Essays on Online and Multi-Channel Marketing The Harvard community has made this article ...

163 Pages·2016·2.84 MB·English

by  Lingling Zhang

Essays on Online and Multi-Channel Marketing
Citation
Zhang, Lingling. 2016. Essays on Online and Multi-Channel Marketing. Doctoral dissertation,
Harvard Business School.
Permanent link
http://nrs.harvard.edu/urn-3:HUL.InstRepos:32744402
Terms of Use
This article was downloaded from Harvard University’s DASH repository, and is made available
under the terms and conditions applicable to Other Posted Material, as set forth at http://
nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Share Your Story
The Harvard community has made this article openly available.
Please share how this access benefits you. Submit a story .
Accessibility

Essays on Online and Multi-Channel Marketing

A dissertation presented
by
Lingling Zhang
to
The Marketing Unit at Harvard Business School
in partial fulfillment of the requirements
for the degree of
Doctor of Business Administration
in the subject of
Marketing

Harvard University
Cambridge, Massachusetts
May 2016
© 2016 Lingling Zhang
All rights reserved.
Dissertation Advisors: Professors Doug J. Chung and Anita Elberse Lingling Zhang

Essays on Online and Multi-Channel Marketing

ABSTRACT
Firms increasingly adopt online and multi-channel marketing strategies to reach and
persuade consumers. Therefore, designing an effective marketing mix is critical to their success.
The aim of my dissertation is to understand the strategy behind firms’ channel choices and assess
marketing effectiveness. It consists of three large-scale empirical studies examining several
important aspects of online and multi-channel marketing.
My first essay focuses on the business-to-business (B2B) interactions involving online
platforms, which serve as new channels for traditional merchants to reach consumers and grow
business. Using data from the daily deal market, we specify a structural model that examines
consumer choices on the demand side and firm strategies on the supply side. In particular, we
incorporate merchant heterogeneity and allow prices to be jointly determined by merchants and
platforms through negotiation; both of these match the real-world complexity but are challenging
ii i
to be modeled theoretically. Our results show how platform size, commission rate, and the
allocation of price-bargaining power jointly determine the price setting and the platform
differentiation among merchants.
Essay two studies to what extent marketers’ actions can affect the reach of video
advertising campaigns through influencing the amount of user-generated content. To do so, we
compile a unique and comprehensive data set on ad campaigns conducted on video sharing sites
such as YouTube. We find that several instruments under the control of advertisers can influence
how much the reach of a campaign benefits from user-generated content. Our results underscore
that, with the right strategy, advertisers can substantially increase the number of impressions that
their online video campaigns yield.
Essay three assesses the effect of advertising and personal selling in the U.S. presidential
elections, where advertising involves both candidate campaign ads and those sponsored by
outside political interest groups and personal selling takes the form of field operations. We set up
a structural model that treats campaign allocation as endogenous and also allows the campaign
effect to vary across individuals. Among the many findings, we show that field operations are
more effective for partisan voters whereas candidate campaign ads are effective for non-
partisans. Interestingly, ads from outside political groups are more effective for partisans than for
non-partisans. Our counterfactual results indicate that field operations play a critical role in the
iv
2008 and 2012 elections while the importance of ads is only substantial in a close competition
like the 2004 election.

v
TABLE OF CONTENTS
Acknowledgements ...................................................................................................................... vii
Essay 1 | Strategic Channel Selection with Online Platforms: An Empirical Analysis of the Daily
Deal Market ..................................................................................................................... 1
Essay 2 | Viral Videos: The Dynamics of Online Video Advertising Campaigns ....................... 56
Essay 3 | The Air War versus the Ground Game: An Analysis of Multi-Channel Marketing in
U.S. Presidential Elections ............................................................................................. 95
References ................................................................................................................................... 147

v i
ACKNOWLEDGEMENTS
I started my doctoral training after having worked as a statistical consultant for several
years. Life then was easy but I wasn’t content. The desire for learning made me decide to go
back to school. I am truly grateful for having had the opportunity to study and research at HBS;
during my stay here I constantly felt challenged and motivated. As I reflect on the past six years,
I am full of gratitude and appreciation. I wouldn’t have survived to write a dissertation were it
not for the invaluable advice, support, and friendship from so many people over the years.
First of all, I am deeply indebted and forever grateful for my two beloved advisors. Doug
has been and will continue to be my source of inspiration. I cannot possibly count all the things
that I learned from him. To say the minimum, he is the one who taught me to enjoy hard working
and take pride in conducting high-quality research. His passion, curiosity, and persistence have
inspired me profoundly. I cannot thank him enough for never giving up on me, for holding high
expectations for me, and for selflessly investing time in me. Without his guidance, support, and
encouragement, I would not have been who I am as a researcher. I am also indebted to Anita.
She took me under her wings when I had little idea what research was. She encouraged me to
aim high, to be independent and persistent, most importantly, to be confident in myself. She is
my role model for commitment to true passion of work.
I am also deeply grateful for Sunil, who has always encouraged me to think big and think
deep. He cares about students and generously offers me time and advice whenever I need them.
vi i
He sets an example for what a great educator and mentor ought to be. I am fortunate to have
received his guidance and will always keep it in mind in my career.
There are many other former and current faculty members in the Marketing unit who
have helped me tremendously—Donald, Das, Thales, Tom, Ayelet—and the list goes on. I will
miss the wonderful group of Marketing students, whose friendship means a lot to me. Of course,
I am the saddest to say goodbye to my officemate, Bhavya, who has stood by me and
accompanied me through all the ups and downs over the years. We are each other’s most
adamant supporter and cheerleader. In many ways, she is part of the family.
I am also fortunate to be a member of the 2010 DBA cohort. I love all of them. Shelley,
my dear friend and sister, is a most eager sounding board for my preliminary ideas. She has so
many qualities that I admire; I consider it a privilege to have her friendship. I will greatly miss
the numerous conversations we had at lunches and walks.
My friends—in particular, Yang, Ge, Yuan, Yuanyuan, and Xiaomu—contribute to my
life in a way beyond words. They cheer me up when I feel down and keep me grounded when it
is due. They are always there for me, willing to help in whichever way necessary. I am forever
grateful for their loyalty and friendship.
Lastly, I want to thank my family. Thank you, mom and dad, for loving me as who I am!
Being your daughter is the luckiest thing in the world. My sister, who has grown to be a best
friend, takes on a lot of family responsibilities so that I can focus on work. My husband,
vi ii