Helsen, Kristiaan; Schmittlein, David C.
September 1993
Marketing Science;Fall93, Vol. 12 Issue 4, p395
Academic Journal
Some statistical methods developed recently in the biometrics and econometrics literature show great promise for improving the analysis of duration times in marketing. They incorporate the right censoring that is prevalent in duration times data, and can be used to make a wide variety of useful predictions. Both of these features make these methods preferable to the regression, logit, and discriminant analyses that marketers have typically used in analyzing durations. This paper is intended to fulfill three objectives. First, we demonstrate how decision situations that involve durations differ from other marketing phenomena. Second, we show how standard modeling approaches to handle duration times can break down because of the peculiarities inherent in durations. It has been suggested in recent marketing articles that an alternative to these conventional procedures, i.e., hazard rate models and proportional hazard regression, can more effectively handle duration type data. Third, to investigate whether these proposed benefits are in fact delivered for marketing durations data, we estimate and validate both conventional and hazard rate models for household interpurchase times of saltine crackers. Our findings indicate the superiority of proportional hazard regression methods vis-a-vis common procedures in terms of stability and face validity of the estimates and in predictive accuracy. (Econometric Modeling; Estimation and Other Statistical Techniques; Pricing Research; Promotion; Regression and Other Statistical Techniques)


Related Articles

  • Multicollinearity in Structural Equation Models With Unobservable Variables. Jagpal, Harsharanjeet S. // Journal of Marketing Research (JMR);Nov82, Vol. 19 Issue 4, p431 

    The author develops a new ridge estimator for the treatment of multicollinearity in structural equation models with unobservable variables. The method is illustrated by a simple model of advertising in the multiproduct firm. For the nonlinear interaction model, ordinary partial least squares...

  • ANALYZING THE LOGISTIC REGRESSION OF AN ECONOMETRIC MODEL WITH QUALITATIVE VARIABLES. GRIGORESCU, Carmen-Judith; MOSCU, Raluca-Georgiana; PRODAN, Ligia // Knowledge Horizons / Orizonturi ale Cunoasterii;2014, Vol. 6 Issue 3, p100 

    It is our intention in this paper to highlight the role and importance of the regression analysis in the case of an econometric model with qualitative variables, proposing a model that may underline the cause relation between the factor effect-effort. The study is based on a questionnaire,...

  • REPRESENTATIVE VARIABLES IN A MULTIPLE REGRESSION MODEL. POPESCU, Barbu Bogdan; ŢOŢAN, Lavinia Ştefania // Romanian Statistical Review;2013, Issue 1, p82 

    There are presented econometric models developed for analysis of banking exclusion of the economic crisis. Access to public goods and services is a condition "sine qua non" for open and efficient society. Availability of banking and payment of the entire population without discrimination in our...

  • A proportional likelihood ratio model. Luo, Xiaodong; Tsai, Wei Yann // Biometrika;Mar2012, Vol. 99 Issue 1, p211 

    We propose a semiparametric proportional likelihood ratio model which is particularly suitable for modelling a nonlinear monotonic relationship between the outcome variable and a covariate. This model extends the generalized linear model by leaving the distribution unspecified, and has a strong...

  • FIRE: an SPSS program for variable selection in multiple linear regression analysis via the relative importance of predictors. Lorenzo-Seva, Urbano; Ferrando, Pere J. // Behavior Research Methods;Mar2011, Vol. 43 Issue 1, p1 

    We provide an SPSS program that implements currently recommended techniques and recent developments for selecting variables in multiple linear regression analysis via the relative importance of predictors. The approach consists of: (1) optimally splitting the data for cross-validation, (2)...

  • A systematic investigation of cross-validation in GWR model estimation: empirical analysis and Monte Carlo simulations. Farber, Steven; Páez, Antonio // Journal of Geographical Systems;Dec2007, Vol. 9 Issue 4, p371 

    In geographically weighted regression, one must determine a window size which will be used to subset the data locally. Typically, a cross-validation procedure is used to determine a globally optimal window size. Preliminary investigations indicate that the global cross-validation score is...

  • A Procedure for Uncovering Acceptable and Nonacceptable Mortgage Applications through Discriminant Analysis Using Ranked Data. Perry, Larry G.; Cronan, Timothy P.; Epley, Donald R. // Journal of Real Estate Research;Fall87, Vol. 2 Issue 1, p61 

    The procedure developed in this paper uses a less biased statistical technique than conventional discriminant analysis and parallels the ranking procedure used by loan officers. A variety of univariate and multivariate statistical procedures as well as comprehensive validation methods are used...

  • Predicting Corporate Financial Distress: A Time-Series CUSUM Methodology. Kahya, Emel; Theodossiou, Panayiotis // Review of Quantitative Finance & Accounting;Dec1999, Vol. 13 Issue 4, p323 

    The ability to predict corporate financial distress can be strengthened using models that account for serial correlation in the data, incorporate information from more than one period and include stationary explanatory variables. This paper develops a stationary financial distress model for AMEX...

  • Building Regression Models with the Forward Search. Atkinson, Anthony C.; Riani, Marco // Journal of Computing & Information Technology;Dec2007, Vol. 15 Issue 4, p287 

    We give an example of the use of the forward search in building a regression model. The standard backwards elimination of variables is supplemented by forward plots of added variable t statistics that exhibit the effect of each observation on the process of model building. Attention is also paid...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics