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“When Push Comes to Shop”: On Identifying the Effects of Push Notifications on Mobile Retail Sales

By Dongwon Lee and Anand Gopal


Despite the widespread use of push notifications in mobile commerce, there is no systematic evidence of the efficacy of these notifications on desired behavior, in the form of additional views or sales of the targeted product. This study investigates the direct effects of push notifications on the views and sales of targeted products, as the primary outcome. On the targeted product’s landing page, consumers are also introduced to recommended products. As a secondary outcome, we test for the indirect effect of the push notification on the views and sales of the recommended products associated with the targeted product. Using a difference-indifference approach to exploit a natural experiment, we find that push notifications lead to a remarkably high effect on views of targeted products and a reasonably large sales effect. We also observe that recommendation systems help amplify push notification effect by leading customers deeper into the conversion funnel

Publisher: AIS Electronic Library (AISeL)
Year: 2016
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