Quantifying the dynamic sales impact of location-based mobile promotion technologies

Xueming Luo, Bin Gu, Zheng Fang, Yunjie Xu

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

1 Scopus citations

Abstract

Location-based mobile promotion (LMP) is believed to trigger spontaneous and impulsive purchases. This field study quantifies the dynamic impact of LMP, using aggregated daily mobile movie promotions and purchase data from over 3 million realworld users of a large mobile service provider. The developed multivariate time-series models confirm that LMP has a significant contemporaneous impact on movie ticket sales. Bayesian vector autoregressive results also confirm that LMP has significant immediate (next day) and cumulative impacts on sales over the next 9 days. The immediate and cumulative impacts account for 66% of the total effects. These findings suggest that without considering the dynamic effects, practitioners and researchers may substantially under-estimate the value of LMP. Our analysis also reveals the presence of cross-channel effects between LMP and other forms of mobile related promotions.

Original languageEnglish (US)
Title of host publicationInternational Conference on Information Systems (ICIS 2013)
Subtitle of host publicationReshaping Society Through Information Systems Design
PublisherAIS/ICIS Administrative Office
Pages3268-3285
Number of pages18
ISBN (Print)9781629934266
DOIs
StatePublished - Jan 1 2013
EventInternational Conference on Information Systems, ICIS 2013 - Milan, Italy
Duration: Dec 15 2013Dec 18 2013

Publication series

NameInternational Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design
Volume4

Other

OtherInternational Conference on Information Systems, ICIS 2013
CountryItaly
CityMilan
Period12/15/1312/18/13

Keywords

  • Advertising
  • Dynamic long-term impact
  • Location-based mobile promotion
  • Mobile computing
  • Mobile promotion
  • VARX model

ASJC Scopus subject areas

  • Computer Science Applications
  • Statistics, Probability and Uncertainty
  • Applied Mathematics
  • Library and Information Sciences

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  • Cite this

    Luo, X., Gu, B., Fang, Z., & Xu, Y. (2013). Quantifying the dynamic sales impact of location-based mobile promotion technologies. In International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design (pp. 3268-3285). (International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design; Vol. 4). AIS/ICIS Administrative Office. https://doi.org/10.2139/ssrn.2254064