The author investigates the validity of the "flat maximum principle"---the insensitivity of a firm's profits to changes in its optimal advertising level---in a duopolistic market in which advertising by the two firms has carryover effects. Two alternative competitive scenarios are examined (i)...

Researchers have recently been interested in studying the drivers of store-brand success as well as factors that motivate retailers to introduce store brands. In this paper, we study the effects of the introduction of a store-brand into a particular product category. Specifically, we are...

The "Lightning Bolt" (LB) model provides a comprehensive framework for accommodating the effects of habit persistence, unobserved heterogeneity, and state dependence on household brand choice behavior. This paper presents a discrete, dynamic brand-choice model that belongs to the LB class of...

Our objective is to understand the cross-category effects of marketing activities using aggregate store-level scanner data. For this, we provide a framework derived from household utility maximizing behavior which assumes that a household chooses the "bundle" of products with the highest...

We formulate a differential game model for dynamic pricing in a duopolistic market. Firms' demand functions are derived from utility maximizing behavior of consumers with the demand for a brand given by the logit model. Preferences for brands are assumed to evolve over time in the market in a...

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We develop a dynamic model for determining the equilibrium marketing effort levels for a manufacturer and a retailer in a two-member marketing channel. The existence of carry-over effects of marketing effort of channel members leads to an accumulation of goodwill for them over time. This...

The multinomial probit model of brand choice is theoretically appealing for marketing applications as it is free from the “independence of irrelevant alternatives” property of the multinomial logit model. However, difficulties in estimation have restricted its widespread use in marketing....

Our objective in this paper is to measure the impact (valence, volume, and variance) of national online user reviews on designated market area (DMA)-level local geographic box office performance of movies. We account for three complications with analyses that use national-level aggregate box...

We develop a comprehensive utility maximizing framework to study the impact of marketing variables on the category purchase, brand choice and purchase quantity decisions of households for frequently purchased packaged goods. The model allows for dependence among the three decisions while...