Homework 2: Discussion about the case study

Name: Phan Thi Thanh Nhung (Kerry)

ID: C03130022
The case study: Yahoo Consumer Direct Marries Purchase Metrics to Banner
Ads
I.

Summary
Yahoo developed a methodology to evaluate the effectiveness of banner
ads through the process. This would be from the initial exposure to the ad to the
shopping cart. This methodology is called Consumer Direct. Consumer Direct
was able to track the purchasing behavior of Yahoo visitors. It focused on the
households that contained Internet users. The research aims to observe and
describing the usage of Yahoo without influencing the public in any way, to
determine the effectiveness of the advertising on Yahoo. This design includes
describing any behaviors, performing a case study, observing the amount of
advertises being bought or look at through Yahoo, and lastly a questionnaire or
presentation. The goal is to be more effective and efficient in Internet
advertising. Yahoo wants to target ads that consumers would want to purchase.
II.
Discussion
1. Describe the research design for Consumer Direct.
After identifying their existing dilemma, Yahoo chose to expand the scope
of its research by partnering with ACNielson to use their sample frame panel.
This information provided demographic and lifestyle data that is necessary to
track purchases in the home. With the data available, it recruited panel
members whose Internet activities were tracked and compared to a control
group based on exposure to consumer-packaged-goods (CPG) ads.
A group for testing consisted of 2000 households was established based on
two metrics, effectiveness of ad targeting and persuasiveness of the advertising.
The test group was given exposure to an advertisement and then have the
exposure was removed after a period of time, given the time frame of the ad
campaign. The control group was given exposure to different ads. Purchases
were tracked from each group and the results were compared and analyzed
using of analysis of covariance (ANCOVA) methodology.
2. Discuss the strengths and weaknesses of the research design
The weakness of the research design is the lack of a structured form of
sampling plan. By using the Nielsen database, it is significant analysis of
purchasing activities. However, a more random sampling would give more
credibility to the results. There is also indication that the researchers were
unsure initially as to how the target groups would feel about having their
internet purchases tracked.
The strengths of the research design is that they chose the opt-in process,
which allowed participants could consent to allow the tracking of the Website
activity. Opting-in (prior consent) eliminates the appropriateness of tracking
Web behavior without such consent.
3. How has the use of panels affected the research design?
The use of ACNielsens Homescan panels expanded the scope and allowed

for collection of household purchase data. However, the panels create the
question of how representative is the sample of the general Yahoo visitor
population (the population that is exposed to the CPG ads). Besides, the use of
panels allowed the researchers to track the websites the control group visited.
Homescan panelists were asked to opt in to a joint Yahoo/Homescan panel in
which their Yahoo ad exposure and behavior would be linked to their offline
purchase information.
4. How have ethical issues influenced the research design?
Yahoo is collecting information it needs to help its clients get effective use
from their Internet advertising. By the way, however, the users have less
privacy because the researchers can look at their Internet behaviors to decide
which ads will be shown to them. Moreover, they also they might be unaware
of the extent of just how much is revealed about them by tracking their Internet
activity.
5. Define the various measurements collected in Consumer Direct.
The various measurements collected in consumer direct are as follows:
Ad awarenessHave you see advertising for ( _____ product) in (time
frame)?
Brand awarenessHave you seen advertising for ( ____ brand) in (time
frame)?
Brand favorabilityParticipants rate brands on a preference scale.
Message associationWhich brand uses the message: (sales message, slogan,
etc.)?
Purchase intentHow likely are you to purchase ( ____ brand)?
6. What analysis would be appropriate for the data collected through
Consumer Direct?
The analysis which would be appropriate for the data collected through
consumer direct is- ANCOVAanalysis of covariancemethods, which help
to compare the ad exposed group with the control group. Sales lift is an
important factor in this study, a multiple regression analysis is used to make
predictions about trends in sales based on the use of particular metrics. If
researchers could predict the likelihood of persons making a purchase based on
exposure to an ad, they could gauge increases in sales based on the amount of
persons exposed to a particular advertisement.
Moreover, they could also use this analysis to estimate the effectiveness and
persuasiveness of their advertising, based on corresponding increases in the
sale of low penetration products, or increases in the number of households who
now purchase a particular item.