Deciding who should receive a mail-order catalog is among the most important decisions that mail-order-catalog firms must address. In practice, the current approach to the problem is invariably myopic: firms send catalogs to customers who they think are most likely to order from that catalog. In...

This paper draws on econometrics, von Neumann-Morgenstern utility theory, stochastic choice theory, and consumer behavior to develop five basic axioms or postulates of stochastic choice behavior. These axioms imply the existence and uniqueness of a preference function which identifies how...

Von Neumann-Morgenstern (vN-M) utility theory is the dominant theoretical model of risk preference. Recently, market researchers have adapted vN-M theory to model consumer risk preference. But, most applications assess utility functions by asking just n questions to specify n parameters....

Models and scientific evidence suggest that firms are more successful at new-product development if there is greater communication among marketing, engineering, and manufacturing. This paper examines communication patterns for two matched product-development teams where the key difference...

This paper develops and applies a prelaunch model and measurement system to the marketing planning of a new automobile. The analysis addresses active search by consumers, dealer visits, word-of-mouth communication, magazine reviews, and production constraints---issues that are important in...

This paper develops a methodology for modeling consumer response that integrates previous research in stochastic brand selection, diffusion of innovation, test market analysis, and new product design. The methodology makes it practical to extend brand selection models to include diffusion...

An important component of marketing strategy is to "position" a product in perceptual space. But to realize a perceptual position we must model the link from physical characteristics to perceptual dimensions and we must use this model to maximize profit. This paper integrates psychological...

We seek to understand how the use of Research, Development, and Engineering (R,D&E) metrics can lead to more effective management of R,D&E. This paper combines qualitative and quantitative research to understand and improve the use of R,D&E metrics. Our research begins with interviews of 43...

Business Portfolio Planning techniques often suggest that firms should invest in industries with high profitability, high growth, or other attractive characteristics. Critiquing this view, we suggest that the same factors which lead to high profitability in an industry may cause its inefficient...

Several papers in the recent marketing literature have suggested that delegation in distribution (e.g., the use of independent middlemen) helps manufacturers to precommit strategically to profit-enhancing competitive actions. Further, the literature suggests that the profitability of such...