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  • June 2023
  • Simulation

Artea Dashboard and Targeting Policy Evaluation

By: Ayelet Israeli and Eva Ascarza
  • Format:Electronic
  • | Language:English
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Abstract

Companies deploy A/B experiments to gain valuable insights about their customers in order to answer strategic business problems. In marketing, A/B tests are often used to evaluate marketing interventions intended to generate incremental outcomes for the firm. The Artea exercise puts students in the shoes of data-informed decision-makers who run these types of tests to improve the effectiveness of marketing actions. The exercise allows students to analyze the results of an A/B test of a promotional campaign and propose an optimal policy to target future customers. The instructor dashboard presents the different policies proposed by students to allow deeper analysis and evaluation of the proposals. Overall, the simulation offers the opportunity to develop students’: 1) Understanding of statistical elements to evaluate the success of A/B experiments and marketing campaigns; 2) ability to analyze experimental data to inform decisions; 3) complex decision-making while evaluating tradeoffs between different KPIs; and 4) appreciation of the importance of understanding customer heterogeneity in the response of marketing actions and how to optimize targeting decisions.

Keywords

Algorithm Bias; Algorithmic Data; Race And Ethnicity; Experimentation; Promotion; Marketing And Society; Big Data; Privacy; Data-driven Management; Data Analysis; Data Analytics; E-Commerce Strategy; Discrimination; Targeted Advertising; Targeted Policies; Pricing Algorithms; A/B Testing; Ethical Decision Making; Customer Base Analysis; Customer Heterogeneity; Coupons; Marketing; Race; Gender; Diversity; Customer Relationship Management; Marketing Communications; Advertising; Decision Making; Ethics; E-commerce; Analytics and Data Science; Retail Industry; Apparel and Accessories Industry; United States

Citation

Israeli, Ayelet, and Eva Ascarza. "Artea Dashboard and Targeting Policy Evaluation." Harvard Business School Simulation 523-707, June 2023.
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About The Authors

Ayelet Israeli

Marketing
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Eva Ascarza

Marketing
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