The resource-based view (RBV) of the firm suggests that strategic deployment of capabilities allows strategic business units (SBUs) to exploit distinctive competencies and create sustainable competitive advantage. Following the RBV, we propose a new predictive methodology for deriving typologies...

Consumer reservation price is a key concept in marketing and economics. Theoretically, this concept has been instrumental in studying consumer purchase decisions,competitive pricing strategies,and welfare economics. Managerially,knowledge of consumer reservation prices is critical for...

Two endemic problems face researchers in the social sciences (e.g., Marketing, Economics, Psychology, and Finance): unobserved heterogeneity and measurement error in data. Structural equation modeling is a powerful tool for dealing with these difficulties using a simultaneous equation framework...

This paper develops a model for capturing continuous heterogeneity in the joint distribution of reservation prices for products and bundles. Our model is derived from utility theory and captures both within-and among-subject variability. Furthermore, it provides dollarmetric reservation prices...

The U.S. pharmaceutical industry spent upwards of $18 billion on marketing drugs in 2005; detailing and drug sampling activities accounted for the bulk of this spending. To stay competitive, pharmaceutical managers need to maximize the return on these marketing investments by determining which...

In recent years, manufacturers have become increasingly disposed toward the use of sales promotions, often at the cost of advertising. Yet the long-term implications of these changes for brand profitability remain unclear. In this paper, we seek to offer insights into this important issue. We...

Consideration sets have been the recent focus of a large volume of research in marketing. The primary orientation of this stream of research has been toward consideration set composition, measurement, and the theoretical formation process itself. This paper proposes a new multidimensional...

Structural equation models are widely used in marketing and psychometric literature to model relationships between unobserved constructs and manifest variables and to control for measurement error. Most applications of structural equation models assume that data come from a homogeneous...

The authors propose two variants of lexicographic preference rules. They obtain the necessary and sufficient conditions under which a linear utility function represents a standard lexicographic rule, and each of the proposed variants, over a set of discrete attributes. They then: (i)...