EXTRA 3 Flashcards
Formula regression analysis
Y = B0 + B1*X1 + … + BnXn + e
Formula difference-in-differences analysis
Y = B0 + B1treatment + B2after + B3treatmentafter + e
Formula before-during-after analysis
Sales = B0 + B1During + B2After + e; or
Sales = B0 +B1During + B2After + B3temperature + B4holiday + e
Formula before-after analysis
Sales = B0 + B1*After + e; or Sales = B0 + B1*After + B2*temperature + B3*holiday + B4*searches + e
Advantages ad blocking software for companies
- It is self-filtering mechanism.
- People using ad blocking software are more likely to pay for ad-free content on sites, leading to a new business model.
Basket-to-conversion rate
The number of sessions with at least one product put into the shopping basket divided by the number of sessions with at least one product purchased.
Five forms of perceived product category-related risk
- Functional risk
- Financial risk
- Privacy and safety risk
- Psychological risk
- Social risk
Why is the use of multiple channels by customers important to companies?
Because these types of customers are more connected to the firm and are therefore more valuable.
In which phase are mobile devices preferred?
In the prepurchase determination phase.
Reasons people switch from more mobile to less mobile devices
- Because of the high purchase risk involved.
- Because of their own inexperience with the product, brand, or online retailer.
When does the purchase conversion probability become higher?
When customers switch from a more mobile device to a less mobile device.
Ubiquity
The ability of a channel to offer instant internet access wherever and whenever users want.
Mobile channels overcome this limitation.
When is a new channel most useful?
When it is able to provide additional utility to what consumers are receiving from the existing channels.
What is the effect of cross-device browsing?
Cross-device browsing behaviour tends to enhance sales.
Explain the use of tablets
Tablets act as a complementary product for smartphones.
Tablets act as a substitute product for PCs.
Tablets increase casual browsing, which leads to the purchase of more impulse products and a wider diversity of products.
What is the best predictor of future performance?
Negative eWoM
What kind of correlation exists between customer satisfaction and a firm’s market share?
A negative correlation.
Firms with a high market share often have a more heterogeneous customer base which tends to be more difficult to satisfy.
Factors that negatively influence the number of likes
- Entertainment
- Question
Where does the brand-post popularity consist of?
The amount of likes
The amount of comments
Factors that influence brand-post popularity
- Valence of comments
- Vividness
- Interactivity
- Position of the post
- Content of brand post
Difference banners and brand posts
People voluntarily decide to visit a brand fan page, whereas banners are shown involuntarily.
Social networking sites
Networks of friends for social and professional interactions.
Advantages brand communities
- Brand fans are more loyal and committed to the brand than non-brand fans.
- Brand fans will create positive word of mouth.
How to create brand communities?
By forming brand fan pages on social networking sites.
Which type of customer is not influenced by display advertising?
The visitor.
That is because the visitor has already visited the website and decided not to continue.
Showing an ad will not provide this type of customer with any new information.
Lag effect
The likelihood that we will recall information when time between repeated exposure to that information increases.
AB testing
Method of comparing two versions of a webpage or app against each other to determine which one performs better.
Arbitrary sample
A sample determined by chance, whim, or impulse, and not by necessity, reason, or principle.
Designated Market Area
Geographic area where residents can receive the same local tv, radio stations, and online content.
In which phase are mobile devices preferred?
In the prepurchase determination phase.
