Customer recognition and mobile geo-targeting

Arbeitspapier

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.

Object Details

• ISBN: 978-3-86304-284-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 285

Classification and Topics

• Classification: 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
• Subject: Mobile Marketing ; Location Targeting ; Price Discrimination ; Customer Data

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Baye, Irina ; Reiz, Tim ; Sapi, Geza
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/176704
• Last update: 10.03.2025, 11:45 AM CET