Modeling marketplace behavior

Abstract

Marketplace behavior refers to aspects of the purchase behavior of individuals and firms that leads to marketplace demand. It is characterized by the presence of many variables, most of which have nothing to do with a specific venture or specific consumer. This paper discusses three challenges of analysis commonly found in quantitative models of marketplace data: heterogeneous consumers, goal-directed behaviors, and the selective attention to some but not all variables in extended models of behavior. Bayesian solutions to these challenges are discussed.

A tribute to forty years of top-level marketing research

“…Further, accounting for information on the history of intentions dramatically improves model fit and forecasting performance relative to a model which accounts for only the intentions at one point in time (e.g., the ones just prior to purchase). Allenby (2012) addresses marketplace behaviors in his article. He states that marketplace behavior refers to aspects of the purchase behavior of individuals and firms that lead to marketplace demand.…”