Establishment Of A Strategic Total Direct Mail Model To Bring Customers Into Auto Dealerships

This paper uses statistical science and mathematical programming to develop a strategic Total Direct Mail Model “TDMM” with the aim of bringing more customers into auto dealerships. The core systems used in the model are (1) a customer purchase data analysis system to increase dealer visits, (2) a DM content optimization system to target customer preferences, (3) a system for strategically determining who should be sent direct mail based on who actually visits the dealership, and (4) a DM promotion system for sales staff to increase market share. These four systems are integrated and strategically applied to promote dealer visits. The authors then apply this model at an actual auto dealership, where they are able to successfully increase dealer visits

Modelling Customers Lifetime Value For Non-Contractual Business

Due to the increasing importance placed on customer equity in today's business environment, many companies are focusing on the notion of customer loyalty and profitability to increase market share. Building a successful Customer Relationship Management (CRM), a company starts from identifying true value and customer loyalty because customer value can provide basic information to spread more targeted and personalized marketing. In this paper, customer lifetime value (CLV) is used for customer segmentation in non-contracted businesses. The results obtained from this study are very acceptable. CLV has successfully analyzed and produced a fairly strong assumption about the value possessed by each customer whether they will make a return transaction or not

Integrated Marketing Communication Project for American Aerogel

This project created a marketing plan for a specific company “American Aerogel” to increase sales and to penetrate Clinical Research Organizations; thus, the project considered the comprehensive integrated marketing communication in the company. A survey was used to determine whether the marketing strategy selected for the project—direct marketing email—would be beneficial for the company to help it increase brand awareness in the clinical research field. More specifically, emailing a marketing campaign to a specific target audience is likely to increase results. Therefore, data from 150 surveys about email marketing was collected and analyzed to determine the usefulness of email marketing for American Aerogel. Findings indicated that Clinical Research Organizations were receptive to email marketing to initiate and continue a business relation. Also, the study found that using a specific target market could maximize email response speed rate and facilitate a prospective sale

Dynamic and Competitive Effects of Direct Mailings

We propose a dynamic direct mailing response model with competitive effects, where purchase and promotion history are incorporated. We then map the dynamic competitive interactions amongst the firms sending the mailings. We investigate the short- and long-run impact of a direct mailing on the revenues of the firm sending the mailing and on the revenues of its competitors. The model accounts for unobserved heterogeneity across households. We estimate the model in the charitable giving setting, as sending direct mailings represents a large part of charitable fundraising activity. Households often receive direct mailings of different charities within a short period of time and competition is highly relevant. We construct a unique database by merging the databases of three large charity organizations in the Netherlands. This results in household level data on the direct mailings received and the donations made by each household to each charity. Our results show that charitable direct mailings are short-run complements, that is, the direct mailings tend to increase the total pie that is divided among the charities. At the same time, the charitable direct mailings are long-run substitutes. In the long run they fight for a piece of the pie that households have available for charitable giving.Competition;Dynamics;Direct Mailings

Direct Marketing: Theoretical delimitation and impact on consumer buying behavior

Direct marketing has become one of the most important communication tools for marketers. Direct marketing activities' budget is even higher than that for traditional advertising mass media, such as TV. However, there is not a single definition. On the contrary, several definitions have emerged in the literature. In this work, we establish a theoretical delimitation for direct marketing concept from those different perspectives analysed in marketing literature. In addition, an empirical analysis is presented in order to know if (really) direct marketing activities affect consumer buying behavior. From the results, key managerial implications are extracted in order to improve and optimise marketers' communicational budget

Catch them if you can : the effect of reminder direct mailings on the return rate of first-time donors

Despite the relevance of interactive marketing strategies, most nonprofit organizations rely on a marketing mix with a focus on direct marketing. Previous research shows that, by optimizing the mailing frequency, organizations are able to distinguish their mailing from other mailings that donors receive. However, some organizations, such as blood services, struggle to convert the frequency recommendations into their marketing practice. As donation events occur irregularly and blood donors are only able to donate a certain number of times, mailing strategies have to result in blood donations. This study examines a strategy in which a reminder direct mailing follows the regular invitation a few days before a particular donation event. A field experiment was conducted with 396 donors; 203 received the double mailing. Surprisingly, the results from hierarchical binary logistic regressions do not reveal any differences between the experimental groups. A single direct mailing approach is recommended, leading to considerable cost savings

Dynamics in charity donation decisions:Insights from a large longitudinal data set

Despite the vast body of research on charitable giving and its drivers, no research has investigated the longitudinal dynamics of individual donation decisions. We analyzed unique data with nearly 300,000 real donation decisions made by more than 20,000 individuals for a period of 10 months. Each decision entailed a choice of what to do with money received for completing a survey (on average, Euro 0.67 per survey): keep it or donate to charity. We found that most of the participants (89%) always chose to keep the money. Within the group of people who sometimes kept and sometimes donated the money (that is, Switchers), we find that people do not change their decision very often (cf. moral consistency). However, the likelihood of donating increases when people kept the money the previous time, and the amount at stake differs substantially (both positively and negatively). Finally, once Switchers donated, they are more likely to keep the money next time if they can earn more (for example, 2 Euro now versus 0.50 Euro last time), signaling moral compensation. These longitudinal data provide a first step to better understand charity donation decisions, not only in terms of a more nuanced description of decision-makers but also in terms of the dynamics of charity donations

"Rotterdam econometrics": publications of the econometric institute 1956-2005

This paper contains a list of all publications over the period 1956-2005, as reported in the Rotterdam Econometric Institute Reprint series during 1957-2005.

"Rotterdam econometrics": publications of the econometric institute 1956-2005

This paper contains a list of all publications over the period 1956-2005, as reported in the Rotterdam Econometric Institute Reprint series during 1957-2005

Annual Report 2004: Econometric Institute

Annual Report (2004) of the Econometric Institute, Erasmus School of Economics, Erasmus University RotterdamThe year 2004 has been a year of extremes. The Erasmus School of Economics faced large deficits, and also the Econometric Institute had its share. For the first time in many years, temporary contracts could not be continued. Even some full time positions were cancelled or their requirements were changed. The new focus of the School (starting from 2005 onwards) dismissed a strong emphasis on mathematics and statistics as research areas, and it embraced areas as finance, marketing and economics in general. Much to our relief, it turned out that the focus of our Institute had already been diversified to these areas, so for many of us only few changes were required. On the other hand, our Institute kept its high level of teaching, culminating in being awarded the best programme in the country, and also many of its members kept their substantial research achievements at the usual top level. We had many visitors, reports and publications, and our conference participation was high. We also saw our first successful entries in the leading business and management journals, while maintaining a high level of contributions to the core journals in management science and econometrics. The year 2004 has been tough, for all of us, but without any doubt, I can say that we made it through. We have seen that even in hard times, the members of our Institute stand together, and there are many reasons to believe that we will continue to do so