We propose and test a new approach for modeling consumer heterogeneity in conjoint estimation based on convex optimization and statistical machine learning. We develop methods both for metric and choice data. Like hierarchical Bayes (HB), our methods shrink individual-level partworth estimates...

In this paper we develop a general class of dynamic brand choice models, called (LB) models, which are consistent with the theory of random utility maximization of consumer choice behavior. The underlying random utility process is Markov, and the inter-temporal evolution of the...

Probabilistic discrete-choice models, such as multinomial logit models, are widely used to predict changes in market shares or total demand resulting from changes in policy variables under management control. These models often are evaluated in terms of their ability to predict choices in a...

One of the aims of direct marketing in practice is to target the most profitable customers in the database at hand. This selection is often done based on observed behavior in the past. As a consequence, databases arising from the responses to direct mailings are not a random sample from all...

With the advent of one-to-one marketing media, e.g. targeted direct mail or internet marketing, the opportunities to develop targeted marketing campaigns are enhanced in such a way that it is now both organizationally and economically feasible to profitably support a substantially larger number...

With the advent of one-to-one marketing media, e.g. targeted direct mail or internet marketing, the opportunities to develop targeted marketing (customer relationship management) campaigns are enhanced in such a way that it is now both organizationally and economically feasible to profitably...

With the advent of one-to-one marketing media, e.g. targeted direct mail or internet marketing, the opportunities to develop targeted marketing campaigns are enhanced in such a way that it is now both organizationally and economically feasible to profitably support a substantially larger number...

When a firm allows the return of previously purchased merchandise, it provides customers with an option that has measurable value. Whereas the option to return merchandise leads to an increase in gross revenue, it also creates additional costs. Selecting an optimal return policy requires...