Edward Malthouse | Northwestern University (original) (raw)

Papers by Edward Malthouse

Journal of Interactive Marketing, 2005

elationship marketing assumes that firms can be more profitable if they identify the most profita... more elationship marketing assumes that firms can be more profitable if they identify the most profitable customers and invest disproportionate marketing resources in them. While intuitive, such strategies presume that a firm can accurately predict the future profitability of customers. In particular, we argue that the feasibility of such strategies depends on the probabilities and costs of misclassifying customers. This paper presents a detailed empirical evaluation of how accurately the future profitability of customers can be estimated. We evaluate a firm's ability to estimate the future value of customers using four data sets from different industries. Out-of-sample estimates of predictive accuracy are provided. We examine (1) the accuracy of predictions,

International Journal of Advertising, Jul 3, 2017

ABSTRACT The role of electronic word-of-mouth (eWOM) has been recognized by marketers and academi... more ABSTRACT The role of electronic word-of-mouth (eWOM) has been recognized by marketers and academics, but little research has examined the impact of eWOM on purchase behavior. Building on dual-process models of persuasion, this study aims to disentangle the effect of different online review features (i.e. argument quality, review valence, review helpfulness, message sidedness, source credibility and reviewer recommendation). Using product reviews and purchase data from an online retailer website, we investigate the financial impact of online product reviews on purchase decisions. The results demonstrate the persuasive power of different review features that are derived from dual-process models of information processing. Managerial implications on how advertisers and companies should design and manage online product reviews are offered.

Journal of Service Management

PurposeRecommender systems (RS) are designed to communicate with users and drive consumers' e... more PurposeRecommender systems (RS) are designed to communicate with users and drive consumers' engagement with the platform. However, little is known about the strength of this relationship and how RS can create stronger consumer engagement (CE) with the platform brand. Addressing this gap, this paper examines the role of RS in converting consumers' short-term engagement with the RS to their longer-term platform engagement.Design/methodology/approachTo explore these issues, the authors review key literature in the areas of CE and RS, from which they develop a conceptual framework.FindingsThe proposed framework suggests RS design as an important precursor to consumers' RS use, which is expected to affect their platform engagement/disengagement, in turn impacting the firm's long-term outcomes. The authors also identify key managerial tactics, strategies and challenges to aid the conversion of consumers' RS to CE.Research limitations/implicationsThis research raises pe...

Advances in Advertising Research IX, 2018

Handbook of Research on Customer Engagement, 2019

Customer Engagement Marketing, 2017

The transactional perspective of branding is being increasingly critiqued for its shortcomings, a... more The transactional perspective of branding is being increasingly critiqued for its shortcomings, and more relational, engagement-based marketing approaches are being advocated. Here, the authors argue for adopting a consumer engagement-based strategy that is posited to contribute to a superior consumer experience. Based on this perspective, the authors develop the concept of “experientially engaging branding,” defined as one in which consumers make specific cognitive, emotional, and behavioral investments for the purpose of gaining a valued experience from interacting with the brand. The chapter addresses how metrics for experientially engaging brands differ from traditional ones, and whether they perform better than others. It provides insight into why they might perform better, and whether all brands can be experientially engaging. The chapter concludes by discussing experientially engaging brands in social media and the future.

Journal of Advertising, 2020

Journal of Marketing Analytics, 2019

Journal of the Association for Consumer Research, 2018

Coalition loyalty programs (CLPs) have been gaining popularity in recent years. A CLP (e.g., Air ... more Coalition loyalty programs (CLPs) have been gaining popularity in recent years. A CLP (e.g., Air Miles in Canada, the Middle East, and the Netherlands) is a third-party program that lets its customers accrue points by transacting at a variety of businesses and retailers, and customers can redeem rewards from the CLP when they have enough points. In this research, we propose that a CLP can stimulate existing customers’ participation by providing information convenience and reward convenience. By analyzing a unique data set, we find that the additions of a mobile app (information convenience) and a point-of-sales (POS) redemption structure (reward convenience) increase accruals and redemptions for those who adopt them, particularly for occasional customers. We also find that the two tactics are synergistic for customers who accrue but rarely redeem. As for active customers, information convenience and reward convenience encourage further redemptions, which reduce a CLP’s liability. Finally, we posit that customers follow the principle of least effort, as they tend to accrue the additional points by spending on convenient, high-penetration categories. From our findings, we recommend that a CLP should invest in increasing its convenience proposition, such as building a mobile app or allowing POS redemptions, to encourage customers’ continuing participation.

Journalism & Mass Communication Quarterly, 2019

This study explores the television news repertoires and voting behaviors of American citizens in ... more This study explores the television news repertoires and voting behaviors of American citizens in the 2016 U.S. election. The results reveal notably different repertoires, some defined by ideologically driven selective exposure, others defined by political interest selective exposure (preference/disinterest in the news), and others that are seemingly neutral. In turn, both total news exposure and exposure diversity positively predict voter turnout, with exposure diversity demonstrating the stronger effect. Moreover, there was a clear relationship between exposure to partisan news media and voting in that respective party’s primary election.

International Journal of Advertising, 2018

Journal of Service Management, 2018

Purpose The purpose of this paper is to study consumer engagement as a dynamic, iterative process... more Purpose The purpose of this paper is to study consumer engagement as a dynamic, iterative process in the context of TV shows. A theoretical framework involving the central constructs of brand actions, customer engagement behaviors (CEBs), and consumption is proposed. Brand actions of TV shows include advertising and firm-generated content (FGC) on social media. CEBs include volume, sentiment, and richness of user-generated content (UGC) on social media. Consumption comprises live and time-shifted TV viewing. Design/methodology/approach The authors study 31 new TV shows introduced in 2015. Consistent with the ecosystem framework, a simultaneous system of equations approach is adopted to analyze data from a US Cable TV provider, Kantar Media, and Twitter. Findings The findings show that advertising efforts initiated by the TV show have a positive effect on time-shifted viewing, but a negative effect on live viewing; tweets posted by the TV show (FGC) have a negative effect on time-shi...

International Journal of Advertising, 2017

Journal of Advertising Research, 2015

Journal of Marketing Management, 2016

The articles by Leckie, Nyadzayo, and Johnson (2016), Marbach (2016) and Dessart, Veloutsou, and ... more The articles by Leckie, Nyadzayo, and Johnson (2016), Marbach (2016) and Dessart, Veloutsou, and Morgan-Thomas (2016) presented in this issue provide a suitable reflection of the current state of e...

Advances in Advertising Research (Vol. VII), 2016

Marketers’ and advertisers’ thinking about processes is linear (Schultz, 2015). For a long time m... more Marketers’ and advertisers’ thinking about processes is linear (Schultz, 2015). For a long time marketers have used the AIDA Model (attention, interest, desire and action) to explain how customers process advertising messages and make purchase decisions. In 2009, McKinsey introduced an alternative view, the Loyalty Loop, which acknowledges two-way character of brand-customer relationship, but still assumes that a customer follows some kind of pathway (i.e., “consumer decision journey”).

Developments in Marketing Science: Proceedings of the Academy of Marketing Science, 2016

Shopping or buying with a mobile device (M-shopping henceforth) has become an increasingly import... more Shopping or buying with a mobile device (M-shopping henceforth) has become an increasingly important topic that has drawn much attention in both industry and academia. Forrester Research (Husson 2014) predicts that media companies and retailers receive more than 50 % of online traffic from mobile devices. M-shopping is also expected to grow substantially compared to the rest of the retail space. Deloitte Consulting (2012) predicts that $31 billion worth of retail revenues will be transacted using mobile devices by 2016. While the overall retail revenue annual growth rate is forecasted at 4 % for 2015 through 2016, mobile commerce is estimated to grow at 21 %–29 % (Mulpuru et al. 2013). The growth in M-shopping provides ample potential for marketers and advertisers to leverage the channel. Using a unique dataset from an Internet-based firm, we are able to compare customers’ behavior based on whether they use mobile devices, i.e., smartphones, tablets, and/or personal computers (PCs) when composing, modifying or placing orders online. We find that purchase probability and order size, i.e., the size of the order in dollars, increase as customers become accustomed to M-shopping. In addition to the cumulative effect, orders that are made with one or more mobile devices are more likely to lead to shorter times-to-next-order than PC-only orders. However, not all mobile orders are the same. Orders made with two or more device types are larger than those that are made with only a single device, e.g., smartphone-only orders. Orders made with all three device types, i.e., smartphones, tablets and PCs, are the largest. We propose that customers utilize mobile devices because the technology provides ubiquitous convenience, which leads them to incorporate M-shopping into their habitual routines. Managerially, we recommend that firms should not only promote their mobile platforms, but also encourage their customers to engage through multiple devices, including PCs. Firms can increase their customers’ spending by leveraging anytime, anywhere access and customer engagement via multiple devices.

SSRN Electronic Journal, 2015

The use of social media environments that enable consumers to engage with a brand publically is o... more The use of social media environments that enable consumers to engage with a brand publically is of increasing interest to marketers. In particular, contests in which consumers create user-generate content (UGC) offer the potential of actively engaging consumers with a brand and thereby directly affecting consumer purchases. This research demonstrates that prompting consumers to create UGC that engages consumers in actively thinking about or elaborating on a personal goal that is relevant to a brand does affect actual buying decisions. It shows that the impact of this engagement via content elaboration is not accounted for by mere participation in the social media activity or rewards offered to participants. The research adds to the growing literature on the importance of consumer engagement and validates the link between engagement and actual purchase behaviors.