2017
DOI: 10.1287/mnsc.2016.2450
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Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

Abstract: T he prevalence and widespread usage of email has given businesses a direct and cost-effective way of providing consumers with targeted discount offers. While these discounts are expected to increase the demand for the promoted products, are they effective in increasing revenues? Do they have effects beyond acting as price reductions? We study these questions using individual-level data from 70 randomized experiments run by a large online ticket resale platform. We estimate the redemption rates of the offers a… Show more

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Cited by 92 publications
(36 citation statements)
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“…This strategic effect significantly moves the net campaign effect (lift D=1 Camp = −18 88% −9 15% 2 62% ). Similar spillovers across product campaigns have been detected before by Sahni et al (2015) in the context of email coupon promotions. Note that the user selection effect of this CPM campaign significantly contributes to the negative presence effect.…”
Section: D=1supporting
confidence: 74%
“…This strategic effect significantly moves the net campaign effect (lift D=1 Camp = −18 88% −9 15% 2 62% ). Similar spillovers across product campaigns have been detected before by Sahni et al (2015) in the context of email coupon promotions. Note that the user selection effect of this CPM campaign significantly contributes to the negative presence effect.…”
Section: D=1supporting
confidence: 74%
“…Of these 44 individuals, 37 informed us that they were ultimately interested in completing the transaction (2.2% of the sample and 84.1% of those who initially replied to the offer). Although these percentages seem small, they are actually quite high given the 0.1% transaction rates typically found in email solicitations per the digital marketing literature (Sahni, Zou, and Chintagunta ).…”
Section: Resultsmentioning
confidence: 85%
“…However, studies on online couponing are scarce in the literature and we are not aware of research considering its cost setting (e.g. Sahni et al, 2016).…”
Section: Experimental Designmentioning
confidence: 99%
“…Companies use conditional incentives regularly in the form of discounts and the most salient applications have attracted much research, e.g. customer retention (Ascarza & Hardie, 2013;Backiel et al, 2016) or coupon targeting Sahni et al, 2016). Because the treatment cost is conditional on the customer action, the uncertainty about the customer action translates into uncertainty about the realization of the cost of the incentive.…”
Section: Introductionmentioning
confidence: 99%