Informative narrowcasting with consumer search

R. Dewan, Bing Jing, A. Seidmann

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

Improved consumer addressability in electronic markets allows vendors to send focused promotional messages to specific customers, facilitating a targeted advertising approach that we call "narrowcasting". We characterize a rational consumer's market participation decision and identify a narrowcasting firm's optimal targeting decision when buyers face nontrivial search costs. In the special case where consumer reservation utility is relatively low and search cost is relatively high, consumers will neither search nor purchase blindly without search, and the market breaks down. Our main contribution here is to show that narrowcasting can help a seller revitalize this market by replacing learning by consumers with learning and targeting by the seller.

Original languageEnglish (US)
Title of host publicationProceedings of the 35th Annual Hawaii International Conference on System Sciences, HICSS 2002
EditorsRalph H. Sprague
PublisherIEEE Computer Society
Pages2959-2965
Number of pages7
ISBN (Electronic)0769514359
DOIs
StatePublished - 2002
Externally publishedYes
Event35th Annual Hawaii International Conference on System Sciences, HICSS 2002 - Big Island, United States
Duration: Jan 7 2002Jan 10 2002

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2002-January
ISSN (Print)1530-1605

Other

Other35th Annual Hawaii International Conference on System Sciences, HICSS 2002
Country/TerritoryUnited States
CityBig Island
Period1/7/021/10/02

Keywords

  • Advertising
  • Collaboration
  • Consumer electronics
  • Cost function
  • Data mining
  • Information filtering
  • Information filters
  • Information technology
  • Internet
  • Target tracking

ASJC Scopus subject areas

  • Engineering(all)

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