Weather and Mobile Promotion Abstract Despite the ubiquitous impact of weather, little evidence exists, especially with field data, on how consumers respond to weather and how this affects their responses to promotions. On the basis of multiple field experiment datasets with over 10 million smartphone users, we investigate how sunny and rainy weather affects consumers’ incremental purchase responses to mobile promotions. Our field data can identify the causal impact because smartphone users across a wide range of geographical locations and climates are randomly assigned to receive mobile promotions with a prevention ad copy frame (treatment) and neutral ad copy frame (control). The data can also identify the incremental purchase responses because there is a baseline (holdout) group of smartphone users who are comparable to the treatment and control groups but receive no promotion. Our data analyses account for customer self-selection bias in multiple ways: (a) geographical locations in terms of different areas, (b) time variations in terms of different days and hours of the day, and (c) individual usage behavior heterogeneity in terms of activity bias in different weather condition. To further address endogeneity and self-selection concerns, our identification strategies rely on the within-person changes in weather, via both backward-looking historical weather and forward-looking forecasts, as well as deviations from the normal expected weather of geographical regions. The main result is that consumers are more responsive to SMS and APP promotions on sunshine days, but a prevention frame of ad copy increases the effectiveness of promotions on rainy and inclement days. These results are consistent with the affect-as-information theory (the sunny weather-induced positive mood boosts consumer response likelihood and hazard) and mood congruency hypothesis (the rainy weather-induced negative mood matches with the prevention frame of ad copy). In terms of the odds ratio of purchase likelihood, sunny weather leads to about 1.21 times more purchases as a result of the mobile promotions compared with cloudy weather, and rainy days leads to about 0.9 times less purchases than cloudy days. Hour-by-hour analyses with survival models suggest the hazard rate of responses would be 73% faster in sunny weather but 59% slower in rainy weather relative to cloudy sky. With over 150 million users of weather apps, there are a total of 2 billion checks of weather each day. For marketers, these staggering numbers may implicate some new business opportunities with weather-targeted SMS and APP promotions for smartphone users. Keywords: Mobile, Targeting, Field Experiment, E-commerce, Advertising, Weather 1 Many companies notice the value of targeting weather (past, current, or future) in their ads and promotions, as consumers buy products directly tied to weather (eMarketer 2014). A sunny day is good for selling sunglasses and sport gears, while a rainy day necessitates buying an umbrella. Over 200 major brands from automotive, customer package goods, insurance, travel, and pharma industries have partnered with the Weather Company in the hopes of boosting sales by leveraging weather information (Adweek 2015; Wall Street Journal 2014). Correlations between weather and purchase are documented with big sales data from Walmart and P&G matched with location data for 150 million mobile weather app users (BusinessWeek 2014). Indeed, businesses are keen on how to make money off the weather, since “one third of the U.S. economy is affected by forces of weather or climate” (Wharton Knowledge 2013). Despite such managerial importance of weather targeting as depicted in popular trade press, little causal evidence exists in the literature, especially with field data, on how consumers respond to weather and how this affects their responses to promotions. Therefore, this research investigates how sunny and rainy weather influences consumers’ incremental responses to promotions in the setting of mobile products. Consumers may purchase more in sunny days, but they may not necessarily respond more favorably to promotions or engender incremental purchases that would not have been realized otherwise. 1 We focus on the role of sunny and rainy weather conditions, after controlling for the effects of temperature, humidity, visibility, air pressure, dew point, and wind. Literatures in economics and psychology noted sunlight enables brain to produce more serotonin and leads people to have positive mood. Thus, in sunny days people buy more stocks (Hirshleifer and Shumway 2003), apparels (Murray et al. 2010), and convertible cars (Busse et al. 2015). On the contrary, in rainy weather people tend to have depressive symptoms, negative mood, and thus purchase less (Hsiang, et al. 2013). Our setting here is unique because with mobile technologies consumers are high on not only weather awareness (people check weather 3 times per day on weather app), but also location awareness (e.g., via checking physical locations on maps on smartphones). 2 In traditional retail settings, it is difficult to track location, weather, of promotion responses simultaneously at individual consumer level. Nowadays, mobile technologies allow for more precisely identifying individual people on where they are, what weather they experience, and when they respond to promotions with the mobile setting. Our investigation exploits a large-scale field data provided by a mobile telecom company on over ten million smartphone users. The experiment design and unique features of this dataset allow for identifying the causal incremental effects of weather on mobile promotion responses. The company randomly sent two ad copies of mobile promotions to smartphone users. One ad 1 We acknowledge AE for this insight. While prior weather studies focus on purchase, we address effects on promotion effectiveness, or responses to promotions. 2 Also, we acknowledge one anonymous reviewer that if weather is important and targetable even when the advertised product on the mobile platform in our setting is not directly tied to weather like sunglasses, such understanding can have non-trivial tangible consequences for marketers to plan promotional campaigns. 2 copy –‘treatment’—contains a prevention frame (“do not miss the opportunity to take advantage of this deal”). The other ad copy—‘control’—contains a neutral frame with general greetings (“dear respected customers). To assess incremental sales that would not have been realized otherwise, our data also have a baseline—‘holdout’—group of smartphone users who receive no promotion and are comparable to the treatment and control groups. Concurrently, weather condition data are combined with the field mobile promotion responses. We have timestamped variations in weather conditions, customer locations, and responses to mobile promotions. In other words, the matched field data capture not only consumer responses to two different frames of mobile promotions but also weather-related attributes at the consumer location corresponding to the time when promotions being sent. This allows us to directly test the causal and incremental impact of sunny and rainy weather. In an ideal experimental setting, people would be randomly assigned to rainy and sunny weather conditions. However, because researchers cannot manipulate weather in the real world, we rely on a quasi-experimental design that randomizes ad exposure (with treatment and control promotions as described above). Since weather is naturally confounded with geographical locations, time variations, and user behavior, our data analyses will isolate the effect of sunny and rainy weather by controlling for customer self-selection bias in multiple ways: (a) geographical locations in terms of different regions, states, and cities, (b) time variations in terms of different days and hours of the day, and (c) individual usage behavior heterogeneity (mobile usage) that may confound the results. To further address endogeneity and self-selection concerns, our identification strategies rely on the within-person changes in weather (with both forward-looking forecasts and backward-looking historical weather), as well as deviations from the normal expected weather conditions. The data analysis results indicate that consumers are significantly more likely to respond to mobile promotions in sunny days compared with cloudy days, and significantly less so in wet-weather days. In terms of economic significance with the odds ratio, sunny weather leads to about 1.21 times more purchases as a result of the mobile promotions compared with cloudy weather, and rainy days leads to about 0.9 times less purchases, holding other things constant. Beyond the response rate (purchase or not), our field data can also test the response hazard, i.e., how quick or slow the response is conditional on making a purchase. Hour-by-hour analyses with survival models suggest the hazard rate of purchase would be 73% faster in sunny weather but 59% slower in rainy weather relative to a cloudy sky. In addition, the congruence between ad copy and weather matters: ad copy with a prevention (versus neutral) frame boosts mobile promotion effectiveness in rainy weather, but diminishes it in sunny days. Another key concern is the generalizability in results of the mobile products. Thus, we obtained an additional field experiment dataset from the telecom company with mobile ads promoting a different digital product and without price discounts (thus only ads and no price promotions). The additional data provide consistent and robust results for the impact of sunny and rainy weather. 3 Why would consumers respond to mobile promotions differently in sunny or rainy weather? The psychological theory of “affect-as-information” provides a viable account. Specifically, mood can be an information input, i.e., information about the advertising message and/or price promotions, for product evaluation and decision-making (Schwarz and Clore 1983; Pham 2008; Pham, Lee, and Stephen 2012). Compared to cloudy and rainy days, sunny weather with more exposure to sunlight would enable brain to produce more serotonin, like in a “heliotherapy,” and people may experience a better mood and have more favorable ad evaluation, thus more and faster responses to mobile promotions. On the contrary, people in rainy days should experience a worse mood state and more negative feelings due to precipitation and inclement weather conditions, and less favorable evaluation of the advertising message and promotional deals, thus fewer and slower response. Interestingly, mood congruency hypothesis of the theory of affect-as-information (Mayer et al. 1992; Murray et al. 2010; Pham and Avnet 2009) also holds that the rainy weather-induced negative mood matches with the loss-avoidance prevention frame of ad copy, and thus a prevention frame of ad copy increases the effectiveness of promotions on rainy and inclement days. The significant interaction between weather and ad copy framing proffers some evidence for the psychological mood explanation for our results, rather than a pure behavioral explanation, or activity bias of weather (e.g., users may be more likely to purchase in good weather simply because they are more on the go and hence use their phones more). This is because if the weather effect is purely driven by such behavioral explanation, then consumers should not respond differently to prevention vis-à-vis neutral frame ad copies under the same weather of the specific location. Our research makes several contributions. This is the first study that examines the sales effects of sunny and rainy weather on consumer responses to mobile promotions. Consumers may purchase more in sunny days (weather not under the control of marketers), but do not necessarily respond more favorably to promotions (marketing opportunity under the control of marketers). In fact, critics may argue that promotions should be minimized in sunny days if consumers are more likely to purchase anyway. Also, while promotions on sunny days drive more purchases, they may actually be destructive if lowering incremental sales with the promotions relative to without promotions. In this context, we find that compared with a holdout group (that receives no ad or promotion), consumers respond more to mobile ads or promotions on good sunshine days across two mobile products in two datasets, and such responses indeed lead to more incremental sales that would not have been realized otherwise. 3 These findings of incremental purchases are non-trivial because we know relatively little about how consumers respond to weather and because consumers nowadays are inundated with and annoyed by irrelevant ads (Bart, Stephen, and Sarvary 2014). One key challenge is how to cut through the ad clutter and gain customer attention. To attract consumer attention and responses, weather-targeted ads and promotions may be effective. Such promotions are hyper-local and 3 We acknowledge SE and AE for this insight. 4 contextually relevant to the smartphone users, thus no longer interrupt the customer experience but rather enhance it with incremental consumer purchase responses and thus firm sales revenue. Related, we also advance the limited weather literature by investigating not only purchase likelihood (Busse et al. 2015), but also the hazard, i.e., timing of responses to the promotions. In this sense, our findings provide understanding of how soon weather may affect revenues from mobile promotions. This is important because faster consumer responses to mobile promotions mean accelerated cash in-flows for the firm with faster turnover ratios and lower capital financing costs, thus more support for a steady stream of capital funding for timely promotions and advertising programs. Further, prior research involves products more directly tied to weather such as sunglasses, while our work involves products relatively less directly tied to weather. Intuitively, many companies understand the importance of weather environment when planning their ad campaigns. It surprises no one by showing that firms can benefit from taking into account weather for products (sunglasses or umbrellas) that are directly tied to sunny or rainy weather (Busse et al. 2015; Murray et al. 2010; Pham and Avnet 2012). We show that weather conditions are important even when the advertised product (mobile digital services) is less directly tied to weather. This unintuitive finding can be accounted for by the psychological theory of affect-asinformation. That is, weather affects consumers’ mood states and thus their consumption of digital services that are even less directly tied to the weather. Our results are important by pointing out a critical path: move beyond the low-hanging fruits of promoting only weatherdependent products toward more advanced weather-sentiment analytics. That would allow for more invigorating consumer targeting with weather on the burgeoning mobile platform. Moreover, we extend the mobile targeting literature. Prior research provides insights into targeting with consumer contexts in terms of time, location, and crowdedness in the environment (Danaher et al. 2015; Kenny and Marshall 2000; Ghose, Goldfarb, and Han 2012; Luo et al. 2013; Andrews et al. 2015). The weather has largely escaped research attention as a contextual variable for mobile targeting. Ironically, weather and mobiles go hand in hand. Checking weather is one of the most used native applications of smartphones. Consumers rely on smartphones to check weather conditions before bedtime, as soon as waking up, before leaving for work, and while deciding on evening plans. In fact, weather effects are often transient, and it is difficult to dynamically track consumer response over time without mobile technology. Smartphones are the most accessible and connected devices anywhere consumers go. Weather is a much under-utilized yet highly pertinent environmental variable in the marketing literature in general and mobile promotion literature in particular. Our research also proffers several insights for managers. Marketers are faced with the challenge of creating persuasive ads that generate sales. Old ‘spray and pray’ tactics are increasingly ineffective (Bart, Stephen, and Sarvary 2014). Marketing is challenged to create content to fit unique customer needs and environments. Our study informs managers that weather may be a viable targeting instrument to increase sales impact of promotions. Everyone 5 discusses the weather. The weather is perhaps one of the most important determinants of demand and supply for sectors from agriculture, building, energy, insurance, military, retailing, travel, to tourism and beyond. Historically, marketing with weather has been limited to seasonality applications, and managers can only avoid and cope with weather. However, with modern mobile location technologies (Andrews et al. 2015), weather forecasts, and high accessibility via weather apps, managers may plan and exploit weather for more effective consumer targeting. Managers can now target customers by current locations and hyper-local weather conditions to trigger the activation or suppression of ads and promotions. Familiar brands such as Ace Hardware, Taco Bell, Delta airlines, Farmers insurance, Goodyear and others are targeting local weather via mobile ad networks (MoPub, Jumptap, and TWC’s smartphone app). During the 2014 Olympics, Burberry experimented a weather-based campaign, which promoted products such as branded sunglasses and umbrellas according to local London weather. Extending this, we illustrate how to boost the effectiveness of mobile promotions by coordinating sunny and rainy weather with mobile services and products. Furthermore, marketers’ dream is to reach the customers in the right place, at the right time, and with the right marketing message. Besides relevant to consumers with the hyper-local weather, managers should also be creative with the right ad copy framing. Our results suggest that compared to neutral frame ad copy, a prevention frame substantially assuages the negative effect of rainy weather on responses to mobile promotions. Thus, managers may take actionable steps in weather-sentiment analytics with appropriate ad copy, i.e., avoid prevention-framing on sunny days (because of misalignment with good mood in sunshine days) and leverage it on rainy days (because of alignment with negative mood in rainy days). This would help craft effective mobile campaigns for “more bang of the buck.” In a nutshell, our targeting managerial take-away is: in rainy days, managers should use the prevention frame ad copy—do not miss the opportunity to take advantage of this special deal—for more mobile promotion purchases, while in sunny days they should use the neutral frame ad copy—a general greeting of dear respected customers—for more mobile promotion purchases. The weather undoubtedly affects daily life, mood, and how consumers interact with the world. With over 150 million users of weather apps, there are a total of 2 billion checks of weather each day (BusinessWeek 2014). For marketers, this may implicate a whole new world of business opportunities with weathertargeted mobile ads and promotions. Background and Hypotheses Background on Mobile Promotion Effectiveness Research has explored mobile promotion effectiveness via the role of contextual marketing (Kenny and Marshall 2000; Luo et al. 2013). Contextual marketing through smartphone devices is unique in its ability to provide targeted communication across virtually any geographic location and time of day. Customers are more likely to respond to situation-congruent mobile 6 promotions when they are proximally located (Banerjee and Dholakia 2008). In a fast-food study, customers were found to have a higher likelihood of coupon redemption when proximally located to the restaurant (Spiekermann et al. 2011). Users have a higher likelihood of browsing and interacting with stores that are more geographically-close to the customer (Ghose, Goldfarb, and Han 2012; Molitor et al. 2013). Echoing this, Luo et al. (2014) found significant interaction results between location and time in impacting movie ticket sales. Even the crowdedness of the environment in which a promotion was received influences consumer involvement and response to mobile ads (Andrews, Luo, Fang, and Ghose 2015). Danaher et al. (2015) uncovers that time, location, product-category, and promotional specifications are critical to determining mobile coupon success at shopping malls. Fong et al. (2015) finds that marketers may engage in geo-conquesting mobile promotions to boost incremental sales to customers at a competitor’s doorstep. The current study extends this stream of research by exploring the role of weather conditions for consumer responses to mobile ads and promotions. Background on Sunlight, Rain, and Mood A substantial body of literature has examined the effects of weather. Over 60 years ago, Steele (1951) illustrated the impact of weather on shopping volume for retail stores. Seasonal effects of weather can impact new product introductions, media spending, shopping cycles, and market competition (Busse et al. 2015; Simonsohn 2007). A central theme of prior weather literature is that weather affects people’s mood and thus their shopping activities and other outcomes. Persinger and Levesque (1983) found that weather accounted for 40% of the variability in daily mood reports by subjects. With respect to sunny weather, Hirschliefer and Shumway (2003) note that good mood resulting from sunny days positively influences stock valuation. People may increase prosocial donation because sunny weather induces better mood. Exposure to sunlight has a positive influence on mood like in a “heliotherapy” (Schwarz and Clore 1983; Murray et al. 2010; Busse et al. 2015). Insufficient exposure to sunlight over long periods of time sometimes leads to severe depression and even higher incidence of suicide. On the contrary, rainy weather conditions are more likely to create negative feelings in individuals (Klimstra et al. 2011). In poor weather days with rain, travel becomes burdensome and dangerous, direct exposure to rain can leave individuals wet and uncomfortable in a lousy mood state. Rainfall can negatively impact happiness and lead to tiredness and worse feelings (Denissen, Butalid, Penke, and van Aken 2008). Indeed, in a comprehensive meta-analysis of weather and climate, Hsiang et al. (2013) find that people in rainy weather experience more depressive symptoms, less happiness, and more negative feelings such as anxiety, nervousness, stress, and fear due to precipitation and the unpleasant, hazardous, wet, and inclement weather conditions (Steele 1951; Hirshleifer and Shumway 2003; Conlin et al. 2007; Murray et al. 2010; Zwebner, Lee and Goldenberg 2013). Also, in a series polls of weather app users on their weather-sentiments, Rosman (2013) reports that people are unhappy and in bad mood states around the time of rainy days and inclement weather such as hurricane. In contrast, people are reported to experience better mood and are generally happier during pleasant sunny days. Thus, 7 extant literature ties not only sunlight to positive affect and feelings but also rainy weather to negative affective feelings. Hypothesis on Weather and Mobile Promotion Effectiveness The theory of “affect-as-information” from psychology may account for the differences of mobile promotion responses in sunny and rainy weather conditions. This theory holds that mood can be an informational input, i.e., information about the advertising message as in Batra and Stayman (1990) and/or price promotions of the products as in Hsu and Liu (1998) for product evaluation and decision-making (Schwarz and Clore 1983). For example, “the experience of positive feelings while thinking about a target object is generally interpreted to mean that the target is desirable, attractive, valuable, etc., whereas the experience of negative feelings is interpreted to mean that the target is undesirable, unattractive, not valuable, etc.” (Pham 2008, p. 161). Indeed, prior research shows that affective feelings are informative for consumer preferences and product promotion evaluations. Interestingly, one of the earliest pieces of research exploring the use of HDIF (How-Do-I-Feel?) heuristic in decision-making utilized sunny and rainy days as positive and negative mood manipulators, respectively (Schwarz and Clore 1983). Since then, the wealth of knowledge examining the use of affectas-information in decision-making has grown considerably. In consumer psychology, numerous studies have illustrated the use of mood as information for product evaluations (Stephen and Pham 2008; Baggozi et al. 1999). People evaluate the same product more favorably when in a good mood, and less favorably when in a bad mood (Hsu and Liu 1998 see Isen 2001 and Gardner 1985 for reviews). Also, a state of high affect can lead to more favorable outcomes (Kahn and Isen 1993) because consumers are more innovative and prone to variety seeking. In financial economics, Hirschliefer and Shumway (2003) argue that as sunlight boosts people’s moods, they tend to have a more favorable judgment of equity value and purchase more stocks in sunny weather vis-à-vis cloudy or rainy and snowy weather. Consistent with this stream of research, people in sunny (vs. cloudy) weather should experience a better mood and more positive feelings that engender more favorable ad evaluation, thus leading to higher incremental sales response to mobile promotions. On the contrary, holding everything else constant, people in rainy weather experience more depressive symptoms, less happiness, and more negative feelings such as anxiety, nervousness, stress, and fear (Hsiang, et al. 2013; Gardner 1985; Klimstra et al. 2011). These negative feelings engender less favorable evaluations of the same products and promotions, thus leading to lower incremental sales response to mobile promotions in wet weather, compared to cloudy skies or sunny weather. Besides purchase likelihood, affect-as-information theory also predicts that people in positive mood make faster choices due to a greater reliance on spontaneous heuristic decisionmaking, rather than slower deliberate processing (Pham et al 2001; Isen 2001; Schwarz and Clore 1983). In other words, if sunny weather enhances mood, and positive mood leads to more 8 favorable promotion evaluations (Hirshleifer and Shumway 2003), then the theory of affect-asinformation would predict that consumers will not only have a higher likelihood but also faster speed to respond mobile promotions in sunny weather. By the similar logic, if rainy weather leads to negative feelings due to precipitation and the unpleasant, hazardous, we weather conditions (Conlin et al. 2007; Murray et al. 2010), then the theory of affect-as-information would predict that consumers will not only have a lower likelihood but also slower speed to respond mobile promotions in rainy days. Overall, in line with the psychology literature, because affect-as-information can be applied to ads as shown in the role of mood for advertising effectiveness by Batra and Stayman (1990) and to price promotions as shown in the role of mood in price promotions by Hsu and Liu (1998), we test the following hypothesis for both mobile ads and promotions effectiveness: H1: Ceteris paribus, sunny (rainy) weather will lead to higher and quicker (lower and slower) incremental sales response to mobile ads and promotions, compared with cloudy weather. Further, the theory of affect-as-information indicates that feeling interpretations are subject to a response-mapping dependency, or mood congruency contingency. The affect information will be interpreted differently contingent upon matching or mis-matching, i.e. “query and response-mapping dependency” (Pham 2008, p. 178). People in good moods find positive information more salient and pay more attention to positive message, while in bad moods find negative information more salient and pay more attention to negative message (Isen et al. 1978; Mayer et al. 1992; Schwarz and Clore 1983). Indeed, Pham (2008) holds affective information that matches (mismatches) with evaluative content produces more favorable (unfavorable) framed cognitive appraisal. Also, Pham and Avnet (2009) find that mood heuristics interact with message framing, such that the effects of positive mood on consumer preference is attenuated by prevention frame (because positive mood mismatches with a negative lossavoidance prevention frame). In line with this strand of research, the mood congruence contingency would suggest that rainy weather-induced negative mood matches the prevention ad copy, while sunny weather-induced positive mood mismatches it. In other words, the interaction between sunny weather and prevention (versus neutral) frame would be negative in influencing consumer responses to mobile promotions, while the interaction between rainy weather and prevention frame would be positive (i.e., negative multiplied by negative becomes positive). So we test the following hypothesis: H2: Ad copy with a prevention (vs. neutral) frame has a negative interaction with sunny weather, but a positive interaction with rainy weather in influencing the incremental sales response to mobile promotions. 9 Field Data, Identification, and Results Field Data The ideal test of weather effects is to conduct a randomized field experiment by manipulating weather. Yet, this is impossible because weather conditions are not dictated by researchers. No researcher can randomly assign one day as sunny and another day as rainy. However, we can randomly assign mobile promotions and then match the data with weather records, i.e., augmented field data. Thus, we conducted a quasi-field experiment to explore the effect of weather on consumer responses to mobile promotions. Our field data is provided by one large mobile telecommunications company. The mobile campaigns promote discounted add-on services of video-streaming to smartphone users. The basic mobile services are provided by the telecom company when users subscribe to a specific cell phone plan such as call and SMS services. However, the add-on services must be purchased additionally. This add-on service allows mobile users to watch videos on their smartphone devices. Randomized promotions are sent to over 10 million (10,072,534) mobile users via push-open SMS notification campaigns from September 2nd, 2013 through October 3rd, 2013. There are two ad copies in the promotions, where one is with the prevention frame and the other with neutral frame. 4 For the prevention frame ad copy (treatment), the SMS begins with “Do not miss the opportunity to take advantage of this special deal!” This treatment ad copy emphasizes on preventing the users from losing the deal (i.e., a negative tone with the wording of not missing in ad copy priming) in order to promote and sell the mobile product. For the neutral frame ad copy (control), the SMS begins with a general greeting of “Dear respected customer.” This control ad copy emphasizes on a generic salutation (i.e., a neutral, non-negative tone in ad copy priming) in order to promote and sell the mobile product. The rest of the SMS promotions is the same across the treatment and control: “Subscribe to the mobile videostreaming service of [the Wireless Service Provider] for only ¥3 per month! Watch video episodes of the most popular TV series on your mobile devices on-the-go! The regular price is ¥6. Purchase by replying “Yes” to this SMS within the next 48 hours!” All these SMS campaigns are promoting the same mobile service, the discounted and regular prices are the same, and all SMSs are sent to users at 9am everyday consistently. Interested users could 4 The mobile company was engaging in A/B tests to assess whether prevention frame leads to different results from neutral frame in SMS promotions, so there is no promotion-framing due to managerial decisions. Also, a promotion-framing might invite consumer reactance because that would directly cold sell the products to consumers in their personal mobile devices. As manipulation checks, pilot tests and focus groups confirm that users indeed interpret the wording of ‘do not miss the opportunity’ as loss-avoidance type negative message, i.e., preventing users from the negative outcomes of missing the deal, rather than gain-approach type positive message of directly pushing users to grab the deal. Also, the neutral frame with the general greeting is was confirmed as neutral rather than prevention frame in interpretations. Using these two ad copies, there are a total of 38 SMS campaigns. Though not perfect balanced, 18 prevention vs 20 non-prevention SMS campaigns exist purely due to the corporate agenda, rather than researcher intervention. Variations in message length could be a confound, given the small screen sizes of mobile phones. However, the original SMSs in Chinese language were not significantly different in length between the treatment and control conditions. Thus, promotion length confound is not a serious threat. See Appendix B of the SMSs. 10 respond by purchasing the service with promoted price. 5 The purchase prices would be charged immediately to the users’ wireless phone bill. All SMS campaigns are randomly sent. For the randomization procedures, the SAS software’s random number generator and RANUNI function are used to generate a random value from a uniform distribution. After that, the random numbers are sorted in sequence to extract the sample to send to mobile users (Deng and Graz 2002). The targeted users did not previously subscribe to this video-streaming service, nor did they receive a similar SMS promotion from the wireless service provider. In order to identify the incremental sales effect of SMS promotions, 6 we randomly selected 20,000 mobile users who they are comparable to the treatment and control groups but didn’t receive any promotion ads during our field experiment time window from the company. These users are regarded as the baseline (holdout) group. Similar to mobile users received the SMS promotions, users of the holdout group did not previously subscribe to this video-streaming service, nor receive a similar SMS ad. Thus, the results can gauge incremental sales responses due to mobile promotion, compared with the counterfactual of no mobile promotion. To explore the weather effects, we collected the concurrent weather data at the user location during the time the SMS ads were sent. We complement the mobile promotion data with a rich database of weather variables across cities of mobile users at both daily level and hourly level. We develop an algorithm based on machine learning techniques to automate the data scrapping process to collect the weather data online from weather underground. 7 In this study, we focus on the effect of sunny weather (all sunny and partial sunny), cloudy weather (cloudy or overcast days without much sunlight or clear sky), and rainy weather (shower, rain and storm). Figure 1 presents the frequency of the individual-daily exposure of the distribution of weather conditions. As shown in Figure 1, there are enough variations since sunny has over 3 million observations and cloudy over 4.5 million observations, for instance. Because other weather conditions (snow and fog) have very few cases, we mainly focus on sunny, cloudy, and rainy weather conditions. [Figure 1] Figure 2a and 2b show the initial model free evidence. Figure 2a presents the incremental sales effect of mobile promotion used in our field experiment. The purchase rate of the holdout group (without mobile promotions) is zero, which means mobile users will generally not purchase this service without promotion no matter what is the weather condition in this context. The zero purchase rate without promotion is reasonable here because the mobile company provides more than 200 add-on mobile service packages. Without promotions, it is quite difficult for users to notice the existence of a specific add-on service to make a purchase. In this 5 This field experiment data do not have a condition with only ads and without the promotional price discounts. Thus, we conduct an additional field experiment on a mobile reading app platform with only ads (no discounts). 6 We acknowledge AE for this insight. 7 Per one reviewer, we have paid a handsome amount of cash and purchased the forecast weather data to test the effect of unexpected change. The results are robust. 11 sense, the mobile promotion responses are incremental and would not capture otherwise. 8 This also supports the notion that the results aren’t due simply to more mobile usage in sunny days. Figure 2b provides the model-free evidence for the effect of weather on consumer responses to mobile promotions. The response rate is the highest (1.05%) when the weather condition is sunny, and the response rate of rainy weather is the lowest (0.64%). Thus, these findings suggest initial evidence that sunny weather has a positive effect while rainy weather has a negative effect on incremental responses to mobile promotions. [Figure 2a, Figure 2b] Identification Strategies Because weather is naturally confounded with geographic locations, to conclude that weather drives purchases, researchers need to rule out that weather is not simply correlated with geographic locations and other unobserved drivers of demand. To enhance results validity and rule out alternative explanations, we have multi-faceted identification strategies. First, we take the user self-selection into account. Self-selection concerns arise due to the possibility that people may self-select to the geographic location in which they live. Geographic locations with certain latitude and longitude measures may be correlated with weather conditions and drive the purchases. If so, then it is not weather but rather location, as a confound, that drives consumer responses to mobile promotions. In other words, researchers might systematically observe specific purchase types in specific locations due to geographic characteristics or the characteristics of residents at these locations. And these locations may have systematically different weather conditions. Specifically, researchers might observe non-purchases more in rainy weather locations, but the correlation might be spurious. For instance, researchers may observe rain in Seattle (not surprising where weather is often rainy) and few purchases. But this might merely be caused by the fact that the type of people living in Seattle are less likely to buy on their smartphones than the type of person living in, say, Los Angeles (where the weather is usually sunny). To deal with this confound, our model controls for locations with fixed effects of 31 providences covering 344 cities (see Appendix), which have different latitudes and altitudes that may naturally correlate with weather. Second, we test the effects of sunny, rainy or cloudy days, over and beyond the effects of a host of related variables. Such variables as temperature, humidity, visibility, air pressure, dew point, and wind speed and directions are controlled for in our model analyses. Third, although we test the psychological mood effect of weather, we also need control for pure behavioral effect of weather (e.g., people more likely to go about in sunny days and less so in rainy days). So we consider the differences between weekdays and weekends. People behave differently on weekdays and weekends. On weekends people may have more freedom to choose to go out if sunny and stay at inside if rainy outside. 8 Data in our second randomized field experiment suggest a non-zero holdout case. That is, without mobile promotion, users will make some purchases. That helps generalize our findings, as discussed subsequently. 12 However, on weekdays people may have less such freedom if they need to go to work regardless sunny or rainy weather. For this purpose, we only use the weekday data to more precisely identify the effect of weather on mobile promotion responses. 9 Fourth, we consider the confounding day effect. As our field experiment is implemented for one month, the unobservable elements might change across the 31 days. Though we have considered the difference between weekdays and weekends, we still need to take care of the day effect. For instance, people may purchase more at the beginning (vs. end) of one month due to limited budget. Hence, we control for the day fixed effect to ensure the validity of our model results. Main Effect of Sunny and Rainy Weather Condition Our econometric model estimates individual user’s likelihoodi to respond mobile promotion. The latent likelihood is a logit function of weather conditions and covariates. Following Guadagni and Little (1983) and Luo et al. (2013), our logit model has an i.i.d. extreme value distribution of the error term: Mobile Promotion Response Likelihoodiweather = exp(𝑈𝑈𝑖𝑖 ) 1+exp(𝑈𝑈𝑖𝑖 ) 𝑈𝑈𝑖𝑖𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤ℎ𝑒𝑒𝑒𝑒 = 𝛼𝛼0 + 𝛼𝛼1 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑖𝑖 + 𝛼𝛼2 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 + 𝛽𝛽𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 + Δ𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝜇𝜇Ω𝐑𝐑(𝐢𝐢) + 𝜌𝜌𝐗𝐗 𝐢𝐢 + 𝜀𝜀𝑖𝑖 (1) where i indicates the mobile user. The promotion response here equals to 1 if the user responds to the SMS promotions by making a purchase, and 0 if otherwise. We use two dummies, Sunnyi and Rainyi, for the three weather conditions of sunny, cloudy, and rainy to identify the weather condition of the day a mobile user received the ad message, respectively. Sunnyi is equal to 1 if the weather is sunny on the day that the mobile ads is exposed to individual i and 0 if otherwise. Rainyi is equal to 1 if the weather is rainy on the day that the mobile ads is exposed to individual i, and 0 if otherwise. Thus, when both Sunnyi and Rainyi are 0, the weather is cloudy, the baseline weather. Framingi is equal to 1 if the SMS campaign includes prevention frame ad copy and 0 if with the neutral frame ad copy. We also control for other weather-related variables, i.e., highest temperature, temperature range 10, humility, dew point, air pressure, wind speed as continuous variables and eight dummies for wind direction (all correlations among all variables are not high, with largest correlation less than .15 in the data; Too windy with high wind power can drive negative affect, Denissen, Butalid, Penke, and van Aken 2008). Ω𝑹𝑹(𝒊𝒊) is a vector of 30 geographical dummies (31 provinces) to control for location-based fixed effects. 11 In 9 Also, the effect of sunny weather and rainy weather may reasonably different between day and night. Accounting for this, our subsequent hour-by-hour analyses with hazard models only use the hourly weather data of first 8 hours (from 9 am to 5 pm) when most people are at work regardless of the weather conditions. 10 Temperature range equals to highest temperature minus lowest temperature in Celsius degree, indicating the uncertainty of temperature in a day. 11 We also test and consistently support the weather effects by controlling for locational effects with 344 Cities (as 13 addition, we control for rural, a location-related dummy variable, which equals to 1 if the mobile user live in rural areas and equals to 0 if the mobile user is from urban areas. This helps control for different income differences between rural and non-rural areas. Finally, we control for Xi, a vector of fixed effects for 31 days of the SMS promotion period. Table 1 reports the summary statistics of the data. The mean value of consumer responses shows the purchase rate during our observation window is about 0.78%. This purchase rate is consistent with the rate between 0.6% and 2% for mobile coupons in Asia (eMarketer 2014). [Table 1] Table 2 presents the empirical estimates of weather effects. Column 1 is a simplified model specification. The crucial coefficients of interest are Sunny and Rainy, which capture the impact of weather on consumer response likelihood of mobile promotions. Column 2 includes dayfixed effects. Column 3 adds other weather variables including highest temperature, temperature range, humility, dew point, air pressure, wind speed, wind direction. Column 4 enters both weather-related covariates and the day fixed effects, which is our full model. Column 5 shows the model with robust standard error. As Table 2 shows, across all models, sunny weather has a consistent and statistically significant positive effect, while rainy weather has a consistent and statistically significant effect on the purchase of the service (all p < 0.05). Thus, an increase in consumers’ likelihood to respond to mobile promotions in sunny weather and a decrease in rainy weather, compared with the baseline cloudy weather as in H1. Besides the effect of weather, the prevention frame of SMS leads to a higher purchase rate, which is consistent with the regulatory relevance where prevention-message is more persuasive (Aaker and Lee 2006) and the notion of negativity in motivation where negative priming is more effective in changing and improving people’s actions (Finkelstein and Fishbach 2012). Additionally, in terms of economic significance with the odds ratio, sunny weather leads to about 1.21 (=e0.1880) times more purchases of mobile promotions compared with cloudy weather. Rainy weather leads to about 0.9 (=e-0.1068) times less purchases compared with cloudy weather. [Table 2] Interaction Effect of Weather and Ad Copy Framing This section explores the interaction effect of weather and ad copy framing. According to the affect-as-information theory and query-mapping of mood (Pham 2008), we test whether there are significant positive effect of 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 ∗ 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 , and negative interaction effect of 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑖𝑖 ∗ 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 . The full interaction model is shown as below: U iweather = 𝛼𝛼0 + 𝜃𝜃1 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 ∗ 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑖𝑖 + 𝜃𝜃2 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 ∗ 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 + 𝛼𝛼1 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑖𝑖 + 𝛼𝛼2 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 + 𝛾𝛾𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 + Δ𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝜇𝜇Ω𝐑𝐑(𝐢𝐢) + 𝜌𝜌𝐗𝐗 𝐢𝐢 + 𝜀𝜀𝑖𝑖 shown in Appendix) in addition to the providences. 14 (2) Table 3 presents the estimated results. Column 1 reports the results of the interaction effect between prevention framing and sunny weather effect, where the baseline is all other weather conditions; Column 2 reports the results of the interaction effect between prevention framing and rainy weather effect. Column 3 displays the two interaction items between the weather and prevention framing together. These results show that when the weather is sunny, prevention framing indeed leads to lowered likelihood to respond to mobile promotions (coef.=-0.2350, p<0.05). However, when the weather is rainy, prevention framing leads to increased likelihood to respond to mobile promotions by making a purchase (coef.=0.2239, p<0.05). These findings are consistent with a plausible mood explanation of the weather effects. To the extent that sunny weather induces good mood that is incongruent with negative ad messages and that rainy weather induces bad mood that is congruent with negative ad messages (Pham 2008; Pham, Lee, and Stephen 2012; Kahn and Isen 1993), it is sensible that ad copy with a preventionframing diminishes mobile promotion effectiveness in sunny weather but boosts it in rainy weather as in H2. Thus, mobile ad framing can substantially regulate the weather effects identified by this field dataset. 12 Also, the significant interaction between weather and ad copy framing reveals the evidence, to some extent, for the psychological mood explanation for our results, rather than a pure behavioral explanation or weather-based activity bias (e.g., users may be more likely to purchase in good weather simply because they are more on the go and hence use their phones more). This is because if the weather effect is purely driven by such behavioral explanation, then there should be insignificant interactions between ad copies and sunny or rainy weather conditions, i.e., consumers should not respond differently to prevention vis-à-vis neutral frame ad copies under the same weather of the specific location. [Table 3] More Identification with Response Hazard To further establish the effects of weather condition, we conduct hour-by-hour survival analyses to test the effects of sunny and rainy weather on response hazard, or purchase speed. Mobile users who were interested in the mobile video-streaming service should reply “Yes” within 48 hours due to the preset deal deadline in the mobile promotions. Thus, this timestamped field data on the promotion purchases allows us to test how fast they respond to the mobile promotion. As the weather condition may change each hour of a day, we collect weather data at the hourly level and develop an hour-by-hour hazard model. Table 5 provides the purchase rate of the hourly sunny, cloudy, and rainy weather. The promotion purchase rate is the highest (0.00022) 12 These results also contribute to literature on prevention-framing. Although prior findings illustrate the efficacy of prevention-framing in goal attainment with lab studies (Aaker and Lee 2006), we add more evidence with a large scale real-world field dataset. Our results not only corroborate lab studies and gauge its main effects on sales for the firm, but also reveal that messages framed with an otherwise effective prevention framing actually weaken mobile promotion impact on sunny days. These field evidences are critical for managers who may doubt the generalizability of prevention-framing results from lab experiments to actual sales purchase field settings. 15 in hourly sunny weather and the lowest (0.00013) in hourly rainy weather, thus adding more evidence for weather effects on consumer responses to mobile promotions at the hourly level. [Table 4] About the hazard of responses to mobile promotions, we first provide the model-free evidence of Kaplan-Meier plot in Figure 3. The Kaplan-Meier plot suggests that the slope of the line for the sunny weather is steeper than cloudy, and the slope of the line for the cloudy weather is steeper than rainy. This suggests that in sunny (rainy) weather, people are not only more (less) likely to respond but also take shorter (longer) time to respond mobile promotions. Next, we build a hazard model to formally test the responses speed (fast or slow in purchasing). [Figure 3] The proportional hazard model is shown as below: h(t) = h0 (𝑡𝑡)exp(𝑈𝑈𝑖𝑖𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤ℎ𝑒𝑒𝑒𝑒 ) 𝑈𝑈𝑖𝑖𝑖𝑖𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤ℎ𝑒𝑒𝑒𝑒 = 𝛼𝛼0 + 𝛼𝛼1 𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝑖𝑖𝑖𝑖 + 𝛼𝛼2 𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝐻𝑖𝑖𝑖𝑖 + 𝛽𝛽𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝑖𝑖 + Δ𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝜇𝜇Ω𝐑𝐑(𝐢𝐢) + 𝜌𝜌𝐗𝐗 𝐢𝐢 + 𝜀𝜀𝑖𝑖𝑖𝑖 (3) where the dependent variable is h(t), which signifies the hazard rate for purchase response at hour t. h(0) is the baseline hazard, indicating the hazard when all variables in the function of U𝑖𝑖𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑒𝑒𝑒𝑒 are equal to zero, which represents the cloudy weather condition. HourlySunnyi is equal to 1 if the weather is sunny at hour t that the individual i experienced and 0 if otherwise. HourlyRainyi is equal to 1 if the weather is rainy at hour t that the individual i experienced and 0 if otherwise. The baseline of hazard model is hourly cloudy weather. Weather-related covariates added to this model are also at hourly level. Other covariates, including framing, location fixed effect, day fixed effect, are the same variables used in the previous logit model. To further control for the behavioral effects of weather, we analyze data in the working time period during the day of weekdays. That is, the impact of weather might differ by night versus day, since there is no sunlight at night, and also people will be influenced less by rainy weather when they are often indoor at night. Taking this into account, our hazard models only use the hourly weather data of first 8 hours (from 9 am to 5 pm), which is the day time period and also most people are at work during this time period from Monday through Friday regardless the weather conditions. Results of Cox proportional hazard models are presented in Table 5. As an hour-by-hour analysis across individuals, the number of observations in hazard models (55,164,292) is substantially larger than that in logit model (6,744,884). 13 Column 1 in Table 5 enters Hourly_Goodweatheri, Hourly_Badweatheri and location fixed effect at the province-level. Column 2 also enters the day fixed effects. Column 3 enters prevention framing and other weather-related variables in the full model. The results in Table 5 indicate consistently and statistically significant positive sunny day effects (coef.=0.5481, p<0.05) and negative rainy 13 In the hour-by-hour survival analyses with over 55 million rows in the hazard model, each run with HPC (high performance computing) with parallel processing via university big machine costed around two weeks. 16 weather effects (coef.=-0.5247, p<0.05) on the hazard rate of responses to mobile promotions. Specifically, according to the results in column 3, when the hourly weather is sunny, the hazard rate of purchase is 73% higher, compared with the cloudy weather. The hazard ratio in rainy weather is 59% lower, compared with cloudy weather. As such, as in H1, compared with cloudy weather, sunny weather engenders not only higher but also quicker mobile promotion responses, while rainy weather engenders both lower and slower responses in terms of hour-by-hour hazard analyses. [Table 5] Further Identification with Unexpected Changes in Weather One may surmise that it is not the weather per se, but rather the unexpected changes in weather that may affect consumer mood and purchase. Indeed, Easton (2012) holds that “immediately following a rain shower, when the sun bursts out and sparkles on puddles through clean, fresh air, colors brighter and senses somehow keener, those moments are profoundly exhilarating… Perhaps it is not the sunshine that matters so much as the pleasure we get when our weather changes.” So we test whether the effects hold with unexpected changes in weather conditions. We considered two types of unexpected changes: backward-looking (change from daily weather condition of t-1 period to t period) and forward-looking (change from forecast weather condition to real weather condition in t period). We first consider the backward-looking unexpected change. More specifically, if the weather yesterday is sunny, people may possibly suppose it will still be sunny today. However, what if the weather condition changes today? We calculate the change of weather (ΔBackward Change) with Weather Conditiont, minus Weather Conditiont-1, and its net value ranges from 2 to +2. Better_Backward equals 1 if △Backward Change is positive (change to better weather than yesterday) and 0 if otherwise; Worse_Backward equals 1 if △Backward Change is negative (change to the worse weather) and 0 if otherwise. The baseline of our model for this section is No Change in weather. The results in Table 6 confirm that when the weather at period t is better than period t-1, the response likelihood of mobile promotion at period t is higher, as expected. Further, the response likelihood at period t is indeed lower if the weather at period t is worse than period t1. Interestingly, consistent with the prospect theory, the effects of ‘worse’ weather are significantly larger than those of ‘better’ weather in magnitude of impact. Additionally, column 3 in Table 6 shows that after controlling for the backward-looking unexpected changes in weather, the effects of current sunny weather and rainy weather are still consistent and significant (all p<0.05). Also, the incremental effect of ‘worse’ is actually significantly larger than the effect of ‘rainy’, judged both by the effect size and the level of statistical significance. This means that if yesterday it was rainy already, there is actually relatively little effect of rain today. The key insight from this table is that the two things that matter most are ‘sunny’ and ‘not worse than yesterday’ concerning weather effects on mobile promotion effectiveness. Thus, 17 once again, these results based on surprises of weather reveal more empirical evidence for the robust positive effects of sunny weather and negative effects of rainy weather on mobile promotion responses. [Table 6] The forward-looking unexpected change is also of great importance. Though the forecast is more and more accurate nowadays, the actual weather may still differ from the forecast. 14 If people expect the weather of a specific day is sunny due to the forecast report, but the real weather they experience at that day is actually rainy, they may have a worse mood, relative to people who also experience the rainy weather and know the forecast is rainy accurately. Thus, the forward-looking unexpected change from forecast to real weather may influence people’s mood and their responses to mobile promotions. We calculate theΔForward Change with real Weather Conditiont minus Weather Forecastt. Thus, Better_Forward equals 1 if △Forward Change is positive (change to better weather than forecast). Worse_Forward equals 1 if △ Forward Change is negative (change to worse weather than forecast). The baseline is still No Change Weather, meaning the forecast weather is accurate for t period. Table 7 presents the results. The estimates affirm that if the real weather condition is worse than the forecast, people are less likely to respond the mobile promotions. Again, results in Table 7 suggest that while giving some weight to ‘rainy’ weather, the variable of ‘sunny’ is by far most important and ‘worse than predicted’ is also quite relevant in influencing responses to mobile promotions. Importantly, column (3) still indicates robust positive sunny day effects (coef.=0.3325, p<0.05) and negative rainy weather effects on responses to mobile promotions (coef.=-0.1008, p<0.05), even after controlling for forward-looking unexpected changes. [Table 7] Even More Identification with Weather Deviation Although generally sunny weather has positive effects and rainy weather has negative effects, these weather conditions might have stronger or weaker effect in areas with different normal weather. For example, the effect of rainy weather should be different in Seattle where rainy is the normal weather, relative to Los Angeles where sunny is the normal weather. Across Earth’s climatic Torrid, Temperate, and Frigid zones, it is well established that weather varies systematically. 15 For example, locations in the subtropical zone have more rainfall, than those in the temperate (tepid latitudes) zone. According to the climate conditions, China can be divided into northern and southern region on the basis of the Qinling-Huaihe line. The northern 14 15 Per an anonymous reviewer, we have paid a substantial amount of fund to purchase the real forecast data. In the Torrid or tropical Zone (Tropic of Cancer on the north and the Tropic of Capricorn on the south), the sun seasonally passes directly overhead. The sun moves into the Southern Hemisphere right after the September equinox, moves over the southern tropical regions, arrives the Tropic of Capricorn at the December solstice, and returns northwards to the Equator. In the Temperate Zones (tepid latitudes), the sun never directly shines overhead, so the climate is mildly warm or cold with four seasons: Spring, Summer, Autumn and Winter. In the Frigid Zones (polar regions), the sun may shine at the midnight sun, and at the pole there are 6 months of daylight and 6 months of night. These are the coldest parts of the earth covered with ice and snow. 18 region belongs to the temperate zone, while the southern region belongs to the subtropical zone. Based on this classification, 31 provinces are divided into 15 in the south and 16 in the north. Figure 4 depicts the frequency of sunny, cloudy and rainy weather across the regions. In the south, the highest frequency is cloudy weather, followed by rainy and sunny weather. On the contrary, in the north, sunny weather is the normal weather condition of highest frequency, followed by cloudy and rainy weather. Thus, in the south region people might expect precipitous wet weather and are accustomed to rainy days, so relatively rare events of sunny days would have stronger positive effects on response to mobile ads, more so than in the north. Table 8 column (1) and (2) present the estimates of weather effect in the south and north separately. The coefficient of sunny weather of south (coef.=0.2904, p<0.01) in Column (1) is larger than that of north (coef.=0.0406, p<0.05) in Column (2), which indicate the relatively fewer events of sunny weather indeed have stronger effect on response to mobile ads in the south where people commonly expect rainy weather. Also, the larger coefficient of rainy weather in the north in Column (2) than the south in Column (1) also proves that the relatively rare events of rainy weather have stronger negative effect in the north where people commonly expect sunny weather. [Figure 4, Table 8] Additional Robustness Check In this section we conduct various robustness checks. We first check different coding schemes of the weather variables, with alternative measures of sunny and rainy weather and the extent of sunshine in sunny days. We then test the interactions between sunny/rainy weather and temperature. Falsification Tests with Alternative Measures of Sunny and Rainy Weather To affirm the positive sunny weather effects, the data should pass a falsification test. That is, if we group cloudy and rainy weather as the baseline, the positive sunny weather effects should still hold, if not stronger in effect size. This is because once combined together cloudy and rainy weather still cannot induce better mood than sunny weather does. Similarly, if we group cloudy and sunny weather as the baseline, the negative rainy weather effects should still be statistically significant because combined together cloudy and sunny weather still cannot induce worse mood than rainy weather. Table 9a reports the effects of sunny weather separately, and Table 9b reports the effects of rainy weather separately. Columns 1-4 in Panel A replicate model (1) with a minor change, in that sunny weather is the only weather dummy variable used for estimating the model. The baseline of Columns 1-4 in Table 9a is all the other weather conditions (cloudy and rainy weather), while the baseline of Columns 1-4 of Table 9b is all the other conditions (sunny and cloudy) when testing the effects of rainy weather separately. These estimates show robust positive sunny weather effects and negative rainy weather effects. Interestingly, comparing the effect size, sunny weather effects are not only positive and significant statistically, but also relatively stronger when the combined cloudy and rainy weather is the baseline (coef.=0.2153, p<0.05, Table 9a) than when only cloudy is the baseline 19 (coef.=0.1880, p<0.05, Table 2). Similarly, rainy weather effects are not only negative and significant statistically, but also relatively stronger when the combined cloudy and sunny weather is the baseline (coef.=-0.1792, p<0.05, Table 9b) than when only cloudy is the baseline (coef.=-0.1068, p<0.05, Table 2). Again, the results confirm that the sunny weather’s positive effects and rainy weather’s negative effects are robust. [Table 9a, Table 9b] Robustness with All Sunny and Partially Sunny Conditions and Sunlight Hours In addition, if sunny weather boosts consumer responses to mobile promotions because sunlight induce better consumer mood, then people may have an even better mood when the weather is sunny all day, relative to when it is only partially sunny. Thus, one should expect the positive effects of sunny weather on mobile ads response to remain significant for both sunny and partially sunny days, but the positive effects to be even stronger for all sunny days. To test this, our data contains two types of sunny weather: “All Sunny” conditions marked by consistent clear and sunny conditions throughout the entire day, and “Partially Sunny” conditions marked by progressively sunny conditions following previously cloudy or inclement conditions, with less sunlight than all sunny weather. Allsunnyi is equal to 1 if the weather is sunny throughout the whole day and 0 if otherwise. Partialsunnyi is equal to 1 if the weather has turned sunny from some other weather conditions and 0 if otherwise. The results are displayed in Table 10. Column (1) presents the main effect with all sunny conditions and some sunny conditions respectively. As expected, the coefficients of Allsunny (coef.=0.3525) and Partialsunny (coef.=0.1246) are both significantly positive (p<0.05), which affirms the robustness of the positive effect of sunny days on mobile promotion responses. The estimates demonstrate that the positive effects of all sunny days are indeed stronger than partial sunny days. In Column (2) of Table 10, we dropped all observations on partial sunny days, and replicated the main effect model. The estimation result using the subsample without the all sunny condition is shown in Column (3). Again, results demonstrate stronger positive effects of all sunny weather comparing to partial sunny condition. [Table 10] To ensure the validity of our result, we also test the effect with sunlight hour of the day, which is a continuous variable of sunshine, on sunny days. The results are presented in Table 11. The results suggest that longer sunlight hours indeed induce higher response likelihood to mobile promotions, thus shoring up more evidence for the sunny weather effects. [Table 11] Robustness with Interaction between Weather and Temperature Other variables such as temperature may also affect people’s behavior in sunny or rainy weather. Sunshine is usually associated with nice weather, but when the temperature is too high, sunlight may have a negative effect on mood (Cohen 2011; Zwebner, Lee, and Goldenberg 2014). Thus, as another falsification test, we check the robustness via the interaction between 20 weather conditions and temperature. 16 Results in column (1) of Table 12 show that the interaction between sunny weather and highest temperature (highest degree of the day) is significantly negative. This is reasonable because a sunny day if too hot would no longer be a good weather that brings a good mood to lay consumers. Also, the results support the positive interaction effect between rainy and highest temperature. This is also reasonable because the warmer rainy day is a relative better weather condition and better mood when compared to colder rainy day to lay consumers. We then checked the interaction effects between weather and temperature range (highest minus lowest degree of the day). This is also an important check because greater variations in temperature ranges would instill more uncertainty about the weather in people. So it makes sense to check whether the results still hold when accounting for temperature ranges. Column (2) in Table 12 shows the insignificance of interaction effect between weather condition and temperature range (p>0.1). After controlling for these interactions between weather and temperature (high degree and high-minus-low range), results in columns (1) and (2) also confirm the robust and consistent positive sunny weather effects and negative rainy weather effects on consumer response to mobile promotions. [Table 12] Replication with A Different Mobile Product To ensure the reliability and validity of the effect of weather on mobile promotion response, we take replication and generalizability of results into consideration. 17 Our second experiment uses a different type with digital products of book-reading digital service (similar to Kindle but on the mobile platform). That is, this new experiment involves APP ads targeting digital book reading services, while the first field experiment involves SMS promotions targeting video streaming services. Also, the first experiment data do not have a condition with only ads, and without the promotional price discounts. Thus, we conduct another field experiment to include ads only (without price discounts) as a comparison benchmark to gauge incremental purchase responses. A new feature in the second field experiment can help identify the psychological mood effect of weather. That is, we use two different book recommendations in app ads (all without price discounts) in our experimental manipulation: mood-related books vis-à-vis mood neutral books. That is, among the APP campaigns, one is with mood-related romantic title books (“Love after pain” or “Loneliness, a glorious failure”), while the other is with moodneutral biographical title books (“Team of Kun Chen” or “Story of old-time ladies”). As manipulation checks, ratings from independent coders confirm that the titles with mood-related 16 The interaction effect between weather and wind power is not included in the robustness check as there is no extreme value of wind power. 17 We acknowledge SE, AE, and one anonymous reviewer for this insight. While our results hold for two different mobile products (video-streaming and book-reading), we caution broad generalization of results to other products. See more discussion in the limitation section. 21 books (vs. the biographical books) are confirmed to trigger more affect feelings such as romantic love or loneness as expected; see appendix B for the specific content of notification). Hence, this field data allow us to test if the weather influences the mood of mobile users and has an impact on their response to the mobile promotion, then the weather should have a stronger impact on the mood-related books comparing with neutral-related books. Similar to prior field data, we also have our data also have a baseline ‘holdout’ group of smartphone users who are similar but receive no ads, so as to assess the incremental sales that would not have been realized otherwise. Thus, the two field datasets differ from each other in terms of targeted products (video-streaming vs. book-reading), marketing instruments (price discounts vs. pure advertising), and delivery mobile technologies (SMS vs. APP). But both products are similar (streaming and reading are both spare-time entertainment) and both somewhat weather-related (consumers are more apt to stream or read in bad weather, which means that our results may be more conservative). Still, the second study serves at least as a replication of the weather effects and helps test the mood explanation of sunny and rainy weather effects on consumers’ incremental purchase responses to mobile promotions across two product categories. The reading APP is one of the most popular mobile reading applications in China, providing more than 400,000 mobile-books to over 300 million users. Randomized mobile promotions were sent to 85,000 app users via app notifications nationwide on May 7th, May 19th and June 4th, 2015. All these APP campaigns promote in-app book purchase. The 85,000 randomly selected mobile users will only receive the ad notification once during the experiment period. After receiving the ad notification, interested users could respond to the ads by making an inapp purchase. The purchase prices would be paid immediately by charging to the users’ app account. All campaigns are randomly sent and the randomization procedures are the same as the first field experiment. We also randomly selected a holdout group of 15,000 mobile users who didn’t receive the ad notification to identify incremental effects. Again, we collected the concurrent daily-level weather data at the user location during the time the APP notification promotions were sent. The effectiveness of mobile promotions in this new experiment is mobile APP promotion response, which is measured as purchase amount. The multivariate linear model is shown as below: 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝐴𝐴𝐴𝐴𝐴𝐴 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 = 𝛼𝛼0 + 𝛼𝛼1 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑖𝑖 + 𝛼𝛼2 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑖𝑖 + Δ𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 + 𝜇𝜇Ω𝐑𝐑(𝐢𝐢) + 𝜌𝜌𝐗𝐗 𝐢𝐢 + 𝜀𝜀𝑖𝑖 Ad Responsei, is a continuous variable, indicating the total amount of purchased books in 24 hours after the mobile users receiving the mobile promotion. Sunnyi and Rainyi are two dummy variables indicating the weather condition of the day a mobile user received the ad message respectively and the baseline is still cloudy weather. We also control for weather related covariates. Furthermore, we control for the mobile usage behavior with Mobile App Usage (how many times the mobile user opened the APP) and Page Views (how many pages the mobile user clicked or read on the APP). Ω𝑹𝑹(𝒊𝒊) is a vector of 30 geographical dummies 22 to control for location-based fixed effects and Xi is a vector of day fixed effects for the 3 days. 𝜀𝜀𝑖𝑖 follows i.i.d. extreme value distribution. To empirically identify the incremental impact of ads, we first test the impact of weather on in-app book purchase without the mobile ads. Table 13 presents the effect of sunny and rainy on the amount of books purchased by users in holdout group. The results indicate that the weather condition has statistically insignificant impact on the in-app purchase without mobile ads (all p>0.1). [Table 13] We then explore the effect of weather on consumer response conditional on receiving mobile ads. Table 14 shows the weather effect on the amount of books purchased after receiving mobile ads. Column (1) is the simple model with 2 dummy variables of weather, location fixed effect, and book fixed effects. We entered other weather-related variables in column (2) and day fixed effect in column (3). Model of column (4) includes mobile usage covariates. Consistent with the first field experiment, results in Table 14 indicate that compared with cloudy weather, the sunny weather (coef.=0.0254, p<0.05) boosts the amount of books app users purchase after receiving the mobile ads, while rainy weather (coef.=0.0546, p<0.05) decrease it. [Table 14] Table 15 presents the results across the mood-related books and mood-neutral books. Again, the results still consistently indicates positive sunny effect and negative rainy effect on the mobile promotion response. In addition, results show relatively stronger weather effects on the mood-related books, revealing some additional evidence (albeit weak evidence) that the weather has a psychological mood impact on mobile promotion response. 18 [Table 15] Conclusion Firms are increasingly targeting weather conditions to increase the relevancy and effectiveness of their promotions. This study documents the effect that the weather can have on consumer response to mobile campaigns promoting digital services. Using large-scale field experiments on consumer responses to two mobile digital services, we find that sunny and rainy weather conditions have a first-order effect on consumer responses to mobile promotions. In sunny weather, consumers are more likely to purchase the promotions, and at an accelerated pace relative to cloudy days. In rainy weather, customers are less likely and more slowly to respond the promotions, relative to cloudy days. These findings are robust across multiple models and measures of weather. Considering managerial implications, we note that the ad copy has an additional effect and interacts with sunshine and rainfall weather variables. A prevention-framing hurts the initial 18 We also conduct a follow-up survey to explore the underlying mechanism. The survey evidence confirms that weather influence people’s mood towards the mobile promotions and then influence their purchase intention (i.e., mood partially but significantly mediates the effects of weather conditions on mobile promotion responses). 23 promotion boost provided by sunny weather, but improves the initial promotion drop induced by rainy weather, in line with the “affect-as-information” theory. Thus, managers may take notice that ad copy creatives still matter for weather effects on mobile promotions. There are a number of limitations of this study, which may serve as avenues for future research. First, our study is limited to the setting of mobile digital services and may not be generalizable to non-mobile settings such as physical products or even desktop platforms. The additional mobile product (reading books on a mobile device) is still similar to the product in the main study (video streaming service on a mobile device) in that it is also a product with valuations that are likely to depend on weather (i.e., valuation for both products would be higher if consumer believes that she will be more likely to spend time outside, where only mobile devices can be used for watching videos or reading books). Consequently, while the additional study helps to establish robustness of the findings, it would be important to support generalizing results with other settings and other products that are weather-neutral in future research. While we take measures to account for self selection bias, it is still possible to have more marketing-responsive customers moving to better climates. Including fixed effects by region helps mitigate this concern, but still that merely controls for the level of purchasing, not the responsiveness to promotion. Thus, future research is needed to more rigorously control for self selection bias. In addition, our study design with field experiment datasets cannot directly gauge the underlying psychological mechanisms. Thus, future research with lab studies may explore whether and how in rainy days consumers may activate mood repair mindsets and engage in more indulgent responses to promotions (Pham, Lee, and Stephen 2012; Isen 2001; Schwarz and Clore 1983). As another example, it would be interesting for future research to test how weather is related to consumer risk seeking or risk avoiding (Parker and Tavassoli 2000; Reinholtz, Lee, and Pham 2014). Furthermore, one distinct weather-related aspect of mobile promotions relates to weather awareness, interpreted as ability to check weather multiple times using a mobile app. But people are typically aware whether current weather is sunny, rainy or cloudy without checking with their smartphones, especially during daytime (simply by looking out of the nearest window). The unique difference of having easy access to mobile weather apps appears to be in enabling consumers to having instant access to weather forecast – something that was not possible before. Consequently, one suggestion for future research to strengthen the contribution on mobile promotion effectiveness (rather than on weather-based geolocation promotions) would be to emphasize how marketers may increase location-based promotional effectiveness by combining information on both current and forecasted weather. Moreover, consumers are generally aware of current weather (which is likely to be the case regardless of prevalence of mobile devices), the proposed explanation based on “affect-asinformation” theory would also explain weather-based differences in promotional effectiveness for other ad types, not necessarily delivered via mobile devices. For example, industry 24 practitioners long argued that advertisers need to integrate weather-related data in online display programmatic environments. Another example would be billboard advertisements based on real-time location-based data (including weather), such as the ones trialed by Google. As weather may profoundly affect people’s daily life, advertising platforms such as Facebook and Twitter (Wall Street Journal 2014), who earn the majority of their advertising revenue from mobiles, are contemplating on how to effectively target smartphone users by their hyper-local weather. If this is true, future research may explore mobile and other aspects to a broader context of weather-based promotional effectiveness. In conclusion, this research is one initial step to provide evidence for two key results: (1) sunny days are better for advertising at least for the tested two product categories in mobile platform, and (2) affects-as-information and mood congruency theory can be effectively used in deciding marketing content on the sunny and rainy days. We hope this study can serve as a springboard for more works to examine how consumers respond to weather for higher mobile advertising and promotion effectiveness. 25 Figure 1 Distribution of Weather Conditions in Data 5000000 4573323 4500000 Cloudy 4000000 Sunny 3500000 3000000 2610439 Rainy 2500000 1779437 2000000 1500000 1000000 500000 547058 332798 0 26 138540 49507 28633 566 107 Figure 2a Response Rate of Promotion 0.012 Figure 2b Response Rate of Promotion in different weather condition 0.012 0.0095 0.01 0.01 0.008 0.008 0.006 0.006 0.004 0.004 0.002 0.002 0 0 Holdout without Promotion 0.0105 0.0078 0.0064 0 Promotion Sunny Weather with Promotion Cloudy Weather with Promotion 27 Rainy Weather with Promotion Table 1: Summary statistics Variable Obs Mobile Promotion Response Sunny Rainy Framing Wind Speed Wind Direction High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Province Date 6,756,524 6,756,524 6,756,524 6,756,524 6,756,524 6,614,522 6,756,524 6,756,524 4,251,825 4,321,404 4,321,404 4,198,892 6,756,524 6,756,524 6,756,524 Mean 0.0078 0.2068 0.3184 0.5541 3.2465 3.0949 27.1813 9.7772 7.1485 60.9009 66.7555 29.9411 0.4873 18.2299 17.5310 Std. Dev. 0.0881 0.4050 0.4659 0.4971 0.5340 2.7234 3.3350 3.5308 3.6572 10.9377 15.0454 0.1076 0.4998 7.9071 10.5274 Min Max 0 0 0 0 3 1 5 2 0 -14 7 29.08 0 1 1 1 1 1 1 7 10 37 23 19 78 98 30.37 1 31 31 Note: Mobile promotion response is a dummy variable, equal to 1 if the mobile user purchased the promoted mobile service after receiving the SMS campaign, and 0 if otherwise. Sunny is equal to 1 if the weather is sunny on the day that the mobile ads is exposed to individual i and 0 if otherwise. Rainy is equal to 1 if the weather is rainy on the day that the mobile ads is exposed to individual i , and 0 if otherwise. Thus, when both Sunny and Rainy are 0, the weather condition is the baseline cloudy weather. Framing is equal to 1 if the SMS campaign received by the mobile user includes prevention framing (“Do not miss the opportunity to take advantage of this special deal”), and 0 if otherwise. Wind speed, high temperature (℃), temperature range, visibility, dew point, humidity and air pressure are continuous variables, rural or urban area is dummy variable, and nine dummies for wind direction. There are 30 geographical dummies (31 provinces) to control for location-based fixed effects and 30 time dummies (31 days) to control for time-based fixed effects. 28 Table 2: Sunny (rainy) weather increases (decreases) consumer response to mobile promotion Sunny Rainy (1) (2) (3) (4) (5) 0.3684*** 0.1782*** 0.4327*** 0.1880*** 0.1880*** (0.014) (0.022) (0.026) (0.038) (0.037) -0.1243*** -0.0814 (0.017) (0.031) *** Framing ** *** *** 0.5238 0.7414 (0.017) (0.070) -0.4621 -0.1068 -0.1068* (0.036) (0.045) (0.047) 0.8217 Wind Speed High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural *** * 0.7814 *** 0.7814*** (0.034) (0.084) (0.087) 0.1542*** 0.2812*** 0.2812*** (0.034) (0.040) (0.039) -0.0524*** -0.0191** -0.0191** (0.005) (0.006) (0.006) 0.0072 -0.0226*** -0.0226*** (0.006) (0.007) (0.007) -0.0039 -0.0114** -0.0114** (0.004) (0.004) (0.004) 0.0238*** 0.0006 0.0006 (0.002) (0.002) (0.002) 0.0005 0.0044*** 0.0044*** (0.001) (0.001) (0.001) 1.1496*** -0.0214 -0.0214 (0.131) (0.140) (0.139) 0.2344*** 0.0889** 0.0889** (0.028) (0.028) (0.027) -5.4551*** -5.0080*** -39.9486*** -4.9052 -4.9052 (0.062) (0.178) (3.962) (4.263) (4.216) Wind Direction No No Yes Yes Yes Location Fixed Effect Yes Yes Yes Yes Yes Day Fixed Effect No Yes No Yes Yes N 6,744,884 3,432,022 4,058,481 3,321,575 3,321,575 Log Likelihood -290404.56 -168922.52 -166772.56 -162413.8 -162413.8 AIC 580875.1 337923 333641.1 324939.6 324939.6 BIC 581328 338431.9 334275.5 325668.5 325668.5 LR chi2 37565.79 18012.36 20694.18 17339.23 17343.91 0.0000 0.0000 0.0000 0.0000 0.0000 Intercept Prob > chi2 Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 29 Table 3 Mobile promotions with prevention-framing are less effective in sunny weather, but more effective in rainy weather Wind Direction Location Fixed Effect Day Fixed Effect -5.5971*** (0.064) No Yes No (2) 0.8314*** (0.038) -0.5841*** (0.059) 1.0151*** (0.044) -0.7098*** (0.048) 0.2393*** (0.067) 0.2036*** (0.034) -0.0397*** (0.006) 0.0023 (0.006) -0.0091* (0.004) 0.0199*** (0.002) 0.0028** (0.001) 0.8092*** (0.133) 0.1798*** (0.028) -30.3986*** (4.034) Yes Yes No (3) 0.3131*** (0.051) -0.2829*** (0.072) 0.8113*** (0.086) -0.2350** (0.080) 0.2239* (0.090) 0.2806*** (0.040) -0.0180** (0.006) -0.0236*** (0.007) -0.0144*** (0.004) 0.0004 (0.002) 0.0045*** (0.001) -0.0222 (0.141) 0.0740** (0.028) -4.9523 (4.264) Yes Yes Yes (4) 0.3131*** (0.049) -0.2829*** (0.074) 0.8113*** (0.090) -0.2350** (0.077) 0.2239* (0.093) 0.2806*** (0.039) -0.0180** (0.006) -0.0236*** (0.007) -0.0144*** (0.004) 0.0004 (0.002) 0.0045*** (0.001) -0.0222 (0.139) 0.0740** (0.028) -4.9523 (4.217) Yes Yes Yes N Log Likelihood AIC BIC LR chi2 Prob > chi2 6,744,884 -290193.29 580456.6 580936.9 37988.33 0.0000 4,058,481 -166627.46 333354.9 334015.7 20984.38 0.0000 3,321,575 -162404.18 324924.4 325679.3 17358.47 0.0000 3,321,575 -162404.18 324924.4 325679.3 17346.25 0.0000 Sunny Rainy Framing Sunny*Framing Rainy*Framing (1) 0.6632*** (0.023) -0.2452*** (0.034) 0.7001*** (0.023) -0.5225*** (0.030) 0.1835*** (0.038) Wind Power High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 30 Table 4 Response Rate of Hourly Weather Conditions Purchase Rate Number of Observation Hourly Sunny 0.00022 2,643,566 Hourly Cloudy 0.00016 2,847,163 Hourly Rainy 0.00013 2,834,813 Total 0.00017 8,325,542 Figure 3 Response Hazard in Different Weather Conditions 0.99 1.00 Kaplan-Meier survival estimates 0 10 20 30 analysis time Rainy Sunny 31 40 Cloudy 50 Table 5 Hourly sunny (rainy) weather increases (decreases) response hazard (9am to 5pm) Hourly Good Weather Hourly Bad Weather (1) (2) (3) 0.5485*** (0.018) -0.7733*** (0.049) 0.6304*** (0.019) -0.4465*** (0.051) No Yes No No Yes Yes 0.5481*** (0.022) -0.5247*** (0.053) -0.7244 (0.784) 0.0580*** (0.003) -0.1518*** (0.005) 0.1264*** (0.004) -0.0530*** (0.002) -0.4277** (0.155) -0.0459*** (0.003) -0.0584** (0.019) Yes Yes Yes 59,814,313 -409198.47 818460.9 818970 9962.50 0.0000 59,814,313 -398471.57 797025.1 797677.3 31416.30 0.0000 55,164,292 -367346.64 734817.3 735798.5 38775.47 0.0000 Framing Wind Speed Temperature Dew Point Humidity Air Pressure Visibility Rural Wind Direction Location Fixed Effect Day Fixed Effect N Log Likelihood AIC BIC LR chi2 Prob > chi2 32 Table 6 Changes in Weather Matter (Backward Looking) (1) Better_Backward 0.1135 *** (3) *** 0.0869*** 0.0960 (0.012) Worse_Backward (2) (0.012) -0.2086*** -0.2644 (0.012) (0.014) (0.012) *** -0.1578*** (0.018) 0.2118*** Sunny (0.015) -0.0484* Rainy (0.023) Weather Covariates Yes Yes Yes Location Fixed Effect Yes Yes Yes Day Fixed Effect No Yes Yes N 5,820,418 5,600,909 5,820,418 Log Likelihood -360207.3 -343946.09 -360088.82 AIC 720482.6 687984.2 720251.6 BIC 720944.2 688607 720754 LR chi2 32236.01 31606.06 32472.95 0.0000 0.0000 0.0000 Prob > chi2 Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 Table 7 Changes in Weather Matter (Forward Looking) Better_Forward Worse_Forward (1) (2) 0.0767*** 0.0679** (3) 0.0332 (0.021) (0.021) (0.022) -0.1459*** -0.1753*** -0.0960*** (0.022) (0.022) (0.024) 0.3325*** Sunny (0.037) -0.1008*** Rainy (0.031) Weather Covariates Yes Yes Yes Location Fixed Effect Yes Yes Yes Day Fixed Effect No Yes Yes N 2,088,283 1,414,148 1,414,148 Log Likelihood -117074.77 -110874.42 -110830.69 AIC 234245.5 221850.8 221767.4 BIC 234848 222471.1 222412 LR chi2 12293.17 7226.75 7314.23 0.0000 0.0000 0.0000 Prob > chi2 Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 33 Figure 4 Distributions of Weather Conditions in North and South Southern Region (Subtropical Zone) Northern Region (Temperate Zone) 0.551 0.6 0.6 0.5 0.5 0.4 0.2 0.362 0.4 0.313 0.3 0.486 0.3 0.152 0.2 0.136 0.1 0.1 0 0 Sunny Weather Cloudy Weather Sunny Weather Rainy Weather Cloudy Weather Table 8 Weather Deviations Matter South North 0.2904*** 0.0406** (0.016) (0.015) -0.0665*** -0.0921*** (0.019) (0.021) 1.7702*** 1.7497*** (0.041) (0.051) -6.5763*** -5.9477*** (0.095) (0.098) Weather Covariates Yes Yes Location Fixed Effect Yes Yes Day Fixed Effect Yes Yes N 4,788,301 5,009,603 Log Likelihood -235383.55 -263560 AIC 470825.1 527182 BIC 471213.2 527598.2 LR chi2 22838.43 28421.56 Prob > chi2 0.0000 0.0000 Sunny Rainy Framing Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 34 Rainy Weather Table 9a Falsification Check of Sunny Weather vs. All Other Weather Conditions Wind Direction Location Fixed Effect Day Fixed Effect -5.4867*** (0.062) No Yes No (2) 0.4723*** (0.026) 0.7396*** (0.033) 0.1590*** (0.034) -0.0345*** (0.005) 0.0146* (0.006) -0.0116*** (0.003) 0.0227*** (0.002) 0.0004 (0.001) 1.3790*** (0.130) 0.2145*** (0.028) -47.4075*** (3.946) Yes Yes No (3) 0.2153*** (0.036) 0.7610*** (0.083) 0.2662*** (0.040) -0.0151* (0.006) -0.0217** (0.007) -0.0129*** (0.004) -0.0001 (0.002) 0.0044*** (0.001) -0.0621 (0.139) 0.0835** (0.028) -3.7296 (4.236) Yes Yes Yes (4) 0.2153*** (0.035) 0.7610*** (0.086) 0.2662*** (0.039) -0.0151* (0.006) -0.0217** (0.007) -0.0129*** (0.003) -0.0001 (0.002) 0.0044*** (0.001) -0.0621 (0.137) 0.0835** (0.027) -3.7296 (4.176) Yes Yes Yes N Log Likelihood AIC BIC LR chi2 Prob > chi2 6,744,890 -290431.88 580927.8 581366.9 37511.26 0.0000 4,058,482 -166858.05 333810.1 334431.3 20523.21 0.0000 3,321,575 -162416.67 324943.3 325659.2 17333.49 0.0000 3,321,575 -162416.67 324943.3 325659.2 17295.60 0.0000 Sunny Framing (1) 0.3890*** (0.013) 0.5202*** (0.017) Wind Speed High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 35 Table 9b Falsification Check of Rainy Weather vs. All Other Weather Conditions Wind Direction Location Fixed Effect Day Fixed Effect -5.2735*** (0.062) No Yes No (2) -0.5193*** (0.035) 0.6983*** (0.033) 0.1786*** (0.034) -0.0525*** (0.005) 0.0493*** (0.005) -0.0148*** (0.003) 0.0244*** (0.002) 0.0002 (0.001) 0.5837*** (0.126) 0.2149*** (0.028) -23.0748*** (3.834) Yes Yes No (3) -0.1729*** (0.042) 0.8411*** (0.083) 0.2962*** (0.040) -0.0228*** (0.006) -0.0155* (0.007) -0.0148*** (0.004) 0.0015 (0.002) 0.0040*** (0.001) -0.0608 (0.140) 0.0827** (0.028) -3.6943 (4.246) Yes Yes Yes (4) -0.1729*** (0.044) 0.8411*** (0.085) 0.2962*** (0.039) -0.0228*** (0.006) -0.0155* (0.007) -0.0148*** (0.003) 0.0015 (0.002) 0.0040*** (0.001) -0.0608 (0.138) 0.0827** (0.027) -3.6943 (4.192) Yes Yes Yes N Log Likelihood AIC BIC LR chi2 Prob > chi2 6,744,890 -290759.21 581582.4 582021.6 36856.58 0.0000 4,058,482 -166917.78 333929.6 334550.7 20403.75 0.0000 3,321,575 -162426.24 324962.5 325678.3 17314.36 0.0000 3,321,575 -162426.24 324962.5 325678.3 17297.42 0.0000 Rainy Framing (1) -0.2101*** (0.017) 0.3494*** (0.016) Wind Speed High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 36 Table 10 Robustness Check of All vs. Partial Sunny Days All Sunny 0.3802*** (0.027) Wind Direction Location Fixed Effect Day Fixed Effect Full 0.3525*** (0.025) 0.1246*** (0.027) 0.9063*** (0.061) 0.1559*** (0.026) -0.0036 (0.004) -0.0169*** (0.004) -0.0129*** (0.002) 0.0003 (0.001) 0.0016* (0.001) 0.0546 (0.096) 0.0541** (0.017) -6.3116* (2.894) Yes Yes Yes 0.9084*** (0.063) 0.1525*** (0.027) 0.0008 (0.005) -0.0199*** (0.005) -0.0162*** (0.002) -0.0002 (0.001) 0.0018* (0.001) 0.0170 (0.100) 0.0455* (0.019) -5.1314 (3.011) Yes Yes Yes 0.1011** (0.031) 0.9849*** (0.064) 0.0066 (0.029) -0.0083 (0.006) -0.0248*** (0.005) -0.0094*** (0.002) -0.0034* (0.001) 0.0047*** (0.001) -0.1869 (0.119) 0.0360 (0.019) 1.4245 (3.609) Yes Yes Yes N Log Likelihood AIC BIC LR chi2 Prob > chi2 5,691,938 -300310.17 600742.3 601569.2 28282.20 0.0000 5,472,803 -282469.82 565059.6 565870.6 25894.19 0.0000 3,805,112 -210947.68 422013.4 422789.3 21136.62 0.0000 All Sunny Partial Sunny Framing Wind Speed High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 37 Partial Sunny Table 11 Robustness Check of Sunlight Hours Wind Direction Location Fixed Effect Day Fixed Effect (1) 0.0965*** (0.019) 4.0140*** (0.775) 0.6159 (1.111) 0.0507 (0.060) 0.1151 (0.063) 0.0287 (0.025) 0.0260 (0.014) 0.0012 (0.011) -2.0544** (0.792) -0.7590*** (0.190) 48.6490* (24.136) Yes Yes Yes N Log Likelihood AIC BIC LR chi2 Prob > chi2 278,948 -21731.72 43533.44 43902.3 1367.76 0.0000 Sunlight Hours Framing Wind Speed High Temperature Temperature Range Visibility Dew Point Humidity Air Pressure Rural Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 38 Table 12 Robustness Check of Interactions between Weather and Temperature Sunny Rainy Sunny*High Temperature Rainy*High Temperature Sunny*Temperature Range Rainy*Temperature Range Framing Intercept Weather Covariates Location Fixed Effect Day Fixed Effect N Log Likelihood AIC BIC LR chi2 Prob > chi2 (1) 1.3508*** (0.114) -0.2827** (0.092) -0.0437*** (0.004) 0.0160*** (0.005) (2) 0.2919*** (0.067) -0.1117* (0.051) -0.0078 (0.005) 0.0107 (0.006) 1.1984*** 1.1976*** (0.042) (0.040) *** 32.7511 -6.0606*** (2.058) (0.177) Yes Yes Yes Yes Yes Yes 6,428,845 6,642,306 -307275.45 -314137.84 614652.9 628369.7 615350.4 629014 28046.59 28253.25 0.0000 0.0000 Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 39 Table 13 Weather has no impact on holdout group (mobile-book in second field experiment) (1) Sunny 0.0019 (0.024) Rainy -0.0005 (0.032) Temperature 0.0047 (0.003) Dew Point -0.0074* (0.003) Humidity 0.0021 (0.002) Visibility -0.0015 (0.003) Wind Speed -0.0076* (0.004) Mobile App Usage 0.0032*** (0.000) Page Views 0.0041*** (0.000) Intercept -0.0434 (0.139) Location Fixed Effect Yes Day Fixed Effect Yes N 13231 R2 0.358 Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 40 Table 14 9 Sunny (rainy) weather increases (decreases) consumer responses to mobile ads (mobile-book in second field experiment) Sunny Rainy (1) (2) (3) (4) 0.0509*** 0.0381** 0.0397** 0.0254* (0.013) (0.013) (0.013) (0.011) *** -0.0469 -0.0850 -0.0691 -0.0546*** (0.014) (0.015) (0.015) (0.013) 0.0027 0.0026 0.0008 (0.002) (0.002) Temperature Dew Point Humidity Visibility Wind Speed *** *** (0.001) -0.0055** ** -0.0057 (0.002) (0.002) (0.002) 0.0027** 0.0030** 0.0019* (0.001) (0.001) (0.001) -0.0052*** -0.0036* -0.0000 (0.001) (0.001) (0.001) -0.0076*** -0.0106*** -0.0074*** (0.002) (0.002) (0.002) -0.0031 0.0188*** Mobile App Usage (0.000) 0.0021*** Page Views (0.000) 0.4287*** 0.5062*** 0.4831*** 0.3144*** (0.006) (0.084) (0.087) (0.074) Location Fixed Effect Yes Yes Yes Yes Book Fixed Effect Yes Yes Yes Yes Day Fixed Effect No No Yes Yes N 84999 84156 84156 84156 R2 0.005 0.006 0.009 0.290 Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 41 Table 15 Effect of weather on mood-related book VS neutral book Mood Neutral 0.0404* 0.0343a (0.020) (0.018) -0.1107*** -0.0713** (0.022) (0.022) 0.0046 0.0032 (0.002) (0.002) -0.0071* -0.0062* (0.003) (0.003) 0.0036* 0.0034* (0.002) (0.001) -0.0038 -0.0032 (0.002) (0.002) -0.0065* -0.0069** (0.003) (0.003) 0.4208** 0.4635*** (0.129) (0.116) Location Fixed Effect Yes Yes Book Fixed Effect Yes Yes Day Fixed Effect Yes Yes N 38780 45376 R2 0.007 0.005 Sunny Rainy Temperature Dew Point Humidity Visibility Wind Speed Intercept Note: ap < 0.1, *p < 0.05, ** p < 0.01, *** p < 0.001 42 Appendix A: Provinces and Cities Robustness Check of City-Level Locational Effects Sunny Weather Rainy Weather (1) (2) (3) (4) 0.2555*** 0.1753*** 0.2999*** 0.2332*** (0.010) (0.014) (0.011) (0.015) -0.0534*** -0.1212*** -0.0507*** -0.1417*** (0.014) (0.017) (0.014) (0.017) 0.1553*** 0.4536*** (0.014) (0.020) Framing Wind Power High Temperature Temperature Range -0.2141*** -0.2845*** (0.023) (0.024) -0.0109*** -0.0591*** (0.003) (0.004) 0.0315*** 0.0661*** (0.003) (0.004) -4.9502*** -4.1559*** -4.9514*** -2.7294*** (0.092) (0.142) (0.092) (0.158) Wind Direction Yes Yes Yes Yes City Fixed Effect Yes Yes Yes Yes N 10058668 9807363 10058668 9807363 Log Likelihood -516716.42 -499678.65 -516652.61 -499415.53 AIC 1034099 1000043 1033973 999519.1 BIC 1038802 1004879 1038691 1004369 50916.29 50523.91 51146.26 50682.42 0.0000 0.0000 0.0000 0.0000 Intercept LR chi2 Prob > chi2 344 city names Names of the Cities Urban Anqing, Anyang, Anshan, Bengbu, Baotou, Baoji, Baoding, Beihai, Beijing, Benxi, Binzhou, Cangzhou, 43 (167) Changde, Changzhou, Chaozhou, Chenzhou, Chengdu, Chifeng, Chuzhou, Dalian, Daqing, Datong, Deyang, Dezhou, Dongguan, Dongying, Erdos, Foshan, Fuzhou, Fushun, Ganzhou, Guangzhou, Guiyang, Guilin, Harbin, Haikou, Handan, Hangzhou, Hefei, Hengyang, Hohhot, Hulunbuir, Huzhou, Huaian, Huainan, Huanggang, Huangshi, Huizhou, Jixi, Jilin, Jinan, Jining, Jiamusi, Jiaxing, Jiangmen, Jiaozuo, Jinhua, Jingmen, Jingzhou, Jiujiang, Kaifeng, Karamay, Kunming, Lhasa, Lanzhou, Langfang, Leshan, Lianyungang, Liangshan, Liaocheng, Linfen, Linyi, Liuzhou, Longyan, Loudi, Luzhou, Luoyang, Luliang, Ma’anshan, Maoming, Mianyang, Nanchang, Nanchong, Nanjing, Nanning, Nantong, Nanyang, Ningbo, Panjin, Pingdingshan, Putian, Qigihar, Qinhuangdao, Qingdao, Qingyuan, Quanzhou, Rizhao, Xiamen, Shantou, Shanghai, Shangrao, Shaoxing, Shenzhen, Shenyang, Shihezi, Shijiazhuang, Siping, Songyuan, Suzhou, Taizhou, Taiyuan, Taian, Taizhou, Tangshan, Tianjin, Tongliao, Tongling, Weihai, Weifang, Weinan, Wenzhou, Wuhai, Urumqi, Wuxi, Wuhu, Wuzhou, Wuhan, Xi’an, Xining, Xianyang, Xiangtan, Xiaogan, Xinxiang, Xinyu, Xingtai, Xuzhou, Xuchang, Yantai, Yanan, Yancheng, Yangzhou, Yangquan, Yibin, Yichang, Yichun, Yinchuan, Yingkou, Yulin., Yulin, Yueyang, Yuncheng, Zhanjiang, Zhangjiakou, Zhangzhou, Changchun, Changsha, Changzhi, Zhaoqing, Zhenjiang, Zhengzhou, Zhongshan, Chongqing, Zhoushan, Zhuhai, Zhuzhou, Zibo, Zigong Rural Aba, Aksu, Alashan, Aletai, Ali, Atushi, Ankang, Anshun, Bayinnaoer, Bayinguoleng, Bazhong, Baicheng, (177) Baishan, Baiyin, Baise, Baoshan, Bijie, Bozhou, BoLe, Changdu, Changji, Chaohu, Chaoyang, Chengde, Chizhou, Chuxiong, Dazhou, Dali, Greater Hinggan Mountains, Dandong, Dehong, Delingha, Dingxi, Douyun, Ezhou, Enshi, Fangchenggang, Fuzhou, Fuxin, Fuyang, Gannan, Ganzi, Golmud, Gejiu, Gonghe, Guyuan, Guangan, Guangyuan, Guichi, Guoluo, Hami, Haibeizhou, Haidong, Hainanzhou, Hanzhong, Haozhou, Hetian, Hechi, Heyuan, Heze, Hebi, Hegang, Heihe, Hengshui, Huludao, Huaihua, Huaibei, Huaiyin, huangnan, Huangshan, Hunchun, Gi’an, Jishou, Jieyang, Jinchang, Jinzhou, Jincheng, Jinzhong, Jingdezhen, Jinghong, Jiuquan, Kashgar, Kaili, Kuytun, Laiwu, Lijiang, Lishui, Liaoyang, Liaoyuan, Linzhi, Lincang, Linxia, Lu‘an, Liupanshui, Longnan, Luohe, Barkam, Maqin, Meishan, Meihekou, Meizhou, Mudanjiang, Naqu, Nanping, Neijiang, Ningde, Panzhihua, Pingliang, Pingxiang, Puyang, Pu‘er, Qitaihe, Qinzhou, Qingyang, Quzhou, Qujing, Shigatse, Sanmenxia, Sanming, Shannan, Shanwei, Shangluo, Shangqiu, Shaoguan, Shaoyang, Shiyan, Shizuishang, Shuangyashan, Shuozhou, Simao, Suihua, Suizhou, Suining, Tacheng, Tianshui, Tieling, Tonghua, Tongren, Tongchuan, Tongren, Turpan, Wenshan, Wulanchabu, Ulanhot, Wuzhong, Wuwei, Xilingol, Xilinhot, Xiantao, Xianning, Shangri-la, Xiangfan, Xinzhou, Xinyang, Xingyi, Suqian, Suzhou, Xuancheng, Ya‘an, Yangjiang, Yichun, Yili, Yiyang, Yingtan, Yongzhou, Yushu, Yuxi, Yunfu, Zaozhuang, Zhangjiajie, Zhangye, Zhaotong, Zhongwei, Zhoukou, Zhumadian, Ziyang, Zunyi 44 Appendix B: Mobile Promotion Message SMS in Field Experiment 1: Message with Prevention Framing Message without Prevention Framing Original Version 别错过占便宜的机会了!48 小时内回 复“是”购买视频礼包,每月仅需 3 元。当月购买后可在手机免费观看精 彩视频【公司名称】 尊敬的客户,您好!48 小时内回复 “是”购买视频礼包,每月仅需 3 元。当月购买后可在手机免费观看 精彩视频【公司名称】 English Translation Do not miss the opportunity to take advantage of this special deal! Subscribe to the mobile videostreaming service or only ¥3 per month! Watch video episodes of the most popular TV series on your mobile devices on-the-go! The regular price is ¥6. Purchase by replying “Yes” to this SMS within the next 48 hours [Company Name] Dear respected customer, Subscribe to the mobile videostreaming service of for only ¥3 per month! Watch video episodes of the most popular TV series on your mobile devices on-the-go! The regular price is ¥6. Purchase by replying “Yes” to this SMS within the next 48 hours [Company Name] SMS in Field Experiment 2: Message with mood-related books Message with neutral books Original Version 一叶便知秋,一书看世界! 【公司名 称】百万电子书等您来挑选。百精 彩新书上架,不要错过买新书的好 机会! 一叶便知秋,一书看世界! 【公司名 称】百万电子书等您来挑选。百精 彩新书上架,不要错过买新书的好 机会! English Translation Knowing the season from the change of plant, learning the world from reading books. [Company Name] provides more than one million mobile e-books. Hundreds of new e-books are available now. 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