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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
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