BUSO38 - Digital Marketing (1) PDF

BUSO38 - Digital Marketing 1.​ Digital Marketing strategy Lecture 1 8/11 - Burak Tunca - Course Introduction and Digital Marketing Strategy -​ Creating a digital marketing AI assistant. 20% of the grade. Your bot must assist with a specific digital marketing challenge related to the cou...

BUSO38 - Digital Marketing 1.​ Digital Marketing strategy Lecture 1 8/11 - Burak Tunca - Course Introduction and Digital Marketing Strategy -​ Creating a digital marketing AI assistant. 20% of the grade. Your bot must assist with a specific digital marketing challenge related to the course topics. When reading course material focus on identifying challenges that AI can help. -​ Non-bot related part explaining the challenge and Bot related part with link to it. -​ Grade will be based on: The functionality of the bot, Bot instructions and knowledge base, Connection to and use of the course material (and other sources if necessary). -​ Final exam. 80% of the grade. Short-answer, multiple-choice, true/false type of questions. Not what is theory X, but about the intersection between theory X and Digital marketing -​ Marketing today - Advertising, once a creative industry, is now a data-driven business reliant on algorithms. -​ Why “digital marketing”? -​ Targeting specific consumers -​ Offers analytics -​ Return on investment! Cost efficient -​ Almost two thirds of ad spending is digital. -​ Alphabet (Google) and Meta are the top two companies with most Net Digital Ad Revenues. -​ W.E.I.R.D. -​ Unconnected populations -​ “We are a tech company that sells Pizza” - Domino’s Pizza CEO -​ AI strategy is catching up upon digital strategy. Your company doesn’t need a digital strategy -​ Transformation not digital - The value from technology does not come from technology itself, but from doing business differently (i.e., better) because the technology makes it possible. -​ Focus on “transformation”, not “technology” -​ Avoid silo thinking -​ Do not jump straight into cutting-edge tech -​ Tech leaders should not lead transformation alone -​ Digital transformation is a capability not a project Digital marketing communication in global marketplaces -​ Digital marketing communication: “Communication through digital or electronic media among businesses and consumers” -​ Compared with traditional communication, main advantage is interaction possibilities between the source and the recipient. That is, not a one-way street -​ The problem? Lack of an organizing framework for global companies to implement global digital communication strategies. Digital communication possibilities vary across markets. -​ Questions to ask ourselves: -​ What are the goals of our (global) digital communication? Formulate carefully selected goals  -​ Which digital communication channels should be used? -​ What types of digital content should be communicated? -​ How would the recipient respond to the digital communication (track and analyze responses). -​ B2C Digital interactions - Take-aways -​ Lack of research on brand activism related digital communications -​ Effects of digital communications on customer experience and customer engagement across cultures. -​ Effects of emerging digital media types e.g. AI or XR -​ Differences in consumer responses across cultures: Informative vs Non-informative. Static vs dynamic. Emotional vs cognitive vs conative. Authentic vs AI generated. -​ B2B Digital interactions - Takeaways -​ Cross-cultural differences in C2C digital communication goals and behaviors. -​ Influence of different types of chganneös and platforms in C2C digital communication -​ Influence of global customers on local customers. -​ C2B Digital interactions - take-aways -​ Focus on neglected objectives of C2B digital communications (eg consumers trying to improve brands offerings) -​ Cross-cultural differences in C2B digital communication behaviors -​ How to counter fake-reviews? -​ The role of AI chatbots in C2B communication Branding in a Hyperconnected World: Refocusing Theories and Rethinking Boundaries -​ Key theoretical perspectives in Branding -​ Firm perspective - Strategic approach, Financial approach. -​ Consumer perspective - Economic approach, Psychological approach -​ Society perspective - Sociological approach, Cultural approach -​ Hyperconnectivity = Proliferation of electronic networks of people, devices, and other entities. Traditional boundaries of branding are blurring and/or broadening. -​ New roles and functions of brands -​ Brands alone do not signal quality amids the market-generated information. Product > Brand in a hyperconnected world -​ Consumers communicate “who they are” and “which group they belong to” using brands (forming self-brand connections) -​ Brands as stewards of data privacy  -​ “Allow app to track your activity across other companies apps and websites” -​ Privacy. That´s Apple. -​ Brand value co-creation -​ Not only products, but also brand experiences are co-created -​ Brand meanings are co-created -​ How to create a new brand in the era of co-creation -​ Brand management in a hyperconnected world -​ How can we position and communicate a brand when we are not the sole owner -​ How are we supposed to measure the value of our brand? -​ How are we going to deal with brand crises? - Too many stakeholders building the brand = Many sources of brand crisis -​ New scopes of branding -​ Person brands - A brand that is also a real person ex: the Rock with Under armor, Tequila and Skin care -​ Idea Brands - A set of ideas become brands when the public refer to it with a specific label, affiliate with it, or promote it. Ex: pride, veganism -​ Place brands - ex: New York, Paris. Many are named Visit… Westerman (2017) Your company doesn’t need a digital strategy The article argues that companies should not focus on "digital strategies" centered around technology itself, but rather on broader transformation enabled by digital tools. True transformation comes from changing how a business operates, not from the technology alone. For example, using AI, IoT, or VR isn’t about the technologies; it’s about reimagining business practices. Examples include Asian Paints, which used basic technologies like ERP and mobile devices to evolve from paint manufacturing to comprehensive home solutions. Similarly, DBS Bank used chatbots to enter low-cost markets with a profitable mobile banking model, and Newport News Shipbuilding leveraged VR to enhance worker collaboration on complex shipbuilding projects. These cases illustrate that digital tools provide value when they enable strategic shifts in business models, processes, and customer engagement What is the primary argument presented in the text regarding digital strategy? ​ Answer: The primary argument is that companies do not need a specific digital strategy; instead, they need a better overall strategy that is enabled by digital technologies. What does the author mean by stating that "digital is not the answer" in the context of transformation? ​ Answer: The author argues that digital technologies alone do not provide value to a business. The true value comes from transforming how the business operates and serves its customers differently. What are the three dimensions of digital transformation as discussed in the text? ​ Answer: The three dimensions include: 1.​ Understanding customers better (analytics). 2.​ Optimizing maintenance processes. 3.​ Radically synchronizing operations or changing business models. How does the text illustrate the concept of digital transformation with examples from different industries? ​ Answer: The text provides examples such as: ○​ Asian Paints: Transitioning from a coating manufacturer to a provider of various services including design and home renovations, supported by ERP and analytics. ○​ DBS Bank: Using chatbots and digital models to enter low-cost markets while improving efficiency and customer satisfaction. ○​ Newport News Shipbuilding: Utilizing virtual reality technology to enhance the understanding of complex designs and streamline processes. What is the distinction between using technology for operational improvements versus digital strategy? ​ Answer: Using technology for operational improvements focuses on enhancing existing processes and capabilities (like using analytics for better customer understanding), whereas a digital strategy may imply a superficial focus on digital tools without addressing underlying business transformation needs. Why does the author claim that "you don’t need a digital strategy"? ​ Answer: The author claims this because a digital strategy can mislead organizations by emphasizing technology over fundamental changes in how business is conducted, thus missing the true value of digital transformation. Shankar et al. (2022) Digital marketing communication in global marketplaces: A review of extant research, future directions, and potential approaches The article explores the evolving role of digital marketing communication across global marketplaces by organizing its findings into four communication dyads and four primary dimensions of digital communication. It also highlights gaps in research and provides strategic recommendations for future studies and applications. 1. Communication Dyads: The study categorizes digital marketing communication into four main types:  ​ Business-to-Consumer (B2C): Primarily focused on engagement, brand awareness, and conversion efforts. ​ Business-to-Business (B2B): Emphasizes relationship-building, information exchange, and long-term partnerships. ​ Consumer-to-Consumer (C2C): Revolves around peer reviews, social influence, and user-generated content, with strong impacts on consumer perceptions and purchasing. ​ Consumer-to-Business (C2B): Involves feedback channels from consumers back to businesses, such as reviews and surveys, informing product development and customer service. 2. Four Dimensions of Digital Marketing Communication ​ Goals: These vary across dyads, with B2C often aimed at brand engagement and B2B targeting trust-building and knowledge sharing. C2C and C2B focus on credibility and consumer feedback. ​ Channels/Media/Platforms: Different digital platforms are used to meet each dyad’s unique needs. Social media and mobile apps are crucial across B2C and C2C, while B2B relies on email, webinars, and professional networks. Emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT) are noted for their potential to enhance communication across all dyads. ​ Content: The nature of content varies significantly, with B2C leaning toward high-engagement visuals and stories, while B2B uses more informative, expert-driven material. C2C benefits from authenticity in user-generated content, and C2B focuses on actionable insights gathered from customer input. ​ Responses: Businesses measure consumer engagement through behavioral data (clicks, conversions) and attitudinal feedback (surveys). This dimension helps businesses tailor digital strategies and assess campaign effectiveness. 3. Identified Research Gaps and Future Directions ​ Cross-Cultural Adaptation: The article calls for more in-depth exploration of cultural variations in digital marketing effectiveness, especially how privacy concerns and digital media synergies operate in diverse regions. ​ Privacy and Trust: As digital privacy concerns grow globally, researchers should focus on how privacy impacts consumer trust and engagement in various markets. ​ AI and Automation in B2B: There is a need for research on how AI can enhance B2B communication through automation, data analysis, and personalization. ​ Content Personalization Across Cultures: Given the variety of digital media preferences worldwide, studies should address how to personalize content that is culturally relevant, particularly in global B2C strategies. 4. Strategic Recommendations for Marketers  ​ Integrated Approach to Digital Platforms: Marketers should leverage a combination of channels tailored to each dyad's needs, ensuring that B2B and B2C approaches remain distinct yet adaptable across platforms. ​ Focus on Consumer Feedback (C2B): For deeper consumer insights, businesses should encourage and integrate consumer feedback to refine products and services. ​ Emphasis on Cultural Sensitivity: Especially for global campaigns, understanding regional digital behaviors and aligning content with cultural values is essential Sample Exam Questions & Answers 1.​ Question: What are the four main communication dyads in digital marketing communication discussed in the article? ○​ Answer: The four dyads are business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B). 2.​ Question: What is the purpose of defining digital marketing communication goals according to the article? ○​ Answer: Defining goals helps organizations tailor their digital communication strategies to meet specific objectives, such as brand awareness, engagement, consumer feedback, or sales. 3.​ Question: What are the three main components used to evaluate future research directions in digital marketing communication? ○​ Answer: The components are substantive issues, data requirements, and methods. 4.​ Question: In what ways do cultural differences impact digital marketing communication, according to the authors? ○​ Answer: Cultural differences influence consumer preferences for certain digital content, privacy concerns, and responses to marketing strategies, thus requiring firms to adapt their approaches across regions. 5.​ Question: What does the article argue to be a significant area of focus in global B2C digital communication? ○​ Answer: The article argues that personalization, real-time engagement, and the ability to adapt content for cultural nuances are critical in enhancing B2C communication effectiveness globally. 6.​ Question: Why is content considered a key factor in digital marketing communication? ○​ Answer: Content plays a pivotal role in engagement and brand perception, as relevant and targeted content increases consumer interactions and improves digital marketing outcomes.  7.​ Question: What research gap does the article highlight concerning digital media synergies? ○​ Answer: The article points out the lack of research on how digital media interact across various customer journey stages and platforms, particularly in an international context. 8.​ Question: How does the article define the role of privacy in digital marketing communication? ○​ Answer: Privacy is seen as increasingly vital as consumer concerns rise, necessitating strategies that balance personalization with privacy to build trust across global digital interactions 9. Which are the four main dimensions for digital communication? ​ goals, ​ channels/media/platforms, ​ content ​ responses. Swaminathan et al. (2020) Branding in a Hyperconnected World: Refocusing Theories and Rethinking Boundaries This article explores branding in a "hyperconnected world," where technology has intensified connections among people, devices, and information. The authors argue that this hyperconnectivity has significantly affected branding practices, introducing two main concepts: blurring and broadening of brand boundaries. Traditional ideas of brands as firm-controlled assets have expanded to include cocreation with consumers and other stakeholders. They investigate this shift across three perspectives—firm, consumer, and society—to address changing roles, value creation, and brand management approaches. Major Themes: 1.​ Blurring of Brand Boundaries: Hyperconnectivity means brands are no longer solely controlled by firms; consumers, partners, and social actors all cocreate brand meaning. 2.​ Broadening of Brand Boundaries: New entities, such as ideas and personal brands, have transformed the branding space. The role of brands now includes social activism, cultural influence, and network value. 3.​ Firm, Consumer, and Society Perspectives: The article examines how these perspectives must adapt to a world where brand meaning is shared, networked, and often driven by societal expectations of purpose and activism. Research Directions: The article proposes research on topics like brand trust in user-generated content, brand value creation in digital networks, managing brand crises in a decentralized context, and measuring brand value in the age of hyperconnectivity. Sample Exam Questions & Answers 1.​ Question: What does the term "blurring of brand boundaries" refer to in a hyperconnected world? ○​ Answer: It refers to the shift from firm-only control over brand meaning to a shared control with stakeholders, including consumers and partners, who cocreate the brand experience. 2.​ Question: What are the three perspectives the authors use to examine branding in a hyperconnected world? ○​ Answer: The three perspectives are firm, consumer, and society. 3.​ Question: What does the "broadening of brand boundaries" mean? ○​ Answer: It describes the expansion of branding to new entities like personal and idea brands, where brands play broader roles, including social and cultural influence. 4.​ Question: Why is brand value creation more complex in a hyperconnected environment? ○​ Answer: The complexity arises from the need to manage interactions across digital platforms, where stakeholders contribute to brand meaning, and brands must balance firm-generated and user-generated content. 5.​ Question: According to the article, why must branding strategies address cultural differences? ○​ Answer: In a hyperconnected world, brands reach global audiences with varied cultural expectations, requiring adaptation to local values and beliefs to maintain relevance and trust. 6.​ Question: What future research areas do the authors suggest in terms of brand management? ○​ Answer: Suggested areas include developing metrics for brand equity in networked environments, managing brand safety in digital advertising, and creating strategies for brand crisis management involving diverse stakeholders 2. Email marketing Lecture 2 14/11 - Burak Tunca - Email Marketing -​ Everybody has an email-adress -​ Why email marketing? Email delivers the highest ROI for marketers. -​ Preferred communication channels with brands among consumers Worldwide:  1. Email 2. SMS 3. Direct mail 4. Advertising -​ Many ignore/delete emails from brands -​ Marketing channels that enable US B2B Marketers to most effectively connect with prospective buyers: 1. Email 2. Phone 3. Events -​ Emails should work equally well on computer and phone. -​ Email marketing tactics (from a study asking respondents if they use them): -​ Mobile-friendly design -​ Personalization (beyond the name) -​ Email marketing automation -​ Interactive content -​ Privacy security features -​ Accessible design -​ Revamping of metrics to track performance -​ Use of AI -​ Study focus on consumer answers on email marketing -​ By far, discount codes and campaigns are most wanted by consumers in emails. -​ About one email a week is reasonable for consumers. -​ Familiarity and subject line are keys to opening emails -​ What makes you unsubscribe from a brand’s email list? 1.​ Too many emails 2. Lost interest in the content 3. Too much marketing/advertising 4. Irrelevant or uninteresting content 5. I did not sign up for it. -​ As with other methods, you will need a strategy -​ What are your goals? Why are we sending the email -​ Who are your customers? Where are they in the customer journey? What are their interests? -​ Do you need special software/external services? Most likely yes, especially for personalization and analytics -​ Is email the right channel for this communication? ex: reaching people who left something in their shopping cart -​ High-performing emails -​ Focus on a single objective -​ Hard-to-ignore subject line - short and concise - consider relevant keywords -​ Easy to read and comprehend - short sentences/paragraphs - avoid jargon/abbreviations. -​ Consistency with your overall content marketing -​ CAN-SPAM compliance - do not want it to get in the spam folder -​ Responsive design -​ Not to frequent, not to seldom -​ Incorporate visuals - images and videos -​ Personalization -​ Content and design equally important. -​ A/B testing (A/B-testning är en metod för att jämföra två versioner av något – ofta en webbsida, annons eller e-postutskick – för att se vilken som presterar bäst) - Test with purpose. -​ Sending emails based on user actions - Not based on the marketer, but based on behavior -​ Email as strategic Persuasion -​ Main RQ of Thomas et al. (2022) -​ “What type of email is most effective at driving the customer to open it, and is this the same type of email that is most effective at driving sales?” -​ The authors study three main specific issues -​ What types of email content trigger high vs. low persuasion knowledge? -​ Do the patterns of email effectiveness weaken over time? -​ Are there differences for consumers who opt-in to receive specific types of emails? -​ Method -​ Data -​ 5857 email campaigns from an online ticket reseller -​ 2% promotional, 79% CRM, 19% opt-in -​ over 2 million emails to over 67000 consumers -​ 9% of emails opened, 1.8% of opened emails click-through the website (0.2% of all emails) -​ 14% abandoned shopping carts -​ Unit of analysis – customer x week -​ Focal variables (Independent variables): -​ Types of emails -​ Promotional, CRM, Alert (opt-in) -​ Outcome variables (Dependent variables): -​ Click rate -​ Total spending -​ Shopping cart abandonment rate -​ Results -​ People more likely to open alert and CRM emails than promotional emails -​ Effectiveness of alert and CRM emails wear-out over time -​ Promotional emails also wear-out but likely to be opened later on initial negative reaction might dissipate, consumer copes with the persuasion -​ Opt-in and non-opt-in consumers respond similarly to promotional emails -​ The number of weeks since last purchase increases, the click rate decreases. -​ Spending is not driven by number of a specific type of email. - Mere exposure from clicking any type of email aids spending -​ Promotional emails reduces shopping cart abandonment - CRM emails least effective -​ Conclusions -​ Do our emails evoke persuasion knowledge? -​ Are we strategically thinking about the quantity and timing of our promotional emails? -​ Alert emails are opened more, but does not lead to more spending -​ Consumers are positive towards CRM emails - CRM emails can be used to drive traffic to the website, where promotions can be presented -​ The ultimate goal with the email campaign is not click-through, it is generating sales -​ We should use CRM and promotional emails in combination - Promotional emails can be sent after shopping cart has been created, CRM emails should be sent more consistently -​ Personalized email marketing in loyalty programs -​ -​ Low Tier + close distance to goal –> small psychological distance (low construal level) -​ Either or both tier and goal distance large -> large psychological distance (high construal level) -​ Affective vs. Cognitive appeals in email -​ Low construal level -> Affective appeals E.g., Being motivated by the higher elite services in the program -​ High construal level -> Cognitive appeals E.g., Being motivated by bonus points campaign -​ Study 1 -​ 109 students randomly assigned to one of four conditions (tier: high vs. low, goal distance: close vs. far) -​ You are in gold or base tier with more than 75% or less than 25% of the way from the next tier -​ Answered questions related to construal level -​ Confirmed the effect of tier and goal distance on construal level -​ Study 2 -​ Real email campaign from an airline frequent flyer program 239 email campaigns sent to 19,188 members -​ Cognitive/Affective appeal of the subject line -​ Tier level and goal distance -​ Outcome measure: Email open rate -​ Low tier close to the next tier respond better to affective appeals -​ Consumers high on a tier or far from the next tier respond better to cognitive appeals -​ Study 3 -​ 385 online participants randomly assigned to one of the 8 conditions: -​ Low vs. high tier level -​ Close vs. far goal distance -​ Cognitive vs. affective appeal -​ Outcome measure: Purchase intention  -​ Replicated the previous results and showed that “construal level” was the underlying mechanism Jacquelyn et al. (2022) Email Marketing as a Tool for Strategic Persuasion The article examines email marketing as a strategic persuasion tool and highlights how different types of emails—promotional, customer relationship management (CRM), and alert emails—affect consumer responses at various purchase stages. Here are the main points: 1.​ Types of Email and Their Objectives: ○​ Promotional Emails: These are overtly persuasive and include incentives like discounts to drive immediate action. Although they are less effective at generating high open rates, they significantly reduce shopping cart abandonment. ○​ CRM Emails: Designed to build long-term relationships, these emails share information or reminders. They generate higher open rates and spending but may lead to higher shopping cart abandonment if not carefully timed. ○​ Alert Emails: These emails are sent upon customer request (opt-in) to provide event-specific updates. They increase open rates but are mostly ineffective in directly impacting spending or reducing cart abandonment. 2.​ Persuasion Knowledge and Email Effectiveness: The Persuasion Knowledge Model (PKM) is used to analyze how consumers respond to perceived persuasive intent. High persuasion knowledge, often triggered by promotional emails, leads to consumer coping strategies, potentially reducing email effectiveness. Lower persuasion knowledge, associated with CRM emails, allows for longer engagement and less resistance, resulting in higher spending. 3.​ Advertising Wear-Out and Email Timing: Email effectiveness decreases with repeated exposure, a phenomenon called advertising wear-out. For CRM emails,  effectiveness fades over time, meaning they are most influential when freshly received. Promotional emails, however, show a non-linear wear-out, where responses might initially wane before becoming effective again. 4.​ Opt-In Consumer Responses: The study highlights that opt-in consumers, who actively request alerts, tend to respond more favorably to CRM emails than promotional ones, likely due to reduced resistance from a more relationship-focused communication style. This group’s higher engagement can make them a valuable segment for CRM-focused strategies that avoid overt persuasion tactics. 5.​ Strategic Recommendations: The article suggests combining CRM and promotional emails in a staggered approach to balance brand-building with incentivized purchases. Sending CRM emails consistently, supplemented by occasional promotional emails, can help maintain engagement, reduce cart abandonment, and optimize spending without overloading consumers with frequent direct sales appeals. This study provides actionable insights for marketers on optimizing email types, timing, and targeted messaging to enhance consumer engagement, minimize cart abandonment, and strategically use persuasion to foster long-term relationships and sales Question: What are the three types of emails discussed in the article, and what is the primary objective of each? ​ Answer: The three types are: ○​ Promotional Emails: Aim to drive immediate purchases by offering incentives like discounts. ○​ CRM (Customer Relationship Management) Emails: Focus on building long-term relationships through information-sharing and reminders. ○​ Alert Emails: Provide updates based on consumer requests, often about specific events, with the goal of maintaining engagement. Question: What is the purpose of the Persuasion Knowledge Model (PKM) in this study? ​ Answer: PKM is used to explain how consumers recognize and respond to persuasive intent in marketing emails. High persuasion knowledge leads consumers to cope with overt persuasion by disengaging or resisting, especially with promotional emails. Question: What does the article argue is the effect of "advertising wear-out" in email marketing? ​ Answer: Advertising wear-out refers to the reduced effectiveness of emails over time with repeated exposure. For CRM emails, effectiveness fades consistently with each exposure, while promotional emails show a non-linear wear-out, where responses initially drop but may increase again later. Question: According to the authors, why might CRM emails result in higher cart abandonment rates?  ​ Answer: CRM emails focus on brand-building rather than direct conversion, which can engage consumers without incentivizing immediate purchases. This may lead consumers to place items in the cart but abandon it if there is no compelling reason to complete the purchase. Question: How do opt-in consumers differ in their response to email types, and why is this important for marketers? ​ Answer: Opt-in consumers respond more favorably to CRM emails than to overtly promotional ones, likely because they perceive CRM emails as less intrusive. This suggests that brands should focus on relational rather than purely promotional messages with opt-in customers to build trust and engagement. Question: What strategic recommendation does the article make regarding the combination of CRM and promotional emails? ​ Answer: The article suggests staggering CRM and promotional emails, using CRM emails for consistent engagement and supplementing with occasional promotional emails to spur purchases. This combination helps balance engagement and conversion without overloading consumers with sales pitches. Question: What is the article's conclusion on the effectiveness of alert emails? ​ Answer: Alert emails are effective at increasing open rates but have limited impact on spending or reducing cart abandonment. They serve as engagement tools but are not sufficient alone for driving purchases Zhang and Liu-Thompkins (2024) Personalized email marketing in loyalty programs: The role of multidimensional construal levels This article investigates personalized email marketing within loyalty programs, focusing on how personalization can enhance consumer engagement and loyalty. By applying Construal Level Theory (CLT), the study examines how tier level and goal distance in loyalty programs impact consumers' responses to different types of message appeals (cognitive vs. affective). 1.​ Construal Level Theory (CLT) in Loyalty Programs: ○​ Tier Level: Represents the vertical dimension of construal, where consumers in higher tiers adopt a higher construal level, responding to more abstract, cognitive messages. ○​ Goal Distance: Refers to the horizontal dimension; consumers closer to their goal (next loyalty tier) are more influenced by concrete, affective messages. 2.​ Interaction of Tier and Goal Distance:  ○​ Boolean-Like Mechanism: The study finds that consumers’ tier level and goal distance interact, leading to a construal level determined by both dimensions. For instance, consumers at low tiers who are close to their next goal respond best to affective appeals, while those at higher tiers or further from their goal prefer cognitive appeals. 3.​ Cognitive vs. Affective Appeals: ○​ Affective Appeals: Messages that evoke emotions and are effective for consumers at a lower construal level (low tier, near-term goal). ○​ Cognitive Appeals: Messages focusing on information or rational incentives are more effective for those at a higher construal level (high tier, far-term goal). 4.​ Research Findings: ○​ Two studies confirm the effectiveness of tailored message appeals based on tier and goal distance, with data from real loyalty program campaigns. These findings support the use of personalized marketing in loyalty programs to align with consumer mindsets and improve engagement outcomes. 5.​ Implications for Marketers: ○​ Message Timing and Appeal Matching: Marketers should consider tier and goal distance when designing email content, alternating between affective and cognitive appeals based on these factors. This approach can enhance the relevance and appeal of marketing messages, ultimately leading to higher loyalty and customer satisfaction within loyalty programs. Question: What are the two main dimensions in loyalty programs that influence consumers' responses to personalized emails? ​ Answer: The two main dimensions are tier level (vertical dimension) and goal distance (horizontal dimension). Question: What is the purpose of applying Construal Level Theory (CLT) in the context of personalized email marketing in loyalty programs? ​ Answer: CLT helps marketers understand how consumers' mental distance, shaped by tier level and goal distance, affects their preferences for cognitive or affective appeals in marketing messages. Question: What is meant by a "Boolean-like mechanism" in the study, and how does it function? ​ Answer: The Boolean-like mechanism describes how tier level and goal distance work together to determine a consumer’s construal level. A low construal level occurs only when both tier and goal distance are low (close to goal, low tier), favoring affective appeals, while a high construal level (favoring cognitive appeals) arises when either or both dimensions are high. Question: What kind of message appeal is most effective for low-tier consumers who are close to reaching their next goal, and why? ​ Answer: Affective appeals are most effective for low-tier consumers close to their next goal because they align with the consumers' lower construal level, which is more receptive to emotional and concrete messages. Question: How do high-tier consumers or those far from their next goal respond to different message appeals, according to the authors? ​ Answer: High-tier consumers or those far from their next goal respond better to cognitive appeals since their high construal level makes them more responsive to abstract, information-oriented messages. Question: What does the study suggest as a key strategy for marketers using email marketing in loyalty programs? ​ Answer: The study suggests tailoring email content by alternating between cognitive and affective appeals, depending on consumers’ tier level and goal distance, to align the message with consumers’ mental construal level and enhance engagement. Question: Why might loyalty program members show stronger responses to personalized emails, as argued by the authors? ​ Answer: Loyalty program members are more likely to trust the company, feel invested in the program, and share personal information, which increases their receptiveness to personalized communication tailored to their status and goals. 3. Social media marketing Lecture 3 21/11 Social media marketing -​ Social media marketing -​ Is increasing. -​ Highest adoption of social media: 1. United Arab Emirates 2. Bahrain 3. Kuwait. -​ They have a good digital infrastructure -​ The world’s most used social platforms: 1. Facebook 2. Youtube 3. Whatsapp 4. Instagram 5. Tiktok -​ 16-24 year olds use social media most -​ Time spent using social media apps: 1. Tiktok 2. Youtube 3. Facebook -​ Why do people use a certain social media (KOLLA presentation) -​ Younger (16-24) tend to follow more influencers on social media. -​ Study with marketers -​ Many do not have a clear social media marketing strategy -​ What is the primary reason that you use social media at your organization? Raising brand awareness was the biggest answer. Other things should be considered as well, such as boosting engagement with customers. -​ What channels are you currently using for organic social strategy at your organization? Facebook, Instagram, Linkedin, YT. -​ Which do you think provide the most benefit for your business? Instagram, Linkedin, Facebook. -​ They want to spend less time on X and more on Instagram, TikTok and Linkedin. -​ Social commerce -​ Not about when you click a link in a post to the ecommerce website, but instead when a company does everything through social media, purchasing directly on social media? -​ The biggest concerns about social commerce is that people do not want to payment information on SoMe and are worried that they will not get their money back. -​ Therefore → Easy returns /refunds, Clear descriptions and images, Loyalty rewards, Ratings/reviews from buyers. -​ Most bought products in social commerce are Beauty, Clothes, Home, Health and wellness, Food. -​ WeChat and Mini Programs -​ Livestream shopping -​ SoMe as a search engine -​ ca 30% of Gen Z and Millenials prefer to search on social media over search engines. -​ Ex: best restaurants in Lund -​ GenAI -​ Top benefits of using GenAI for social media marketing: Increased efficiency, easier idea generation, Increased content production, Enhanced creativity. -​ Top challenges: maintaining authenticity -​ Claude AI -​ Virtual influencers -​ Hyperrealistic humans -​ Hyperrealistic non-humans -​ Non-realistic non-humans -​ Non-realistic humans -​ Social media - not only online -​ Signs in real life - “Open your snapchat”, hashtags, “We are also on Facebook”. -​ Social media crises -​ Macaroni and cheese -​ Li et al. (2023) -​ Main SoMe research streams -​ Promotion and selling outlet -​ Communication and branding channel -​ Monitoring and intelligence source -​ CRM and value cocreation platform -​ General marketing and strategic tool. -​ Managerial implications -​ Using social media as a selling platform - social media personnel as salespeople -​ Harmony between the product/service attributes, social media platform and target audience. -​ Routines for social listening and responding -​ Social media as a CRM Tool -​ Social media as a core marketing strategy -​ Meta-Analysis of Social Media Influencer Impact -​ Social Media Influencer (SMI) -​ “individuals who have accrued a sizable and engaged following on one or more social media platforms , and who possess the power to shape attitudes, opinions, and behaviors of their audience through online content” (Freberg et al. 2011) -​ SMIs have a stronger ability to endorse brands rather than traditional fame - Reach and impact of SMI critical -​ Three determinants of persuasiveness of SMIs (Ye et al. 2021) -​ Influencer Characteristics -​ Content Attributes -​ Consumer features -​ No single theory can capture SMI persuasiveness, six complementary theories identified: -​ 1 – Source Credibility Theory -​ 2 – Parasocial Interaction Theory -​ 3 – Congruity Theory -​ 4 – Persuasion Knowledge Model -​ 5 – Similarity-Attraction Theory -​ 6 – Two-Step Flow Model -​ Source Credibility Theory (Hovland et al. 1953) -​ Individuals are more likely to be persuaded by credible sources -​ Credibility -​ Expertise -​ Trustworthiness -​ Authenticity -​ Parasocial Interaction Theory Horton & Wohl (1956) -​ Audiences form imagined personal relationships with media personalities despite lacking direct, real-life interactions. -​ Attitudes and behaviors are influenced via identification, attachment, and emotional involvement -​ Congruity Theory (Osgood & Tannenbaum, 1955) -​ Individuals seek cognitive consistency when making evaluations and judgments -​ SMI – Consumer congruence -​ SMI – Product congruence -​ SMI – Brand congruence -​ Persuasion Knowledge Model (Friestad & Wright, 1994) -​ Individuals develop understanding of persuasion tactics and use this knowledge to interpret and respond to marketing efforts. -​ What happens when consumers recognize SMI content as advertising? -​ Similarity-Attraction Theory (Byrne, 1971) -​ Individuals are more likely to be attracted to and influenced by others who they perceive as similar to themselves. -​ Homophily (tendency to connect with others similar to us) between SMI and consumer -​ SMI Attractiveness -​ Two-Step Flow Model (Katz & Lazarsfeld, 1964) -​ Mass media influence opinion leaders, who then shape the opinions and behaviors of their followers. -​ SMI’s opinion leadership status -​ Informativeness of SMI content -​ Moderators of the relationships -​ Moderators make effects stronger or weaker -​ Platform Context (which platform) -​ Geographical Context (which country/culture) -​ Product Context (Utilitarian vs. Hedonic) -​ SMI context (What number of followers?) -​ Main findings -​ Source Credibility Theory -​ The most cogent explanatory framework -​ Strong effects of SMI credibility, trustworthiness, expertise on attitudes towards the influencer, content, and brand, as well as purchase intention, and engagement -​ Moderate effect of SMI authenticity on attitudes, insufficient data on behavioral outcomes -​ Similarity-Attraction Theory -​ SMI attractiveness significantly impacts attitudes toward the influencer, content, and brand, as well as purchase intention and engagement -​ Homophily significantly impacts attitudes toward the content, and brand, as well as purchase intention and engagement -​ Two-Step Flow Model -​ Insufficient data to examine the effects of SMI’s opinion leadership status and informativeness of SMI content on attitudinal outcomes -​ Opinion leadership and content informativeness have a strong influence on purchase intention and engagement -​ Congruity Theory -​ SMI – Consumer congruence -​ no significant effect on content attitudes -​ Significant effects on purchase intention and engagement -​ SMI – Product congruence -​ significant effect on influencer attitudes, but not on product or content attitudes -​ Weak effect on purchase intention, significant effect on engagement -​ SMI – Brand congruence -​ significant effect on influencer attitudes -​ Significant effect on purchase intention, but not on engagement -​ Persuasion Knowledge Model -​ Insufficient studies on the effect of ad recognition on attitudinal outcomes -​ Significant effect of ad recognition on purchase intention and weak effect on engagement -​ Main findings - Moderators -​ Distinct differences between Eastern and Western cultures -​ Trustworthiness more prominent in the East, attractiveness more in the West -​ Platform type -​ Deeper connections on YouTube and Instagram -​ Higher trustworthiness, lower congruence on LinkedIn -​ Product type -​ Stronger effects of trustworthiness and credibility for utilitarian products -​ Stronger effect of homophily for hedonic products -​ SMI context -​ Follower count augments credibility and attractiveness, lowers authenticity -​ Stronger influence of micro-influencers on purchase intention and engagement -​ Key Take-Aways -​ Still several gaps in SMI research -​ Limited methodological diversity -​ Prior assessment of SMI credibility, trustworthiness, and expertise crucial for companies -​ Consider SMIs congruent with the target group and brand/product -​ Platform selection is important -​ Virtual Influencers? -​ Consider drawbacks of SMIs -​ Spread of misinformation, mental well-being issues, unethical practices, social divisions... -​ Li et al. (2022) Social media in marketing research: Theoretical bases, methodological aspects, and thematic focus The article reviews research on social media in marketing, organizing it into five primary roles or “streams” in which social media functions as: 1.​ A Promotion and Selling Outlet – Social media platforms serve as promotional tools, helping businesses boost sales and attract customers. This role emphasizes social media’s potential to drive immediate purchase actions through transactional interactions, such as discounts, promotions, and direct advertisements. 2.​ A Communication and Branding Channel – Social media acts as a vehicle for branding and consumer engagement. Businesses use platforms to communicate their brand values, create content, and foster loyalty, with a significant focus on building long-term brand equity and establishing a consistent brand image across digital spaces. 3.​ A Monitoring and Intelligence Source – Companies leverage social media to gain insights into customer preferences, feedback, and emerging trends. Social listening and analytics enable firms to monitor brand sentiment, react to customer needs, and refine marketing strategies based on real-time data. 4.​ A Customer Relationship Management (CRM) and Value Co-Creation Platform – Social media facilitates interaction between brands and customers, allowing for personalized engagement and collaborative value creation. It also enables customers to share their experiences and provide feedback, contributing to a dynamic, co-created brand image. 5.​ A Strategic Marketing Tool – Social media supports broader marketing strategy and innovation, helping companies overcome resource constraints, expand market reach, and foster competitive advantages. This role emphasizes the adaptability of social media in aligning with long-term marketing goals and strategic brand positioning. Questions and Answers 1.​ What is the primary function of social media as a promotion and selling outlet? ○​ Answer: The primary function is to drive immediate sales through direct interactions, including ads, discounts, and promotions that prompt purchasing. 2.​ What are the three most important objectives when using social media as a branding channel? ○​ Answer: The objectives are to build brand equity, engage consumers meaningfully, and maintain a consistent brand image across platforms. 3.​ How does social media function as a monitoring and intelligence source? ○​ Answer: It allows businesses to gather insights into consumer sentiment, monitor brand reputation, and respond to trends, leveraging social analytics and customer feedback in real time. 4.​ What does “value co-creation” mean in the context of social media and CRM?  ○​ Answer: Value co-creation refers to the collaborative interactions where customers contribute to the brand through content creation, feedback, and active engagement, enhancing the brand’s value. 5.​ According to the authors, what strategic advantages does social media offer to marketers? ○​ Answer: Social media aids in expanding market reach, enhancing brand awareness, supporting customer engagement, and providing flexibility to adapt to long-term marketing strategies and goals Han & Balabanis (2023) Meta analysis of social media influencer impact: Key antecedents and theoretical foundations This article conducts a meta-analysis on the impact of social media influencers, identifying key antecedents and theoretical frameworks that shape influencer effectiveness. Here is a summary of the main points and concepts: 1.​ Key Theories Explored: ○​ Source Credibility Theory: The study highlights the importance of influencer credibility, trustworthiness, expertise, and authenticity. These factors enhance the persuasiveness of influencer messaging by fostering consumer trust and perceived reliability. ○​ Parasocial Interaction Theory: Explores how one-sided, seemingly personal connections between influencers and followers enhance engagement. Attributes such as attractiveness and similarity (homophily) strengthen these parasocial relationships, which can positively impact consumer attitudes. ○​ Congruity Theory: The study finds that alignment between influencers and their endorsed brands or followers increases message effectiveness. This theory underscores the significance of influencer-brand congruence in shaping consumer intentions and attitudes. 2.​ Additional Frameworks and Contexts: ○​ Two-Step Flow Model: Influencers act as opinion leaders, relaying information to their audience and increasing message reach through social interactions. ○​ Persuasion Knowledge Model: Recognizes that consumers develop an awareness of persuasive tactics. When audiences identify an influencer’s message as promotional, skepticism can increase, affecting the message's impact. 3.​ Methodological Insights: ○​ The study examines diverse influences, such as the geographical context, platform type, and product category. For example, influencer effectiveness differs across regions, with Eastern consumers showing heightened trust in influencers compared to Western audiences, where self-enhancement motives are more dominant. 4.​ Findings on Influencer Characteristics:  ○​ Factors like credibility, attractiveness, opinion leadership, and content informativeness have the strongest correlations with positive consumer outcomes. For behavioral effects, congruence between influencers and brands enhances purchase intentions, while parasocial connections drive loyalty and engagement. 5.​ Practical Implications: ○​ Marketers should prioritize influencers who exhibit credibility, authenticity, and align well with the brand's identity. For different product types (e.g., utilitarian vs. hedonic), leveraging appropriate influencer attributes can optimize engagement. 6.​ Theoretical Implications: ○​ The study suggests expanding established theories to account for digital dynamics, like updating the Persuasion Knowledge Model for the social media landscape. It also highlights areas for further research, particularly around influencer types (mega vs. micro) and context-specific effects. Questions and Answers 1.​ Question: What is the purpose of Source Credibility Theory in the context of social media influencers? ○​ Answer: Source Credibility Theory explains how influencer traits like credibility, trustworthiness, expertise, and authenticity impact message effectiveness by enhancing consumer trust and willingness to accept recommendations. 2.​ Question: What are the three main dimensions of Parasocial Interaction Theory in influencer marketing? ○​ Answer: The three dimensions are attractiveness, perceived similarity (homophily), and emotional connection, which together strengthen the follower’s attachment and receptiveness to an influencer’s messages. 3.​ Question: How does Congruity Theory apply to influencer-brand alignment, and why is it important? ○​ Answer: Congruity Theory suggests that when an influencer’s image aligns with the brand’s values, it fosters cognitive consistency, leading to greater acceptance of the message and positive consumer attitudes toward both the influencer and the brand. 4.​ Question: What does the article argue is a significant factor in consumer skepticism according to the Persuasion Knowledge Model? ○​ Answer: The article notes that when consumers recognize an influencer's content as promotional, it triggers persuasion knowledge, often leading to skepticism and reducing the message’s effectiveness. 5.​ Question: What are two contextual factors that the article finds to moderate influencer impact, and how do they influence consumer reactions? ○​ Answer: Two key contextual factors are geographical location and platform type. For example, Eastern consumers often exhibit higher trust toward  influencers, while platform differences (like Instagram’s focus on visuals versus YouTube’s longer content) affect how consumers perceive credibility and engagement. 4. Search Engine Marketing Lecture 4 - Burak Tunca - Search Engine Marketing -​ Nobody tricks Google without getting punished. They want to control the algorithm. -​ Youtube is the second biggest search engine. -​ How does Google work? -​ It is not a live search of the internet. It is like spiders crawling the web to find the most relevant sites. What is relevant is based on certain factors like quality of the website and links linked to it. -​ What is SEO? -​ The practice of optimizing a website to achieve the highest possible ranking on the search engine results pages (SERPS) -​ Applies also to other areas such as YT, SoMe, App store or Google play, AI Search etc. -​ On-page vs Off-page SEO -​ SEO -​ KOLLA VIDEO Rich Snippets /Schema Markup - Google structural data helper. -​ Implementing SEO - On-page -​ Content and keywords should be consistent! -​ Title tag: Use the keywords as much as possible and close to the beginning -​ URL: Keyword in the page URL -​ Main content: Use keywords in relevant context -​ Meta description: Include the keywords in context. -​ Optimize images with descriptive “alt tags” include keywords in context if possible -​ Work on external links - Links from your content towards authoritative websites can help SEO. -​ Internal links - Topic cluster -​ Off-page -​ Work on building link popularity -​ Work on backlinks (links reaching your website) -​ Both quality and quantity of backlinks -​ Links from social media, real & credible sources -​ Links from universities and governments carry more weight -​ VIDEO -​ Do we search on computers? -​ Google indexes mobile-site first since 2019 -​ Do we only “type” search queries? -​ Voice search marketing - Optimization - Writing in short and natural tone -​ Use featured snippets and schema markups -​ Target question and conversational keywords -​ Add a FAQ section -​ Visual search marketing - optimize images for visual search - high resolution, main focus, check recognizability of of your images E.g., Google Vision AI tools -​ Descriptive file names -​ Descriptive alt texts -​ Generative Engine Optimization (GEO) - Is our content visible to GenAI Engines? -​ What are search ads? -​ Companies paying to come highest up after a search on google. -​ Also called pay-per-click ads. Advertiser pays only when someone clicks on the ad. -​ SEO - Keywords Research -​ What are people searching for? -​ How many people are searching for it? (volume) -​ What is the level of competition? -​ Your focus should be creating a library of high-quality content related to the topic of your business -​ Quality score -​ Google ranks the ads based on the bidding amount and the Quality Score to determine who will see the ad and if your ad is worth top placement. -​ QS is determined by: -​ Your expected CTR -​ Ad relevance -​ Landing page experience -​ Keyword selection strategies in SEO -​ Method -​ Data on organic clicks on three company websites (online retailer, culinary school, health care provider) for relevant search queries to these three firms and their competitors, for a month. Data from the first three pages of the SERP -​ Main findings -​ High ranking, high online authority, high relevance to search query -​ -> high organic click rate -​ When the search query is informational (vs. navigational or transactional), higher authority, but not higher relevance, leads to higher organic clicks -​ When looking for product information consumers click on high-authority sites, even if they are not very relevant to the query -​ When the search query is transactional (vs. navigational or informational), higher relevance, but not higher authority, leads to higher organic clicks -​ When looking for products to buy, consumers click on highly relevant sites, even if they do not have high authority -​ Construal matching in Online search -​ Problem -​ Search ads campaigns do not often consider different stages in the customer journey -​ Campaigns are often targeted at consumers’ transactional goals, neglecting informational or exploratory goals. -​ The mismatch between ad content and consumer goals might lead to fewer clicks. -​ Theoretical Framework -​ Construal Level Theory (Liberman and Trope, 1998) -​ Main premise: The larger the psychological distance (spatial, temporal, social, etc.) between the person and a focal object, the more abstract the person’s mindset -​ In the customer journey, as we approach the purchase goal, psychological distance become smaller -​ As psychological distance changes during customer journey, consumers’ construal levels (abstract vs. concrete) will shift as well. -​ Pilot Study -​ Is there actually variation in search queries’ concreteness? -​ Study 1 -​ Participants self-reported their latest search as informational vs. transactional and reported the first website they visited after the search -​ Transactional goals lead to more concrete searches -​ At the informational stage consumers less likely to visit an ecommerce or corporate website. -​ Study 2 -​ 2 (journey stage: informational vs. transactional) x 2 (search results: abstract vs. concrete) experiment -​ Repainting the living room scenario -​ Transactional goal leads to more concrete searches -​ Consumers more likely to click on the search result that matched their construal level -​ Study 3 -​ Participants randomly assigned to three customer journey stages (informational, intermediate comparison, transactional) -​ Laptop scenario  -​ Participants entered their query to a search engine, reported the link they would choose to click. They were also shown three search results for a laptop with 3 different degrees on abstractness-concreteness.’ -​ At the intermediate stage, consumers conduct more abstract searches and prefer more abstract search results compared with the transactional stage. -​ But rather similar to the informational stage -​ Study 4 -​ 2 (decision stage: informational vs. transactional) x 2 (search results: abstract vs. concrete) experiment -​ Grill scenario. Search followed by search results (matching the journey stage or not) -​ Participants reported goal progress if they visited those search results -​ Also search satisfaction and processing fluency was measured -​ In addition to the previous findings, construal matching influence search satisfaction, perceived goal progress, and processing fluency -​ Study 5 -​ Field experiment to examine actual click behavior in a real-world context -​ Three campaigns for a cosmetic firm based on “buy”, “best”, “how” keywords (+ ten cosmetics-related terms) -​ “How” was included for it is unclear, “buy” is concrete, “best” is abstract -​ Consumers who searched for those keywords randomly saw one of the two ads for the brand (abstract vs. concrete version) -​ Real-world evidence for mindset-ad matching -​ Firms receive better click-through rates -​ Conclusions -​ Consumers are at different construal levels at different stages of the customer journey -​ Search ad campaigns should acknowledge the shifts in consumer mindsets -​ Consumers are more satisfied with matching ads -​ Firms receive better CTR with reduced costs -​ Search ads should be viewed as a part of the customer journey, not only as the transactional stage Nagpal and Petersen (2021) Keyword selection strategies in search engine optimization: How Relevant is Relevance? The article examines keyword selection strategies in search engine optimization (SEO) and investigates the relevance of keywords based on search intent and website characteristics. Using a data-driven approach, it presents a framework for improving organic click-through rates (CTR) by aligning keywords with different search intents, website authority, and content relevance. Key concepts include: 1.​ Search Characteristics:  ○​ Search Query Specificity: Broad search terms (e.g., "shoes") attract more competition, while specific terms (e.g., "red running shoes for women") have lower traffic but a higher likelihood of conversion. ○​ Search Intent: Keywords align with different types of user intent—informational (seeking knowledge), transactional (intent to buy), or navigational (searching for a particular brand). Effective keyword selection considers these intentions to match user needs. 2.​ Website Characteristics: ○​ Content Relevance: Ensuring website content is closely aligned with search queries enhances its relevance score, particularly effective for transactional searches. ○​ Online Authority: A website’s credibility, often influenced by backlinks and brand reputation, plays a significant role in ranking for informational searches. 3.​ SEO Strategies Based on Keyword Relevance: ○​ The article suggests that on-page SEO (optimizing content relevance) is best for attracting clicks on transactional and navigational queries, while off-page SEO (improving authority through link building) works well for informational searches. ○​ Trade-offs in Keyword Selection: Companies must balance between broad terms, which are more competitive, and specific terms, which convert better but reach fewer users. 4.​ Practical Implications: ○​ By focusing on keywords relevant to specific search intents and tailoring content or authority to match those intents, businesses can improve rankings and engagement on search engine results pages (SERPs). Exam-Style Questions and Answers 1.​ Question: What are the three types of search intent mentioned in the article? ○​ Answer: The three types are informational (for knowledge), transactional (with purchase intent), and navigational (seeking a specific brand or site). 2.​ Question: How does content relevance impact SEO for transactional search queries? ○​ Answer: High content relevance enhances a website’s visibility and CTR for transactional searches, as users seeking to purchase value precise, relevant information. 3.​ Question: What does the article suggest about using on-page SEO versus off-page SEO based on search intent? ○​ Answer: On-page SEO is more effective for transactional and navigational queries, while off-page SEO (building authority) is more effective for informational queries. 4.​ Question: According to the authors, what is the trade-off when selecting between broad and specific search queries?  ○​ Answer: Broad queries have higher traffic and competition, while specific queries have less traffic but often higher conversion rates, making them better for targeted engagement. 5.​ Question: What is the purpose of search query specificity in SEO strategies? ○​ Answer: Search query specificity helps businesses target narrower, intent-driven audiences, allowing for optimized content that meets precise consumer needs and improves conversion. Humphreys et al. (2021) Construal Matching in Online Search: Applying Text Analysis to Illuminate the Consumer Decision Journey This research explores how matching the construal level (abstract or concrete mindsets) of search advertisements to consumers’ online search intent can improve consumer engagement and satisfaction. Drawing on construal level theory, the study demonstrates that consumers at different stages of their purchasing journey—informational (abstract) versus transactional (concrete)—respond differently to the ad content they encounter. Key findings indicate that matching the ad's tone (abstract vs. concrete) to the searcher’s mindset increases click-through rates and perceived satisfaction. Key Concepts: 1.​ Construal Level Theory: ○​ Construal level theory posits that people think in either abstract or concrete terms based on psychological distance. Consumers with distant goals (informational phase) are inclined toward abstract thinking, while those closer to purchasing (transactional phase) prefer concrete information. 2.​ Matching Effect in Construal Levels: ○​ Consumers exhibit a “construal matching” effect: they engage more with ads that reflect their mindset. For instance, abstract ads are more effective with informational search queries, while concrete ads resonate better with transactional queries. 3.​ Search Satisfaction and Goal Progress: ○​ Effective construal matching enhances both satisfaction with search results and the perception of goal progress, making consumers feel they’re effectively moving through their decision-making process. 4.​ Practical Application for Marketers: ○​ By applying text analysis to predict consumer mindset based on search terms, advertisers can create campaigns that match the mindset of different consumer segments, thereby optimizing ad spend and engagement rates. 5.​ Processing Fluency: ○​ Construal matching enhances processing fluency, meaning that consumers experience ease in interpreting the ad content that aligns with their mindset, fostering higher engagement and satisfaction. Takeaways: ​ Matching ad copy to consumers' mindset boosts engagement and effectiveness of online advertising. ​ Marketers should segment and target consumers based on the abstract or concrete nature of their queries, aligning ad content with consumers' psychological distance from the purchase point. ​ Construal-matched ads yield higher click-through rates, search satisfaction, and perceived goal attainment, making them a cost-effective approach for digital advertisers. Exam-Style Questions and Answers 1.​ What is the purpose of construal matching in online search? ○​ Answer: The purpose of construal matching is to align ad content with the consumer's mindset during the search, enhancing engagement, satisfaction, and perceived progress toward the consumer's goal. 2.​ What are the two main consumer mindsets in the consumer decision journey, and what do they represent? ○​ Answer: The two mindsets are abstract and concrete. The abstract mindset is associated with the informational stage, where consumers seek general knowledge. The concrete mindset is tied to the transactional stage, where consumers are focused on specific product attributes and purchasing. 3.​ How does construal level affect consumer responses to search ads? ○​ Answer: Consumers respond more positively to ads that match their mindset. An abstract ad appeals more to consumers in the informational phase, while a concrete ad resonates with those in the transactional phase. 4.​ What is processing fluency, and why is it important in the context of construal matching? ○​ Answer: Processing fluency is the ease with which information is processed. In construal matching, high processing fluency occurs when the ad matches the consumer's mindset, leading to increased engagement and satisfaction. 5.​ What benefit does construal matching provide to marketers? ○​ Answer: Construal matching helps marketers increase ad effectiveness by aligning ad content with consumer intent, which can lead to higher engagement, improved ad efficiency, and better allocation of marketing budgets. 5. Blockchain technologies Guest lecture - Crypto currency  -​ Accepting crypto allows businesses to reach a broader audience, including tech savvy consumers and international markets, enhancing brand visibility. -​ Benefits: -​ Cost efficiency - Lower transaction fees -​ Speed of transactions -​ Market accessibility -​ Increased order values and customer acquisitions. -​ Lower transaction fees and Faster settlements - Cost reduction benefits, immediate fund access, Enhanced Pricing transparency -​ Enhanced security and reduced chargebacks - Robust Fraud Prevention, Finality of transactions, Streamlined dispute management. -​ Access to new markets and demographics - Global transaction capabilities, Attracting younger consumers. -​ Summary of key benefits: Enhanced customer engagement and Global market penetration. -​ Diverse industry adoptions -​ Luxury brands -​ Tech companies -​ Travel sector -​ Real estate -​ Sports teams engaging fans -​ Marketing program: Midjourney Blockchain lecture -​ What is a blockchain? -​ A chain of blocks with some info in them -​ Everytime there is a new transaction (does not have to be money), a new block is added. -​ What is the info in a block? From, To and Amount -​ There is a genesis block (the first of a chain) -​ Every block has a hash (code) and the hash of the previous block. -​ Many people can be part of the network for a block chain. Har koll på det. -​ Incorrect hash → block has been tampered with and everyone can see it. -​ A blockchain is a digitally distributed, decentralized public ledger (list of transactions) that exists across a peer-2-peer network. -​ Not a single person holding all the information. -​ Logging transactions on blockchain (figure) -​ Transaction request → a block is created to represent the transaction → Block sent to all nodes in the network → Network of nodes validates the transaction → New block is added to the existing blockchain → transaction is completed. -​ Smart contracts -​ A self-executing contract between a buyer and a seller being directly written into the lines of code (Buterin, 2013) -​ Without an intermediary. -​ Coins and Tokens -​ Crypto Coin - native asset of a block-chain network. Coins are used a a medium of exchange. Created by mining or staking -​ Crypto Token - Build on top of a blockchain network. Tokens can be used for many purposes , including transacting in an app an voting on changes. Created through smart contract. -​ NFTs (Non-Fungible-Tokens) -​ When is something fungible? Money, Fuel, commodities. -​ Units that are not interchangeable like houses, art and people, used cars. If you borrowed one would it be odd if you returned a different one? If yes, it is non-fungible. -​ NFTs are unique tokens that exists on a blockchain and cannot be replicated. ‘They can represent digital or real-world items -​ The authenticity of the asset is secured by the blockchain. -​ Blockchain and marketing -​ Web 1.0 - Read only - decentralized. ex: Google -​ Web 2.0 - Participatory - centralized ex: Instagram, YT -​ Web 3.0 - No intermediaries - decentralized. ex: Bitcoin -​ Compensation customers based on their value- rewarding attention and content creation. Ex: Earn crypto for publishing and reading. -​ Supply chain transparency -​ Authencity verifications - because people cannot tamper with it. -​ Digital advertising and block chain -​ How will BCT affect the future of digital advertising and its ecosystem of stakeholder -​ Identified 10 different use cases: -​ Ad supply chain transparency -​ ad fraud mitigation -​ Content verification -​ Rewarding content creators -​ User data security  -​ REwarding users -​ Innovations in mobile (1), social (2), affiliate (3) and search engine advertising (4). -​ -​ Peres et al. (2023) Blockchain meets marketing: Opportunities, threats, and avenues for future research This article reviews how blockchain technology can impact the field of marketing, discussing both the technology’s potential benefits and challenges. The authors organize their findings around core marketing principles, focusing on its applications to marketing strategy, the marketing mix, and intangible marketing assets. 1.​ Understanding Blockchain Technology: ○​ Blockchain is defined as a secure, decentralized, and distributed digital ledger that records transactions in a chronological, tamperproof manner. It is used to store data for cryptocurrencies but has expanded to other uses due to its reliability in securing information. 2.​ Key Benefits for Marketing: ○​ Blockchain offers enhanced data security, transparency, and transaction efficiency. By reducing the need for intermediaries, it allows companies to engage directly with consumers, reduces processing fees, and builds trust with verified data. ○​ Smart Contracts: These are self-executing contracts on the blockchain, allowing firms to enforce agreements (such as customer rewards or advertising payments) without third-party intervention. For example, brands can ensure direct compensation to customers or content creators. 3.​ Marketing Strategy and Blockchain: ○​ Data-Driven Decision Making: Blockchain’s ability to store and track large amounts of data can enhance return on marketing investment (ROMI) by analyzing marketing actions across channels in real-time. This enables precise measurement of how marketing investments impact consumer behavior. ○​ Market Competition: The peer-to-peer structure could alter competitive landscapes by enabling more direct-to-consumer marketing, challenging established platforms like Google and Facebook. 4.​ Marketing Mix Applications: ○​ Product Authenticity and Provenance: Blockchain’s tracking capability helps authenticate product origins, supporting industries like food and luxury goods by verifying product sourcing and preventing counterfeit issues. ○​ Pricing and Value Perception: Blockchain allows for non-monetary exchanges, where customer interactions and loyalty points can serve as currency. This tokenization enables firms to value customer loyalty and interaction more flexibly.  ○​ Place and Distribution: For retail, blockchain optimizes supply chain transparency, enabling efficient cross-border commerce. Peer-to-peer blockchain platforms also create direct purchase options, reducing reliance on intermediaries like Amazon. 5.​ Promotion and Customer Interactions: ○​ Blockchain addresses advertising issues such as click fraud and ineffective ad spending by securely tracking ad exposure and engagement. Advertisers can directly compensate users for viewing ads, while influencers can be compensated transparently based on engagement metrics. ○​ Social Networks: Blockchain enables decentralized social networks where users maintain control over their data and interactions. This structure could impact information flow and influence networks by incentivizing authentic content creation. 6.​ Marketing Intangible Assets: ○​ Brand Equity: Blockchain can store brand-related elements as NFTs, enabling monetization of brand assets like logos or community tokens. This technology also allows for more straightforward valuation and tracking of brand impact over time. ○​ Customer Equity: Blockchain’s transparent data storage can better measure customer lifetime value, capturing aspects like word-of-mouth influence and online engagement. Loyalty programs based on cryptocurrencies offer cross-brand rewards, potentially enhancing customer retention. Takeaways Blockchain technology provides opportunities for transparency, authenticity, and decentralization in marketing, but it also poses challenges in terms of implementation and market acceptance. The authors advocate for further research to understand blockchain’s potential in revolutionizing marketing strategies, the marketing mix, and intangible assets such as brand and customer equity. Exam-Style Questions and Answers Question: What is the purpose of using blockchain technology in marketing according to the article? ​ Answer: The purpose is to enhance transparency, security, and efficiency in transactions, reduce reliance on intermediaries, and increase trust with consumers through verified and tamperproof data. Question: What are smart contracts, and how are they relevant to marketing? ​ Answer: Smart contracts are self-executing contracts on the blockchain that automatically enforce agreements, such as customer rewards or influencer payments,  without third-party intervention. They make it possible for brands to directly compensate consumers or content creators, ensuring transparency and efficiency. Question: How does blockchain support data-driven decision-making in marketing? ​ Answer: Blockchain securely stores large volumes of transaction data, which marketers can analyze in real-time to track marketing investment returns (ROMI) across channels, thereby allowing precise assessment of how marketing actions influence consumer behavior. Question: What are two applications of blockchain in product and pricing strategies? ​ Answer: Blockchain supports product authenticity by verifying sourcing and preventing counterfeit goods, especially in luxury and food sectors. In pricing, blockchain enables token-based exchanges, allowing firms to reward customer loyalty with tokens, which adds flexible value to customer interactions. Question: Why is blockchain valuable in combating advertising fraud? ​ Answer: Blockchain securely tracks ad engagement and user interaction, making it easier to detect and prevent click fraud. It also allows advertisers to pay users directly for verified ad views, ensuring ad spend goes toward actual consumer engagement. Question: What does the article suggest about blockchain’s impact on customer equity? ​ Answer: Blockchain can improve the measurement of customer lifetime value by transparently tracking engagement, word-of-mouth influence, and loyalty program interactions. Cross-brand loyalty programs based on cryptocurrencies may also enhance customer retention by allowing flexible rewards. Question: What potential does blockchain hold for brand equity? ​ Answer: Blockchain can tokenize brand assets, enabling the monetization and straightforward tracking of brand elements like logos or community tokens. It also provides a way to measure brand impact more precisely, which can contribute to building and maintaining brand equity. Stallone et al. (2024) Enhancing Digital Advertising with Blockchain Technology This article examines the role of blockchain technology (BCT) in addressing issues within digital advertising, offering an integrative framework to categorize innovations in this domain. Utilizing organizational activity theory (OAT), the article explores how BCT can enhance transparency, decentralization, and security within the digital advertising ecosystem (DAE).  1.​ Blockchain’s Potential in Digital Advertising: ○​ Blockchain offers features like transparency, decentralization, and immutability that can address key challenges in digital advertising, such as data security, fraud, and trust issues. Its decentralized nature allows for direct interaction between advertisers and users, potentially eliminating the need for intermediaries and reducing operational costs. 2.​ Integrative Framework with Organizational Activity Theory (OAT): ○​ The article applies OAT to analyze and categorize BCT innovations in the DAE, focusing on contextual, boundary, and domain innovations. OAT provides a systematic framework to examine how organizations and their activities are interconnected, emphasizing relationships and collective activities within the ecosystem. 3.​ Innovation Categories and Use Cases: ○​ Boundary Innovations: Focused on enhancing efficiency in advertising execution, these innovations use BCT for supply chain transparency and fraud mitigation. For instance, BCT allows for real-time, verified tracking of ads, reducing click fraud and improving advertiser trust. ○​ Contextual Innovations: These include secure user data storage and systems for incentivizing user engagement. Blockchain enables advertisers to manage consumer data responsibly and incentivize content creators and web users through rewards. ○​ Domain Innovations: Blockchain enables new advertising channels, such as mobile and social media ads, and innovations in affiliate and search engine advertising, paving the way for a more decentralized and user-centered advertising environment. 4.​ Challenges and Limitations: ○​ Despite its potential, BCT in advertising faces challenges, such as handling privacy concerns, data immutability, and managing power imbalances in a decentralized ecosystem. Additionally, achieving widespread adoption and building consumer trust will require continuous refinement and regulation. 5.​ Delphi Study and Expert Consensus: ○​ The authors conducted a Delphi study to gather expert opinions on the feasibility and impact of various BCT applications. The study revealed that rewarding web users and content creators had the highest expected success rates, while innovations in affiliate and search engine advertising faced lower feasibility ratings. Exam-Style Questions and Answers 1.​ What is the purpose of using blockchain technology in digital advertising? ○​ Answer: Blockchain technology aims to improve transparency, security, and decentralization within the digital advertising ecosystem, reducing the need for intermediaries, increasing trust, and tackling issues like data fraud and user privacy.  2.​ What are the three categories of innovations in digital advertising described in the article? ○​ Answer: The categories are boundary innovations, contextual innovations, and domain innovations. Each focuses on different aspects of the digital advertising ecosystem, from supply chain transparency to new advertising channels. 3.​ How does the article use Organizational Activity Theory (OAT) to understand digital advertising with blockchain? ○​ Answer: OAT is used to analyze how activities and interactions between stakeholders in digital advertising can be improved with blockchain, focusing on collective actions and relationships within the ecosystem to promote innovation and efficiency. 4.​ What is the role of boundary innovations in the context of blockchain and digital advertising? ○​ Answer: Boundary innovations focus on making the advertising process more efficient and transparent by implementing blockchain-based solutions for supply chain transparency and fraud mitigation, thereby building trust and efficiency in ad transactions. 5.​ What are some challenges of applying blockchain in digital advertising, according to the article? ○​ Answer: Challenges include managing privacy concerns, the inability to alter data once recorded (immutability), potential power imbalances in a decentralized system, and the need for regulation and consumer trust to encourage widespread adoption 6. Extended Reality Technologies Guest lecture Ericsson - AR -​ Predictive AI -​ Prescriptive AI -​ Kolla slide: How AI enables AR Föreläsning Burak - Extended reality -​ VR - technologies for substituting the perceived reality. -​ AR (and mixed-reality) - technologies for modifying reality -​ 1838 - The wheatstone mirror stereoscope -​ Virtual reality -​ How is VR important in marketing? VR can overcome space and time limitations, and replicate different shopping environments -​ Types of VR: -​ Non-immersive VR - experienced via computer screen no direct interaction. -​ Semi-immersive VR - You can move about but no real physical participation in the place. -​ Fully-immersive VR - Having a sense of presence in a virtual world -​ What to consider when developing a VR campaign? -​ Where are our customers on their journey? -​ Is the campaign aligned with our brand values? -​ Are we developing customer brand relationships -​ Are we providing value to our customers? -​ Are we measuring VR KPIs such as level of immersion or in-experience engagement? -​ To keep human connection, consider group VR experiences -​ Consider hardware requirements -​ VR Marketing Applications - Exempel IKEA -​ Augmented reality -​ Why is AR useful for marketers? AR allows marketers to create and communicate digital content in the physical environment -​ AR-marketing should be -​ Strategic (multi-faceted, well-planned, resource-based, long-term) -​ Goal-driven rather than technology-driven -​ Implemented at all phases of customer journey -​ Integrated with other marketing elements -​ Exempel: Burger King, Burn McDonald’s, Play Pacman on Domino’s pizza box. Busskur -​ Disrupting marketing realities (artikel) -​ What are the psychological mechanisms underpinning consumer experiences with XR technologies? -​ Delivering Innovative Offerings -​ Combining the physical and digital to reach omnichannel objectives -​ Which consumer characteristics are at play? -​ Which XR features and devices should be used? -​ How do we create meaningful experiences and engagement? -​ Supporting sustainability and consumer well-being -​ How can we increase engagement with social issues? -​ Can we substitute high climate impact activities with XR? -​ Can we use XR to improve consumer well-being? -​ What are some potential negative effects of XR technologies on  -​ consumer well-being? -​ Balancing cocreation and privacy concerns -​ How can we enhance cocreation technologies with XR? -​ How can we offer personalized solutions with XR while respecting -​ consumer privacy? -​ Does the personalization-privacy trade off depend on -​ Consumer characteristics? -​ Product/service type? -​ AI vs. human collaborator? -​ Immersive advertising (article) -​ Types of immersive advertising: AR, VR, MR (3D, virtual worlds), in-game advertising. -​ Opportunities and considerations for advertisers -​ Why are we using immersive advertising? Will it pay off? -​ Alignment between brand-product-target group-virtual environment -​ Creating a feeling of “flow” -​ Improving personalization (consider privacy and ethics) -​ Interoperability of brand presence across virtual-virtual environments -​ and between real-virtual environments. -​ What about data collection, measurements, and metrics? -​ What are some potential negative effects? Hilken et al. (2022) Disrupting marketing realities: A research agenda for investigating the psychological mechanisms of next‐generation experiences with reality‐enhancing technologies This article explores the transformative potential of reality-enhancing technologies, specifically augmented reality (AR) and virtual reality (VR), in reshaping marketing and consumer experiences. It proposes a research agenda to understand the psychological mechanisms driving these new experiences and highlights four primary applications: innovative offerings, sustainability, value co-creation and privacy, and impact measurement. 1.​ Reality-Enhancing Technologies and Consumer Experiences: ○​ AR and VR are no longer limited to training and entertainment but are becoming integrated into everyday consumer interactions. By leveraging these technologies, companies can create immersive, interactive experiences that deeply engage consumers, satisfying both functional and hedonic needs. 2.​ Psychological Mechanisms and Innovative Offerings:  ○​ These technologies enhance omnichannel experiences by creating seamless transitions across digital and physical shopping environments, helping consumers make confident purchase decisions. ○​ Key psychological mechanisms include cognitive engagement (focused attention and memory), sensorial interaction (multisensory feedback), and social connection (shared experiences). However, understanding the optimal timing and context for deploying AR/VR along the customer journey remains an important research gap. 3.​ Supporting Sustainability and Consumer Well-Being: ○​ AR and VR can support responsible marketing by fostering empathy and awareness. VR, for example, has been used to simulate experiences in refugee camps, thereby increasing viewers' prosocial intentions. ○​ In consumer well-being, these technologies show promise in supporting mental health, pain management, and even spiritual well-being through immersive applications. However, potential downsides, such as sensory overload or altered self-perception, are areas needing further investigation. 4.​ Value Co-Creation and Privacy Concerns: ○​ AR/VR encourages consumer participation in co-creating personalized experiences, enhancing engagement. Yet, privacy concerns arise due to data collection required for personalizing these experiences, highlighting a need to balance customization with consumer privacy. 5.​ Measuring Impact and New Research Methodologies: ○​ The immersive nature of AR/VR can improve the ecological validity of consumer research, simulating real-world behaviors in controlled settings. This method holds promise for studying consumer decision-making in lifelike scenarios, allowing for deep insights into purchase behavior and brand interaction. Exam-Style Questions and Answers 1.​ What is the main purpose of using AR and VR in consumer experiences? ○​ Answer: The purpose is to create immersive, engaging interactions that deepen consumer connections with brands, supporting omnichannel experiences, sustainability goals, and personalized co-creation. 2.​ What are the four primary application areas discussed for reality-enhancing technologies in marketing? ○​ Answer: The areas are innovative offerings, sustainability and consumer well-being, value co-creation and privacy concerns, and impact measurement. 3.​ How do AR and VR support sustainability goals in marketing? ○​ Answer: AR and VR create empathy by immersing consumers in prosocial or environmentally-focused experiences, increasing awareness and supporting prosocial behaviors such as donations. 4.​ What is the personalization-privacy paradox in the context of AR/VR?  ○​ Answer: The personalization-privacy paradox refers to the challenge of balancing the benefits of hyper-personalized experiences in AR/VR with the privacy risks posed by extensive data collection. 5.​ What research gaps do the authors identify regarding the use of AR/VR in marketing? ○​ Answer: The article highlights gaps in understanding the timing and context for AR/VR deployment, optimizing multisensory experiences, managing privacy risks, and developing standardized research methodologies for studying these technologies’ impact Sands et al. (2024) Immersive Advertising—A Review and Research Agenda Potential Effects of and Considerations for AR, VR, and MR Advertisements This article explores immersive advertising, which utilizes augmented reality (AR), virtual reality (VR), and mixed reality (MR) to create interactive, hyper-realistic advertising experiences. Through a review of existing literature, the authors discuss immersive advertising’s potential, challenges, and future directions for research. 1.​ Defining Immersive Advertising: ○​ Immersive advertising blends digital and physical worlds, allowing consumers to interact with brands in virtual settings, creating a sense of presence or “telepresence.” Through AR, VR, and MR, brands can create experiences where consumers view products virtually, try them on, or even place them in real-life contexts, enhancing product understanding and engagement. 2.​ Consumer Engagement and Psychological Effects: ○​ Immersive ads promote telepresence (the feeling of “being there”) and flow (deep focus and immersion), which boost user engagement and memory. Research shows consumers often develop stronger brand attitudes and exhibit higher purchasing intentions when exposed to immersive ads. These experiences also tap into psychological ownership, where consumers feel a personal connection to virtual products they interact with. 3.​ Key Mediators and Moderators in Immersive Advertising: ○​ Mediators such as sensory engagement, narrative immersion, and realism help drive consumer reactions by enhancing interactivity and emotional response. Moderators like technology familiarity and personal characteristics (age, personality) influence individual responses, as some consumers may prefer high-interactivity environments while others do not. 4.​ Privacy and Ethical Considerations: ○​ Immersive advertising involves substantial data collection to personalize experiences, raising privacy concerns. Brands must carefully balance customization with data security to prevent misuse or discomfort, especially as consumers often perceive immersive ads as more intrusive than traditional ones.  5.​ Research Gaps and Future Directions: ○