The agency theory approach to understanding salesforce compensation plans is modified to incorporate the intratemporal nature of the salesperson's effort-rate decision, i.e., the decision about the effort-rate at any given point in time potentially depends upon the sales performance up to that...

This paper considers the problem of determining optimal sample sizes in advertising pretests, where two or more copies are compared for their relative advertising effectiveness measured on a dichotomous (0 or 1) scale. As the sample size is increased, sampling variations decrease so that the...

This paper develops a method for choosing advertising media plans for the next T-periods in order to maximize net discounted profits. Using the discrete maximum principle of Optimal Control Theory, it is shown that under certain conditions a T-period media model can be decomposed into a sequence...

This paper provides some empirical generalizations regarding how the relative prices of competing brands affect the cross-price effects among them. Particular focus is on the asymmetric price effect and the neighborhood price effect. The asymmetric price effect states that a price promotion by a...

This research models the dynamics of customer relationships using typical transaction data. Our proposed model permits not only capturing the dynamics of customer relationships, but also incorporating the effect of the sequence of customer-firm encounters on the dynamics of customer...

We quantify the information loss incurred by categorizing an unobserved continuous variable () into an ordered categorical scale (). The continuous variable is conceptualized as true score (Ï„) (which varies across individuals) plus random error ((epsilon)), with both components assumed to be...

A theory of salesforce compensation plans is presented where the sales of a product depend not only on the salesperson's effort but also on the uncertainty in the selling environment. The firm chooses a compensation plan to maximize its profit taking into account the salesperson's likely effort...

A firm contemplating improvements to its product attributes would be interested in the dollar value the market attaches to any potential product modification. In this paper, we derive a measure of market value such that the comparison of the measure against the incremental unit cost of the...

Factor Analysis is commonly used to reveal the structure underlying the multiple attributes that describe marketing stimuli. This paper provides a theoretical investigation and an empirical comparison of two approaches to Factor Analysis that are based on two different sources of variation in...

Schmittlein and Mahajan (Schmittlein, D. C., V. Mahajan. 1982. Maximum likelihood estimation for an innovation diffusion model of new product acceptance. (Winter) 57–78.) made an important improvement in the estimation of the Bass (Bass, F. M. 1969. A new product growth model for consumer...