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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26346
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| Title: | USING ORDER STATISTICS TO ESTIMATE PROBABILITIES OF PURCHASE FOR
CONSUMER GOODS |
| Authors: | TASHJIAN, RICHARD H.
NEELANKAVIL, JAMES P. |
| Issue Date: | 25-Jul-2002 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | SOR-2002-8 |
| Abstract: | Much work has been done recently to develop models of individual brand
choice. This work has been especially fruitful in the area of
“attribute investigation” (e.g., conjoint analysis) for the
purpose of uncovering an “ideal” set of product attributes
for a given product on a customer-by-customer basis. These techniques
have been employed in several strategic areas of marketing, including
product specification, pricing, service prioritization, brand
image/equity, and satisfaction/loyalty. Similarly, some effort has been
made with the issue of optimal advertising strategy. This paper
considers the advertising effectiveness function within the context of
other interrelated variables such as consumer preference (brand choice)
for a brand vis-à-vis its competitors. The model suggests, among
other things, that under certain reasonable conditions, the advertising
response function may not be “diminishing marginal returns”
or ‘S-shaped’ as is usually assumed, but instead will
increase up to a point and then decline. The model also explicitly
considers the advertising expenditures of competing brands, as well as
intrinsic "liking" for them. The consideration of competitive
activity, in the present study may yield a more complete model of
advertising response than is found elsewhere. Finally the model provides
direction for strategic purposes in its ability to illustrate in a
fairly straightforward and graphical sense how advertising and promotion
“work” in much the same way that demand and supply curves
illustrate how the various economic inputs work. |
| URI: | http://hdl.handle.net/2451/26346 |
| Appears in Collections: | IOMS: Statistics Working Papers
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