Cited by 207Marketing and Advertising StrategiesDigital Marketing and Social MediaConsumer Market Behavior and Pricing

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Practice Prize Paper—Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression

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Wiesel, Thorsten, Pauwels, Koen, Arts, Joep·2011·Marketing Science

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Abstract

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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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
Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Published: 2011-07
Volume: 30
Issue: 4
Pages: 604-611
ISSN: 0732-2399 (ISSN-L)
1526-548X
DOI: 10.1287/mksc.1100.0612
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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Practice Prize Paper—Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression

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