Applications of Internet Clickstream Data: Past, Present and Future

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Applications of Internet Clickstream Data Past,
Present and Future

• Wendy Moe
• Associate Professor of Marketing
• R.H. Smith School of Business
• University of Maryland
• wmoe_at_rhsmith.umd.edu
• October 2007

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The Value of the Internet
Interactive Customer Experience

• Interactive Customer Experience
• Experience at website is driven by the customer
• Each experience is unique depending on the
  customer
• Experience both (1) reflects who the customer is
• and (2) influences the customer

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The Value of the Internet
Interactive Customer Experience
Customized Customer Experience

• Customized Customer Experience
• Ability to offer customer unique experiences
• Ability to act in real time
• Example Amazons product recommendations

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The Value of the Internet
Interactive Customer Experience
Customized Customer Experience
Clickstream Data

• Clickstream Data
• Enables customization
• Marketing research
• in a field setting
• is non-intrusive
• Research Questions
• What are the right models?
• What are the right measures?

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Overview of past research

• Descriptive
• Predictive
• Normative

• Search across sites
• Breadth of search (Johnson et al 2004)
• Cross-site visiting (Park and Fader 2004)
• Search within site
• Identifying segments of online shoppers (Moe
  2003)
• Website browsing and buying (Bucklin and Sismeiro
  2003, Sismeiro and Bucklin 2004)
• Identifying the role of attributes in the search
  and purchasing process (Moe 2006)

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Overview of past research

• Descriptive
• Predictive
• Normative

• Predicting purchase conversion rate based on
  historical behavior (Moe and Fader 2004)
• Predicting purchase based on in-store path data
  (Montgomery et al 2004)

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Overview of past research

• Descriptive
• Predictive
• Normative

• The impact of pop-up promotions (Moe 2006)
• How can we customize the overall experience at
  the webstore?
• What are the most effective marketing
  interventions?
• Who are the best targets for marketing
  interventions?

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Opportunities and Challenges

• Opportunities
• Individual-level behavior
• Behavioral based targeting
• More than just purchasing behavior
• Challenges
• Capturing latent behavioral traits
• Developing the right measures
• Experimentation
• Current Research
• The Impact of a New Competitive Entry on Online
  Consumer Search

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Customer Search Behavior
SEARCH SET 1
SEARCH SET 2
SEARCH SET 3
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What affects search?
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Comparing Pre-Entry to Post-Entry Search Drivers
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Comparing Changes in Search Propensity across
Customers
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Modeling Search and the Impact of a New
Competitive Entry

• Decompose search propensity into
• Preference for the site
• Inertia toward the site
• Dynamic effects
• When a new competitor enters
• Preferences for incumbent sites shift in a
  predictable manner
• Inertial effects are easily disrupted
• Incumbents benefiting from inertia are more
  vulnerable to a market disruption
• Inertial customers are more vulnerable to a
  market disruption

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Customer Search Behavior
SEARCH SET 1
SEARCH SET 2
SEARCH SET 3
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New Customer Environments

• Search Engine Activity
• As a predictor
• As a behavior to understand
• User Generated Content
• As a predictor
• As a behavior to understand
• As another factor to evaluate
• Social Networks

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Thank You

• wmoe_at_rhsmith.umd.edu
• www.wendymoe.com