IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v162y2021ics0040162520311999.html
   My bibliography  Save this article

Digital inbound marketing: Measuring the economic performance of grocery e-commerce in Europe and the USA

Author

Listed:
  • Erdmann, Anett
  • Ponzoa, José M.

Abstract

This research investigates the cost-result relationship of the Inbound Marketing actions used by grocery e-commerce. The analysis is based on the application of the Dorfman and Steiner (1954) model for optimal advertising budget, which is adapted by the authors to digital marketing and verified with empirical statistical analysis. Considering 29 leading companies in six countries over a time horizon of six years, an analysis of the mix of SEO and SEM techniques aimed at the attraction and conversion of Internet users to the web pages of their companies is carried out. The results confirm that e-commerce is optimizing Digital Inbound Marketing in line with the established model. Differences are identified depending on the type of format (pure player versus brick and mortar) and at the country level (UK and USA versus others).

Suggested Citation

  • Erdmann, Anett & Ponzoa, José M., 2021. "Digital inbound marketing: Measuring the economic performance of grocery e-commerce in Europe and the USA," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
  • Handle: RePEc:eee:tefoso:v:162:y:2021:i:c:s0040162520311999
    DOI: 10.1016/j.techfore.2020.120373
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162520311999
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2020.120373?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. Zhang, Xianyang, 2016. "White noise testing and model diagnostic checking for functional time series," Journal of Econometrics, Elsevier, vol. 194(1), pages 76-95.
    2. Christian Seitz & Ján Pokrivčák & Marián Tóth & Miroslav Plevný, 2017. "Online grocery retailing in Germany: an explorative analysis," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(6), pages 1243-1263, November.
    3. Santiago R. Balseiro & Yonatan Gur, 2019. "Learning in Repeated Auctions with Budgets: Regret Minimization and Equilibrium," Management Science, INFORMS, vol. 65(9), pages 3952-3968, September.
    4. Boyd, D. Eric & Bahn, Kenneth D., 2009. "When Do Large Product Assortments Benefit Consumers? An Information-Processing Perspective," Journal of Retailing, Elsevier, vol. 85(3), pages 288-297.
    5. Dae‐Wook Kim & Christopher R. Knittel, 2006. "Biases In Static Oligopoly Models? Evidence From The California Electricity Market," Journal of Industrial Economics, Wiley Blackwell, vol. 54(4), pages 451-470, December.
    6. Yu (Jeffrey) Hu & Jiwoong Shin & Zhulei Tang, 2016. "Incentive Problems in Performance-Based Online Advertising Pricing: Cost per Click vs. Cost per Action," Management Science, INFORMS, vol. 62(7), pages 2022-2038, July.
    7. Tenghui Huang & Chih-Chien Chen & Zvi Schwartz, 2019. "Do I book at exactly the right time? Airfare forecast accuracy across three price-prediction platforms," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 281-290, August.
    8. J. Christopher Sandvig, 2016. "Mobilization Techniques Utilized by Leading Global E-Commerce Sites," International Journal of E-Business Research (IJEBR), IGI Global, vol. 12(2), pages 1-16, April.
    9. Festa, Giuseppe & Cuomo, Maria Teresa & Metallo, Gerardino, 2019. "The service-dominant logic perspective for enhancing the e-commerce of wine - A test/application on the Italian wine sector," Journal of Business Research, Elsevier, vol. 101(C), pages 477-484.
    10. Cebollada, Javier & Chu, Yanlai & Jiang, Zhiying, 2019. "Online Category Pricing at a Multichannel Grocery Retailer," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 52-69.
    11. Melis, Kristina & Campo, Katia & Breugelmans, Els & Lamey, Lien, 2015. "The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?," Journal of Retailing, Elsevier, vol. 91(2), pages 272-288.
    12. Catherine D. Wolfram, 1999. "Measuring Duopoly Power in the British Electricity Spot Market," American Economic Review, American Economic Association, vol. 89(4), pages 805-826, September.
    13. Alin OPREANA & Simona VINEREAN, 2015. "A New Development in Online Marketing: Introducing Digital Inbound Marketing," Expert Journal of Marketing, Sprint Investify, vol. 3(1), pages 29-34.
    14. Valter Afonso Vieira & Marcos Inácio Severo Almeida & Raj Agnihotri & Nôga Simões De Arruda Corrêa Silva & S. Arunachalam, 2019. "In pursuit of an effective B2B digital marketing strategy in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 1085-1108, November.
    15. Jun, Seung-Pyo & Yeom, Jaeho & Son, Jong-Ku, 2014. "A study of the method using search traffic to analyze new technology adoption," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 82-95.
    16. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    17. Fedoseeva, Svetlana & Herrmann, Roland & Nickolaus, Katharina, 2017. "Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing," Journal of Business Research, Elsevier, vol. 80(C), pages 63-72.
    18. Wendy W. Moe & Peter S. Fader, 2004. "Dynamic Conversion Behavior at E-Commerce Sites," Management Science, INFORMS, vol. 50(3), pages 326-335, March.
    19. Suel, Esra & Polak, John W., 2017. "Development of joint models for channel, store, and travel mode choice: Grocery shopping in London," Transportation Research Part A: Policy and Practice, Elsevier, vol. 99(C), pages 147-162.
    20. Banerjee, Somnath & Bhardwaj, Pradeep, 2019. "Aligning marketing and sales in multi-channel marketing: Compensation design for online lead generation and offline sales conversion," Journal of Business Research, Elsevier, vol. 105(C), pages 293-305.
    21. Elms, Jonathan & de Kervenoael, Ronan & Hallsworth, Alan, 2016. "Internet or store? An ethnographic study of consumers' internet and store-based grocery shopping practices," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 234-243.
    22. Alain Yee Loong Chong & Eugene Ch’ng & Martin J. Liu & Boying Li, 2017. "Predicting consumer product demands via Big Data: the roles of online promotional marketing and online reviews," International Journal of Production Research, Taylor & Francis Journals, vol. 55(17), pages 5142-5156, September.
    23. Halbheer, Daniel & Stahl, Florian & Koenigsberg, Oded & Lehmann, Donald R., 2014. "Choosing a digital content strategy: How much should be free?," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 192-206.
    24. Gianita Bleoju & Alexandru Capatina & Elisa Rancati & Nicolas Lesca, 2016. "Exploring organizational propensity toward inbound–outbound marketing techniques adoption: The case of pure players and click and mortar companies," Post-Print hal-02014225, HAL.
    25. Gianita Bleoju & Alexandru Capatina & Elisa Rancati & Nicolas Lesca, 2016. "Exploring organizational propensity toward inbound- outbound marketing techniques adoption: the case of pure players and click and mortar companies," Post-Print hal-02047795, HAL.
    26. Breugelmans, Els & Campo, Katia, 2016. "Cross-Channel Effects of Price Promotions: An Empirical Analysis of the Multi-Channel Grocery Retail Sector," Journal of Retailing, Elsevier, vol. 92(3), pages 333-351.
    27. Bagwell, Kyle, 2007. "The Economic Analysis of Advertising," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 28, pages 1701-1844, Elsevier.
    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. Ponzoa, José M. & Gómez, Andrés & Mas, José M., 2023. "EU27 and USA institutions in the digital ecosystem: Proposal for a digital presence measurement index," Journal of Business Research, Elsevier, vol. 154(C).
    2. Erdmann, Anett & Arilla, Ramón & Ponzoa, José M., 2022. "Search engine optimization: The long-term strategy of keyword choice," Journal of Business Research, Elsevier, vol. 144(C), pages 650-662.
    3. Ballerini, Jacopo & Ključnikov, Aleksandr & Juárez-Varón, David & Bresciani, Stefano, 2024. "The e-commerce platform conundrum: How manufacturers' leanings affect their internationalization," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    4. Ozge Yasar & Tulay Korkusuz Polat, 2022. "A Fuzzy-Based Application for Marketing 4.0 Brand Perception in the COVID-19 Process," Sustainability, MDPI, vol. 14(24), pages 1-22, December.
    5. Mariusz Duka & Marek Sikora & Artur Strzelecki, 2023. "From Web Catalogs to Google: A Retrospective Study of Web Search Engines Sustainable Development," Sustainability, MDPI, vol. 15(8), pages 1-16, April.

    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. Erdmann, Anett & Arilla, Ramón & Ponzoa, José M., 2022. "Search engine optimization: The long-term strategy of keyword choice," Journal of Business Research, Elsevier, vol. 144(C), pages 650-662.
    2. Arvind Shroff & Satish Kumar & Luisa M. Martinez & Nitesh Pandey, 2024. "From clicks to consequences: a multi-method review of online grocery shopping," Electronic Commerce Research, Springer, vol. 24(2), pages 925-964, June.
    3. Ponzoa, José M. & Gómez, Andrés & Mas, José M., 2023. "EU27 and USA institutions in the digital ecosystem: Proposal for a digital presence measurement index," Journal of Business Research, Elsevier, vol. 154(C).
    4. Banerjee, Syagnik & Xu, Shichun & Johnson, Scott D., 2021. "How does location based marketing affect mobile retail revenues? The complex interplay of delivery tactic, interface mobility and user privacy," Journal of Business Research, Elsevier, vol. 130(C), pages 398-404.
    5. Eva M. Sánchez-Teba & Josefa García-Mestanza & Mercedes Rodríguez-Fernández, 2020. "The Application of the Inbound Marketing Strategy on Costa del Sol Planning & Tourism Board. Lessons for Post-COVID-19 Revival," Sustainability, MDPI, vol. 12(23), pages 1-15, November.
    6. Valerio Gatta & Edoardo Marcucci & Ila Maltese & Gabriele Iannaccone & Jiarui Fan, 2021. "E-Groceries: A Channel Choice Analysis in Shanghai," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    7. Adrian MICU & Marius GERU & Angela-Eliza MICU, 2017. "Developing Customer Trust in E-Commerce Using Inbound Marketing Strategies," Proceedings RCE 2017, Editura Lumen, vol. 0, pages 522-531, November.
    8. 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.
    9. Melis, Kristina & Campo, Katia & Lamey, Lien & Breugelmans, Els, 2016. "A Bigger Slice of the Multichannel Grocery Pie: When Does Consumers’ Online Channel Use Expand Retailers’ Share of Wallet?," Journal of Retailing, Elsevier, vol. 92(3), pages 268-286.
    10. Fridolfsson, Sven-Olof & Tangerås, Thomas P., 2009. "Market power in the Nordic electricity wholesale market: A survey of the empirical evidence," Energy Policy, Elsevier, vol. 37(9), pages 3681-3692, September.
    11. Brown, David P. & Eckert, Andrew & Shaffer, Blake, 2023. "Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    12. Bigerna, Simona & Bollino, Carlo Andrea & D'Errico, Maria Chiara & Polinori, Paolo, 2015. "Competitive equilibrium in the italian wholesale electricity market," MPRA Paper 68310, University Library of Munich, Germany.
    13. Koichiro Ito & Mar Reguant, 2016. "Sequential Markets, Market Power, and Arbitrage," American Economic Review, American Economic Association, vol. 106(7), pages 1921-1957, July.
    14. Tagashira, Takumi & Minami, Chieko, 2019. "The Effect of Cross-Channel Integration on Cost Efficiency," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 68-83.
    15. Catherine McTeigue & Claudia Sanchez & Edson Santos & Cicero Eduardo Walter & Manuel Au-Yong-Oliveira, 2021. "A Strategy for Tourism Growth, Rebound, and Revival: Promoting Portugal as a Destination Post-COVID-19," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    16. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    17. Brand, Christian & Schwanen, Tim & Anable, Jillian, 2020. "‘Online Omnivores’ or ‘Willing but struggling’? Identifying online grocery shopping behavior segments using attitude theory," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    18. Rodrigo Zeidan & Marcelo Resende, 2009. "Measuring Market Conduct in the Brazilian Cement Industry: A Dynamic Econometric Investigation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(3), pages 231-244, May.
    19. Vaishnav, Bharat & Ray, Sourav, 2023. "A thematic exploration of the evolution of research in multichannel marketing," Journal of Business Research, Elsevier, vol. 157(C).
    20. Verstraeten, Julie & Heeremans, Eva & Geuens, Maggie & Vermeir, Iris, 2023. "How online grocery shopping drives private label food purchases," Journal of Business Research, Elsevier, vol. 167(C).

    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:tefoso:v:162:y:2021:i:c:s0040162520311999. 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: http://www.sciencedirect.com/science/journal/00401625 .

    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.