Template-Type: ReDIF-Paper 1.0
Author-Name: Fok, D.
Author-Name-Last: Fok
Author-Name-First: Dennis
Author-Name: Paap, R.
Author-Name-Last: Paap
Author-Name-First: Richard
Author-Person: ppa494
Author-Name: Franses, Ph.H.B.F.
Author-Name-Last: Franses
Author-Name-First: Philip Hans
Author-Person: pfr226
Title: Incorporating responsiveness to marketing efforts in brand choice modelling
Abstract: We put forward a brand choice model with unobserved heterogeneity that concerns responsiveness to marketing efforts. We introduce two latent segments of households. The first segment is assumed to respond to marketing efforts while households in the second segment do not do so. Whether a specific household is a member of the first or the second segment at a specific purchase occasion is described by household-specific characteristics and characteristics concerning buying behavior. Households may switch between the two responsiveness states over time. When comparing the performance of our model with alternative choice models that account for various forms of heterogeneity for tree different datasets, we find better face validity of our parameters. Our model also forecasts better.
Creation-Date: 2008-08-21
File-URL: https://repub.eur.nl/pub/13051/ei2008-15.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 2008-15
Keywords: heterogeneity, marketing-instrument effectiveness, mixtures, multinomial probit
Handle: RePEc:ems:eureir:13051