The authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm’s customer equity relative to the incremental expenditure necessary to produce the change. The change in the firm’s customer equity is the change in its current and future customers’ lifetime values, summed across all customers in the industry. Each customer’s lifetime value results from the frequency of category purchases, average quantity of purchase, and brand-switching patterns combined with the firm’s contribution margin. The brand-switching matrix can be estimated from either longitudinal panel data or cross-sectional survey data, using a logit choice model. Firms can analyze drivers that have the greatest impact, compare the drivers’ performance with that of competitors’ drivers, and project return on investment from improvements in the drivers. To demonstrate how the approach can be implemented in a specific corporate setting and to show the methods used to test and validate the model, the authors illustrate a detailed application of the approach by using data from the airline industry. Their framework enables what-if evaluation of marketing return on investment, which can include such criteria as return on quality, return on advertising, return on loyalty programs, and even return on corporate citizenship, given a particular shift in customer perceptions. This enables the firm to focus marketing efforts on strategic initiatives that generate the greatest return.

http://accuraad.nl/wp-content/uploads/2012/09/Return-on-marketing1.pdf

Return on Marketing: Using Customer Equity to Focus Marketing Strategy

An asymmetrically dominated alternative is dominated by one item in the set but not by another. Adding such an alternative to a choice set can increase the probability of choosing the item that dominates it. This result points to the inadequacy of many current choice models and suggests product line strategies that might not otherwise be intuitively plausible.

Adding asymmetrically dominated alternatives: Violations of regularity and the similarity hypothesis.

The authors develop a new survey-based method for measuring and understanding a brand's equity in a product category and evaluating the equity of the brand's extension into a different but related ...

A Survey-Based Method for Measuring and Understanding Brand Equity and Its Extendibility

Consumer-level factors moderating the success of private label brands

Household store brand proneness: A framework

Much marketing research in the past ten years has been directed to identifying managerially meaningful and behaviorally sound consumer market segments. Results have, in general, shown that psychological and demographic measures have not been terribly good criterion variables for segmentation. Marketers have attempted to find the deal prone consumer [10], the heavy user [4], new brand buyers [7], and private brand buyers [6]; these market segments represent large areas of economic and marketing effort in the real world. The evidence from these studies has suggested that measures which are more closely tied to purchase behavior would be better predictors. This research attempted to examine buyers or potential buyers of vastly different products to see if meaningful segments could be created using a model of consumer behavior including demographic, product class salience, product use, and marketing attitude variables. Factor analysis, multiple discriminant analysis, and cross-tabulation were used to test the model, and the results were more encouraging than those of similar recent experiments. While economists have been interested in costs of dis-

https://www.jstor.org/stable/info/3149961

Can Private Brand Buyers be Identified

Laboratory measures of brand preferences and survey measures of demographic, media exposure, attitudinal, activity and opinion characteristics of individual consumers have been combined to predict brand purchases in the market. Brands in the tooth paste, liquid household cleaner and cake mix product categories were employed in a set of laboratory experiments. Preference scales derived from the experiments are used in three separate models to predict the subject's purchases recorded in seven months of diary data. The behavioral implications and predictive power of the models are interesting from both theoretical and applied points of view.

Using Laboratory Brand Preference Scales to Predict Consumer Brand Purchases

Insights into the characteristics of buyers and nonbuyers of a new branded detergent are given, which are based on measures obtained before and after the product's introduction.

Philip C. Burger

Papers

Can Private Brand Buyers be Identified

Using Laboratory Brand Preference Scales to Predict Consumer Brand Purchases

Can New Product Buyers be Identified