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Practice Prize Paper—Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression
Open accessAbstract
Inofec, a small- to medium-sized enterprise in the business-to-business sector, desired a more analytic approach to allocate marketing resources across communication activities and channels. We developed a conceptual framework and econometric model to empirically investigate (1) the marketing communication effects on off-line and online purchase funnel metrics and (2) the magnitude and timing of the profit impact of firm-initiated and customer-initiated contacts. We find evidence of many cross-channel effects, in particular, off-line marketing effects on online funnel metrics and online funnel metrics on off-line purchases. Moreover, marketing communication activities directly affect both early and later purchase funnel stages (website visits, online and off-line information, and quote requests). Finally, we find that online customer-initiated contacts have substantially higher profit impact than off-line firm-initiated contacts. Shifting marketing budgets toward these activities in a field experiment yielded net profit increases 14 times larger than those for the status quo allocation.
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“This fragmented approach has resulted in limited understanding of how travellers move through the entire journey, particularly how experiences evolve across touchpoints and collectively shape outcomes such as satisfaction and loyalty (Wiesel et al., 2011).”
From Influencers and the choice of a travel destination: A customer journey and information processing perspective (2025) · cites this paper as Wiesel et al., 2011
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Do "Likes" in a Brand Community Always Make You Buy More?
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Valenti, A., Srinivasan, S., Yıldırım, G., & Pauwels, K. H. (2023) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-023-00962-2 · Cited by 25
“At the same time, contradictory evidence in the business-to-business sector suggests that direct mail is not effective in driving sales (Wiesel et al., 2011).”
Self-citationThe Comparative Performance of Online Referral Channels in E-Commerce
Duan, W., & Zhang, J. (2021) · Journal of Management Information Systems · doi:10.1080/07421222.2021.1962598 · Cited by 15
Modelling short-and long-term marketing effects in the consumer purchase journey
Cain, P. M. (2021) · International Journal of Research in Marketing · doi:10.1016/j.ijresmar.2021.06.006 · Cited by 36
“Wiesel et al. (2011) represents an early study, demonstrating off and online marketing interactions.”
BackgroundGao, L. X., Melero‐Polo, I., Ruz-Mendoza, M. Á., & Trifu, A. (2021) · Journal of Business and Industrial Marketing · doi:10.1108/jbim-02-2021-0100 · Cited by 18
The impact of ad positioning in search engine advertising: a multifaceted decision problem
Schultz, C. D. (2018) · Electronic Commerce Research · doi:10.1007/s10660-018-9313-z · Cited by 14
Bhatnagar, A., De, P., Sen, A., & Sinha, A. P. (2022) · Decision Support Systems · doi:10.1016/j.dss.2022.113844 · Cited by 14
Frankort, H. T. W., & Avgoustaki, A. (2021) · Journal of Management · doi:10.1177/01492063211016032 · Cited by 13
“We apply two-standard-error bounds to the point estimates, following the VAR literature (e.g., Sims & Zha, 1999) as well as standard practice in VAR applications in economics and finance (e.g., Bloom, 2009; Kelly & Jiang, 2014) and marketing science (e.g., Wiesel et al., 2011).”
BackgroundMethodHarmancioǧlu, N., & Tellis, G. J. (2018) · Journal of International Business Studies · doi:10.1057/s41267-018-0162-8 · Cited by 14
Lamberton, C. P., & Stephen, A. T. (2015) · SSRN Electronic Journal · doi:10.2139/ssrn.2675139 · Cited by 11
A Study on Malaysian Consumers’ Attitude and Behavioral Intention Towards Print Advertising
Chew, B. E., & Adis, A.-A. A. (2018) · International Journal of Marketing Studies · doi:10.5539/ijms.v10n2p132 · Cited by 10
“Based on data from Wiesel et al. (2011), online advertising generates 17 times more profit than print advertising.”
BackgroundMultiple Time Series Analysis for organizational research
Colicev, A., & Pauwels, K. H. (2020) · Long Range Planning · doi:10.1016/j.lrp.2020.102067 · Cited by 11
Self-citationKöster, A., Matt, C., & Heß, T. (2020) · Business & Information Systems Engineering · doi:10.1007/s12599-020-00660-1 · Cited by 15
The Effect of House Ads on Multichannel Sales
Goic, M., Álvarez, R., & Montoya, R. (2018) · doi:10.1016/j.intmar.2017.12.001 · Cited by 11
Online customer-initiated contacts and the development of profitable relationships
Cambra‐Fierro, J., Melero, I., & Sesé, F. J. (2017) · Electronic Commerce Research and Applications · doi:10.1016/j.elerap.2017.09.004 · Cited by 13
Truly Accountable Marketing: The Right Metrics for the Right Results
Pauwels, K. H. (2015) · doi:10.1515/gfkmir-2015-0001 · Cited by 11
Self-citationDIGITAL MARKETING PERFORMANCE EVALUATION METHODS
Gaitniece, E. (2018) · CBU International Conference Proceedings · doi:10.12955/cbup.v6.1145 · Cited by 10
“Wiesel et al (2011) concluded that customer-initiated contacts have, in comparison with companyinitiated contacts, yielded much better returns in the traditional environment.”
BackgroundAttribution Modeling In Digital Advertising
Nisar, T., & Yeung, M. (2017) · Journal of Advertising Research · doi:10.2501/jar-2017-055 · Cited by 10
“…cross-effects of online and offline media in terms of how customers move through the purchase funnel found a very high sales elasticity for AdWords (4.35) and much lower sales elasticities (0.05 and 0.04) for flyers and faxes (i.e., other sales channels), respectively (Wiesel et al., 2011).”
BackgroundInfluentialMoving Forward: The Role of Marketing in Fostering Public Transport Usage
Gijsenberg, M. J., & Verhoef, P. C. (2019) · Journal of Public Policy & Marketing · doi:10.1177/0743915619846869 · Cited by 12
Krywuczky, F., & Kleijnen, M. (2024) · Psychology & Marketing · doi:10.1002/mar.22104 · Cited by 8
Effects of online and offline advertising and their synergy on direct telephone sales
Lu, S., Singh, S., & de Roos, N. (2023) · Journal of Retailing · doi:10.1016/j.jretai.2023.06.001 · Cited by 8
Crecelius, A. T., Lawrence, J. M., Ogilvie, J. L., & Rapp, A. (2022) · Industrial Marketing Management · doi:10.1016/j.indmarman.2022.10.004 · Cited by 8
Modern (Multiple) Time Series Models: The Dynamic System
Pauwels, K. H. (2017) · International series in quantitative marketing · doi:10.1007/978-3-319-53469-5_4 · Cited by 8
Self-citation
Metadata
- Authors
- Wiesel, T., Pauwels, K., & Arts, J.
- Affiliations
- University of Groningen (NL)
- Özyeğin University (TR)
- Vrije Universiteit Amsterdam (NL)
- ORCID
- Pauwels, Koen
- Venue
- Marketing Science
- Published
- 2011-07
- Volume
- 30
- Issue
- 4
- Pages
- 604-611
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2141950067
- Cited by
- 207
- References
- 0
- Citations by year
- 2026: 7 · 2025: 17 · 2024: 7 · 2023: 12 · 2022: 18 · 2021: 17 · 2020: 21 · 2019: 16 · 2018: 16 · 2017: 16 · 2016: 17 · 2015: 13 · 2014: 13 · 2013: 10 · 2012: 3
- FWCI
- 16.15
- Type
- journal article
- Language
- en
- Open access
- green
- research.rug.nl
- Licence
- other-oa
- Locations
- Marketing Science (publishedVersion)
- eResearch@Ozyegin (submittedVersion)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (submittedVersion, other-oa)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (submittedVersion)
- Funders
- Pennsylvania State University
- Rijksuniversiteit Groningen
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Marketing and Advertising Strategies
- Social Sciences › Business, Management and Accounting › Marketing › Digital Marketing and Social Media
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Keywords
- marketing resource allocation, purchase funnel, digital marketing, offline marketing, cross-channel effects, B2B marketing, small and medium-sized enterprises, website visits
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