{"title":"Ad Blocking","authors":"Aleksandr Gritckevich, Z. Katona, M. Sarvary","doi":"10.2139/ssrn.3100524","DOIUrl":"https://doi.org/10.2139/ssrn.3100524","url":null,"abstract":"In recent years, ad blocking has become a significant threat to advertising-supported content. Adblockers typically negotiate with publishers, allowing some ads to go through in return for a payment, a practice called (partial) whitelisting in the industry. Ad blocking has a direct positive effect on consumers by reducing advertising intensity. On the other hand, the practice clearly hurts publishers and reduces their incentives to invest in content quality. Lower content quality, in turn has an indirect negative effect on consumers. This paper builds an analytic model to explore the net impact of ad blocking on consumers, how it depends on various market characteristics, and how uniformly it affects consumers. The results show that under a broad set of market conditions, total consumer surplus and even total welfare decline under ad blocking. Whereas some consumers are always better off with an ad blocker, for the average consumer, the impact of quality decline is larger than that of ad reduction. The analysis highlights the detrimental role of ad blockers’ current revenue model—in which value is created for the consumers but it is captured from publishers—in decreasing quality, consumer surplus, and total welfare. Analyzing the impact of varying levels of negotiation power between the ad blocker and publisher reveals that full negotiation power is not preferred by the ad blocker. A lower negotiation power allows the ad blocker to commit to less value extraction from the publisher, thereby leading to higher content quality. Additional model extensions show that the main results are robust. In the case of multiple publishers with different levels of competition between them, the strong negative effect of ad blocking on quality holds. This paper was accepted by Juanjuan Zhang, marketing.","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"210 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126093507","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":"An Empirical Study of National vs. Local Pricing by Chain Stores under Competition","authors":"Yang Li, Brett R. Gordon, O. Netzer","doi":"10.2139/ssrn.2916519","DOIUrl":"https://doi.org/10.2139/ssrn.2916519","url":null,"abstract":"Geographic price discrimination is generally considered beneficial to firm profitability. However, theoretical results point to conditions under which firms might prefer to price across markets uni...","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"13 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132360971","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":"In Search of Homo Economicus: Cognitive Noise and the Role of Emotion in Preference Consistency","authors":"Leonard Lee, On Amir, D. Ariely","doi":"10.1086/597160","DOIUrl":"https://doi.org/10.1086/597160","url":null,"abstract":"Understanding the role of emotion in forming preferences is critical in helping firms choose effective marketing strategies and consumers make appropriate consumption decisions. In five experiments, participants made a set of binary product choices under conditions designed to induce different degrees of emotional decision processing. The results consistently indicate that greater reliance on emotional reactions during decision making is associated with greater preference consistency and less cognitive noise. Additionally, the results of a meta-analytical study based on data from all five experiments further show that products that elicit a stronger emotional response are more likely to yield consistent preferences.","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122211197","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":"Measuring Consumer Risk-Return Tradeoffs","authors":"D. Goldstein, Eric J. Johnson, W. Sharpe","doi":"10.2139/ssrn.819065","DOIUrl":"https://doi.org/10.2139/ssrn.819065","url":null,"abstract":"Consumer choice occurs over multiple products and services, each comprising multiple risks. In this paper, we present a new market research technique to measure consumers' preferences over large spaces of risks. We first describe the method, present its psychological and analytical motivation, and then report the results of empirical tests of reliability and validity, both within testing sessions and across the span of one year. The method is used to estimate the coefficient of relative risk aversion and the loss aversion parameter for a sample of adults saving for retirement. The new technique passes tests of reliability and validation and captures individual differences based on age and income. It also identifies two sub-populations, one best fit by a more classical model of risk preference, and the other by a behavioral model which incorporates loss aversion.","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129578336","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":"On site: to opt-in or opt-out?: it depends on the question","authors":"S. Bellman, Eric J. Johnson, Gerald L. Lohse","doi":"10.1145/359205.359241","DOIUrl":"https://doi.org/10.1145/359205.359241","url":null,"abstract":"Permission marketing requires consumers' consent before a Web site can track them with cookies, or send them marketing email, or sell their data to another company. Yet a study conducted by Cyber Dialogue Inc. found that 69% of U.S. Internet users did not know they had given their consent to be included on email distribution lists. Using the right combination of question framing and default answer, an online organization can almost guarantee it will get the consent of nearly every visitor to its site. Although lists of people who have supposedly opted-in for permission marketing schemes are valuable sources of revenue for Web sites, high response rates alone do not mean these lists contain valuable customers. They systematically explored the influence of question framing and response defaults on consumers' apparent privacy preferences in two online experiments detailed. Participants in these experiments were members of the Wharton Virtual Test Market, an online panel of over 30,000 Internet users representative of the U.S. Internet population. Results of experiments highlight the need for all online consumers to pay close attention to what they agree to when they send responses to a Web site. If consumers had fixed policies about the privacy of their data, then asking them to opt-out or opt-in to a Web site's privacy policy would make no difference to their answer.","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"517 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123103317","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":"Predictors of online buying behavior","authors":"S. Bellman, Gerald L. Lohse, Eric J. Johnson","doi":"10.1145/322796.322805","DOIUrl":"https://doi.org/10.1145/322796.322805","url":null,"abstract":"Consumers worldwide can shop online 24 hours a day, seven days a week, 365 days a year. Some market sectors, including insurance, financial services, computer hardware and software, travel, books, music, video, flowers, and automobiles, are experiencing rapid growth in online sales. For example, in Jan. 1999, Dell Computer Corp. was selling an average of $14 million of equipment online per day, and Amazon.com has become the third largest bookseller in the U.S., despite being in business only since 1995. With projections that the Internet will generate consumer and business-to-business sales in excess of $294 billion by 2002, online retailing raises many questions about how to market on the Net.","PeriodicalId":352562,"journal":{"name":"Columbia: Marketing (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1999-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131470873","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}