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Lead Offer Spillovers

Author

Listed:
  • Matthew McGranaghan

    (Cornell University, Ithaca, New York 14850)

  • Jura Liaukonyte

    (Cornell University, Ithaca, New York 14850)

  • Geoffrey Fisher

    (Cornell University, Ithaca, New York 14850)

  • Kenneth C. Wilbur

    (University of California, San Diego, La Jolla, California 92093)

Abstract

Price promotions are typically offered in groups on websites, mailings, and circulars, but little is known about how promotional offers in near proximity affect each other. Across two large-scale field experiments ( N = 66,184) conducted on a multibrand coupon website, we find that when lead promotions offer high-value deals, consumers are more likely to print subsequent offers, a finding we call “lead offer spillover.” In the first field experiment, doubling the value of three lead offers increased the printing of subsequent offers by 18% and redemptions by 12%. In the second, doubling the value of a single lead offer increased subsequent offer prints by 12%. Additional analyses and experiments indicate that larger lead offers increase consumer search for subsequent offers and are not primarily driven by changes in evaluative judgments or complementarities between lead and subsequent offers.

Suggested Citation

  • Matthew McGranaghan & Jura Liaukonyte & Geoffrey Fisher & Kenneth C. Wilbur, 2019. "Lead Offer Spillovers," Marketing Science, INFORMS, vol. 38(4), pages 643-668, July.
    • Handle: RePEc:inm:ormksc:v:38:y:2019:i:4:p:643-668
    DOI: 10.1287/mksc.2019.1161
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    Cited by:

    1. Xiang Hui & Meng Liu & Tat Chan, 2023. "Targeted incentives, broad impacts: Evidence from an E-commerce platform," Quantitative Marketing and Economics (QME), Springer, vol. 21(4), pages 493-517, December.
    2. Guler, Ali Umut, 2023. "Category expansion through cross-channel demand spillovers," International Journal of Research in Marketing, Elsevier, vol. 40(3), pages 629-658.
    3. Geoffrey Fisher & Matthew McGranaghan & Jura Liaukonyte & Kenneth C. Wilbur, 2023. "Price promotions, beneficiary framing, and mental accounting," Quantitative Marketing and Economics (QME), Springer, vol. 21(2), pages 147-181, June.
    4. Xiang Hui & Meng Liu & Tat Chan, 2022. "Targeted Incentives, Broad Impacts: Evidence from an E-commerce Platform," CESifo Working Paper Series 9894, CESifo.

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