Understanding individual customers’ sensitivities to prices, promotions, brand, and other aspects of the marketing mix is fundamental to a wide swath of marketing problems, including targeting and pricing. Companies that operate across many product categories have a unique opportunity, insofar...

In this paper we study the impact of customer stochasticity on firm price discrimination strategies. We develop a new model termed the Bayesian Mixture Scale Heterogeneity (BMSH) model that incorporates both parameter heterogeneity and customer stochasticity using a mixture model approach, and...

Autonomous demand shock affects consumption spending. Variation in consumption spending contributes to the volatility in aggregate demand. As the investor is risk averse, volatility of aggregate demand reduces investment. Government injects monetary noise to reduce the volatility in aggregate...

This paper is concerned with the spatial representation of market structure calibrated on actual or intended choice data. Previous models developed for that purpose accommodate consumer heterogeneity by estimating parameters for each consumer, typically using the method of maximum likelihood....

We consider a dynamic pricing problem in which the seller sells a limited amount of inventory over a short time horizon. The distribution of customer willingness-to-pay is unknown, and the seller learns about the distribution from observing customer purchase decisions. Such a problem arises in...

Conjoint analysis is an ubiquitous market research tool. As normally implemented, each time you wish to understand consumer utilities for a product category, you run a conjoint study for that category. For example, if you require consumer preferences for yogurt features, you run a (choice-based)...

Previous conjoint choice design construction procedures have produced a single design that is administered to all subjects. This paper proposes to construct a limited set of different designs. The designs are constructed in a Bayesian fashion, taking into account prior uncertainty about the...

We consider a service provider offering a subscription service to customers over a multi-period planning horizon. The customers decide whether to subscribe according to a utility model that represents their preferences for the service. The provider has a prior belief about the customer utility...