Silva-Risso, Jorge; Ionova, Irina - In: Marketing Science 27 (2008) 4, pp. 545-566
We develop a consumer response model to evaluate and plan pricing and promotions in durable-good markets. We discuss its implementation in the U.S. automotive industry, which “spends” about $45 billion each year in price promotions. The approach is based on a random effects multinomial...