nep-mkt New Economics Papers
on Marketing
Issue of 2022‒05‒23
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. How causal machine learning can leverage marketing strategies: Assessing and improving the performance of a coupon campaign By Henrika Langen; Martin Huber
  2. Change of consumers’ attitudes in response to an online privacy violation incident By Bruno Skrinjaric; Jelena Budak; Edo Rajh

  1. By: Henrika Langen; Martin Huber
    Abstract: We apply causal machine learning algorithms to assess the causal effect of a marketing intervention, namely a coupon campaign, on the sales of a retail company. Besides assessing the average impacts of different types of coupons, we also investigate the heterogeneity of causal effects across subgroups of customers, e.g. across clients with relatively high vs. low previous purchases. Finally, we use optimal policy learning to learn (in a data-driven way) which customer groups should be targeted by the coupon campaign in order to maximize the marketing intervention's effectiveness in terms of sales. Our study provides a use case for the application of causal machine learning in business analytics, in order to evaluate the causal impact of specific firm policies (like marketing campaigns) for decision support.
    Date: 2022–04
  2. By: Bruno Skrinjaric (The Institute of Economics, Zagreb); Jelena Budak (The Institute of Economics, Zagreb); Edo Rajh (The Institute of Economics, Zagreb)
    Abstract: This research examines consumers’ attitudes towards the Internet and consumer behavior after they had experienced an online privacy violation incident. This issue is assessed by applying the concept of resilience and coping strategies in reaction to stress. The focus of this empirical research is change in consumers’ attitudes and behavior online. Our analysis is performed on a survey data collected from Croatian Internet users who had experienced online privacy violation. The model was estimated by OLS and order probit method. Results show that highly resilient consumers are more likely to continue to use the Internet as frequently as before an online privacy violation incident or even more frequently. Additionally, consumers with higher resilience are also more likely not to increase their level of cautiousness after an online privacy violation incident and are more likely not to change their attitude towards the Internet. Consumers with higher online privacy awareness and online privacy concern are more likely to increase their cautiousness on the Internet after the online privacy violation incident.
    Keywords: consumer attitudes towards the Internet; consumer behavior; online privacy violation; resilience; Croatia
    JEL: D12 D91
    Date: 2022–04

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