A Model of Targeted Advertising Based on Consumer Purchase History

Jianqiang Zhang (), Weijun Zhong () and Shue Mei ()
Additional contact information
Jianqiang Zhang: Southeast University
Weijun Zhong: Southeast University
Shue Mei: Southeast University

A chapter in LISS 2012, 2013, pp 839-844 from Springer

Abstract: Abstract This chapter develops a two-period sales model to investigate the competitive effects of targeted advertising based on consumer purchase history. We find that, the firm’s ability of targeting may damage industry profits, consumer surplus and even social welfare. The conditions under which targeted advertising is positive or negative are derived, showing that competition is softened in the second period but intensified in the first period because of the anticipation behavior of competing firms. It is suggested that firms under competing environments cautiously initiate targeted advertising with appropriate contents.

Keywords: Targeted advertising; Persuasive advertising; Consumer purchase history; Behavior-based price discrimination (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-32054-5_117

Ordering information: This item can be ordered from
http://www.springer.com/9783642320545

DOI: 10.1007/978-3-642-32054-5_117

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().