Journal ArticleDOI
Dynamic Analysis of Consumer Response to Marketing Strategies
Jay Hauser,Kenneth J. Wisniewski +1 more
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In this article, the authors developed a methodology for modeling consumer response that integrates previous research in stochastic brand selection, diffusion of innovation, test market analysis, and new product design.Abstract:
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 phenomena such as awareness, trial, and information flow. Purchase timing and brand selection are interdependent and both phenomena depend jointly on managerial controls such as advertising, coupons, price-off promotion, product positioning, and consumer characteristics.
Within this general structure, we provide practical estimation procedures a least squares approximation to the maximum likelihood estimates to determine the parameters which link managerial controls to consumer response. Closed form solutions are derived for cumulative awareness, cumulative trial, penetration, expected sales, and purchases due to promotion-all as a function of time. We also provide simplified expressions for equilibrium t â ∞ market share. Tradeoffs among complexity of the diffusion process, number of managerial variables, nonstationarity, complexity of purchase timing, consumer segmentation, and sample size are made explicit so that the marketing scientist can customize his analyses to the managerial problems that he faces.
The effects of sample size, data interval frequency, and collinearity in the explanatory variables are investigated with simulations based on a five-state consumer response process which depends on 8-10 marketing variables.
The paper closes with a brief description of the application and predictive test of a consumer response model based on the methodology.read more
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References
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Journal ArticleDOI
Innovation Diffusion and New Product Growth Models in Marketing
Vijay Mahajan,Eitan Muller +1 more
TL;DR: In this paper, the authors assess the state-of-the-art of diffusion models of new product acceptance and discuss issues related to the further development and validation of these models.
Journal ArticleDOI
Purchase Intentions and Purchase Behavior
TL;DR: In this paper, a framework for collecting, analyzing, and interpreting purchase intentions data is proposed for data collection, analysis, and interpretation in the context of online shopping. But this framework is not suitable for large scale data sets.
Journal ArticleDOI
The Theory of Stochastic Preference and Brand Switching
TL;DR: In this article, a general theory of stochastic preference is presented and tested, and strong evidence is introduced which suggests that brand choice behavior is substantially stochastically. Brand switching data are analyzed.
Journal ArticleDOI
The pattern of consumer purchases
TL;DR: In this article, the problem of the fit of the negative binomial distribution to such data is considered, and the problem considered in this paper is the same as in the case of this article.