lecture 10

Question 1

personalized emails

Answer 1

increase engagment via increased processing by recipient

Open questions: long run impact of advertising

is this still effective when all companies personalize

Question 2

Targeted offers increase spending by

Answer 2

37%

90% if this is not on redeeming coupons

Effect carries over in the short run and across categoires

Consisten with a reminder effect

Potential implication;

Firms can gain from the targeted promotions even without having to incur the costs associated with the discounts

Question 3

does adding personalized content improve email effectiveness

personalized content –> noninformative content

Answer 3

Personalized emails increase engagement
… via increased processing by recipient

Open questions: long run impacts of advertising
Is this still effective when all companies personalize

Question 4

psychological mechanisms AOE

Answer 4

A drawing Attention to the email

O shape Opinions of receiver/positive cue

E increased Elaboration … Via recipient processing

Question 5

How should we think about targeted email offers

Treaded as “coupon” –> targets price sensitive consumers

Generate attention to the company?? –> advertising effect

Answer 5

Targeted offers increase spending by 37,2%

90% of this is not on redeeming coupons

Effect carries over in the short run… and across categories

Consistent with a reminder effect

Potential implications: Firm can gain from the targeted promotions even without having to incur the costs associated with the discounts

Need to investigate generalizability of this

Question 6

psychological mechanisms AOE

Answer 6

Attention to email

shape OPINOIN of receiver

increase ELABORATION via recipient processing