The creation of online consumer communities to provide product reviews and advice has been touted as an important, albeit somewhat expensive component of Internet retail strategies. In this paper, we characterize reviewer behavior at two popular Internet sites and examine the effect of consumer...

Recent studies in marketing show decompositions of sales promotion effects based on household-level scanner data. Typically, the total elasticity is decomposed into choice, timing, and quantity elasticities. We propose a model that estimates standard, enhanced, and flexible decompositions based...

In a competitive marketplace, the effectiveness of any element of the marketing mix is determined not only by its absolute value, but its relative value with respect to the competition. For example, the effectiveness of a price cut in increasing demand is critically related to competitors'...

Several researchers have decomposed sales promotion elasticities. A key result is that the majority of the sales promotion elasticity, about 74 percent on average, is purportedly due to secondary demand effects (brand switching) and the remainder is due to primary demand effects (timing...

The focus of this paper is on models that accommodate dynamic phenomena and include consumer-focused and competitor-centered approaches. The consumer focus is represented in demand functions while the competitor orientation is captured in reaction functions. Although the extant literature has...

We provide a rationale for evolutionary model building. The basic idea is that to enhance user acceptance it is important that one begins with a relatively simple model. Simplicity is desired so that managers understand models. As a manager uses the model and builds up experience with this...

Managers are very interested in word-of-mouth communication because it can have a tremendous impact on a product's sales. However, there are at least three significant challenges associated with measuring word of mouth. It is our primary objective in this paper to address these challenges. First...

The impact of a firm's strategic marketing mix choices on profitability can be evaluated by understanding the impact of those choices on consumer demand for the firm's products and on the firm's costs. Additionally, a firm's strategic marketing mix choices, and its demand and costs can be...

Consumer goods manufacturers usually sell their brands to consumers through common independent retailers. Theoretical research on such channel structures has analyzed the optimal behavior of channel members under alternative assumptions of manufacturer-retailer interaction (Vertical Strategic...

As firms jockey to position themselves in emerging markets, firms need to evaluate the relative attractiveness of market expansion in different countries. Since the attractiveness of a market is a function of the eventual market potential and the speed at which the product diffuses through the...