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Multichannel Marketing Attribution Using Markov Chains

Author

Listed:
  • Lukáš Kakalejč

    (Technical University of Košice, Slovakia)

  • Jozef Bucko

    (Technical University of Košice, Slovakia)

  • Paulo A. A. Resende

    (University of Brasília, Brasil)

  • Martina Ferencova

    (Constitutional Court of the Slovak Republic, Slovakia)

Abstract

The objective of this paper is to analyze the data of a selected company using Markov chains. The data about online customer journeys were analyzed. The authors found that Markov model decreases the credit assigned to channels favored by last-touch heuristic models and assigns more credit to channels favored by first-touch or linear heuristic models. By using Markov order estimator GDL the authors also found that order 4 was the most suitable for analysis of buyer journeys. Approximately 40% of revenue was generated by journeys with less than 5 interactions and thus indecisive customers have small incremental effect on the overall conversions.

Suggested Citation

  • Lukáš Kakalejč & Jozef Bucko & Paulo A. A. Resende & Martina Ferencova, 2018. "Multichannel Marketing Attribution Using Markov Chains," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(1), pages 49-60, February.
    • Handle: RePEc:ods:journl:v:7:y:2018:i:1:p:49-60
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Stefan VLADUTESCU, 2018. "The Implied Message," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 5(1), pages 210-218, August.
    2. Raghav Singal & Omar Besbes & Antoine Desir & Vineet Goyal & Garud Iyengar, 2022. "Shapley Meets Uniform: An Axiomatic Framework for Attribution in Online Advertising," Management Science, INFORMS, vol. 68(10), pages 7457-7479, October.

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    More about this item

    Keywords

    attribution modeling; multichannel attribution; Markov chains; digital analysis; web analytics;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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