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Case Study: NetConversions Influences Kelley Blue Book

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Case Study: NetConversions Influences Kelley Blue Book

The Management-Research Question Hierarchy

Background Question

Kelley Blue Book, KBB, uses its website to provide the target audience with vehicle pricing at fair prices. It is a transition from the previous print-based model of revenues. Since the website is mainly based on advertising and engagement metrics, it would be critical that the engagement levels are high to keep the impact successes on revenues sustained. Calder et al. (2009) argue that websites that have been rated as highly engaging improve ad performance significantly; thus, engaging audiences should be a priority for revenue-based websites such as KBB.

Management Questions

To improve the performance of its website, KBB must consider the following:

Notably, Calder et al. (2009) found that enhancing site usability contributes directly to the likelihood of repeat visits, which, in turn, bolsters overall site performance.

Research Questions

With these goals, KBB seeks insights into:

The concept of abandonment is critical in online retail settings, where user satisfaction directly impacts retention and purchasing behavior (Grewal et al., 2017).

Investigative Questions

To answer these research questions, the following investigative inquiries were formulated:

Measurement Questions:

To quantify user engagement and assess the effectiveness of website changes, the following metrics are evaluated:

This structured question hierarchy aids in systematically refining KBB’s approach to improving user interaction and generating actionable insights for website optimization (Li, Daugherty, & Biocca, 2002).

Research Process Model (Exhibit 4.1) and Evaluation of Research Design

Problem Definition

KBB needs to increase the site’s engagement in order to improve ad revenue. Since user visits are one of the most important metrics for advertisers, KBB partnered with NetConversions to reveal the usability insights that would lead to improved user experiences and, subsequently, increased revenue from ad impressions (Grewal et al., 2017).

Development of Research Design

NetConversions implemented a two-phase research design consisting of Site Analysis and Hill Climbing™ Testing.

Site Analysis

This phase is broken down into three sub-phases: Visitor Tracking, Data Analysis, and Reporting. First, NetConversions monitored how visitors navigated the website, capturing entry points, pathways, and exit pages (Calder et al., 2009). Second, through tools like path analysis and click density mapping, NetConversions identified “low hanging fruit”—or areas ripe for improvement, such as high abandonment pages or noninteractive visual elements. Lastly, detailed reports with data visuals helped KBB understand user interactions and receive targeted recommendations, such as making the KBB logo a home page link.

Hill Climbing™ Testing

NetConversions randomly showed modified page elements to segments of visitors for the evaluation of certain design changes by overlaying test scripts on existing pages. This technique allowed NetConversions to observe the behavior differences between users exposed to the design changes versus those who viewed the original design (Fogg, 2009).

Evaluation of Research Design

This two-phase design allows KBB to test the behavior of its users while simultaneously testing proposed changes in real time. Click density analysis and scrolling data were some of the tools used to reveal granular details about user engagement, thus helping them make focused adjustments to the website for enhanced performance. The comprehensive process is somewhat expensive and burdensome, especially if multiple design elements are under test. Of these, the ability to extend the project timeline had the Hill Climbing™ phase, where a number of changes were involved with associated testing. Notwithstanding these limitations, the research design of NetConversions remained fairly congruent with KBB’s objective of striking a balance between depth of analysis and iterative testing. Therefore, it also positioned KBB to make effective data-driven improvements to its website.

Sampling Design and Evaluation

In the Hill Climbing™ phase, NetConversions implemented a stratified sampling methodology whereby one in every 1,000 KBB visitors was exposed to modified page elements. The added value to this approach is that an overwhelming percentage of users could remain on the same original site design, minimizing the chance of disrupting their experience while providing robust data regarding user behavior with these updated elements (Li et al., 2002). On this small population, NetConversions was able to test site changes without compromising KBB’s overall site performance and introducing large variances in user feedback.

The random sampling design provided unbiased insights because data were sampled from both those exposed to the design changes and those interacting with the original site design. Accordingly, this limits selective exposure biases because people are not always exposed to persuasive content (Fogg, 2009). This, however, means that since only a small portion of site visitors saw the new design, data collection would be much slower and perhaps extend the time it would take to reach statistically meaningful results of the experiment. This can extend the overall testing time on a complex site with numerous testable variables. The above limitations notwithstanding, this sampling design effectively balanced a minimal level of disturbance with dependable insights that allowed NetConversions to make specific recommendations customized to the needs of KBB.

References

Calder, B. J., Malthouse, E. C., & Schaedel, U. (2009). An experimental study of the relationship between online engagement and advertising effectiveness. Journal of Interactive Marketing, 23(4), 321–331. https://doi.org/10.1016/j.intmar.2009.07.002

Fogg, B. J. (2003). Persuasive technology: Using computers to change what we think and do. Morgan Kaufmann.

Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). The future of retailing. Journal of Retailing, 93(1), 1–6. https://doi.org/10.1016/j.jretai.2016.12.008

Li, H., Daugherty, T., & Biocca, F. (2002). Impact of 3-D advertising on product knowledge, brand attitude, and purchase intention: The mediating role of presence. Journal of Advertising, 31(3), 43–57. https://doi.org/10.1080/00913367.2002.10673675

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Question 

Case Study Assignment Instructions

For each Case Study Assignment, you will read the assigned case study and analyze the case scenario/research through a series of questions. The overall structure of each case is similar in that each case begins with an abstract followed by a description of the scenario/research and concludes with a discussion about the situation. The discussion is simply a series of unique questions about the case scenario that you will answer as your Case Study Assignment.

No abstract is required for the Case Study Assignment nor are an introduction or conclusion; simply type the questions as an APA style heading and respond. Ensure the following are met:

Each case can be found within Canvas under the respective Case Study Resources section. This section is below the assignment instructions.

The specific questions for each Case Study Assignment can be found on the following pages of the case study:

View the Case Study Resources section under each Case Study page.

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