IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v35y2024i2d10.1007_s11002-023-09693-4.html
   My bibliography  Save this article

How is retargeting related to purchase incidence, channel choice, and purchase quantity?

Author

Listed:
  • Tanya Mark

    (University of Guelph)

  • Tirtha Dhar

    (University of Guelph)

  • Peter C. Verhoef

    (University of Groningen)

  • Katherine N. Lemon

    (Boston College)

Abstract

We investigate the relationship between retargeting and other marketing activities on buying behaviors in a multichannel environment. By modeling three stages of the buying decision process, we find that retargeting influences customers to make a purchase; it drives purchases through the web and telephone channels more than the store but does not impact how much they spend. A key finding of our research is that when retargeting is used without other tactics, customers are more likely to buy from the web channel; however, when retargeting is combined with email, the effect on the web channel is reversed. A possible explanation for our finding is that retargeting ads are perceived in a similar way as obtrusive ads, and when combined with an email that links to a firm’s website content, retargeting negatively impacts buying behaviors.

Suggested Citation

  • Tanya Mark & Tirtha Dhar & Peter C. Verhoef & Katherine N. Lemon, 2024. "How is retargeting related to purchase incidence, channel choice, and purchase quantity?," Marketing Letters, Springer, vol. 35(2), pages 275-288, June.
    • Handle: RePEc:kap:mktlet:v:35:y:2024:i:2:d:10.1007_s11002-023-09693-4
    DOI: 10.1007/s11002-023-09693-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-023-09693-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-023-09693-4?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. Shuba Srinivasan & Oliver J. Rutz & Koen Pauwels, 2016. "Paths to and off purchase: quantifying the impact of traditional marketing and online consumer activity," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 440-453, July.
    2. Avi Goldfarb & Catherine Tucker, 2011. "Online Display Advertising: Targeting and Obtrusiveness," Marketing Science, INFORMS, vol. 30(3), pages 389-404, 05-06.
    3. Jörg Schwiebert, 2015. "Estimation and interpretation of a Heckman selection model with endogenous covariates," Empirical Economics, Springer, vol. 49(2), pages 675-703, September.
    4. Thorsten Wiesel & Koen Pauwels & Joep Arts, 2011. "Practice Prize Paper --Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression," Marketing Science, INFORMS, vol. 30(4), pages 604-611, July.
    5. de Haan, Evert & Wiesel, Thorsten & Pauwels, Koen, 2016. "The effectiveness of different forms of online advertising for purchase conversion in a multiple-channel attribution framework," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 491-507.
    6. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    7. James J. Heckman, 1976. "Introduction to "Annals of Economic and Social Measurement, Volume 5, number 4"," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, National Bureau of Economic Research, Inc.
    8. Avi Goldfarb & Catherine Tucker, 2011. "Rejoinder--Implications of "Online Display Advertising: Targeting and Obtrusiveness"," Marketing Science, INFORMS, vol. 30(3), pages 413-415, 05-06.
    9. Pauwels, Koen & Demirci, Ceren & Yildirim, Gokhan & Srinivasan, Shuba, 2016. "The impact of brand familiarity on online and offline media synergy," International Journal of Research in Marketing, Elsevier, vol. 33(4), pages 739-753.
    10. Kireyev, Pavel & Pauwels, Koen & Gupta, Sunil, 2016. "Do display ads influence search? Attribution and dynamics in online advertising," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 475-490.
    11. V. Kumar & JeeWon Brianna Choi & Mallik Greene, 2017. "Synergistic effects of social media and traditional marketing on brand sales: capturing the time-varying effects," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 268-288, March.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    13. Alexander Bleier & Maik Eisenbeiss, 2015. "Personalized Online Advertising Effectiveness: The Interplay of What, When, and Where," Marketing Science, INFORMS, vol. 34(5), pages 669-688, September.
    14. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    15. Goić, Marcel & Jerath, Kinshuk & Kalyanam, Kirthi, 2022. "The roles of multiple channels in predicting website visits and purchases: Engagers versus closers," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 656-677.
    Full references (including those not matched with items on IDEAS)

    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. Bayer, Emanuel & Srinivasan, Shuba & Riedl, Edward J. & Skiera, Bernd, 2020. "The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value," International Journal of Research in Marketing, Elsevier, vol. 37(4), pages 789-804.
    2. Seshadri Tirunillai & Gerard J. Tellis, 2017. "Does Offline TV Advertising Affect Online Chatter? Quasi-Experimental Analysis Using Synthetic Control," Marketing Science, INFORMS, vol. 36(6), pages 862-878, November.
    3. Ni Huang & Probal Mojumder & Tianshu Sun & Jinchi Lv & Joseph M. Golden, 2021. "Not Registered? Please Sign Up First: A Randomized Field Experiment on the Ex Ante Registration Request," Information Systems Research, INFORMS, vol. 32(3), pages 914-931, September.
    4. 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.
    5. Shun-Yang Lee & Julian Runge & Daniel Yoo & Yakov Bart & Anett Gyurak & J. W. Schneider, 2023. "COVID-19 Demand Shocks Revisited: Did Advertising Technology Help Mitigate Adverse Consequences for Small and Midsize Businesses?," Papers 2307.09035, arXiv.org, revised Jan 2024.
    6. Vivian Qin & Koen Pauwels & Bobby Zhou, 2024. "Data-driven budget allocation of retail media by ad product, funnel metric, and brand size," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(2), pages 235-249, June.
    7. Mark, Tanya & Bulla, Jan & Niraj, Rakesh & Bulla, Ingo & Schwarzwäller, Wolfgang, 2019. "Catalogue as a tool for reinforcing habits: Empirical evidence from a multichannel retailer," International Journal of Research in Marketing, Elsevier, vol. 36(4), pages 528-541.
    8. Vasu Unnava & Ashwin Aravindakshan, 2021. "How does consumer engagement evolve when brands post across multiple social media?," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 864-881, September.
    9. Fraccastoro, Sara & Gabrielsson, Mika & Pullins, Ellen Bolman, 2021. "The integrated use of social media, digital, and traditional communication tools in the B2B sales process of international SMEs," International Business Review, Elsevier, vol. 30(4).
    10. van Ewijk, Bernadette J. & Stubbe, Astrid & Gijsbrechts, Els & Dekimpe, Marnik G., 2021. "Online display advertising for CPG brands: (When) does it work?," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 271-289.
    11. Miller, Klaus M. & Skiera, Bernd, 2024. "Economic consequences of online tracking restrictions: Evidence from cookies," International Journal of Research in Marketing, Elsevier, vol. 41(2), pages 241-264.
    12. David A. Schweidel & Yakov Bart & J. Jeffrey Inman & Andrew T. Stephen & Barak Libai & Michelle Andrews & Ana Babić Rosario & Inyoung Chae & Zoey Chen & Daniella Kupor & Chiara Longoni & Felipe Thomaz, 2022. "How consumer digital signals are reshaping the customer journey," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1257-1276, November.
    13. Kambar Farooq & Muhammad Azeem & Chin Man Chui & Jun (Tony) Ruan, 2023. "Board Connections and Dividend Policy," Abacus, Accounting Foundation, University of Sydney, vol. 59(4), pages 983-1040, December.
    14. Min Tian & Paul R. Hoban & Neeraj Arora, 2024. "What Cookie-Based Advertising Effectiveness Fails to Measure," Marketing Science, INFORMS, vol. 43(2), pages 407-418, March.
    15. Lee, Ju-Yeon & Fang, Eric & Kim, Jisu J. & Li, Xiaoling & Palmatier, Robert W., 2018. "The Effect of Online Shopping Platform Strategies on Search, Display, and Membership Revenues," Journal of Retailing, Elsevier, vol. 94(3), pages 247-264.
    16. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    17. 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.
    18. Yen-Yao Wang & Chenhui Guo & Anjana Susarla & Vallabh Sambamurthy, 2021. "Online to Offline: The Impact of Social Media on Offline Sales in the Automobile Industry," Information Systems Research, INFORMS, vol. 32(2), pages 582-604, June.
    19. Arnold, René & Marcus, J. Scott & Petropoulos, Georgios & Schneider, Anna, 2018. "Is data the new oil? Diminishing returns to scale," 29th European Regional ITS Conference, Trento 2018 184927, International Telecommunications Society (ITS).
    20. Thomas Niemand & Sascha Kraus & Sophia Mather & Antonio C. Cuenca-Ballester, 2020. "Multilevel marketing: optimizing marketing effectiveness for high-involvement goods in the automotive industry," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1367-1392, December.

    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:kap:mktlet:v:35:y:2024:i:2:d:10.1007_s11002-023-09693-4. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.