Over the years, researchers have found that promotion makes consumers switch brands and purchase earlier or more. However, it is unclear how promotion affects consumption, especially for product ca...
In this paper we describe the pass-through behavior of a major U.S. supermarket chain for 78 products across 11 categories. Our data set includes retail prices and wholesale prices for stores in 15...
Today companies faced with manifold shifts arose in business environment recently but particularly during the last two decades. Such issues ask for sharp response rate by companies as well as very solid level of marketing intelligence, research and customer loyalty development. Paper discuss the importance of knowing what's going on in the target market within PEST approach including unavoidable technology issues. General focus is directed to needs of an appropriate marketing strategy development.
The present paper deals with the concept of green product management. To create a significantly greener economy, there will need to be a range of new and greener products and technologies. Today we are faced with a growth in more innovative clean technology solutions. Successful development of new green products requires high levels of communication and integration, good information, early consideration of green issues, support from top management, and benchmarking. The set of controllable tactical marketing tools (product, price, place and promotion) that the company blends to produce the response it wants in the target green market, is the matter of the primary importance to the management.
It has been shown in the behavioral decision making, marketing research, and psychometric literature that the structure underlying preferences can change during the administration of repeated measu...
The two reports and two articles (as well as a Commentary) that follow are the finalists from the 2004 ISMS Practice Prize Competition, representing the best examples of rigor plus relevance that our profession produces.
We introduce methods from statistical learning theory to the field of conjoint analysis for preference modeling. We present a method for estimating preference models that can be highly nonlinear and robust to noise. Like recently developed polyhedral methods for conjoint analysis, our method is based on computationally efficient optimization techniques. We compare our method with standard logistic regression, hierarchical Bayes, and the polyhedral methods using standard, widely used simulation data. The experiments show that the proposed method handles noise significantly better than both logistic regression and the recent polyhedral methods and is never worse than the best method among the three mentioned above. It can also be used for estimating nonlinearities in preference models faster and better than all other methods. Finally, a simple extension for handling heterogeneity shows promising results relative to hierarchical Bayes. The proposed method can therefore be useful, for example, for analyzing large amounts of data that are noisy or for estimating interactions among product features.
Marketing Science features many and diverse articles that analyze competitive responsiveness. Although recent Marketing Science editorials (e.g., Shugan 2002) suggest that competitive responsiveness is only a part of a comprehensive competitive marketing strategy, it remains a vital part. For that reason and many others, Marketing Science is particularly proud of this special issue edited by David J. Reibstein and Dick R. Wittink. Before introducing and vigorously applauding both the editors and authors of this excellent special issue, we emphasize that competitive responsiveness raises numerous issues, including whether one can forecast outcomes of new policies based on past observations made under old policies (i.e., the Lucas critique) and decisions regarding which variables should be considered endogenous (Shugan 2004), i.e., determined within the model. Perhaps, normative models are inherently perishable—evolution in market structure requires modifications over time. Also, although complete consistency within the world of the model is aesthetically pleasing, imposing industry-specific exogenous constraints (that might appear unrelated to the modeling assumptions) is sometimes necessary.
To increase the sales of their products through advertising, firms must integrate their brand-advertising strategy for capturing market share from competitors and their generic-advertising strategy for increasing primary demand for the category. This paper examines whether, when, and how much brand advertising versus generic advertising should be done. Using differential game theory, optimal advertising decisions are obtained for a dynamic duopoly with symmetric or asymmetric competitors. We show how advertising depends on the cost and effectiveness of each type of advertising for each firm, the allocation of market expansion benefits, and the profit margins determined endogenously from price competition. We find that generic advertising is proportionally more important in the short term and that there are free-riding effects leading to suboptimal industry expenditure on generic advertising that worsen as firms become more symmetric. Due to free-riding by the weaker firm, its instantaneous profit and market share can actually be higher. The effectiveness of generic advertising and the allocation of its benefits, however, have little effect on the long-run market shares, which are determined by brand-advertising effectiveness. Extensions of the model show that market potential saturation leads to a decline in generic advertising over time.