Rust, Roland T.; Schmittlein, David C.
January 1985
Marketing Science;Winter85, Vol. 4 Issue 1, p20
Academic Journal
There are many situations in marketing in which several alternative quantitative models may be built to model a particular marketing phenomenon or system. Few methods exist for comparing the fit of such models if the models are not nested, especially if their performance on each of several criteria is important. This paper proposes a Bayesian cross-validated likelihood (BCVL) method for comparing quantitative models. It can be used when the models are either nested or nonnested, and is especially useful for nonnested models. A simulation based upon a typical marketing modeling situation shows the incremental benefit of using the BCVL method rather than existing techniques, and explores the circumstances under which BCVL works best. The applicability of the BCVL method is demonstrated using several typical marketing modeling situations. (Model Comparison; Cross-Validation; Marketing Models)


Related Articles

  • PERFORMANCE EVALUATION IN MARKETING SYSTEMS. King, William R. // Management Science;Jul1964, Vol. 10 Issue 4, p659 

    The use of multiple performance criteria which account for both the static and dynamic aspects of marketing systems is proposed as a necessary step toward scientific marketing analysis. Currently, over-all evaluations using multiple performance measures are difficult to make and even more...

  • Complexity of Product Positioning and Ball Intersection Problems. Crama, Yves; Hansen, Pierre; Jaumard, Brigitte // Mathematics of Operations Research;Nov95, Vol. 20 Issue 4, p885 

    The product positioning problem consists in choosing the attributes of a new product in such a way as to maximize its market share, i.e., to attract a maximum number of customers. Mathematically, the problem can be formulated as follows: given a set of balls (with respect to some norm) and a...

  • CUSTOMER LIFETIME VALUE ANALYSIS: CHALLENGES AND WORDS OF CAUTION. Bechwati, Nada Nasr; Eshghi, Abdolreza // Marketing Management Journal;Fall2005, Vol. 15 Issue 2, p87 

    Despite the popularity of the Customer Lifetime Value analysis, very few managers have a good grasp of the concept. In general, managers consider this analysis to be the job of in-house statisticians or hired consultants. Not getting involved in the mathematical aspects of the analysis is...

  • CROSS-SECTIONAL ESTIMATION IN MARKETING: DIRECT VERSUS REVERSE REGRESSION. Vanhonacker, Wilfried R.; Day, Diana // Marketing Science;Summer87, Vol. 6 Issue 3, p254 

    Empirical results in marketing research are often derived from linear additive models estimated on cross-sectional data. An underlying assumption of these model specifications is that each exogenous variable contributes an additive effect to the endogenous variable. Measuring these additive...

  • Can We Detect Market Timing Ability Using An Option Model? Rumsey, John // Canadian Journal of Administrative Sciences (Canadian Journal of;Sep2000, Vol. 17 Issue 3, p269 

    Presents information on a study which examined the use of an option model for market timing ability. Description of the model; Properties of the Merton-Henriksson model; Conclusions.

  • UNDER CONSTRUCTION. Vence, Deborah L. // Marketing News;4/1/2008, Vol. 42 Issue 6, p22 

    The article examines how marketing executives are altering their predictive marketing mix models to more accurately assess return on investment of their budgets. Models originated with brand name product consumer goods marketing, and are still useful for those companies. The growth of service...

  • A Market Share Theorem. Bell, David E.; Keeney, Ralph L.; Little, John D. C. // Journal of Marketing Research (JMR);May75, Vol. 12 Issue 2, p136 

    Many marketing models use variants of the relationship: Market share equals marketing effort divided by total marketing effort. Replacing marketing effort with its resulting "attraction," the relationship is derived from the assumptions: (1) attraction is nonnegative, (2) equal attractions imply...

  • Dynamic Allocation of Pharmaceutical Detailing and Sampling for Long-Term Profitability. Montoya, Ricardo; Netzer, Oded; Jedidi, Kamel // Marketing Science;Sep/Oct2010, Vol. 29 Issue 5, p909 

    The U.S. pharmaceutical industry spent upwards of $18 billion on marketing drugs in 2005; detailing and drug sampling activities accounted for the bulk of this spending. To stay competitive, pharmaceutical managers need to maximize the return on these marketing investments by determining which...

  • Response Modeling with Nonrandom Marketing-Mix Variables. Manchanda, Puneet; Rossi, Peter E.; Chintagunta, Pradeep K. // Journal of Marketing Research (JMR);Nov2004, Vol. 41 Issue 4, p467 

    Sales response models are widely used as the basis for optimizing the marketing mix. Response models condition on the observed marketing-mix variables and focus on the specification of the distribution of observed sales given marketing-mix activities. The models usually fail to recognize that...


Read the Article


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

Try another library?
Sign out of this library

Other Topics