1 | 27-01-2021
Identifying the characteristics of online
traffic builders: The importance of first
purchases
Thesis Defense Bas Nijhuis
S2750775
Supervisor: T.H.A. Bijmolt
Introduction
› Traffic builder
› Traffic builder in online environment not identified › Several benefits
› ‘an online traffic builder is a first purchase that increases the
Research Question
› What product characteristics determine the first online
purchase and what product characteristics of first purchases increase the number of products bought?
› RQ1: What products are remarkably more often a first
purchase instead of additional purchases?
› RQ2: How do different first purchases influence the basket
Literature review
Methodology 1/3
› Data provided by online construction materials retailer › Contained 181.858 observations
› qty_invoiced == qty_ordered
Methodology 3/3
› First purchase model, binary DV › - Logit Model
› Additional Purchase model, numerical DV, count data › - Negative Binomial model
- 3 violations
Results
Discussion
› First Purchases
› Higher priced products & products that are bought in higher quantities
are more likely to be a first purchase
› Discounts do not show to affect the first purchase decision in a substantial manner
Discussion
› Additional purchases
› Lower priced first purchases & first purchases that offer themselves more variety
increase the expected number of additional purchases › First purchases that are discounted & first purchases that are
bought in higher quantities
Conclusion
› Theoretical implications
- Posits the idea of online traffic builders
- Variety offered by a product has positive effects - Adds to the understanding of the customer journey
› Managerial implications
- Retailers need to find the balance of the aspects - Retailers could focus on products bought in larger
quantities
