Heterogeneity and purchase event feedback in choice models: An empirical analysis with implications for model building

International Journal of Research in Marketing

Volumn 16, Issue 3, 1999, Pages 177-198

  Ailawadi, Kusum L ^a   Gedenk, Karen ^b   Neslin, Scott A ^a  

^a DARTMOUTH COLLEGE   (United States)

^b UNIVERSITY OF KIEL   (Germany)

Author keywords

Elasticity; Heterogeneity; Logit models; Purchase event feedback; Segmentation

Indexed keywords

EID: 0009243831     PISSN: 01678116     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0167-8116(99)00010-5     Document Type: Article

References (60)

1. Abramson, C., Currim, I., Jones, M., 1998. Diagnostic validity of the multinomial logit model of consumer choice. Working Paper, University of California-Irvine.
2. Ailawadi K.L., Neslin S.A. The effect of promotion on consumption: Buying more and consuming it faster. Journal of Marketing Research. 35:1998;390-398.
3. Assael, H., 1995. Consumer Behavior and Marketing Action, 5th edn., South-Western College Publishing, Cincinnati, OH.
4. Bronnenberg B.J., Vanhonacker W.R. Limited choice sets, local price response, and implied measures of price competition. Journal of Marketing Research. 33:1996;163-173.
5. Bucklin R.E., Gupta S. Brand choice, purchase incidence, and segmentation: An integrated modeling approach. Journal of Marketing Research. 29:1992;201-215.
6. Bucklin R.E., Lattin J.M. A two-state model of purchase incidence and brand choice. Marketing Science. 10:1991;24-39.
7. Bucklin R.E., Lattin J.M. A model of product category competition among grocery retailers. Journal of Retailing. 68:1992;271-293.
8. Bucklin R.E., Gupta S., Han S. A brand's eye view of response segmentation in consumer brand choice behavior. Journal of Marketing Research. 32:1995;66-74.
9. Bucklin R.E., Gupta S., Siddarth S. Determining segmentation in sales response across consumer purchase behaviors. Journal of Marketing Research. 35:1998;189-197.
10. Bucklin R.E., Russell G.J., Srinivasan V. A relationship between market share elasticities and brand switching probabilities. Journal of Marketing Research. 35:1998;99-113.
11. Chamberlain G. Analysis of covariance with qualitative data. Review of Economic Studies. 4:1980;225-238.
12. Chiang, J., Chib, S., Narasimhan, C., 1996. Markov chain Monte Carlo and models of consideration set and parameter heterogeneity. Working Paper, Washington University, St. Louis, MO.
13. Chintagunta P.K. Heterogeneity in nested logit models: An estimation approach and empirical results. International Journal of Research in Marketing. 9:1992;161-175.
14. Chintagunta P.K. Investigating purchase incidence, brand choice and purchase quantity decisions of households. Marketing Science. 12:1993;184-208.
15. Chintagunta P.K., Honore B.E. Investigating the effects of marketing variables and unobserved heterogeneity in a multinomial probit model. International Journal of Research in Marketing. 13:1996;1-15.
16. Chintagunta P.K., Jain D.C., Vilcassim N.J. Investigating heterogeneity in brand preferences in logit models for panel data. Journal of Marketing Research. 28:1991;417-428.
17. Degeratu, A.M., 1997. Estimation problems and solutions for dynamic choice models. Working Paper, Pennsylvania State University, University Park, PA.
18. Deighton J., Henderson C.M., Neslin S.A. The effects of advertising on brand switching and repeat purchasing. Journal of Marketing Research. 31:1994;28-43.
19. DeSarbo W.S.et al. Representing heterogeneity in consumer response models. Marketing Letters. 8:1997;335-348.
20. Dillon W.R., Gupta S. A segment-level model of category volume and brand choice. Marketing Science. 15:1996;38-59.
21. Erdem T. A dynamic analysis of market structure based on panel data. Marketing Science. 15:1996;359-378.
22. Erdem T., Keane M.P. Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Science. 15:1996;1-20.
23. Fader P.S., Hardie B.G.S. Modeling consumer choice among SKUs. Journal of Marketing Research. 33:1996;442-452.
24. Feinberg, F.M., Russell, G.J., 1997. A consistent loyalty measure for generalized logit models. Working Paper, University of Iowa, Iowa City, IA.
25. Gedenk, K., Neslin, S.A., 1999. The role of retail promotion in determining future brand loyalty: Its effect on purchase event feedback. Working Paper, Amos Tuck School, Dartmouth College, Hanover, NH.
26. Gönül F., Srinivasan K. Modeling multiple sources of heterogeneity in multinomial logit models: Methodological and managerial issues. Marketing Science. 12:1993;213-229.
27. Guadagni P.M., Little J.D.C. A logit model of brand choice calibrated on scanner data. Marketing Science. 2:1983;203-238.
28. Gupta S. Impact of sales promotions on when, what, and how much to buy. Journal of Marketing Research. 25:1988;342-355.
29. Gupta S., Chintagunta P.K. On using demographic variables to determine segment membership in logit mixture models. Journal of Marketing Research. 31:1994;128-136.
30. Gupta S., Chintagunta P.K., Wittink D.R. Household heterogeneity and state dependence in a model of purchase strings: empirical results and managerial implications. International Journal of Research in Marketing. 14:1997;341-358.
31. Harlam B.A., Lodish L.M. Modeling consumers' choices of multiple items. Journal of Marketing Research. 32:1995;404-418.
32. Heckman, J.J., 1981a. Heterogeneity and state dependence. In: Rosen, S. (Ed.), Studies in Labor Markets, 91-139. University of Chicago Press, Chicago, IL.
33. Heckman, J.J., 1981b. The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete data stochastic process. In: Manski, C.F., McFadden, D. (Eds.), Structural Analysis of Discrete Data with Econometric Applications. MIT Press, Cambridge, MA, pp. 179-195.
34. Hsiao, C., 1986. Analysis of Panel Data. Cambridge University Press, Cambridge.
35. Jain D.C., Vilcassim N.J., Chintagunta P.K. A random-coefficients logit brand-choice model applied to panel data. Journal of Business and Economic Statistics. 12:1994;317-328.
36. Jones J.M., Landwehr J.T. Removing heterogeneity bias from logit model estimation. Marketing Science. 7:1988;41-59.
37. Kalyanam K., Putler D.S. Incorporating demographic variables in brand choice models: an indivisible alternatives framework. Marketing Science. 16:1997;166-181.
38. Kamakura W.A., Kim B.D., Lee J. Modeling preference and structural heterogeneity in consumer choice. Marketing Science. 15:1996;152-172.
39. Kamakura W.A., Russell G.J. A probabilistic choice model for market segmentation and elasticity structure. Journal of Marketing Research. 26:1989;379-390.
40. Keane M.P. Modeling heterogeneity and state dependence in consumer choice behavior. Journal of Business and Economic Statistics. 15:1997;310-327.
41. Krishnamurthi L., Raj S.P. A model of brand choice and purchase quantity price sensitivities. Marketing Science. 7:1988;1-20.
42. Lattin J.M., Bucklin R.E. Reference effects of price and promotion on brand choice behavior. Journal of Marketing Research. 26:1989;299-310.
43. McAlister L.et al. Incorporating choice dynamics in models of consumer behavior. Marketing Letters. 2:1991;241-252.
44. Mela C.F., Gupta S., Lehmann D.R. The long term impact of promotion and advertising on consumer brand choice. Journal of Marketing Research. 34:1997;248-261.
45. Mela C.F., Gupta S., Jedidi K. Assessing long-term promotional influences on market structure. International Journal of Research in Marketing. 15:1998;89-107.
46. Murthi B.P.S., Srinivasan K. Performance of the integrated random coefficients covariance probit model: Implications for brand choice. International Journal of Research in Marketing. 15:1998;137-156.
47. Ortmeyer G., Lattin J.M., Montgomery D.B. Individual differences in response to consumer promotions. International Journal of Research in Marketing. 8:1991;169-186.
48. Papatla P. Brand inequalities in the loyalty-effects of purchases. Marketing Letters. 4:1993;361-368.
49. Papatla P. A multiplicative fixed-effects model of consumer choice. Marketing Science. 15:1996;243-261.
50. Papatla P., Krishnamurthi L. Measuring the dynamic effects of promotions on brand choice. Journal of Marketing Research. 33:1996;20-35.
51. Peter, J.P., Olson, J.C., 1996. Consumer Behavior and Marketing Strategy, 4th edn. Richard D. Irwin, Chicago, IL.
52. Rossi P.E., Allenby G.M. A Bayesian approach to estimating household parameters. Journal of Marketing Research. 30:1993;171-182.
53. Rossi P.E., McCulloch R.E., Allenby G.M. The value of purchase history data in target marketing. Marketing Science. 15:1996;321-340.
54. Roy R., Chintagunta P.K., Haldar S. A framework for investigating habits, "The hand of the past", and heterogeneity in dynamic brand choice. Marketing Science. 15:1996;280-299.
55. Schwarz G. Estimating the dimension of a model. The Annals of Statistics. 6:1978;461-464.
56. Seetharaman P.B., Chintagunta P. A model of inertia and variety-seeking with marketing variables. International Journal of Research in Marketing. 15:1998;1-17.
57. Steenkamp J.B.E.M., Wedel M. Fuzzy clusterwise regression in benefit segmentation: application and investigation into its validity. Journal of Business Research. 26:1993;237-249.
58. Tellis G.J. Advertising exposure, loyalty, and brand purchase: a two-stage model of choice. Journal of Marketing Research. 25:1988;134-144.
59. Tellis G.J., Zufryden F.S. Tackling the retailer decision maze: which brands to discount, how much, when and what? Marketing Science. 14:1995;271-299.
60. Wedel, M., Kamakura, W.A., 1998. Market Segmentation: Conceptual and Methodological Foundations. Kluwer Academic Publishers, Boston, MA.