Arbeitspapier

Customer recognition and mobile geo-targeting

We focus on four important features of mobile targeting. First, consumers' real-time locations are known to sellers. Second, location is not the only factor determining how responsive consumers are to discounts. Other factors such as age, income and occupation play a role, which are imperfectly observable to marketers. Third, sellers may infer consumer responsiveness from their past purchases. Fourth, firms can deliver personalized offers to consumers through mobile devices based on both their real-time locations and previous purchase behavior. We derive conditions that determine how combining behavior-based marketing with mobile geo-targeting influences profits and welfare in a competitive environment. Our setting nests some earlier models of behavior-based price discrimination as special cases and yields additional insights. For instance, different from previous studies we show that pro.t and welfare effects of behavioral targeting may depend on firm discount factor.

ISBN
978-3-86304-284-4
Sprache
Englisch

Erschienen in
Series: DICE Discussion Paper ; No. 285

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Information and Product Quality; Standardization and Compatibility
Advertising
Thema
Mobile Marketing
Location Targeting
Price Discrimination
Customer Data

Ereignis
Geistige Schöpfung
(wer)
Baye, Irina
Reiz, Tim
Sapi, Geza
Ereignis
Veröffentlichung
(wer)
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
(wo)
Düsseldorf
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Baye, Irina
  • Reiz, Tim
  • Sapi, Geza
  • Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Entstanden

  • 2018

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