IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v36y2017i5p762-779.html
   My bibliography  Save this article

Sunny, Rainy, and Cloudy with a Chance of Mobile Promotion Effectiveness

Author

Listed:
  • Chenxi Li

    (School of Economics and Management, Beihang University, 100191 Be¼ing, China, School of Management, Fudan University, 200433 Shanghai, China)

  • Xueming Luo

    (Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122)

  • Cheng Zhang

    (School of Management, Fudan University, 200433 Shanghai, China)

Abstract

Although firms are leveraging weather conditions in promotions, they struggle to quantify the impact. This study exploits field experiment data on weather-based mobile promotions with over six million users. Results find that sunny and rainy weather have first-order main effects. Purchase responses to promotions are higher and faster in sunny weather relative to cloudy weather, whereas purchase responses to promotions are lower and slower in rainy weather. These findings are robust across different measures of weather changes with both backward-looking historical weather and forward-looking forecasts, as well as deviations from normal weather. Also, sunny and rainy weather have second-order interactive effects with ad copies of mobile promotions. Compared with the neutral ad copy, the prevention frame ad copy hurts the initial promotion boost induced by sunshine, but improves the initial promotion drop induced by rainfall. For marketers, these findings imply new opportunities in customer data analytics for more effective weather-based mobile targeting.

Suggested Citation

  • Chenxi Li & Xueming Luo & Cheng Zhang, 2017. "Sunny, Rainy, and Cloudy with a Chance of Mobile Promotion Effectiveness," Marketing Science, INFORMS, vol. 36(5), pages 762-779, September.
    • Handle: RePEc:inm:ormksc:v:36:y:2017:i:5:p:762-779
    DOI: 10.1287/mksc.2017.1044
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/mksc.2017.1044
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.2017.1044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Roll, Richard, 1992. "Industrial Structure and the Comparative Behavior of International Stock Market Indices," Journal of Finance, American Finance Association, vol. 47(1), pages 3-41, March.
    2. Batra, Rajeev & Stayman, Douglas M, 1990. "The Role of Mood in Advertising Effectiveness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 203-214, September.
    3. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, June.
    4. Michael Conlin & Ted O'Donoghue & Timothy J. Vogelsang, 2007. "Projection Bias in Catalog Orders," American Economic Review, American Economic Association, vol. 97(4), pages 1217-1249, September.
    5. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    6. K. Sudhir & Subroto Roy & Mathew Cherian, 2016. "Do Sympathy Biases Induce Charitable Giving? The Effects of Advertising Content," Marketing Science, INFORMS, vol. 35(6), pages 849-869, November.
    7. Murray, Kyle B. & Di Muro, Fabrizio & Finn, Adam & Popkowski Leszczyc, Peter, 2010. "The effect of weather on consumer spending," Journal of Retailing and Consumer Services, Elsevier, vol. 17(6), pages 512-520.
    8. K. Sudhir, 2016. "Editorial—The Exploration-Exploitation Tradeoff and Efficiency in Knowledge Production," Marketing Science, INFORMS, vol. 35(1), pages 1-9, January.
    9. Kahn, Barbara E & Isen, Alice M, 1993. "The Influence of Positive Affect on Variety Seeking among Safe, Enjoyable Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(2), pages 257-270, September.
    10. Stephen, Andrew T. & Pham, Michel Tuan, 2008. "On Feelings as a Heuristic for Making Offers in Ultimatum Negotiations," MPRA Paper 8779, University Library of Munich, Germany.
    11. Jean-Pierre Dubé & Zheng Fang & Nathan Fong & Xueming Luo, 2017. "Competitive Price Targeting with Smartphone Coupons," Marketing Science, INFORMS, vol. 36(6), pages 944-975, November.
    12. Zheng Fang & Bin Gu & Xueming Luo & Yunjie Xu, 2015. "Contemporaneous and Delayed Sales Impact of Location-Based Mobile Promotions," Information Systems Research, INFORMS, vol. 26(3), pages 552-564, September.
    13. K. Sudhir & Subroto Roy & Mathew Cherian, 2014. "Do Sympathy Biases Induce Charitable Giving" The Effects of Advertising Content," Cowles Foundation Discussion Papers 1940, Cowles Foundation for Research in Economics, Yale University, revised Jan 2016.
    14. Jean-Pierre Dubé & Xueming Luo & Zheng Fang, 2017. "Self-Signaling and Prosocial Behavior: A Cause Marketing Experiment," Marketing Science, INFORMS, vol. 36(2), pages 140-156, March.
    15. Michel Tuan Pham & Leonard Lee & Andrew T. Stephen, 2012. "Feeling the Future: The Emotional Oracle Effect," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(3), pages 461-477.
    16. Gardner, Meryl Paula, 1985. "Mood States and Consumer Behavior: A Critical Review," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 281-300, December.
    17. Meghan R. Busse & Devin G. Pope & Jaren C. Pope & Jorge Silva-Risso, 2015. "The Psychological Effect of Weather on Car Purchases," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 371-414.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martínez-de-Albéniz, Victor & Belkaid, Abdel, 2021. "Here comes the sun: Fashion goods retailing under weather fluctuations," European Journal of Operational Research, Elsevier, vol. 294(3), pages 820-830.
    2. Stefan Lamp, 2023. "Sunspots That Matter: The Effect of Weather on Solar Technology Adoption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(4), pages 1179-1219, April.
    3. Tian, Xin & Cao, Shasha & Song, Yan, 2021. "The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    4. Agarwal, Sumit & Chomsisengphet, Souphala & Meier, Stephan & Zou, Xin, 2020. "In the mood to consume: Effect of sunshine on credit card spending," Journal of Banking & Finance, Elsevier, vol. 121(C).
    5. Anindya Ghose & Beibei Li & Meghanath Macha & Chenshuo Sun & Natasha Ying Zhang Foutz, 2020. "Trading Privacy for the Greater Social Good: How Did America React During COVID-19?," Papers 2006.05859, arXiv.org.
    6. Bertrand, Jean-Louis & Brusset, Xavier & Fortin, Maxime, 2015. "Assessing and hedging the cost of unseasonal weather: Case of the apparel sector," European Journal of Operational Research, Elsevier, vol. 244(1), pages 261-276.
    7. Katharina Dowling & Daniel Guhl & Daniel Klapper & Martin Spann & Lucas Stich & Narine Yegoryan, 2020. "Behavioral biases in marketing," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 449-477, May.
    8. Shijie Lu & Dai Yao & Xingyu Chen & Rajdeep Grewal, 2021. "Do Larger Audiences Generate Greater Revenues Under Pay What You Want? Evidence from a Live Streaming Platform," Marketing Science, INFORMS, vol. 40(5), pages 964-984, September.
    9. Raphael Thomadsen & Robert P. Rooderkerk & On Amir & Neeraj Arora & Bryan Bollinger & Karsten Hansen & Leslie John & Wendy Liu & Aner Sela & Vishal Singh & K. Sudhir & Wendy Wood, 2018. "How Context Affects Choice," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 5(1), pages 3-14, March.
    10. Fan, Ying & Fu, Yuqi & Yang, Zan & Chen, Ming, 2023. "Search Frictions in Rental Markets: Evidence from Urban China," Working Paper Series 23/11, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    11. Shafi, Kourosh & Mohammadi, Ali, 2020. "Too gloomy to invest: Weather-induced mood and crowdfunding," Journal of Corporate Finance, Elsevier, vol. 65(C).
    12. Meier, Armando N. & Schmid, Lukas & Stutzer, Alois, 2019. "Rain, emotions and voting for the status quo," European Economic Review, Elsevier, vol. 119(C), pages 434-451.
    13. Tobias Schlager & Emanuel de Bellis & JoAndrea Hoegg, 2020. "How and when weather boosts consumer product valuation," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 695-711, July.
    14. Pan, Yinghao & Qin, Yu & Zhang, Fan & Zhu, Hongjia, 2022. "Acquiring land in cold winter: Consequences and possible explanations," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    15. Halbauer, Ingo & Klarmann, Martin, 2022. "How voice retailers can predict customer mood and how they can use that information," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 77-95.
    16. Clot, Sophie & Grolleau, Gilles & Ibanez, Lisette, 2022. "Projection bias in environmental beliefs and behavioural intentions - An application to solar panels and eco-friendly transport," Energy Policy, Elsevier, vol. 160(C).
    17. K. Sudhir & Hortense Fong & Subroto Roy, 2014. "Greedy or Grateful" Asking for More when Thanking Donors," Cowles Foundation Discussion Papers 2183, Cowles Foundation for Research in Economics, Yale University.
    18. K. Sudhir & Hortense Fong & Subroto Roy, 2019. "Greedy or Grateful? Asking for More when Thanking Donors," Cowles Foundation Discussion Papers 2183R, Cowles Foundation for Research in Economics, Yale University, revised Mar 2021.
    19. Å tulec, Ivana & Petljak, Kristina & Naletina, Dora, 2019. "Weather impact on retail sales: How can weather derivatives help with adverse weather deviations?," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 1-10.
    20. Stefan F. Bernritter & Paul E. Ketelaar & Francesca Sotgiu, 2021. "Behaviorally targeted location-based mobile marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 677-702, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:36:y:2017:i:5:p:762-779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.