EXTRA 2 Flashcards
Advantage ad-blocking software for company
It represents a self-filter mechanism: users who are not or less influenced by ads filter them out.
Ad block users are more willing to pay for ad-free websites, leading to an effective alternative business model for publishers.
In which (purchase) phase are mobile devices preferred?
Prepurchase determination phase
When do customers switch to less mobile devices?
- When there is high risk involved with the purchase.
- When the customer is less experienced with the product, category, or online retailer.
When do consumers tend to spend more?
When they are using multiple devices when browsing.
What does tablet-induced browsing behaviour generate?
Outcomes that are consistent with hedonic (casual) browsing behaviour.
When does usage of a new channel increase?
If the new channel is able to provide additional/new utility compared to what consumers are currently receiving from their existing channels.
What is the best predictor of future firm performance?
Negative eWoM
What has a stronger impact on purchase decisions, positive or negative WoM?
Negative information in general has a stronger impact on judgement than positive information.
What is the correlation between customer satisfaction and a firm’s market share, and why?
Negative.
That is because firms with a higher market share often have a more heterogeneous customer base which tends to be more difficult to satisfy.
Two factors that negatively influence the number of likes
Entertainment
Question
Valence of comments
How positive and negative comments have influence on the brand popularity.
Interactivity
The two-way communication between companies and customers.
Visit-to-visit basis
Examining store visits and purchase decisions over time.
Page-to-page basis
Examining navigation within a single store session.
Lag effect
Likelihood that we will better recall information when time between repeated exposure to that information increases.
How is each type of customer influenced by display advertising?
Non-visitor: to help build awareness.
Visitor: no to little influence
Authenticated user: reminder to complete transaction.
Converted user: general reminder.
Factors that influence brand-post popularity:
- Vividness
- Interactivity
- Content brand post
- Top position
- Valence of the comments
What does brand-post popularity consist of?
Number of likes
Number of comments
Vividness
The extent to which a brand post stimulates the different senses.
The higher the level of vividness of a brand post, the more popular the brand post.
Difference banners and brand posts
People voluntarily decide to visit a brand fan page, whereas banners are involuntarily shown.
Social networking sites
Networks of friends for social and professional interactions.
E.g., Facebook.
Advantages brand communities
- More positive word of mouth
- Brand fans are more connected and loyal to the brand than non-brand fans.
How to create brand communities?
By forming brand fan pages on social networking sites.
Here, they can interact with a company by liking or competing on a brand post.
Which type of customer is least influenced by display advertising?
The ‘visitor’. On this type of customer, display advertising has little to no effect.
That is because these users were exposed to detailed firm offerings when visiting the website but still declined to proceed. It is therewith unlikely that the firm’s advertising will contain any new information to persuade them.
Two limitations of cookies
- Multiple users could share a browser.
- An individual may use multiple browsers.
AB Testing
A method of comparing two versions of a webpage or app against each other to determine which one performs better.
Explain eBay’s negative ROI
A majority of the company’s paid search spending is wasted on clicks by customers that would purchase the product(s) anyway.
Thus, no new customers are reached, but rather customers who would have bought the product without the ad as well.
This leads to a negative ROI.
When does search advertising work best?
When it is used on a firm’s least active customers. It should thus not be aimed at repeat consumers.
It only works if the consumer has no idea that the company has the desired product.
What is an arbitrary sample?
A random sample.
A sample determined by chance, whim, or impulse, and not by necessity, reason, or principle.
Designated Market Area (DMA)
The geographic area where residents can receive the same local TV, radio stations, and online content.
What is the unpaid/natural/organic search ads determined by?
Google’s PageRank Algorithm
What is the paid/sponsored search ads determined by?
The bid
The quality score
Who are more responsive to ads when purchasing?
Consumers who were not experienced with the product are more responsive (compared to customers who had experienced the product).
Three categories when observing shopping sessions
- Session measures: how much time was spent on the site.
- Variety measures: how many categories, brands, products were viewed.
- Before-transaction measures
Knowledge building (strategy)
- Exploratory search behaviour
- Future purchase
Hedonic browsing (strategy)
- Exploratory search behaviour
- Immediate purchase
Search/deliberation (strategy)
- Directed search behaviour
- Future purchase
Directed buying (strategy)
- Directed search behaviour
- Immediate purchase
More product-level pages rather than category-level pages.
Difference banners and brand posts
Banners are involuntarily shown. Brand posts are voluntarily shown since
