The effects of re-targeting on purchase incidence, channel choice and purchase quantity
(A2019-8648)

AUTHORS

Tanya Mark, University of Guelph; Peter Verhoef, University of Groningen; Katherine Lemon, Boston College; Tirtha Dhar, University of Guelph

KEYWORDS

re-targeting; journey; multichannel

ABSTRACT

Marketers are faced with the daunting challenge of identifying insights and delivering the right combination of online and offline tactics to engage consumers at various stages along the consumer journey. In this paper, we investigate the effects of re-targeting in a multichannel environment. Using a three-stage modeling approach, we find re-targeting is an effective advertising activity to influence purchase incidence but only when combined with other specific marketing activities. While catalogs and emails have positive synergies with re-targeting, website visits have a negative synergy on a consumer’s decision to make a purchase. One possible explanation to the negative synergistic effect is that consumers may find re-targeting obtrusive when browsing online, whereas it may serve as a welcome reminder when combined with emails or catalogs. Rather than nudging consumers along the consumer journey some combinations of advertising activities may deter customers from engaging with a firm.