nep-mkt New Economics Papers
on Marketing
Issue of 2022‒08‒08
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Lookalike Targeting on Others' Journeys: Brand Versus Performance Marketing By K. Sudhir; Seung Yoon Lee; Subroto Roy
  2. The market for wine quality evaluation: evolution and future perspectives By Dubois, Magalie

  1. By: K. Sudhir (Cowles Foundation and Yale School of Management); Seung Yoon Lee (Yale School of Management); Subroto Roy (Dept. of Marketing, University of New Haven)
    Abstract: Lookalike targeting is a widely used model-based ad targeting approach that uses a seed database of individuals to identify matching “lookalikes” for targeted customer acquisition. An advertiser has to make two key choices: (1) who to seed on and (2) seed-match rank range. First, we find that seeding on others’ journey stage can be effective in new customer acquisition; despite the cold start nature of customer acquisition using Lookalike audiences, third parties can indeed identify factors unobserved to the advertiser that move individuals along the journey and can be correlated with the lookalikes. Further, while journey-based seeding adds no incremental value for brand marketing (click-through), seeding on more downstream stages improves performance marketing (donation) outcomes. Second, we evaluate audience expansion strategies by lowering match ranks between the seed and lookalikes to increase acquisition reach. The drop in effectiveness with lower match rank range is much greater for performance marketing than for brand marketing. Performance marketers can alleviate the problem by making the ad targeting explicit, and thus increase perceived relevance; however, it has no incremental impact for higher match lookalikes. Increasing perceived targeting relevance makes acquisition cost comparable for both high and low match ranks.
    Keywords: Digital advertising, Targeting, Algorithmic targeting, Lookalike targeting, Nonprofit marketing
    JEL: L31 M31 M37 C93
    Date: 2021–09
  2. By: Dubois, Magalie
    Abstract: Most economic studies on expert wine evaluation focus on this evaluation as a determinant of wine prices, whereas most management research on the topic tackles its impact on the perception of wine quality: wine consumers use expert evaluation as an external quality cue. In the present research, we intend to fill the gap in valuation studies. We propose a first extensive exploration and categorization of five decades of research on wine quality signaling and evaluation through market analysis. We review the emergence and evolution of a consumer- oriented wine evaluation market, providing a critical account of demand, and unveil the market structure and mechanisms. The parallel development of scientific knowledge and technical practices over the last few decades has had a significant impact on wine quality definition and evaluation. It also influenced the way consumers obtain information about wine quality. We provide a historical perspective, exploring the emergence and standardization of wine quality evaluation and identifying the 1970s as the turning point from a production-driven market to a consumer-oriented one. Important changes are afoot on the market for wine evaluation: in areas traditionally set aside for experts, the roles of social media and experts have evolved meaningfully over the past decade with the growing self-confidence and self-reliance of wine consumers and the disappearance of the demarcation between marketplace and prescription.
    Keywords: Marketing, Agribusiness
    Date: 2021

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