How consumer segments influence
the effect of online and offline
advertisement on sales
Maaike Kort
S2354101
1. Introduction
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For research
› Both supervised and
unsupervised
segmentation
› Segmentation for both
online and offline
advertisement
› Advertisement exposure
For practise
› Make advertisement more
effective
› Easier to segment, target
and position
› More data driven
decision-making
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14-7-2017 | 5 Offline advertisement TV Print Radio Direct mail Display Online advertisement Display Search E-mail Social media Digital video (YouTube & RTL)
Advertisement channels
Sales amount (in €) H1 H2Supervised segmentation
Unsupervised segmentation
Offline advertisement has a positive effect on sales
H1: Online video advertisement has a positive effect on sales
H2: Multichannel advertisement does not have a significant effect on
sales
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5. Results
Estimate
St. error
T value
Pr(>|t|)
Intercept 37.1459 0.8139 45.638 <2e-16*** Online advertisement 15.8689 5.6319 2.818 0.00484 ** Offline advertisement 1.7427 0.9615 1.813 0.06991 . Multichannel advertisement -7.3263 6.0833 -1.204 0.22846
Residual standard error: 178.4 on 61924 degrees of freedom
Loyalty
Age
Income
High loyalty negative
effect on multichannel
No moderator effects
Low income positive
effect on online
High loyalty positive
effect on online
Relatively high income
positive effect on
offline
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Supervised segmentation, moderator effects
Unsupervised segmentation: 3 cluster-solution
14-7-2017 | 930% of the households
Families
Age
25-45
Income
moderate –
high
Positive effect online and
offline advertisement
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Hypothesis Confirmation
Offline video advertisement leads to higher sales Supported
H1: Online video advertisement has a positive effect on sales. Supported H2: The effect of offline and online advertisement on sales together is
stronger than their separate effects. Not supported
H3a: Loyal consumers have positive effect on the effect of
I) online advertisement, II) offline advertisement
III) the combination of online and offline advertisement on sales. H3b: The age of different consumer groups has a moderating effect on H3c: Income differences have a moderating effect on
H3a: Partially supported I) Supported
II) Not supported
III) Partially supported H3b: not supported H3c:
I) Supported II) Supported III) Not supported H4: Natural clusters defined by data will enhance the relation between online
and/or offline advertisement and sales Supported
› Managerial implications
• Effect of online advertisement leads to a higher
increase in sales than offline advertisement
• ROI should be calculated
• Single segmentation criterion has a higher impact than
multiple
• Brand managers can better target their video
commercials to a group of consumers based on one
socio-demographic or behavioural characteristic
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