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...

Firms use aggregate data from data brokers (e.g., Acxiom, Experian) and external data sources (e.g., Census) to infer the likely characteristics of consumers and thus better predict consumers' profiles and needs, unobtrusively. We demonstrate that the simple count method most commonly used in...

This paper develops a two-stage statistical analysis to identify and assess the effect of a sample bias associated with an individual's household role. Survey responses to questions about the respondent's role in household finances and a sampling design in which some households have all members...

We propose an approach to modeling and estimating discrete choice demand that allows for a large number of zero sale observations, rich unobserved heterogeneity, and endogenous prices. We do so by modeling small market sizes through Poisson arrivals. Each of these arriving consumers then solves...

In customer relationship management, practitioners are often faced with the task of valuing customers in terms of inter-purchase times and purchase quantities. Some customers represent steady revenue streams, while others exhibit a great deal of variation in their interaction with a firm through...