Service design of consumer data intermediary for competitive individual targeting

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Service design of consumer data intermediary for competitive individual targeting
Abstract: Individual targeting, amarketing strategy that firms target individual consumerswith tailored offers, is currently a widespread practice. Customer data intermediaries (CDIs) have emerged recently to help firms learn their prospective customers and launch their target marketing campaigns. This paper uses a common-value auction framework to study how a CDI designs and differentiates its information services to help two competing firms identify and target valuable customers.We characterize the firms' equilibrium target marketing strategies. The results show that the CDI serves one firm exclusively in unpromising markets where the proportion of valuable customers is relatively low, and provides both firmswith differentiated services in promising marketswhere the proportion of valuable customers is relatively high. In addition, the CDI differentiates its services less when the proportion of valuable customers is higher
Keywords:	Target marketing Individual targeting Customer data intermediaries Information economics
Author(s):	.
Source:	Decision Support Systems 54 (2012) 699–718
Subject:	بازاریابی
Category:	مقاله مجله
Release Date:	2012
No of Pages:	20
Price(Tomans):	0
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