Articles scientifiques

Beyond the Target Customer: Social Effects of CRM Campaigns


Journal of Marketing Research

juin 2017, vol. 54, n°3, pp.347-363

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Customer Relationship Management (CRM), Field experiments, Targeting, Churn, Retention, Mobile

Customer Relationship Management (CRM) campaigns have traditionally focused on maximizing the profitability of the targeted customers. We demonstrate that, in business settings that are characterized by network externalities, a CRM campaign that is aimed at changing the behavior of specific customers propagates through the social network, thereby also affecting the behavior of non-targeted customers. Using a randomized field experiment involving nearly 6,000 customers of a mobile telecommunications provider, we find that the social connections of targeted customers increase their consumption and are less likely to churn due to a campaign that was neither targeted at them nor offered them any direct incentives. We estimate a social multiplier of 1.28. That is, the effect of the campaign on first-degree connections of targeted customers is 28% of the effect of the campaign on the targeted customers. By further leveraging the randomized experimental design we show that, consistent with a network externality account, the increase in activity among the non-targeted but connected customers is driven by the increase in communication between the targeted customers and their connections, making the local network of the non-targeted customers more valuable. Our findings suggest that in targeting CRM marketing campaigns, firms should consider not only the profitability of the targeted customer, but also the potential spillover of the campaign to non-targeted but connected customers

Incorporating hidden costs of annoying ads in display auctions


International Journal of Research in Marketing

septembre 2017, vol. 34, n°3, pp.622-640

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Online advertising, Pricing, Mechanism design

Media publisher platforms often face an effectiveness-nuisance tradeoff: more annoying ads can be more effective for some advertisers because of their ability to attract attention, but after attracting viewers’ attention, their nuisance to viewers can decrease engagement with the platform over time. With the rise of mobile technology and ad blockers, many platforms are becoming increasingly concerned about how to improve monetization through digital ads while improving viewer experience.We study an online ad auction mechanism that incorporates a charge for ad impact on user experience as a criterion for ad selection and pricing. Like a Pigovian tax, the charge causes advertisers to internalize the hidden cost of foregone future platform revenue due to ad impact on user experience. Over time, the mechanism provides an incentive for advertisers to develop ads that are effective while offering viewers a more pleasant experience. We show that adopting the mechanism can simultaneously benefit the publisher, advertisers, and viewers, even in the short term.Incorporating a charge for ad impact can increase expected advertiser profits if enough advertisers compete. A stronger effectiveness-nuisance tradeoff, meaning that ad effectiveness is more strongly associated with negative impact on user experience, increases the amount of competition required for the mechanism to benefit advertisers. The findings suggest that the mechanism can benefit the marketplace for ad slots that consistently attract many advertisers

Le management face au judiciaire: Un nouveau domaine d’enseignement et de recherche


Revue Française de Gestion

novembre-décembre 2017, vol. 43, n°269, pp.11-17

Départements : Marketing

Payment Evasion


Journal of Industrial Economics

décembre 2017, vol. 67, n°4, pp.804-832

Départements : Marketing, GREGHEC (CNRS)

This paper shows that a firm can use the purchase price and the fine imposedon detected payment evaders to discriminate between unobservable con-sumer types. Assuming that consumers self-select into regular buyers andpayment evaders, we show that the firm typically engages in second-degreeprice discrimination in which the purchase price exceeds the expected fine.In addition, we find that higher fines do not necessarily reduce paymentevasion. We illustrate with data from fare dodging on public transportation

The friend or foe fallacy: Why your best customers may not need your friendship


Business Horizons

juillet-août 2017, vol. 60, n°4, pp.483-493

Départements : Marketing

Mots clés : Organizational relationships, Customer partnerships, Relational strategies, Mutual value creation, Value co-creation, Customer strategy

Organizational transactions are handled along a continuum of the firm’s customer relationships, ranging from relational and friendly to more adversarial and us-versus-them in demeanor. For top customers, the approach is almost always close and relational. In this article, we question this view and suggest that it is beneficial to condition the firm’s relationship development efforts on an understanding of the true value to be gained from partnering and increased closeness. We provide a framework with which managers can diagnose their current portfolio of relationships with key customers or suppliers and offer suggestions for action. We provide an empirical illustration of the typical distribution of responses among five regions of the framework and discuss its implications