Practice Prize Paper --Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression

Thorsten Wiesel (), Koen Pauwels () and Joep Arts ()
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Thorsten Wiesel: Department of Marketing, Faculty of Economics and Business, University of Groningen, 9700 AV Groningen, The Netherlands
Koen Pauwels: Özyegin University, 34662 Altunizade Üsküdar, Istanbul, Turkey
Joep Arts: Faculty of Economics and Business Administration, VU University Amsterdam, 1081 HV Amsterdam, The Netherlands

Marketing Science, 2011, vol. 30, issue 4, 604-611

Abstract: Inofec, a small- to medium-sized enterprise in the business-to-business sector, desired a more analytic approach to allocate marketing resources across communication activities and channels. We developed a conceptual framework and econometric model to empirically investigate (1) the marketing communication effects on off-line and online purchase funnel metrics and (2) the magnitude and timing of the profit impact of firm-initiated and customer-initiated contacts. We find evidence of many cross-channel effects, in particular, off-line marketing effects on online funnel metrics and online funnel metrics on off-line purchases. Moreover, marketing communication activities directly affect both early and later purchase funnel stages (website visits, online and off-line information, and quote requests). Finally, we find that online customer-initiated contacts have substantially higher profit impact than off-line firm-initiated contacts. Shifting marketing budgets toward these activities in a field experiment yielded net profit increases 14 times larger than those for the status quo allocation.

Keywords: profit impact of marketing activities; off-line and online; persistence modeling; field experiment (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:30:y:2011:i:4:p:604-611

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