{"title":"Distance and Local Competition in Mobile Geofencing","authors":"Y. Ho, S. Dewan, Yi-Chun Ho","doi":"10.2139/ssrn.3154767","DOIUrl":"https://doi.org/10.2139/ssrn.3154767","url":null,"abstract":"The growing ubiquity of GPS-enabled smartphones has ushered in a new era of location-based services and online-to-offline commerce. Geofencing is one instance of this broader phenomenon, and it is being widely adopted in the context of retail, restaurant, entertainment, and other local services. By targeting users on mobile apps while they are in the vicinity of physical establishments, there is potential for higher levels of engagement and consumption of the products or services on offer. However, the level of consumer interest is likely to depend on distance from the establishment and local competition in the surrounding areas. This study examines the impact of these two factors on consumer response to geofence advertising at different points in the purchase funnel, namely the click stage and conversion phase. Analyzing a rich data set from one of the leading location-based marketing agencies and using a sophisticated Bayesian empirical methodology, we find that having one more competitor in the consumer’s vicinity reduces click-through rate by about 1%, and a 1-mile increase in distance is associated with a 17.6% reduction in conversion rate. These and other results suggest that accounting for distance and local competition in data-analytic mobile targeting would increase both the return on advertising spend and consumer welfare.","PeriodicalId":260272,"journal":{"name":"IRPN: Other Innovation & Geography (Topic)","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122244421","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Patuelli, G. Linders, Rodolfo Metulini, D. Griffith
{"title":"The Space of Gravity: Spatially Filtered Estimation of a Gravity Model for Bilateral Trade","authors":"R. Patuelli, G. Linders, Rodolfo Metulini, D. Griffith","doi":"10.2139/ssrn.2640867","DOIUrl":"https://doi.org/10.2139/ssrn.2640867","url":null,"abstract":"Bilateral trade flows traditionally have been analysed by means of the spatial interaction gravity model. Still, (auto)correlation of trade flows has only recently received attention in the literature. This paper takes up this thread of emerging literature, and shows that spatial filtering (SF) techniques can take into account the autocorrelation in trade flows. Furthermore, we show that the use of origin and destination specific spatial filters goes a long way in correcting for omitted variable bias in an otherwise standard empirical gravity equation. For a cross-section of bilateral trade flows, we compare an SF approach to two benchmark specifications that are consistent with theoretically derived gravity. The results are relevant for a number of reasons. First, we correct for autocorrelation in the residuals. Second, we suggest that the empirical gravity equation can still be considered in applied work, despite the theoretical arguments for its misspecification due to omitted multilateral resistance terms. Third, if we include SF variables, we can still resort to any desired estimator, such as OLS, Poisson or negative binomial regression. Finally, interpreting endogeneity bias as autocorrelation in regressor variables and residuals allows for a more general specification of the gravity equation than the relatively restricted theoretical gravity equation. In particular, we can include additional country-specific push and pull variables, besides GDP (e.g., land area, landlockedness, and per capita GDP). A final analysis provides autocorrelation diagnostics according to different candidate indicators.","PeriodicalId":260272,"journal":{"name":"IRPN: Other Innovation & Geography (Topic)","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125090875","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Alternative Form of Mapping Potential and Active Small Business Agglomerations","authors":"Ninko Kostovski, Milen Baltov","doi":"10.2139/ssrn.2241268","DOIUrl":"https://doi.org/10.2139/ssrn.2241268","url":null,"abstract":"Clusters, concentrations of businesses and research institutions, show high capacity for job creation, innovation and development. They can also, foster the access to the EU development funds. However, in the case of small business, their early tracing can be very difficult with top-down methods. The statistical activity code mapping, fairly appropriate for big industries, fails due to the apparent discrepancies between the registered and the actual activity of the small businesses. In addition, these clusters are often built around focal firm located out from the region in focus. We surveyed concentrations of small businesses in three regions in Macedonia using structured focused groups. We relied on the capacity of the local business support and regional development agencies and the institutions of higher education in these regions, infrastructure established with prior programs of the Government, and various donor agencies. We managed to discover several existing and potential small business clusters that should be further supported by the related national policy. Since the structure of the small business support network is similar, we conclude that this approach can prove useful in other countries and regions, with similar business development services network.","PeriodicalId":260272,"journal":{"name":"IRPN: Other Innovation & Geography (Topic)","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129235105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}