TITLE

Reexamining Bayesian Model-Comparison Evidence of Cross-Brand Pass-Through

AUTHOR(S)
Duan, Jason A.; McAlister, Leigh; Sinha, Shameek
PUB. DATE
May 2011
SOURCE
Marketing Science;May/Jun2011, Vol. 30 Issue 3, p550
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Using the Bayes factor estimated by harmonic mean [Newton, M. A., A. E. Raftery 1994. Approximate Bayesian inference by the weighted likelihood bootstrap. J. Roy. Statist. Soc. Ser. B. 56(1) 3--48] to compare models with and without cross-brand pass-through, Dubé and Gupta [Dubé, J.-P., S. Gupta. 2008. Cross-brand pass-through in supermarket pricing. Marketing Sci. 27(3) 324-333] found that, in the refrigerated orange juice category, a model with cross-brand pass-through was selected 68% of the time. However, Lenk [Lenk, P. J. 2009. Simulation pseudo-bias correction to the harmonic mean estimator of integrated likelihoods. J. Comput. Graph. Statist. 18(1) 941-960] has demonstrated that the infinite variance harmonic mean estimator often exhibits simulation pseudo-bias in favor of more complex models. We replicate the results of Dubé and Gupta in the refrigerated orange juice category and then show that any of three more stable finite variance estimators select the model with cross-brand pass-through less than 1% of the time. Relaxing the assumption that model errors are distributed normally eliminates all instances in which the cross-brand pass-through model is selected. In 10 additional categories, the harmonic-mean-estimated Bayes factor selects the model with cross-brand pass-through 69% of the time, whereas a finite variance estimator of the Bayes factor selects the model with cross-brand pass-through only 5% of the time. Applying arguments in McAlister [McAlister, L. 2007. Cross-brand pass-through: Fact or artifact? Marketing Sci. 26(6) 876-898], these 5% of cases can be attributed to capitalization on chance. We conclude that Dubé and Gupta should not be interpreted as providing evidence of cross-brand pass-through.
ACCESSION #
61220878

 

Related Articles

  • The importance of reciprocal spillover effects for the valuation of bestseller brands: introducing and testing a contingency model. Knapp, Ann-Kristin; Hennig-Thurau, Thorsten; Mathys, Juliane // Journal of the Academy of Marketing Science;Mar2014, Vol. 42 Issue 2, p205 

    The valuation of extension rights is critical for entertainment brands such as bestseller books. Building on brand extension research, we argue that accounting for the reciprocal spillover effect (i.e., the influence of an extension product on a parent brand) is important for determining the...

  • Role of Attitude Toward Brand Advertising on Consumer Perception of a Brand Extension. Lee, Jung S. // Advances in Consumer Research;1995, Vol. 22 Issue 1, p116 

    This paper reports findings from an experiment that investigates the role of consumers' attitude toward the brand advertising (And) on the accessibility and perceived appropriateness of the brand attribates in their perception of a brand extension. The effect is examined either for a comparable...

  • Comparing quantile residual life functions by confidence bands. Franco-Pereira, Alba; Lillo, Rosa; Romo, Juan // Lifetime Data Analysis;Apr2012, Vol. 18 Issue 2, p195 

    In this article we present a nonparametric method for constructing confidence bands for the difference of two quantile residual life (qrl) functions. These bands provide evidence for two random variables ordering with respect to the qrl order. The comparison of qrl functions is of importance,...

  • The Efficacy of CPPI and VBPI based on Stationary Bootstrap Method. Zewei Chen; Jun Cha; Jianyu Ge // Applied Mechanics & Materials;2014, Vol. 687-691, p4848 

    This paper presented an overview of the Stationary Bootstrap method of nonparametric methods. Multitudes of re-sampled data were generated to conquer the limitations of historical simulation method. The trends of different indexes based on Stationary Bootstrap Method were constructed to test the...

  • A non-parametric double-bootstrap method for an adaptive MOP EVI-estimation. Brilhante, M. Fátima; Gomes, M. Ivette; Pestana, Dinis D. // AIP Conference Proceedings;Sep2012, Vol. 1479 Issue 1, p1708 

    The Hill estimator, the average of k excesses of ordered log-observations, can be regarded as the logarithm of the mean of order p = 0 of a set of adequate statistics. The mean of order p (MOP), now with p ≥ 0, of the same statistics leads to the so-called MOP extreme value index...

  • Brands capitalise on x-for-y as savings increase vs 2010. Bamford, Vince // Grocer;7/9/2011, Vol. 234 Issue 8012, p17 

    The article focuses on the increase in savings offered by brands to customers in supermarkets in Great Britain in June 2011. Promotions launched by brands have offered 34.1% in savings reflecting a 3% increase compared with the same period in 2010 based on analysis from the firm Associa. The...

  • Retailers Boost Prep Food With Events, New Varieties. Harper, Roseanne // Supermarket News Expert Blog;3/16/2012, p5 

    The article reports on the promotion of brands by supermarket retailers at community events, which reflect that they are taking demographics seriously.

  • Research on Dynamic Balance Method of Precision Centrifuge. Tao Liu; Yong Xu; Boyuan Mao // Advanced Materials Research;2014, Vol. 945-949, p945 

    Firstly, according to the structure characteristics of precision centrifuge, the mathematical model of its dynamic balancing system was set up, and the dynamic balancing scheme of double test surfaces, double emendation surfaces were established. Then the dynamic balance system controller of...

  • Consumer Preference on Hypermarket Brand Extension Product. Hassan, Hasliza; Rahman, Muhammad Sabbir // Australian Journal of Basic & Applied Sciences;Sep2012, Vol. 6 Issue 9, p178 

    Retailing trends of extending existing hypermarket corporate brand name to consumable product brand have been adapted by almost all hypermarket retailers across countries and regions. Hypermarket brand extension product has widened consumer choices in choosing consumable items. Most studies that...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

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

Try another library?
Sign out of this library

Other Topics