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2017 | Buch

Handbook of Marketing Decision Models

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The Second Edition of this book presents the state of the art in this important field. Marketing decision models constitute a core component of the marketing discipline and the area is changing rapidly, not only due to fundamental advances in methodology and model building, but also because of the recent developments in information technology, the Internet and social media.

This Handbook contains eighteen chapters that cover the most recent developments of marketing decision models in different domains of marketing. Compared to the previous edition, thirteen chapters are entirely new, while the remaining chapters represent complete updates and extensions of the previous edition. This new edition of the Handbook has chapters on models for substantive marketing problems, such as customer relationship management, customer loyalty management, website design, Internet advertising, social media, and social networks. In addition, it contains chapters on recent methodological developments that are gaining popularity in the area of marketing decision models, such as structural modeling, learning dynamics, choice modeling, eye-tracking and measurement. The introductory chapter discusses the main developments of the last decade and discusses perspectives for future developments.

Inhaltsverzeichnis

Frontmatter
Chapter 1. Marketing Decision Models: Progress and Perspectives
Introduction to the Second Edition of the Handbook of Marketing Decision Models
Abstract
In the introduction, the editors of the Handbook provide an overview of the chapters in the Handbook of Marketing Decision Models‚ Second Edition. The introduction discusses the latest developments of marketing decision models in the last decade and explains how the different chapters in the Handbook cover these developments. To do so‚ the authors introduce two dimensions to discuss and classify the latest developments: (1) topical domains (new and existing)‚ and (2) research methodology (new and existing). This classification results in four categories that the authors use to classify the contributed chapters of the Handbook. The authors conclude by describing opportunities for future developments of marketing decision models and their main drivers.
Berend Wierenga, Ralf van der Lans
Chapter 2. Sales Promotion Models
Abstract
Firms spend a significant part of their marketing budgets on sales promotions. Since the impact of promotions on sales is usually immediate and strong, promotions are attractive to results-oriented managers seeking to increase sales in the short term. This chapter discusses models for measuring sales promotion effects. Part I focuses on descriptive models, i.e. models that describe, analyze, and explain sales promotion phenomena. We start by discussing models for analyzing the immediate impact of promotions and decomposing the resulting sales promotion bump into a variety of sources. Next we examine what happens after the immediate bump, and describes models for measuring feedback effects, reference price effects, learning effects, permanent effects, and competitive reactions. Next we turn to descriptive models for promotions aimed at retailers (“trade promotions”), and discuss forward buying and pass-through. In Part II we discuss normative models, i.e. models that tell the decision maker what is the best (profit maximizing) decision on sales promotion activities. We cover models for planning promotions to consumers as well as decision models on trade promotions for manufacturers, and normative retailer models for optimal forward buying and pass-through. Part III concludes this chapter with a summary, practical model guidelines, and directions for future research.
Harald J. van Heerde, Scott A. Neslin
Chapter 3. Innovation and New Products Research: A State-of-the-Art Review, Models for Managerial Decision Making, and Future Research Directions
Abstract
This chapter has a three-fold purpose. First, we provide a literature review of major papers in the field of new products research. We organize our review into four tables, one for each of the four stages of the new product development process, and then by topic within each stage. We provide a short summary of each paper in the tables. Second, we highlight specific models within each stage of the new product development process. These models are useful for marketing researchers and managers tackling challenges in the new products domain. Third, after reviewing the literature, we suggest numerous general research directions as well as specific research questions to guide future investigations in this area.
Tingting Fan, Peter N. Golder, Donald R. Lehmann
Chapter 4. Models for the Financial-Performance Effects of Marketing
Abstract
We consider marketing-mix models that explicitly include financial performance criteria. These financial metrics are not only comparable across the marketing mix, they also relate well to investors’ evaluation of the firm. To that extent, we treat marketing as an investment in customer value creation and communication that ultimately leads to shareholder value.
Dominique M. Hanssens, Marnik G. Dekimpe
Chapter 5. Loyalty Programs: Current Insights, Research Challenges, and Emerging Trends
Abstract
To foster customer relationships, firms have implemented so-called loyalty programs (LPs). These programs provide monetary benefits (e.g. through direct discounts or rewards) and/or more soft benefits by focusing on creating commitment to the firm among customers through excellent service or giving special treatment to customers. In this chapter, we present a framework of three mechanisms underlying the LP effect. Next, we incorporate a discussion of relatively under-researched areas, such as reward redemption effects and so-called short-term LPs. We discuss models that can be used to examine LP effects and to analyze customer data to support marketing decisions. Finally, we provide a discussion on emerging topics in LPs, specifically addressing increasing digitalization, empowered customers, and the prevalence of big data. We conclude with a discussion on some pressing research questions.
Tammo H. A. Bijmolt, Peter C. Verhoef
Chapter 6. Structural Models in Marketing: Consumer Demand and Search
Abstract
As marketers move away from being focused only on “local” effects of marketing activities, e.g., what happens when I change price by 1%, in order to better understand the consequences of broader shifts in policy, the need for structural models has also grown. In this chapter, I will focus on a small subset of such “structural models” and provide brief discussions of what we mean by structural models, why we need them, the typical classes of structural models that we see being used by marketers these days, along with some examples of these models. My objective is not to provide a comprehensive review. Such an endeavor is far beyond my current purview. Rather, I would like to provide a basic discussion of structural models in the context of the marketing literature. In particular, to keep the discussion focused, I will limit myself largely to models of demand rather than models of firm behavior.
Pradeep Chintagunta
Chapter 7. Economic Models of Choice
Abstract
This chapter provides an introduction to choice models based on the principle of direct utility maximization. Models of direct utility are characterized by specifications of the utility function and accompanying budget constraint that allows separation of what is gained (i.e., utility) from that which is given up in an exchange. Direct utility maximization rationalizes observed choice as arising from goal-oriented consumers who are resource constrained. Marketing data overwhelmingly reflects goal-oriented behavior on the part of consumers in the high rate of zero’s present in disaggregate data, indicating that most people choose to not purchase most products that are available. By developing alternative models of direct utility maximization, we hope to spur additional research on utility formation and a more in-depth understanding of optimal firm reaction to the demands and constraints of consumers.
Greg M. Allenby, Jaehwan Kim, Peter E. Rossi
Chapter 8. Empirical Models of Learning Dynamics: A Survey of Recent Developments
Abstract
There is now a very large literature on dynamic learning models in marketing. Learning dynamics can be broadly defined as encompassing any process whereby the prior history of a consumer or market affects current utility evaluations (e.g., social learning, search, correlated learning, information spillover, etc.). In the present chapter, we focus on discussing this rapidly growing literature that deals with this broader view of learning dynamics.
Andrew T. Ching, Tülin Erdem, Michael P. Keane
Chapter 9. Measurement Models for Marketing Constructs
Abstract
Researchers who seek to understand marketing phenomena frequently need to measure the phenomena studied. Yet, constructing reliable and valid measures of the conceptual entities of interest is a nontrivial task, and before substantive issues can be addressed, the adequacy of the available measures has to be ascertained. In this chapter, we discuss a wide variety of measurement models that researchers can use to evaluate the quality of their measures. It is assumed that, generally, multiple measures are necessary to capture a construct adequately. We first present the congeneric measurement model, in which continuous observed indicators are seen as reflections of an underlying latent variable, each observed variable loads on a single latent variable, and no correlations among the unique factors (measurement errors) are allowed. We contrast the congeneric measurement model with the formative measurement model, in which the observed measures cause the composite variable of interest, and we also consider measurement models that incorporate a mean structure (in addition to a covariance structure) and extend the single-group model to multiple groups. Finally, we address three limitations of the congeneric measurement model (zero loadings of observed measures on non-target constructs, no correlations among the non-substantive components of observed measures, and the assumption of continuous, normally distributed indicators) and present models that relax these limiting assumptions.
Hans Baumgartner, Bert Weijters
Chapter 10. Marketing Models for the Customer-Centric Firm
Abstract
A customer-centric firm takes the view that there are three key drivers of (organic) growth and overall profitability: Customer acquisition, customer retention, and customer development (i.e., increasing the value of each existing customer (per unit of time) while they remain a customer). In this chapter we review the key data-based tools and methods that have been developed by marketing scientists (and researchers and practitioners in related fields such as operations research, statistics, and computer science) to assist firms in their understanding and implementing these activities more effectively.
Eva Ascarza, Peter S. Fader, Bruce G. S. Hardie
Chapter 11. Eye Movements During Search and Choice
Abstract
The last decade has seen an increasing interest in marketing in the use of modern eye-tracking equipment for developing and testing theories of search and choice. This chapter reviews this development and provides a framework that assists marketing researchers in collecting and processing eye tracking data and incorporating that data into marketing decision models. The authors demonstrate how eye movement data is collected using modern eye-tracking equipment, and how such data relates to underlying visual processes. The chapter discusses key eye-tracking measures and illustrates how such measures can be integrated into decision models of search and choice. This chapter provides useful insights for researchers interested in setting up eye-tracking experiments, as well as for researchers interested in understanding how such data can be summarized and incorporated into their models.
Ralf van der Lans, Michel Wedel
Chapter 12. Business-Cycle Research in Marketing
Abstract
The recent Global Financial crisis has reminded companies that macro-economic developments, and especially business-cycle fluctuations, can be among the most influential determinants of a firm’s activities and performance.
Barbara Deleersnyder, Marnik G. Dekimpe
Chapter 13. Marketing Models for the Life Sciences Industry
Abstract
The life sciences industry forms the innovative producer side of therapies in the healthcare industry. The industry has several unique features and is an important part of the economy. The life sciences industry gives rise to interesting research questions, as well as enables new model development to support managerial decision making. The academic marketing literature has produced a sizeable array of decision-support tools for the life science marketers. In this chapter, we present to researchers and managers in the life sciences industry a broad overview of these analytical tools, categorized according to subject areas, and the key managerial insights that have been derived from them. We first present the typical models employed in the following modeling traditions: choice model, count model, learning model, modeling key opinion leaders, diffusion model, sales growth model, and launch model. We then discuss the findings on the role of marketing categorized according to the following decision areas: direct-to-physician promotion, direct-to-consumer advertising, pricing, and product usage adherence. We conclude with a number of areas that we think need more research.
Vardan Avagyan, Vardit Landsman, Stefan Stremersch
Chapter 14. Marketing Models for Internet Advertising
Abstract
This chapter reviews recent advances in the application of marketing models to improve decision-making in internet advertising. It focuses on models developed for use in display advertising and sponsored search advertising. Together, these media account for the bulk of online advertising spending and most of the recent modeling advances in internet advertising. The chapter describes the challenges that confront modelers in these areas, including data limitations and selection effects due to targeting, and details how recent advances in model formulation and model-enhanced experiments are able to address them. The chapter closes with a look at recent modeling work that incorporates the effects of both online display and sponsored search advertising.
Randolph E. Bucklin, Paul R. Hoban
Chapter 15. Advertising Effectiveness and Media Exposure
Abstract
This chapter updates the prior Advertising Models chapter, with a particular focus on advertising effectiveness. Moreover, effectiveness is examined in the context of multimedia advertising campaigns. This chapter also examines media selection models, particularly in an online environment.
Peter J. Danaher
Chapter 16. Social Media Analytics
Abstract
One of the most significant developments in the domain of marketing in recent years involves the proliferation of user-generated content, particularly online social media. Social media has created a power shift in the relationship between consumers and brands, providing consumers more power by allowing them to easily broadcast their views and opinions about brands to a large audience.
Wendy W. Moe, Oded Netzer, David A. Schweidel
Chapter 17. Integrating Social Networks into Marketing Decision Models
Abstract
The rise of online social networks has been the most significant development on the Internet in the last decade. It has not only transformed how consumers interact with each other, but also affected the way companies communicate with their customers. This development has also offered a wealth of data to better understand social interactions between consumers and to optimize marketing strategies in the presence of social influence. In this chapter, the authors provide a generalized framework to integrate social network data into traditional marketing decision models. The authors show how their framework nests several existing approaches to deal with social network data. They also discuss the empirical challenges researchers may encounter and possible solutions.
Xi Chen, Ralf van der Lans, Michael Trusov
Chapter 18. Morphing Theory and Applications
Abstract
As electronic commerce often matches or exceeds traditional bricks-and-mortar commerce, firms seek to optimize their online marketing efforts. When feasible, these firms customize marketing efforts to the needs and desires of individual consumers, thereby increasing click-through-rates (CTR) and conversion (sales). When done well, such customization enhances consumer relationships and builds trust. In this chapter we review almost 10 years of morphing experience, including various proofs-of-concept. We start with an overview of the morphing concept and an illustrative example. We then describe how morphing and multi-armed bandits can change the way firms design and run online experiments. We then discuss the analytics of morphing, based on three published papers. We conclude with pratical recommendations for morphing applications, including key decisions, priors and convergence, data, roadmap, do’s and don’ts, open questions and relevant challenges.
Gui B. Liberali, John R. Hauser, Glen L. Urban
Backmatter
Metadaten
Titel
Handbook of Marketing Decision Models
herausgegeben von
Berend Wierenga
Ralf van der Lans
Copyright-Jahr
2017
Electronic ISBN
978-3-319-56941-3
Print ISBN
978-3-319-56939-0
DOI
https://doi.org/10.1007/978-3-319-56941-3