1. Pradeep chintagunta university of chicago

2. 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?

3. 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 (Rs x)
11clinics/326p
14 clinics/466p
15 clinics/489p
Peers more effective than health workers in bringing in new suspects for testing
Low-cost $3.00 per referral increase probability of making referrals
25-35% of the cost of outreach by health workers
Goldberg, Macis & Chintagunta
Incentive Type

4. 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

5. 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%.