A Comparison of Market Share Models and Estimation Procedures

Ghosh, Avijit; Neslin, Scott A.; Shoemaker, Robert H.

doi:10.2307/3151702

Cited by 63 publications

(13 citation statements)

References 13 publications

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“…When modeling, e.g., sales, a decision has to be made with respect to the most appropriate functional form (Brodie and de Kluyver 1984;Ghosh, Neslin, and Shoemaker 1984). The alternative forms assume different types of response to advertising, which can, in turn, affect advertising elasticity (Arora 1979;Assmus, Farley, and Lehmann 1984).…”

Section: Functional Form (Aed Columns Fy-gh)mentioning

confidence: 99%

“…Accounting for heterogeneity in models leads to more precise and accurate estimation results for the investigated subgroups (e.g., Ghosh, Neslin, and Shoemaker 1984). To investigate whether this results in structurally differing advertising elasticities, the AED captures whether heterogeneity is accounted for in the empirical studies' models via individual (i) in- tercepts or (ii) advertising coefficients (e.g., brand-, segment-, or consumer-specific).…”

Section: Heterogeneity (Aed Columns Hd-hi)mentioning

confidence: 99%

See 1 more Smart Citation

Determinants of Advertising Effectiveness: The Development of an International Advertising Elasticity Database and a Meta-Analysis

Henningsen¹,

Heuke

Clément

2011

Bus Res

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Section: Functional Form (Aed Columns Fy-gh)mentioning

confidence: 99%

Section: Heterogeneity (Aed Columns Hd-hi)mentioning

confidence: 99%

Determinants of Advertising Effectiveness: The Development of an International Advertising Elasticity Database and a Meta-Analysis

Henningsen¹,

Heuke

Clément

2011

Bus Res

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“…Although additive models are the most parsimonious in regression analysis, they become cumbersome when handling interactions among independent variables because a new term must be added for each interaction effect. Thus, this research adopts a multiplicative model that inherently allows for interactions among all independent variables without additional terms (Ghosh, Neslin, & Shoemaker, 1984). Using this formulation, two models are specified, one describing the effect of VIP programs on interpurchase time and the other describing the effect on purchase amount.…”

Section: Datamentioning

confidence: 99%

Do VIP programs always work well? The moderating role of loyalty

Kim

Lee

et al. 2009

Psychology and Marketing

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Recent years have witnessed a steep increase in company investments in customer relationship management (CRM) strategies. This is reflective of the corporate need to identify potentially profitable customers, acquire and retain them, and, in the long run, continuously increase their lifetime value to the company. While numerous types of CRM programs are being deployed by companies, loyalty (or VIP) programs, which are marketing programs that provide "special" treatment to loyal (VIP) customers, have been among the most frequently used forms of CRM efforts in many industries. Despite such interest in CRM from the field however, recent research results on the effects of VIP programs have been somewhat mixed. Some studies have found a positive influence on consumer behavior (Berry, 1995;De Wulf & Odekerken-Schröder, 2003), whereas others report no significant impact (De Wulf, Odekerken-Schröder, & Iacobucci, 2001;Sharp & Sharp, 1997).The motivation of this research is to provide a possible explanation for such contradictory evidence in the literature. Specifically, the paper points out that most studies to date have overlooked the possibility that the impact of VIP programs can be moderated by important variables such as the loyalty traits of their customers. The purpose here is to fill this gap. Additionally, while most past research has studied the impact of mileage or reward programs that are offered to all customers, this study looks at the impact of loyalty programs that focus only on loyal or VIP customers. At a time when companies are attempting to concentrate more on their loyal customers while de-marketing their marginal ones, identifying the factors that must be considered in more clearly delineating the effects of loyalty programs will have both academic and managerial significance.This paper is organized as follows. The next section presents the theoretical background and the hypotheses; the following section describes the model and the data used to test those hypotheses. We then present the results of the analysis and derive the net effect of the VIP program. The final section provides some discussion and conclusions from the results, followed by a brief discussion on issues for future research. THEORETICAL BACKGROUND AND HYPOTHESESThe fact that VIP programs offered to a select group of valuable customers will generally exert a positive influence on those customers' buying behaviors can be explained from at least two perspectives. The first is basic economic utility theory (Lancaster, 1971;Dodson, Tybout, & Sternthal, 1978;Blattberg & Neslin, 1990;DelVecchio, 2005;Graham, 1994). VIP programs provide rewards such as lower prices, gifts, and mileage points that enhance the value and utility of a product or service. This in turn increases the likelihood of current and future purchases.A second explanation can be drawn from equity theory (Huppertz, Arenson, & Evans, 1978). Customers compare their purchase input (e.g., price paid, time, effort, opportunity cost, and so on) with the transaction output...

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“…Tellis (1988) conducted a meta-analysis study of models estimating the price elasticity of demand for various products and found that the mean price elasticity of demand is significantly negative. Also, Brodie and Kluyver (1984), Ghosh et al (1984), Naert and Weverbergh (1981) and Gaur and Fisher (2005) investigated price elasticity issues using different datasets and pricing models. Besides cost-based and market-based pricing methods, market experiments can serve as useful scientific tools for firms to get a better understanding of consumer response to the use of marketing activities such as pricing and promotions, as well as new demand functions after the establishment of experience stores.…”

Section: Marketing Perspectives On Experience Storesmentioning

confidence: 99%

Establishment Decision of Experience Stores: Insights into Marketing Effect

Chiang

Shih²

2014

jsss

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Methods of contacting customers are constantly evolving. An increasing number of manufacturers have established experience stores, plazas or centers that provide marketing, education, and trade functions to enhance business performance. This paper develops integer programming models to analyze the experience store establishment decision. Demand functions, cost parameters, and firm learning curves that impact on the experience store decision are also examined. In addition, this paper provides two case studies to validate the proposed experience store establishment models. Three proposed models can assist managers in developing marketing strategies related to the experience store establishment.

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A Comparison of Market Share Models and Estimation Procedures

Cited by 63 publications

References 13 publications

Determinants of Advertising Effectiveness: The Development of an International Advertising Elasticity Database and a Meta-Analysis

Determinants of Advertising Effectiveness: The Development of an International Advertising Elasticity Database and a Meta-Analysis

Do VIP programs always work well? The moderating role of loyalty

Establishment Decision of Experience Stores: Insights into Marketing Effect

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