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Essays on Consumer Online Search and...

Zhang, Shuo.

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Essays on Consumer Online Search and Digital Content Consumption.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Essays on Consumer Online Search and Digital Content Consumption./
Author:	Zhang, Shuo.
Published:	Ann Arbor : ProQuest Dissertations & Theses, : 2020,
Description:	127 p.
Notes:	Source: Dissertations Abstracts International, Volume: 81-10, Section: A.
Contained By:	Dissertations Abstracts International81-10A.
Subject:	Marketing. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=27832141
ISBN:	9798607310691

Essays on Consumer Online Search and Digital Content Consumption.
Zhang, Shuo.

Essays on Consumer Online Search and Digital Content Consumption. - Ann Arbor : ProQuest Dissertations & Theses, 2020 - 127 p.

Source: Dissertations Abstracts International, Volume: 81-10, Section: A.

Thesis (Ph.D.)--Washington University in St. Louis, 2020.

This item must not be sold to any third party vendors.

In my dissertation, I apply empirical quantitative methods to marketing research and investigate consumer online search and purchase patterns, as well as digital consumption behaviors and the potential implication for marketing managers. This dissertation consists of two chapters. Chapter 1 studies the consumer shopping channel choice when they search and shop for products online. Mobile phones have emerged as a major channel for online shopping as an alternative to PCs. Despite more consumers using mobile phones, the conversion rate on the mobile channel is lower than that on the PC channel. In this study, we propose a structural consumer search-and-purchase model that endogenizes the channel choice to explain the observed data pattern. Results suggest starting a search session using mobile phones is less costly, but intensive search is costlier. Consequently, mobile phones attract consumers who tend to have lower overall purchase interests and will search less. Based on the results, we use counterfactuals to explore how online retailers can customize their marketing strategies for consumers on the two channels. We find the optimal price on mobile is 2.7% lower than on PC. When sellers retarget non-purchasers by offering channel-specific coupons, the optimal coupon value is 6% higher for consumers on mobile than on PC. Sellers' profit increase will be 5.1% higher when the retargeting coupons are channel specific.Chapter 2 examines consumers' time-inconsistent preferences in digital content consumption and their strategic self-control behaviors. We use a unique dataset obtained from a major digital book platform in China, where consumers can pay either by chapters or by monthly subscription. One-third of consumers consistently choose to pay by chapters, even though monthly subscription would significantly reduce the monetary cost. We propose a dynamic structural model that incorporates time-inconsistent preferences and strategic self-control behaviors to rationalize overpaying behavior. We first analytically demonstrate the existence of a unique equilibrium, and show how, under steady states, overpaying for reading may be optimal for consumers. We then estimate the model from the data. Results show that there is a large segment of consumers who are highly price-sensitive. They are also willing to overpay to curb future consumption. Our counterfactuals show that eliminating the pay-per-chapter plan would hurt consumer welfare and the platform's profit. Eliminating the monthly subscription plan, however, would increase the platform's profit but reduce consumer welfare. We introduce a novel nonlinear pricing plan with volume surcharge and illustrate how it can simultaneously improve the platform's profit and consumer welfare.

ISBN: 9798607310691Subjects--Topical Terms:

536353
Marketing.
Subjects--Index Terms:

Consumer search

Essays on Consumer Online Search and Digital Content Consumption.
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245 1 0 $a Essays on Consumer Online Search and Digital Content Consumption.
260 1 $a Ann Arbor : $b ProQuest Dissertations & Theses, $c 2020
300 $a 127 p.
500 $a Source: Dissertations Abstracts International, Volume: 81-10, Section: A.
500 $a Advisor: Chan, Tat Y.;Gayle, George-Levi.
502 $a Thesis (Ph.D.)--Washington University in St. Louis, 2020.
506 $a This item must not be sold to any third party vendors.
520 $a In my dissertation, I apply empirical quantitative methods to marketing research and investigate consumer online search and purchase patterns, as well as digital consumption behaviors and the potential implication for marketing managers. This dissertation consists of two chapters. Chapter 1 studies the consumer shopping channel choice when they search and shop for products online. Mobile phones have emerged as a major channel for online shopping as an alternative to PCs. Despite more consumers using mobile phones, the conversion rate on the mobile channel is lower than that on the PC channel. In this study, we propose a structural consumer search-and-purchase model that endogenizes the channel choice to explain the observed data pattern. Results suggest starting a search session using mobile phones is less costly, but intensive search is costlier. Consequently, mobile phones attract consumers who tend to have lower overall purchase interests and will search less. Based on the results, we use counterfactuals to explore how online retailers can customize their marketing strategies for consumers on the two channels. We find the optimal price on mobile is 2.7% lower than on PC. When sellers retarget non-purchasers by offering channel-specific coupons, the optimal coupon value is 6% higher for consumers on mobile than on PC. Sellers' profit increase will be 5.1% higher when the retargeting coupons are channel specific.Chapter 2 examines consumers' time-inconsistent preferences in digital content consumption and their strategic self-control behaviors. We use a unique dataset obtained from a major digital book platform in China, where consumers can pay either by chapters or by monthly subscription. One-third of consumers consistently choose to pay by chapters, even though monthly subscription would significantly reduce the monetary cost. We propose a dynamic structural model that incorporates time-inconsistent preferences and strategic self-control behaviors to rationalize overpaying behavior. We first analytically demonstrate the existence of a unique equilibrium, and show how, under steady states, overpaying for reading may be optimal for consumers. We then estimate the model from the data. Results show that there is a large segment of consumers who are highly price-sensitive. They are also willing to overpay to curb future consumption. Our counterfactuals show that eliminating the pay-per-chapter plan would hurt consumer welfare and the platform's profit. Eliminating the monthly subscription plan, however, would increase the platform's profit but reduce consumer welfare. We introduce a novel nonlinear pricing plan with volume surcharge and illustrate how it can simultaneously improve the platform's profit and consumer welfare.
590 $a School code: 0252.
650 4 $a Marketing. $3 536353
650 4 $a Economics. $3 517137
653 $a Consumer search
653 $a Digital content consumption
653 $a Mobile economy
653 $a Time inconsistent preference
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690 $a 0501
710 2 $a Washington University in St. Louis. $b Economics. $3 1672998
773 0 $t Dissertations Abstracts International $g 81-10A.
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791 $a Ph.D.
792 $a 2020
793 $a English
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=27832141