%).

Suggested Citation

  • Behera, Rajat Kumar & Gunasekaran, Angappa & Gupta, Shivam & Kamboj, Shampy & Bala, Pradip Kumar, 2020. "Personalized digital marketing recommender engine," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698918307987
    DOI: 10.1016/j.jretconser.2019.03.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698918307987
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2019.03.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kannan, P.K. & Li, Hongshuang “Alice”, 2017. "Digital marketing: A framework, review and research agenda," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 22-45.
    2. Geuens, Stijn & Coussement, Kristof & De Bock, Koen W., 2018. "A framework for configuring collaborative filtering-based recommendations derived from purchase data," European Journal of Operational Research, Elsevier, vol. 265(1), pages 208-218.
    3. Park, Joonyong & Kim, Renee B., 2018. "A new approach to segmenting multichannel shoppers in Korea and the U.S," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 163-178.
    4. Loredana MOCEAN & Ciprian Marcel POP, 2012. "Marketing Recommender Systems: A New Approach in Digital Economy," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 16(4), pages 142-149.
    5. Sabine Reydet & Laurence Carsana, 2017. "The effect of digital design in retail banking on customers’ commitment and loyalty : The mediating role of positive affect," Post-Print hal-01984662, HAL.
    6. Nepomuceno, Marcelo Vinhal & Laroche, Michel & Richard, Marie-Odile, 2014. "How to reduce perceived risk when buying online: The interactions between intangibility, product knowledge, brand familiarity, privacy and security concerns," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 619-629.
    7. Hamendra Dangi & Anuradha Malik, 2017. "Personalisation in marketing: an exploratory study," International Journal of Internet Marketing and Advertising, Inderscience Enterprises Ltd, vol. 11(2), pages 124-136.
    8. Fuentes, Christian & Bäckström, Kristina & Svingstedt, Anette, 2017. "Smartphones and the reconfiguration of retailscapes: Stores, shopping, and digitalization," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 270-278.
    9. Singh, Sonika & Swait, Joffre, 2017. "Channels for search and purchase: Does mobile Internet matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 123-134.
    10. Nisar, Tahir M. & Prabhakar, Guru, 2017. "What factors determine e-satisfaction and consumer spending in e-commerce retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 135-144.
    11. Pantano, Eleonora & Passavanti, Rosanna & Priporas, Constantinos-Vasilios & Verteramo, Saverino, 2018. "To what extent luxury retailing can be smart?," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 94-100.
    12. Lee, Chung Hun & Cranage, David A., 2011. "Personalisation–privacy paradox: The effects of personalisation and privacy assurance on customer responses to travel Web sites," Tourism Management, Elsevier, vol. 32(5), pages 987-994.
    13. Stijn Geuens & Kristof Coussement & Koen W. de Bock, 2018. "A framework for configuring collaborative filtering-based recommendations derived from purchase data," Post-Print hal-01662029, HAL.
    14. Korgaonkar, Pradeep & Becerra, Enrique & O’Leary, Bay & Goldring, Deborah, 2010. "Product classifications, consumer characteristics, and patronage preference for online auction," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 270-277.
    15. Stewart-Knox, B.J. & Markovina, J. & Rankin, A. & Bunting, B.P. & Kuznesof, S. & Fischer, A.R.H. & van der Lans, I.A. & Poínhos, R. & de Almeida, M.D.V. & Panzone, L. & Gibney, M. & Frewer, L.J., 2016. "Making personalised nutrition the easy choice: Creating policies to break down the barriers and reap the benefits," Food Policy, Elsevier, vol. 63(C), pages 134-144.
    16. Leeflang, Peter S.H. & Verhoef, Peter C. & Dahlström, Peter & Freundt, Tjark, 2014. "Challenges and solutions for marketing in a digital era," European Management Journal, Elsevier, vol. 32(1), pages 1-12.
    17. Di Fatta, Davide & Patton, Dean & Viglia, Giampaolo, 2018. "The determinants of conversion rates in SME e-commerce websites," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 161-168.
    18. Baker, Jeff & Ashill, Nick & Amer, Noha & Diab, Ekram, 2018. "The internet dilemma: An exploratory study of luxury firms’ usage of internet-based technologies," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 37-47.
    19. Morgan, Neil A. & Slotegraaf, Rebecca J. & Vorhies, Douglas W., 2009. "Linking marketing capabilities with profit growth," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 284-293.
    20. Wagner, Gerhard & Schramm-Klein, Hanna & Steinmann, Sascha, 2017. "Consumers' attitudes and intentions toward Internet-enabled TV shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 278-286.
    21. Tonder, Estelle van & Saunders, Stephen Graham & Lisita, Inonge Theresa & de Beer, Leon Tielman, 2018. "The importance of customer citizenship behaviour in the modern retail environment: Introducing and testing a social exchange model," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 92-102.
    22. Reydet, Sabine & Carsana, Laurence, 2017. "The effect of digital design in retail banking on customers’ commitment and loyalty: The mediating role of positive affect," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 132-138.
    23. Ieva, M. & De Canio, F. & Ziliani, C., 2018. "Daily deal shoppers: What drives social couponing?," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 299-303.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Behera, Rajat Kumar & Bala, Pradip Kumar & Rana, Nripendra P., 2024. "Assessing the intention to adopt computational intelligence in interactive marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    2. Park, Jinhee & Ahn, Hyeongjin & Kim, Dongjae & Park, Eunil, 2024. "GNN-IR: Examining graph neural networks for influencer recommendations in social media marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    3. Rokonuzzaman, Md & Iyer, Pramod & Harun, Ahasan, 2021. "Return policy, No joke: An investigation into the impact of a retailer's return policy on consumers' decision making," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. Hallikainen, Heli & Luongo, Milena & Dhir, Amandeep & Laukkanen, Tommi, 2022. "Consequences of personalized product recommendations and price promotions in online grocery shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    5. Thaichon, Park & Phau, Ian & Weaven, Scott, 2022. "Moving from multi-channel to Omni-channel retailing: Special issue introduction," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    6. Tian, Xin & Cao, Shasha & Song, Yan, 2021. "The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    7. Ebrahim Forghani & Reza Sheikh & Seyed Mohammad Hassan Hosseini & Shib Sankar Sana, 2022. "The impact of digital marketing strategies on customer’s buying behavior in online shopping using the rough set theory," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(2), pages 625-640, April.
    8. Lambillotte, Laetitia & Magrofuoco, Nathan & Poncin, Ingrid & Vanderdonckt, Jean, 2022. "Enhancing playful customer experience with personalization," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    9. Qiwei Han & Carolina Lucas & Emila Aguiar & Patrícia Macedo & Zhenze Wu, 2023. "Towards privacy-preserving digital marketing: an integrated framework for user modeling using deep learning on a data monetization platform," Electronic Commerce Research, Springer, vol. 23(3), pages 1701-1730, September.
    10. Tian, Xin & Jiang, Hailiang & Zhao, Xuan, 2024. "Product assortment and online sales in community group-buying channel: Evidence from a convenience store chain," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    11. Kautish, Pradeep & Paul, Justin & Sharma, Rajesh, 2021. "The effect of assortment and fulfillment on shopping assistance and efficiency: An e-tail servicescape perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    12. Li, Hailin & Wu, Yenchun Jim & Zhang, Shijie & Zou, Jinchuan, 2021. "Temporary rules of retail product sales time series based on the matrix profile," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    13. Ramazan Esmeli & Mohamed Bader-El-Den & Hassana Abdullahi, 2021. "Towards early purchase intention prediction in online session based retailing systems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(3), pages 697-715, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Homburg & Dominik M. Wielgos, 2022. "The value relevance of digital marketing capabilities to firm performance," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 666-688, July.
    2. Alice Mazzucchelli & Roberto Chierici & Angelo Di Gregorio & Claudio Chiacchierini, 2021. "Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1107-1144, December.
    3. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    4. Syed Imran Zaman & Sharfuddin Ahmed Khan & Sahar Qabool & Himanshu Gupta, 2023. "How digitalization in banking improve service supply chain resilience of e-commerce sector? a technological adoption model approach," Operations Management Research, Springer, vol. 16(2), pages 904-930, June.
    5. Carsten D. Schultz & Björn Gorlas, 2023. "Magic mirror on the wall: Cross-buying at the point of sale," Electronic Commerce Research, Springer, vol. 23(3), pages 1677-1700, September.
    6. Gupta, Mukul & Kumar, Pradeep, 2020. "Recommendation generation using personalized weight of meta-paths in heterogeneous information networks," European Journal of Operational Research, Elsevier, vol. 284(2), pages 660-674.
    7. Belém Barbosa & José Ramón Saura & Dag Bennett, 2024. "How do entrepreneurs perform digital marketing across the customer journey? A review and discussion of the main uses," The Journal of Technology Transfer, Springer, vol. 49(1), pages 69-103, February.
    8. Rosita Capurro & Michele Galeotti & Stefano Garzella, 2018. ""Mondo reale-tradizionale" e "mondo digitale", strategie aziendali e web intelligence: il futuro del controllo e della gestione delle informazioni," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(2 Suppl.), pages 83-111.
    9. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    10. Ramazan Esmeli & Mohamed Bader-El-Den & Hassana Abdullahi, 2021. "Towards early purchase intention prediction in online session based retailing systems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(3), pages 697-715, September.
    11. Soren, Anup Anurag & Chakraborty, Shibashish, 2023. "The formation of habit and word-of-mouth intention of over-the-top platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    12. Yin, Xicheng & Li, Jing & Si, Hongyun & Wu, Peng, 2024. "Attention marketing in fragmented entertainment: How advertising embedding influences purchase decision in short-form video apps," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    13. Park, YoungSoo & Sim, Jeongeun & Kim, Bosung, 2022. "Online retail operations with “Try-Before-You-Buy”," European Journal of Operational Research, Elsevier, vol. 299(3), pages 987-1002.
    14. Kamarin Merritt & Shichao Zhao, 2020. "An Investigation of What Factors Determine the Way in Which Customer Satisfaction Is Increased through Omni-Channel Marketing in Retail," Administrative Sciences, MDPI, vol. 10(4), pages 1-24, October.
    15. Sestino, Andrea, 2024. "The challenge of integrating “intelligent†technologies in luxury shopping contexts: The role of brand personality appeal and consumers’ status consumption orientation," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    16. Foltean, Florin Sabin & Trif, Simona Mihaela & Tuleu, Daniela Liliana, 2019. "Customer relationship management capabilities and social media technology use: Consequences on firm performance," Journal of Business Research, Elsevier, vol. 104(C), pages 563-575.
    17. Shankar, Amit & Jain, Sheetal, 2021. "Factors affecting luxury consumers’ webrooming intention: A moderated-mediation approach," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    18. Bayuaji Prasetyo & Areo, Adebowale Biodun & Omotayo, Vincent Adewale, 2020. "Board Attributes And Quality Of Financial Reporting In Nigerian Companies: An Empirical Evidence," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 4(2), pages 33-38:4, May.
    19. Li, Menglin & Jin, Yufang & Zhang, Jurui & Liu, Raymond, 2022. "Does shape in backgrounds matter? Effects of Shape–Taste congruence on product evaluations," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    20. Grubor, Aleksandar & Jakša, Olja, 2018. "Social Media Marketing: Engaging with Consumers in Digital Era," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2018), Split, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Split, Croatia, 6-8 September 2018, pages 356-363, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698918307987. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.