Modeling

Modeling the Clickstream: Implications for Web-Based Advertising Efforts Patrali Chatterjee • Donna L. Hoffman • Thomas P. Novak Rutgers Business School—Newark & New Brunswick, Rutgers University, Newark, New Jersey 07102-1897 Owen Graduate School of... More

Modeling the Clickstream: Implications for Web-Based Advertising Efforts Patrali Chatterjee • Donna L. Hoffman • Thomas P. Novak Rutgers Business School—Newark & New Brunswick, Rutgers University, Newark, New Jersey 07102-1897 Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37203 Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37203 patrali@newark. rutgers. edu • donna. hoffman@vanderbilt. edu • tom. novak@vanderbilt. edu In this paper, we develop an analytical approach to modeling consumer response to banner ad exposures at a sponsored content Web site that reveals significant heterogeneity in (unobservable) click proneness across consumers. The effect of repeated exposures to banner ads is negative and nonlinear, and the differential effect of each successive ad exposure is initially negative, though nonlinear, and levels off at higher levels of passive ad exposures. Further, significant correlations between session an Less