This paper documents the existence and magnitude of contiguous word-of-mouth effects of signal quality of a video-on-demand (VOD) service on customer acquisition. We operationalize contiguous word-of-mouth effect based on geographic proximity and use behavioral data to quantify the effect. The...

A random-coefficients logit model that allows for unobserved heterogeneity in brand preferences and in the responses to marketing variables is empirically investigated using household-level panel data. The unknown underlying distribution of unobserved heterogeneity is approximated by a discrete...

Empirically validating and testing the specification of game theoretic models has received limited attention in the marketing literature. The authors provide an econometric framework for estimating the parameters of response functions when the observed data in the market place are the Nash...

Researchers have recently developed models for determining which market conduct best describes observed data. The authors apply these techniques from the 'new empirical industrial organization' literature to the competitive product line pricing decision, where a firm strategically prices its...

We use the proportional hazard model (PHM) to study purchase-timing behavior of households in two product categories: laundry detergents and paper towels. The PHM decomposes a household's instantaneous probability of buying the product at a point of time into two components: the baseline hazard...

Purchase timing and brand-choice decisions of households are jointly investigated using the 'dynamic McFadden' model of J. Heckman and B. Singer. The hazard of brand purchase is decomposed into the category purchase hazard and the probability of brand choice conditional on category purchase. The...

We present a Bayesian approach for analyzing aggregate level sales data in a market with differentiated products. We consider the aggregate share model proposed by Berry et al. [Berry, Steven, Levinsohn, James, Pakes, Ariel, 1995. Automobile prices in market equilibrium. Econometrica. 63 (4),...

This paper develops a model of dynamic advertising competition, and applies it to the problem of optimal advertising scheduling through time. In many industries we observe advertising “pulsing”, whereby firms systematically switch advertising on and off at a high-frequency. Hence, we observe...

Firms in many industries, e.g., pharmaceuticals, spend a significant amount of marketing dollars on salesforce effort. However, there exists very little research examining customer response to salesforce effort at the disaggregate level.