Several researchers have decomposed sales promotion elasticities based on household scanner panel data. A key result is that the majority of the sales promotion elasticity, about 74 percent on average, is attributed to secondary demand effects (brand switching) and the remainder to primary...

Product innovation is endemic among consumer packaged goods firms, and is an integral component of their marketing strategy. As innovations impact markets, there is a pressing need to develop market response models that can adapt to such changes. Our model copes with the challenges dynamic...

The behavioral literature provides ample evidence that consumer preferences are partly driven by the context provided by the set of alternatives. Three important context effects are the compromise, attraction, and similarity effect. As these context effects affect choices in a systematic and...

We provide a rationale for evolutionary model building. The basic idea is that to enhance user acceptance it is important that one begins with a relatively simple model. Simplicity is desired so that managers understand models. As a manager uses the model and builds up experience with this...

In this study, the authors conduct a systematic investigation on the evolution in the effectiveness of two important marketing mix instruments, advertising and price, over the business cycle. Analyses are based on 163 branded products in 37 mature CPG categories in the UK, and this for a period...

Market response models that use field-generated data are required to address potential endogeneity in the regressors to obtain consistent parameter estimates. Another requirement is that market response models predict well in a holdout sample. Combining both requirements, it may seem reasonable...

Market response models based on field-generated data need to address potential endogeneity in the regressors to obtain consistent parameter estimates. Another requirement is that market response models predict well in a holdout sample. With both requirements combined, it may seem reasonable to...

Promotions affect sales after the immediate sales bump. In other words, they have dynamic effects on consumer purchase behavior outside the period of the promotional offer. The objective of this monograph is to present a comprehensive overview of the various dynamic effects of promotions. We...