Onsite Retargeting: A Randomized Field Experiment
We investigate the effectiveness of onsite retargeting, including both a retargeted (product that consumers previously interacted with) and a recommended component (recommendations based on the retargeted product). We use data from a randomized field experiment with an online retailer to compare the effectiveness of two types of onsite retargeting, retargeting based on viewed items (view-based retargeting), and retargeting based on items in consumerâ€™s wishlist (wishlist-based retargeting). Drawing on consumer purchase funnel and preference stability theories, we show that wishlist-based retargeting is more effective in attracting clicks and conversions for the retargeted product; however, its incremental effectiveness declines for the recommended products. We further find that onsite retargeting loses effectiveness as time passes, but this negative timing effect is smaller for wishlist-based retargeting than view-based retargeting. Finally, findings suggest substantial heterogeneity across product and consumer characteristics. This work contributes to personalized recommendations and retargeting literature and provides considerable implications for practitioners.
|Keywords||Field experiment, Personalization, Product recommendations, Retargeting|
|Conference||38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017|
Tsekouras, D, Li, T, & Gong, J. (Jing). (2018). Onsite Retargeting: A Randomized Field Experiment. In ICIS 2017: Transforming Society with Digital Innovation. Retrieved from http://hdl.handle.net/1765/104608