What's in a Name? Measuring Prominence, and its Impact on Organic Traffic from Search Engines
Organic product search results on Google and Bing do not systematically include information about seller characteristics (e.g., feedback ratings and prices). Consequently, it is often assumed that a retailer’s organic traffic is driven by the prominence of its position in the list of search results. We propose a novel measure of the prominence of a retailer’s name, and show that it is also an important predictor of the organic traffic retailers enjoy from product searches through Google and Bing. We also show that failure to account for the prominence of retailers’ names–as well as the endogeneity of retailers’ positions in the list of search results–significantly inflates the estimated impact of screen position on organic clicks.
|Date of creation:||Dec 2012|
|Contact details of provider:|| Postal: 1309 East Tenth Street, Room 451, Bloomington, IN 47405-1701|
Web page: http://kelley.iu.edu/bepp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael R. Baye & John Morgan, 2005.
"Brand and Price Advertising in Online Markets,"
2005-08, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Michael Baye & John Morgan, 2005. "Brand and Price Advertising in Online Markets," Microeconomics 0504009, EconWPA.
- Baye, Michael & Morgan, John, 2004. "Brand and Price Advertising in Online Markets," Competition Policy Center, Working Paper Series qt9760k3hz, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Glenn Harrison & John List, 2004.
Artefactual Field Experiments
00058, The Field Experiments Website.
- Mark Armstrong & Jidong Zhou, 2011.
"Paying for Prominence,"
Royal Economic Society, vol. 121(556), pages 368-395, November.
- Baye, Michael R & Gatti, J. Rupert J & Kattuman, Paul & Morgan, John, 2006.
"Clicks, Discontinuities, and Firm Demand Online,"
Competition Policy Center, Working Paper Series
qt3qg7270w, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Sha Yang & Anindya Ghose, 2010. "Analyzing the Relationship Between Organic and Sponsored Search Advertising: Positive, Negative, or Zero Interdependence?," Marketing Science, INFORMS, vol. 29(4), pages 602-623, 07-08.
- Zhou, Jidong, 2009. "Prominence and Consumer Search: The Case With Multiple Prominent Firms," MPRA Paper 12554, University Library of Munich, Germany.
- Anindya Ghose & Sha Yang, 2009. "An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets," Management Science, INFORMS, vol. 55(10), pages 1605-1622, October.
- Smith, Michael D & Brynjolfsson, Erik, 2001.
"Consumer Decision-Making at an Internet Shopbot: Brand Still Matters,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 49(4), pages 541-558, December.
- Michael D. Smith & Erik Brynjolfsson, 2001. "Consumer Decision-making at an Internet Shopbot: Brand Still Matters," NBER Chapters, in: E-commerce, pages 541-558 National Bureau of Economic Research, Inc.
- Avi Goldfarb & Qiang Lu & Sridhar Moorthy, 2007.
"Measuring Brand Value in an Equilibrium Framework,"
Food Marketing Policy Center Research Reports
099, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Novarese, Marco & Wilson, Chris M., 2013. "Being in the Right Place: A Natural Field Experiment on List Position and Consumer Choice," MPRA Paper 48074, University Library of Munich, Germany.
- repec:rje:randje:v:37:y:2006:i:4:p:983-1005 is not listed on IDEAS
- Tanjim Hossain & John Morgan, 2006.
"...plus shipping and handling: Revenue (non) equivalence in field experiments on ebay,"
Natural Field Experiments
00270, The Field Experiments Website.
- Hossain Tanjim & Morgan John, 2006. "...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-30, January.
- Babur De los Santos & Sergei Koulayev, 2012. "Optimizing Click-through in Online Rankings for Partially Anonymous Consumers," Working Papers 2012-04, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Melnik, Mikhail I & Alm, James, 2002. "Does a Seller's Ecommerce Reputation Matter? Evidence from eBay Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 50(3), pages 337-349, September.
- Maria Arbatskaya, 2007. "Ordered search," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 119-126, 03.
- Avi Goldfarb & Catherine Tucker, 2011. "Search Engine Advertising: Channel Substitution When Pricing Ads to Context," Management Science, INFORMS, vol. 57(3), pages 458-470, March.
- Ginger Zhe Jin & Andrew Kato, 2006. "Price, quality, and reputation: evidence from an online field experiment," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 983-1005, December.
- Anindya Ghose & Sha Yang, 2007. "An Empirical Analysis of Search Engine Advertising: Sponsored Search and Cross-Selling in Electronic Markets," Working Papers 07-35, NET Institute, revised Sep 2007.
- Sappington, David E M & Wernerfelt, Birger, 1985. "To Brand or Not to Brand? A Theoretical and Empirical Question," The Journal of Business, University of Chicago Press, vol. 58(3), pages 279-293, July.
- Daniel Houser & John Wooders, 2006. "Reputation in Auctions: Theory, and Evidence from eBay," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 353-369, 06.
- Mark Armstrong & John Vickers & Jidong Zhou, 2009.
"Prominence and consumer search,"
RAND Journal of Economics,
RAND Corporation, vol. 40(2), pages 209-233.
- Song Yao & Carl F. Mela, 2011. "A Dynamic Model of Sponsored Search Advertising," Marketing Science, INFORMS, vol. 30(3), pages 447-468, 05-06.
- Michaël Dewally & Louis Ederington, 2006. "Reputation, Certification, Warranties, and Information as Remedies for Seller-Buyer Information Asymmetries: Lessons from the Online Comic Book Market," The Journal of Business, University of Chicago Press, vol. 79(2), pages 693-730, March.
- Kinshuk Jerath & Liye Ma & Young-Hoon Park & Kannan Srinivasan, 2011. "A "Position Paradox" in Sponsored Search Auctions," Marketing Science, INFORMS, vol. 30(4), pages 612-627, July.
- Glenn Ellison & Sara Fisher Ellison, 2009.
"Search, Obfuscation, and Price Elasticities on the Internet,"
Econometric Society, vol. 77(2), pages 427-452, 03.
- Glenn Ellison & Sara Fisher Ellison, 2004. "Search, Obfuscation, and Price Elasticities on the Internet," NBER Working Papers 10570, National Bureau of Economic Research, Inc.
- Erik Brynjolfsson & Astrid Dick & Michael Smith, 2010. "A nearly perfect market?," Quantitative Marketing and Economics (QME), Springer, vol. 8(1), pages 1-33, March.
When requesting a correction, please mention this item's handle: RePEc:iuk:wpaper:2012-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rick Harbaugh)
If references are entirely missing, you can add them using this form.