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- E-Finance Lab e.V. (24) (remove)
Nowadays, firms lack information to derive the share of wallet, a vital metric that identifies how much additional spending a firm could capture from each customer. However, decoding Blockchain data enables observing all transactions of each wallet, respectively customer, on the Ethereum NFT market. To shed light on the share of wallet, we analyzed 22.7 million transactions from over 1.3 million customers across eight competing firms on the Ethereum NFT market.
THE PROLIFERATION OF THE INTERNET HAS ENABLED PLATFORM INTERMEDIARIES TO CREATE TWO-SIDED MARKETS IN MANY INDUSTRIES. IN SUCH MARKETS, NETWORK EFFECTS OFTEN OCCUR WHICH CAN DIFFER FOR NEW AND EXISTING CUSTOMERS. THE AUTHORS DEVELOP AN INFLUX-OUTFLOW MODEL TO INVESTIGATE THE CONDITIONS UNDER WHICH THE ESTIMATION OF SAME-SIDE AND CROSS-SIDE NETWORK EFFECTS SHOULD DISTINGUISH BETWEEN ITS IMPACT ON THE NUMBER OF NEW CUSTOMERS (I.E., ACQUISITION) AND EXISTING CUSTOMERS (I.E., THEIR ACTIVITY).
IN TWO-SIDED MARKETS SUCH AS EXCHANGES, AN INTERMEDIARY BRINGS TOGETHER TWO DISTINCT CUSTOMER POPULATIONS, E.G., BUYERS AND SELLERS. THESE CUSTOMER POPULATIONS INTERACT VIA A PLATFORM PROVIDED BY THE INTERMEDIARY, AND TYPICALLY NETWORK EFFECTS ARE OBSERVABLE IN THESE MARKETS; IF THE NUMBER OF BUYERS IS HIGH, MORE SELLERS ARE ATTRACTED TO THE PLATFORM, AND VICE VERSA. IN SUCH MARKETS IT IS DIFFICULT TO MEASURE THE ECONOMIC SUCCESS OF IT INVESTMENTS. THIS ARTICLE PROPOSES A SOLUTION.
Economic value of data
(2020)
FIRMS COLLECT A LARGE AMOUNT OF DATA BY ENGAGING HEAVILY IN THE COLLECTION AND STORAGE OF ONLINE USER ACTIVITY VIA VARIOUS USER TRACKING TECHNOLOGIES. RECENT POLICY INITIATIVES AIM AT RESTRICTING THIS PRACTICE TO PROTECT CONSUMER PRIVACY. WE STUDY EMPIRICALLY THE CONSEQUENCES OF SUCH RESTRICTIONS FOR ONLINE PUBLISHERS, SUCH AS NEWS WEBSITES, BECAUSE THEY STRONGLY RELY ON REVENUES THAT ARE GENERATED BASED ON USER DATA. WE FIND A PRICE DECREASE OF CA. 30% FOR ONLINE ADS WHEN NO DATA FROM USER TRACKING IS AVAILABLE. THE POTENTIAL REVENUE LOSS COULD BE MORE THAN EUR 14 BILLION IN THE EU AND MORE THAN USD 27 BILLION IN THE US.
UNDERSTANDING THE COMPETITIVE ENVIRONMENT FOR DIGITAL CONSUMER ATTENTION IS CRUCIAL FOR BANKS’ STRATEGIC ACTIONS. THEREFORE, BANKS NEED TO DETERMINE THE MARKET THEY COMPETE FOR, THEIR SUCCESS ON THIS MARKET, AND WHO THEY COMPETE WITH FOR CONSUMER ATTENTION. USING ORGANIC SEARCH ENGINE DATA, WE PROPOSE A NEW APPROACH TO (I) DEFINE THE DIGITAL MARKET, (II) IDENTIFY THE PLAYERS IN THE MARKET, (III) ESTIMATE THE DISTRIBUTION OF DIGITAL CONSUMER ATTENTION ACROSS BANKS, AND (IV) UNCOVER THE COMPETITIVE MARKET STRUCTURE FOR THE ONLINE RETAIL BANKING MARKET IN GERMANY.
THE TERM WEB 2.0, COINED FOR A VARIETY OF RECENT WEB APPLICATIONS, RESOUNDS THROUGHOUT THE LAND AND FIRES ONLINE MARKETERS’ IMAGINATION IN MANY INDUSTRIES. WE EXAMINE EMPIRICALLY HOW FAR THOSE APPLICATIONS ARE USED BY RETAIL BANKING CUSTOMERS AND WHICH ROLE THEY PLAY IN THE RETAIL CUSTOMERS’ PURCHASE PROCESS.
IN THE PAST YEARS THE CUSTOMER FEEDBACK METRIC RECOMMENDATION INTENTION HAS GAINED IMPORTANCE, ESPECIALLY DUE TO THE WIDESPREAD CONCEPT NET PROMOTER SCORE (NPS). THE NPS CONCEPT IMPLIES A POSITIVE, NON-LINEAR RELATIONSHIP BETWEEN RECOMMENDATION INTENTION AND CUSTOMER VALUE. THIS ARTICLE INVESTIGATES THE RELATIONSHIP BETWEEN RECOMMENDATION INTENTION OF INDIVIDUAL CUSTOMERS AND THEIR VALUE FOR THE FIRM. THE RESULTS SHOW THAT RECOMMENDATION INTENTION SIGNIFICANTLY INCREASES CONTRIBUTION MARGIN BUT NEITHER RETENTION NOR CUSTOMER VALUE. THE METRIC SATISFACTION HAS A SIGNIFICANT, POSITIVE IMPACT ON CUSTOMER VALUE AND CAN THUS BE USED AS A LEADING INDICATOR. THEREFORE, THE RESULTS DO NOT CONFIRM THE SUPERIORITY OF THE NPS CONCEPT FOR CUSTOMER MANAGEMENT.
STUDIES HAVE FOCUSED ON INNOVATIONS IN VARIOUS CONTEXTS BUT LARGELY EXCLUDED FINANCIAL INNOVATIONS, DESPITE THEIR NOTABLE IMPORTANCE. THIS STUDY ANALYZES THE TYPES OF FINANCIAL INNOVATIONS BY MAJOR BANKS AND THEIR PAYOFFS. THE RESULTS INDICATE THAT SECURITY AND CREDIT INSTRUMENTS CONSTITUTE THE MOST COMMON FINANCIAL INNOVATIONS. THE AVERAGE RETURNS TO A FINANCIAL INNOVATION ARE $146 MILLION. IN ADDITION, RADICALNESS AND FINANCIAL RISKINESS INCREASE THE RETURNS, WHEREAS COMPLEXITY DECREASES THEM.