lecture 12

Question 1

mobile marketing

Answer 1

any promotional activity that takes place on smartphones and other handheld devices such as tablets.

Examples include:
Apps, push notifications / In-app messaging, personalization

i.e. its more than mobile advartising

App creators care a lot about customer retention

Question 2

why not just have one control group (cohort comparison)

Answer 2

Control group would change in composition over time

Recent work on Diff in Diff finds this causes problems

Does not include nearest cohort of adopters

Because they might have different behaviour near adoption

Question 3

bad app quality

Answer 3

consumers wouldnt use it

Usage likely declines after adoption

Theres no evidence of that here

Usage seems to stay constant /increase over time

For searches
(what about other variables)

Question 4

spending decline is stronger when more apps ont he market. Why?

Answer 4

More competition
Consumers search around
On other apps too

Question 5

targeting on mobile apps has

Answer 5

causal positive impacts on consumers purchase behavior

Prior purchases attenuate RTT effectiveness sof late stage promotion

Authors argue this is due to privacy concerns

prior purchase amplify RTT effectiveness of early stage promotion

Implications:
RTT on mobile works, is effective, has positive ROI

Care might be needed when targeting in late stages of purchases if consumers are concerned about privacy

Question 6

freemium is

Answer 6

a dominant strategy in digital markts

Findings suggest free version leads to higher demand for paid

Rather than cannibalization

Mechanisms at work: sampling and product discovery

Implications:
Freemium can increase demand for paid versions

Question 7

does the introduction of a mobile app increase consumer spending

Answer 7

spending across all channels declines by more than 10% after adoption

Stronger decline for third party channels than direct

Bad quality app –> consumers wouldnt use it, usage likely declines after adoption

There is no evidence of that here

usage seems to stay constant/increase over time

for searches

Spending decline is stronger when more apps are on the market (more competition, consumers search around on other apps too)

–> in highly competitive markets (hotels) that does not lead to more spending

Consumers use the app to search

But do so for competing firms too
Likely finding the best deal for them

Which is not always the focal firm .. so spending declines

Question 8

Does real time targeting lead to more consumer engagement with the firm

Answer 8

Targeting on mobile apps has causal (positive!) impacts on consumers purchase behaviour

Prior purchases attenuate RTT effectiveness of late stage promotion

Authors argue this is due to privacy concerns

Prior purchases amplify RTT effectiveness of early stage development

Implications: RTT on mobile works is effective and has positive ROI

Care mighht be needed when targeting in late stags of purchases if consumers are concerned about privacy

Question 9

When is offering a free version of an appalongside a paid version effective

Answer 9

Freemium is a dominant strategy in digital markets

Findings suggest free version leads to higher demand for paid rather than cannibalization

mechanisms at work: sampling and product discovery

Implications: Freemium can increase demand for paid versions