Journal Selections from MSI
Marketing Can Increase Multichannel Shoppers and Profit
Most effective campaign did not rely on financial incentives.
Using a randomized controlled field experiment for a European book retailer, Elisa Montaguti, Scott Neslin, and Sara Valentini show that a communications program can increase the number of multi-channel shoppers and average customer profitability. Among four marketing campaigns, the most effective message emphasized the benefits of multichannel shopping and did not include financial incentives such as discount price coupons.
A post-test survey indicates that a nonprice-oriented message decreases consumer reactance and enhances perceived behavioral control, suggesting that a firm’s multichannel customer strategy must strike a “delicate balance,” write Montaguti, Neslin, and Valentini. “They must present a clear argument for the customer to become multichannel, but cannot be construed as overly manipulative.”
Using propensity score matching to exclude self-selection issues, the authors find that multichannel purchasing increases profit among multichannel customers an average of €28 over what they would have purchased as non-multichannel customers.
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Can Marketing Campaigns Induce Multichannel Buying and More Profitable Customers? A Field Experiment by Elisa Montaguti, Scott A. Neslin, and Sara Valentini, Marketing Science (March-April 2016)
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