Hierarchical versus other market share models for markets with many items

Article Abstract:

Hierarchical models are presented and compared to non-hierarchical ones to address the problem of assessing asymmetric competition present between products in marketing planning. Results reveal that the extended square attraction model or ESQA with brand-size structure to be the most efficient method for representing asymmetric competition. It is noted that the effects of aggregation biases such as parameter heterogeneity across households and model nonlinearity may be more pronounced for hierarchical than nonhierarchical models.

Market Research, Econometrics & Model Building, Models, Econometrics, Macroeconomics, Market share, Business models

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Estimating and validating asymmetric heterogeneous loss functions applied to health care fund raising

Article Abstract:

The relationship between direct marketing programs and consumer response is examined using an asymmetric loss function that estimates parameters using the smoothed maximum score method. This function includes heterogeneity in the ratio of returns and costs related to consumer classification. Statistical analysis indicate that the inclusion of heterogeneity improves the potential net returns of programs such as fund-raising campaign.

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Interaction between target and mailing characteristics in direct marketing, with an application to health care fund raising

Article Abstract:

A novel method for target selection in direct mail advertising campaigns is presented that incorporates both the variables of mailing and targets obtaining the mailing. The approach is an improvement over traditional methods which consider the two variables separately. Results reveal the new method to increase the effectiveness of promotional direct marketing strategies in a Dutch health care firm.

Advertising Management-Direct Mail, Marketing Management, Direct mail advertising, Target marketing, Direct-mail advertising

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