DOCSLIB.ORG

Trust, Value and Engagement in Advertising

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Trust, Value and Engagement in Advertising July 2009 Nielsen Global Online Consumer Survey Trust, Value and Engagement in Advertising Overview Nielsen recently surveyed over 25,000 consumers online across more than 50 markets from Europe, Asia Pacific, the Americas and the Middle East on their attitudes toward trust, value and engagement of advertising. Trust and Value Engagement Trust Us Across over 50 countries measured, a When engagement is measured by the In the United States, false advertising majority of online consumers surveyed ability of advertising to convey humor, is illegal. Under the Federal Trade trust most forms of advertising and emotion and information, TV ads surpass Commission Act of 1914, amended in agree that it delivers value by promoting online video ads. 1938 to protect consumers from false competition and supporting a wide range Of those same dimensions, consumers are advertising, advertisements must be of media. most receptive to the humorous qualities “truthful and non-deceptive,” must have Trust in advertising is up: Consumers in TV and online video ads. “evidence to back up their claims” and today are more trusting of every must be fair (that is, must not be “likely Asian and Middle Eastern consumers marketing channel tracked compared to cause substantial consumer injury”). are the most likely to find the intended to two years ago, save newspaper Despite this legal reassurance, consumer humor in a TV ad, while Latin American advertising, trust in which declined a trust in advertising has varied over consumers are the most likely to find marginal 3%. time and across media. informative those TV ads that are Peer recommendation is the most intended so. Understanding consumer trust in trusted channel, trusted “completely” or advertising is as important as ever. Latin American consumers are the most “somewhat” by 9 out of 10 respondents receptive to online video ads in terms of • Commercial avoidance is becoming worldwide. all three dimensions: humor, emotion and easier. Twenty-eight percent of the Of the major paid advertising channels information. U.S. TV audience used a DVR in the (online, outdoor, print, radio, TV and first quarter of 2009 (Source: Q1 2009 theatre), television and newspaper are the A2M2 Three Screen Report, The Nielsen most trusted media. Company). North America Text message ads on mobile phones are • Social media are expanding consumers’ the least trusted paid advertising channel, In North America, online consumers under positive and negative influences winning the confidence of just 24% of the age of 20 exhibit higher than average regarding brands. Two-thirds of the consumers globally. degrees of trust in all forms of advertising. global Internet population visit member North American consumers aged 30–34 communities online (Source: Global Online search, banner and video ads are Faces and Networked Places: A Nielsen trusted by fewer than half of respondents. are the most likely to trust online advertising. Report on Social Networking’s New Latin American consumers tend to be the Global Footprint, March 2009). Female consumers in North America are most trusting of advertising, and European • Economic pressure is driving greater consumers the least trusting. more engaged than males in TV ads in the dimensions of humor, emotion and attention to ROI, and advertisers have a information, especially when it comes to vested interest in marketing investments, finding a TV ad emotionally touching. underscoring the importance of trust and engagement in advertising like never In North America, the oldest consumer before. group measured (65 and over) is the least engaged with TV advertising by these Beyond earning their trust, advertisers same dimensions, while the youngest and media companies want consumers group (under 20) registers the highest to understand the value of advertising— level of engagement with online video ads. a less concrete sentiment that can broadly affect consumer receptivity to advertising in all media. Copyright © 2009 The Nielsen Company. 1 Trust, value and engagement in Figure 1: Global Consumer Trust in Advertising by Channel advertising should be measured in a variety of ways. For the purposes of this 0% 20% 40% 60% 80% 100% paper, Nielsen recently launched a global Recommendations from people I know 34 56 9 1 online consumer survey to measure Brand websites 13 57 26 5 trust in advertising among consumers, Consumer opinions posted online 13 57 25 5 Editorial content such as a newspaper article 10 59 27 4 partnering with the World Federation Brand sponsorships 9 54 31 6 of Advertisers (WFA) to also examine Ads on TV 8 53 33 6 the value of advertising. This approach Ads in newspapers 7 54 34 5 succeeds in gauging general consumer Ads in magazines 6 53 36 6 perceptions of advertising, while Ads in radio 6 49 38 7 Billboards and other outdoor advertising 5 49 39 6 services such as Nielsen IAG, Nielsen’s Emails I signed up for 7 48 37 8 advertising engagement measurement Ads before movies 5 47 41 7 and consultancy, can gauge similar Ads served in search engine results 4 37 48 11 perceptions and engagement on an Online video ads 3 34 51 11 Online banner ads 3 30 51 16 ad-by-ad, channel-by-channel basis. In Text ads on mobile phones 2 22 47 29 this paper, we discuss only the general and global perceptions measured by the Trust completely Trust somewhat Don’t trust much Don’t trust at all survey. What we found is, while trust and value Figure 2: Consumer Trust in Advertising by Channel (Trust Somewhat/Completely) perceptions can vary greatly by market 2007 vs. 2009 and media, global consumer trust in advertising is on the rise and most 90% consumers acknowledge the value 78% 70% 70% advertising offers. 63% 61% 63% 60% 61% 61% 59% 56% 56% 54%55% 55% In this report, we extrapolate the results 49% 49% 52% 41% 38% of our recent global survey to provide 34% 33% insights into consumer trust in advertising, 26% 24% the value consumers see in advertising and 18% certain dimensions of engagement across TV and online video ads, in particular. Ads on TV on Ads Ads in radio in Ads Trust in Advertising websites Brand Ads in magazines in Ads Online banner ads banner Online Ads before movies before Ads Ads in newspapers in Ads Brand sponsorships Brand Nielsen measured consumer trust in 16 for up signed I Emails different marketing channels by asking 2007 2009 phones mobile on ads Text consumers “To what extent do you trust Consumer opinions posted online posted opinions Consumer the following?” results engine search in served Ads Across all channels, an average 56% of know I people from Recommendations respondents indicate that they trust NB: Editorial content, billboards/outdoor advertising and online video ads not covered in April 2007 survey. advertising “completely” or “somewhat.” Peer recommendations top the list, editorial content and brand sponsorships most trusted media: 61% of global trusted by 9 out of 10 consumers; while ahead of a broad list of paid advertising consumers say they trust TV advertising— text message based ads perform the channels. This importance of peer the same percentage that trust newspaper lowest, trusted by just 24%. recommendations and consumer opinions advertising. online justifies the attention marketers Online and mobile advertising have Across the 16 measured channels, continue to pay to the use of social and perhaps the steepest hill to climb for non-media channels are more trusted consumer-generated media. than paid media channels. After peer consumer trust: in addition to text recommendations, consumers trust brand Of the paid advertising channels of online, message advertisements, online search, websites, consumer opinions online, outdoor, newspaper, magazine, radio, TV banner and video ads are the only and theatrical, TV and newspaper are the channels trusted by fewer than half of Copyright © 2009 The Nielsen Company. 2 respondents globally. The good news Figure 3: Global Trust in TV Advertising for online is that consumer trust in that medium is growing. The percentage of 74% global consumers trusting banner ads 67% 61% 62% grew 27% between 2007 and 2009 51% (from 26% to 33% of consumers). The 49% percentage trusting ads in search engine 39% 38% results grew 21% (from 34% to 41% 33% 26% of consumers). Consumers today are more trusting of every marketing channel tracked when compared to two years ago, save newspaper advertising, trust in which LA APIMEA NA EU Global Average declined a marginal 3%. Theatrical advertising saw the greatest growth in Trust completely/somewhat Don’t trust much at all trust—increasing 37% since 2007, from 38% of consumers to 52%. Figure 4: Global Trust in Newspaper Advertising 75% Trust Varies by Region 66% 61% Though TV and newspaper are the most 62% trusted advertising channels overall, 50% 50% trust in ads across both media varies 38% 39% considerably by region. Trust in TV 34% advertising is much higher than average in 25% Latin America, where 74% of consumers trust it, and lower in Europe, where just half (49%) trust it. Similarly, trust in newspaper advertising, LA NA APIMEA EU Global Average which tied as the most trusted paid advertising vehicle globally, varies as Trust completely/somewhat Don’t trust much at all a trusted source by region. As with TV, Latin Americans are the most trusting of newspaper advertising (75%), while just Figure 5: Global Trust in Online Advertising * half of Europeans trust it. The higher-than-average trust that Latin 64% 58% 57% 59% American consumers exhibit for TV and 53% newspaper advertising is consistent 47% 42% 43% 41% across almost all measured channels. In 36% all but one channel—“E-mails I signed up for”—Latin American consumers are the most likely to trust advertising; North American consumers are the most likely to trust such e-mails.
Load more

Recommended publications
  • Advertising and the Creation of Exchange Value
    University of Massachusetts Amherst ScholarWorks@UMass Amherst Doctoral Dissertations Dissertations and Theses Summer November 2014 Advertising and the Creation of Exchange Value Zoe Sherman University of Massachusetts Amherst Follow this and additional works at: https://scholarworks.umass.edu/dissertations_2 Part of the Economic History Commons, Political Economy Commons, and the Public Relations and Advertising Commons Recommended Citation Sherman, Zoe, "Advertising and the Creation of Exchange Value" (2014). Doctoral Dissertations. 205. https://doi.org/10.7275/5625701.0 https://scholarworks.umass.edu/dissertations_2/205 This Open Access Dissertation is brought to you for free and open access by the Dissertations and Theses at ScholarWorks@UMass Amherst. It has been accepted for inclusion in Doctoral Dissertations by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact [email protected]. ADVERTISING AND THE CREATION OF EXCHANGE VALUE A Dissertation Presented by ZOE SHERMAN Submitted to the Graduate School of the University of Massachusetts Amherst in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY September 2014 Economics © Copyright by Zoe Sherman 2014 All Rights Reserved ADVERTISING AND THE CREATION OF EXCHANGE VALUE A Dissertation Presented by ZOE SHERMAN Approved as to style and content by: ______________________________________ Gerald Friedman, Chair ______________________________________ Michael Ash, Member ______________________________________ Judith Smith, Member ___________________________________ Michael Ash, Department Chair Economics DEDICATION Dedicated to the memory of Stephen Resnick. ACKNOWLEDGMENTS I have had many strokes of good fortune in my life, not least the intellectual and emotional support I have enjoyed throughout my graduate studies. Stephen Resnick, Gerald Friedman, Michael Ash, and Judith Smith were the midwives of this work.
    [Show full text]
  • Conceptualization of Perceived Value Pricing in Strategic Marketing
    Journal of Management and Marketing Research Conceptualization of perceived value pricing in strategic marketing Nagasimha Balakrishna Kanagal Indian Institute of Management Bangalore ABSTRACT Perceived value pricing is an important price setting procedure. Perceived value pricing indicates the importance of providing benefits and functionalities to the consumer and the simultaneous need to price it effectively so that the firm can take appropriate value. Perceived value pricing is effective in pricing of premium goods and services with a large intangible component. Perceived value pricing are emerging as a third alternative to skim pricing and penetration pricing strategies. The study conceptualizes the construct of perceived value price, examines methods to build perceived value, discusses issues in management of perceived value and lays out implications for pricing strategists through an empirical study that suggests ‘money for value’ is acceptable to the consumer. Keywords: Consumer perceived value, marketer judged offered value, money for value, economic value, differential value, monetary value, consumer surplus. Conceptualization of Perceived Value, Page 1 Journal of Management and Marketing Research INTRODUCTION Perceived value pricing is an important price setting procedure. Perceived value pricing indicates the importance of providing benefits and functionalities to the consumer and the simultaneous need to price it effectively so that the firm can take appropriate value. Perceived value pricing is effective in pricing of premium goods and services with a large intangible component. Other product categories include innovations, high image goods, and high quality goods. An example in case is a one year warranty versus a lifetime warranty whose economic values and psychological values are both different.
    [Show full text]
  • The Impact of Sexuality in the Media
    Pittsburg State University Pittsburg State University Digital Commons Electronic Thesis Collection 11-2013 The impact of sexuality in the media Kasey Jean Hockman Follow this and additional works at: https://digitalcommons.pittstate.edu/etd Part of the Communication Commons Recommended Citation Hockman, Kasey Jean, "The impact of sexuality in the media" (2013). Electronic Thesis Collection. 126. https://digitalcommons.pittstate.edu/etd/126 This Thesis is brought to you for free and open access by Pittsburg State University Digital Commons. It has been accepted for inclusion in Electronic Thesis Collection by an authorized administrator of Pittsburg State University Digital Commons. For more information, please contact [email protected]. THE IMPACT OF SEXUALITY IN THE MEDIA A Thesis Submitted to the Graduate School in Partial Fulfillment of the Requirements for the degree of Master of Arts Kasey Jean Hockman Pittsburg State University Pittsburg, Kansas December 2013 THE IMPACT OF SEXUALITY IN THE MEDIA Kasey Hockman APPROVED Thesis Advisor . Dr. Alicia Mason, Department of Communication Committee Member . Dr. Joey Pogue, Department of Communication Committee Member . Dr. Harriet Bachner, Department of Psychology and Counseling II THE THESIS PROCESS FOR A GRADUATE STUDENT ATTENDING PITTSBURG STATE UNIVERSITY An Abstract of the Thesis by Kasey Jean Hockman The overall goal of this study was to determine three things: 1. Does sexuality in the media appear to have a negative effect on participant’s self-concept in terms of body image, 2. Does the nature of the content as sexually implicit or sexually explicit material contribute to negative self-concepts, in terms of body image, and 3.
    [Show full text]
  • The True Value of Pricing from Pricing Strategy to Sales Excellence the True Value of Pricing
    The True Value of Pricing From pricing strategy to sales excellence The True Value of Pricing The challenge of value in price management The world’s current political, economic and In this context, price management becomes In order to define a pricing strategy aligned social scenario poses major challenges, a powerful advantage to guide organizations with the organization’s goals, the Pricing including the political uncertainties brought throughout the changes, to boost their function must take into consideration not by the intensification of nationalist speeches performance and to maximize their earnings. only economic trends but also product and the increase of barriers to foreign With regard to strategic alignment, the differences and specificities in consumer trade. On the business side, the economic concept of Pricing is particularly relevant in habits in each region. This is the case of the recession has affected organizations which, the business world as it consolidates itself end-of-the-month discount policy, quite in order to continue to optimize earnings, as a charging practice intended to capture common in the Brazilian market, and that need to take into consideration drivers such the highest value from each customer by has a direct impact on the pricing and the as Gross Domestic Product unpredictability, addressing issues from strategy to sales margin of each product. high inflation, interest hikes and fiscal excellence, and aimed to maximizing adjustments, besides unemployment growth, profitability. Even though many organizations see Pricing and the customers’ higher indebtedness and as a back office function, there is a trend reduced income resulting from that. “The True Value of Pricing – From pricing in Brazil to boost its importance and its strategy to sales excellence” presents reach from a strategic point of view, while At the same time, the integration of the data about how companies from different differencing customer segments.
    [Show full text]
  • Roles of Brand Value Perception in the Development of Brand Credibility and Brand Prestige Chihyung Ok Kansas State University, [email protected]
    University of Massachusetts Amherst ScholarWorks@UMass Amherst International CHRIE Conference-Refereed Track 2011 ICHRIE Conference Jul 27th, 3:15 PM - 4:15 PM Roles of Brand Value Perception in the Development of Brand Credibility and Brand Prestige Chihyung Ok Kansas State University, [email protected] Young Gin Choi Kansas State University, [email protected] Seunghyup Seon Hyun Pusan National University Ok, Chihyung; Choi, Young Gin; and Hyun, Seunghyup Seon, "Roles of Brand Value Perception in the Development of Brand Credibility and Brand Prestige" (2011). International CHRIE Conference-Refereed Track. 13. https://scholarworks.umass.edu/refereed/ICHRIE_2011/Wednesday/13 This Empirical Refereed Paper is brought to you for free and open access by the Hospitality & Tourism Management at ScholarWorks@UMass Amherst. It has been accepted for inclusion in International CHRIE Conference-Refereed Track by an authorized editor of ScholarWorks@UMass Amherst. For more information, please contact [email protected]. Ok et al.: Roles of Brand Value Perception in the Development of Brand Credibility and Brand Prestige ROLES OF BRAND VALUE PERCEPTION IN THE DEVELOPMENT OF BRAND CREDIBILITY AND BRAND PRESTIGE Chihyung Ok Hospitality Management and Dietetics Kansas State University, USA Young Gin Choi Hospitality Management and Dietetics Kansas State University, USA and Seunghyup Seon, Hyun Tourism Convention Management Pusan National University, Korea Published by ScholarWorks@UMass Amherst, 2011 1 International CHRIE Conference-Refereed Track, Event 13 [2011] ROLES OF BRAND VALUE PERCEPTION IN THE DEVELOPMENT OF BRAND CREDIBILITY AND BRAND PRESTIGE Abstract This study explores the functional roles of consumers’ perceived brand value on brand credibility and brand prestige and consequent positive effects on key brand relationship outcomes.
    [Show full text]
  • The Marketing Plan
    The Marketing Plan The most important part of a business plan is the Marketing Plan. To keep one’s business on course this plan must be geared toward the business’s mission—its product and service lines, its markets, its financial situation and marketing/sales tactics. ♦ The business must be aware of its strengths and weaknesses through internal and external analysis and look for market opportunities. ♦ The business must analyze its products and services from the viewpoint of the customer—outside-in thinking. What is the customer looking for and what does the customer want (benefits)? The business must gain knowledge of the marketplace from its customers. ♦ The business must analyze its target markets. What other additional markets can the business tap into and are there additional products or services the business can add? ♦ The business must know its competition, current and potential. By identifying the competitor’s strengths and weaknesses the business can improve its position in the marketplace. ♦ The business must make decisions on how to apply its resources to the target market(s). ♦ The business must utilize the information it has gathered about itself, its customers, its markets, and its competition by developing a written Marketing Plan that provides measurable goals. The business must select marketing/sales tactics that will allow it to achieve or surpass its goals. ♦ The business must implement the plan (within an established budget) and then measure its success in terms of whether or not the goals were met (or the extent to which they were). The Marketing Plan is an ongoing tool designed to help the business compete in the market for customers.
    [Show full text]
  • “Value” in the Theory of Marketing
    Asian Social Science; Vol. 11, No. 9; 2015 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education The Concept of “Value” in the Theory of Marketing Roman Sidorchuk1 1 Department of Marketing, Plekhanov Russian University of Economics, Moscow, Russian Federation Correspondence: Roman Sidorchuk, Department of Marketing, Plekhanov Russian University of Economics, Moscow, Russian Federation. Tel: 8-499-237-9496. E-mail: [email protected] Received: January 2, 2015 Accepted: January 28, 2015 Online Published: April 2, 2015 doi:10.5539/ass.v11n9p320 URL: http://dx.doi.org/10.5539/ass.v11n9p320 Abstract This paper discusses the use of the term of “value” in the framework of marketing. Analysis of the literature led us to the conclusion that it is necessary to consider the term of “value” in the framework of marketing as a separate category of marketing theory, which includes a whole group of concepts. The basis for our findings served as the analysis of the definition of “value” in the disciplines included in the multi-disciplinary marketing database. The paper suggests that the price is not a marketing measure for “value”. In addition, the paper outlines further research aimed at the development and systematization of the concepts included in the category of “value” in marketing. Keywords: value in marketing, category of marketing, definition of marketing, marketing theory 1. Introduction Discussion on considering marketing as an independent science has a long history. Specific features of marketing, such as its applied nature, dualism, significant methodological apparatus borrowed from other disciplines come as a barrier when considered as an independent discipline.
    [Show full text]
  • Valuing a Celebrity's Right of Publicity
    Valuing a Celebrity’s Right of Publicity http://www.lawjournalnewsletters.com/issues/ljn_entertainment/28_2/ne... Advertise Our Sites LawCatalog CLE Center LawJobs Newswire Law.com Home IN SORT BY Home USERNAME PASSWORD REMEMBER ME Newsletters Your Account Board Members Calendar Associations Search Archives Email This Article Printer-Friendly Versio n Subscribe FAQs February 2013 About Us Valuing a Celebrity’s Right of Publicity Contact Us By Weston Anson, Lacy J. Lodes, and David Noble Web Audio Conferences Unlike patent, trademark and copyright law, rights of publicity are governed by a patchwork of state statutes and Practice Groups common-law decisions, rather than by a single federal statute. And unlike trade secret law, rights of publicity are not Technology subject to a uniform state law adopted in the vast majority of states. But as with valuing other intellectual property assets, right of publicity (ROP) valuations need to consider the unique characteristics of the subject asset and the Compliance context of the valuation. Business Law Typically, ROP valuations are needed for one of three reasons: when negotiating a transaction (i.e., endorsements, licensing, etc.); calculating damages for ROP violations; or valuing celebrity estates and trusts. Each ROP asset is unique and each of these Litigation contexts varies, posing some unique challenges for reasonable analysis of ROP assets. Law Firm Management Endorsement Transactions Before the opening ceremonies of the 2012 Summer Olympic Games had even taken place, Jamaican sprinter Usain Bolt had collected $20 million in endorsement revenue. After he won three gold medals, online delivery company Shutl offered Bolt a 1% equity stake in the company to headline its new marketing campaign.
    [Show full text]
  • A Summary of Thinking on Measuring the Value of Marketing
    Journal of Targeting, Measurement and Analysis for Marketing A summary of thinking on measuring the value of marketing RECEIVED (IN REVISED FORM): 5 FEBRUARY, 2000 BruceH.Clark Associate Professor, Marketing, Northeastern University, 202 Hayden Hall, Boston MA 02115, USA; Tel: ϩ1 617 373 4783; Fax: ϩ1 617 373 8366; e-mail: [email protected] Bruce H. Clark ABSTRACT effect of making the marketing spend is an Associate Scholars have been developing and evaluat- a larger portion of the overall company Professor of ing schemes for measuring the performance budget, drawing the attention of Marketing at of marketing activities for the past half- company accountants.1 Simultaneously, Northeastern century. This paper traces the evolution of investors have been demanding more University. A former software research in marketing performance measure- information regarding the marketing 2,3 and direct ment. It discusses the movement from finan- activities of companies. Finally, the marketing cial measurement to non-financial measures, growth of multidimensional perfor- executive, he and examines the marketing asset and mance measurement schemes such as writes and teaches customer-focused approaches to performance the Balanced Scorecard and associated about competitive measurement. Managers desiring a com- strategy maps have led both researchers marketing strategy prehensive picture of marketing performance and practitioners to consider what and marketing should draw on a number of these perspec- marketing performance measures, if performance tives. All measures should be evaluated in any, belong in the mix.4,5 The result of measurement. the context of the organisation’s strategy and all these concerns has led to calls for customer and competitor benchmarks.
    [Show full text]
  • Consumer Shopping Value Post-Print
    Consumer shopping value: An investigation of shopping trip value, in-store shopping value and retail format Lizhu Davis 1, Nancy Hodges 2 Abstract Although delivering value is the key for retailers to create new competitive advantages, the literature on consumer shopping value is fragmented and findings are inconsistent. This study aimed to understand consumer shopping value in-depth by examining consumer shopping processes and experiences in two retail formats: mass merchandisers and department stores. This study conceptualizes consumer shopping value as having two components: shopping trip value and in-store shopping value. Shopping trip value is originated by fulfillment of general shopping motivations, and in-store shopping value stems from retail elements that create in-store shopping experiences that consumers have in specific retail contexts. Five shopping trip value dimensions and six in-store shopping value dimensions are identified from the in-depth interviews. The findings highlight how consumer shopping value is a complex and context specific construct. Keywords : Consumer shopping value, Department stores, Mass merchandisers 1. Introduction From the birth of the marketing concept in the 1950s, academics and businesses have sought to understand the processes and factors involved in meeting consumers’ wants and needs, i.e., delivering value to consumers. Much of this work is based on the cognition, affect, and behavior (CAB) model that assumes the consumption process is a causal flow from consumer cognition to consumer affect to consumer behavior, that is, cognition variables (information seeking) determine affective responses (state of predisposition) which in turn guide behavioral effects (the choice process and purchase). Since the 1980s, the experience-oriented consumption perspective has become more prominent, particularly with the work of Holbrook and Hirschman (1982).
    [Show full text]
  • Customer Lifetime Value: Marketing Models and Applications
    CUSTOMER LIFETIME VALUE: MARKETING MODELS AND APPLICATIONS Paul D. Berger Nada I. Nasr ᭿ ABSTRACT PAUL D. BERGER is Professor and Customer lifetime value has been a mainstay concept in direct response Chairman of the Marketing Department at the School of marketing for many years, and has been increasingly considered in the Management, Boston University. field of general marketing. However, the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decision- making criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered it as part of the general discussions of profitability and discussed its role in customer acquisition decisions and customer acquisition/retention trade-offs. There has been a dearth of general modeling of the topic. This paper presents a series of mathematical models for determination of customer lifetime value. The choice of the models is based on a systematic theoretical taxonomy and on assumptions grounded in customer behavior. In NADA I. NASR is a doctoral addition, selected managerial applications of these general models of student in Marketing at the School customer lifetime value are offered. of Management, Boston University. ᭧ 1998 John Wiley & Sons, Inc. and Direct Marketing Educational Foundation, Inc. CCC 1094-9968/98/010017-14 ■ JOURNAL OF INTERACTIVE MARKETING VOLUME 12 / NUMBER 1 / WINTER 1998 17 / 8S0F$$0258 12-24-97 10:12:38 dira W: Dir Mktg JOURNAL OF INTERACTIVE MARKETING INTRODUCTION Second, changes in technology make it feasible to understand and track customer behaviors in Since the early eighties, the field of marketing ways that were impractical, or even impossible, has undergone a major directional change in in the past (Jackson, 1995).
    [Show full text]
  • Marketing Research Agenda for 2020
    Ventana Research Marketing Research in 2020 Setting the annual expertise and topic agenda Mark Smith blog.ventanaresearch.com @ventanaresearch In/ventanaresearch CEO & Chief Research Officer © 2020 Ventana Research Confidentiality Statement The materials in this presentation are copyrighted property of Ventana Research. Any use of the materials beyond the intended purpose of providing information about Ventana Research is strictly prohibited. This presentation and any part of its content may not be redistributed to anyone except the intended audience and organizations use to understand or evaluate Ventana Research. © 2020 Ventana Research © 2020 Ventana Research The Strategic Value of Ventana Research Mission: We pride ourselves on delivering uniquely insightful independent research and services through a tailored, trusted and empathic client experience. Markets Value: • We help you discover and guide your unique potential in the business you serve to improve Research your efforts from our experience. Experience • Working with our firm in business processes you Expertise can elevate your performance through our objective and educational approach. Organization Products • Embrace our expertise to help you realize your full potential across entire organization. Excellence. Independence. Innovation. Reliability. Research. Teamwork. © 2020 Ventana Research Our Client Commitment: The Ventana eXperience © 2020 Ventana Research Ventana Research Expertise Research Agenda Our Research Agenda and expertise in critical business and technology topics is driven by our analysts’ experience and expertise of business requirements and our knowledge of technology vendors and products. Through our primary and secondary market research methods, we are able to provide insights and best practices to line of business and IT, and across vertical industries that will help any organization reach its maximum potential.
    [Show full text]