Pradeep chintagunta university of chicago

Better Marketing for a Better World: The 3 Cs AMA 2018 Question: What would research in your area look like if we adopted this perspective?

Context We live in a socially networked world Research has examined the impact of referrals on outcomes of relevance for marketers Examples: Kumar et al (2010), Godes & Mayzlin (2009) Question: Can we leverage patients’ (customers’) social networks to overcome tuberculosis under-detection in India (to increase sales of our products)? Pay attention to: i) technological tacitness; ii) circumstantial sensitivity; iii) cost (Aside) Methodology used: field experiments Outreach type Contact tracing (anonymous) (identified) Peer-to-peer outreach Encouragement 12 clinics/430p 15 clinics/415p 16 clinics/485p Unconditional (Rs150) 12 clinics/418p 14 clinics/554p 15 clinics/344p Conditional (Rs100 + 150x) 11clinics/326p 14 clinics/466p 15 clinics/489p Peers more effective than health workers in bringing in new suspects for testing Low-cost incentives @ $3.00 per referral increase probability of making referrals 25-35% of the cost of outreach by health workers Goldberg, Macis & Chintagunta Incentive Type

Counterfactuals Output from most structural models is a counterfactual of some sort Example: Misra & Nair (QME 2011) – propose “profit-improving, theoretically-preferred changes to the extant compensation scheme.” Question: Can we think of counterfactuals that focus on how marketing may be able to improve welfare of consumers and other agents (e.g., school teachers) Pricing across stores in a supermarket chain – moving from chain to zone to store Adoption of teachers on Donorschoose Help government understand how teachers behave to compensate for lack of government funding Kim, Ishihara & Singh Chintagunta, Dube & Singh (Aside) Methodology used: Stuctural models

Corporate actions Impact on consumption of smokers Total cigarette consumption Number of trips Often, we leverage actions by firms + quasi-experimental variation to understand effects of marketing variables (e.g., Shapiro 2018 “border strategy”) Question: Can we leverage marketing actions to assess “better world” outcomes (CVS stopping tobacco sales); or government actions (soda tax, MA ban on pharmacies’ tobacco sales)? Treatment: 410 smokers who purchased > 1 pack of cigarettes from EC in 18 months prior Control: 561 smokers buying > 1 pack of cigarettes from non-EC chain and none at EC (Aside) Methodology used: “reduced- form” analysis Prices paid TG lowers frequency of trips with minimal distortion in the quantity purchased per trip (so total declines) Most of the effects are due to the impact on occasional rather heavy smokers. Advertising effect on non-smokers (8216 households) # Weekly trips Weekly expenditures P(visiting EC) ↑ 1:81% Average trip size ↓ 1:02%. Avg revenue ↑ by 0:77%.