Applications of Multivariate Latent Variable Models in Marketing

Paul Green, writing with Carmone and Wachpress (1976), was among the first scholars to introduce latent variable models to marketing by utilizing the CANDECOMP procedure (Carroll 1980) on contingency tables. A year later, Green, Carmone, and Wachpress (1977) introduced logit and log-linear multivariate models to the field of marketing. Green went on to write several key books in the area of multivariate analysis, including Analyzing Multivariate Data (Green 1978), which describes many of these techniques in depth. Latent variable models have since become important tools for the analysis of multivariate data in marketing. In this chapter, we consider some more recent marketing applications of latent variable models based on Green’s pioneering work