Article

Spatial Models in Marketing

Marketing Letters (Impact Factor: 0.63). 02/2005; 16(3):267-278. DOI: 10.1007/s11002-005-5891-3
Source: RePEc

ABSTRACT Marketing science models typically assume that responses of one entity (firm or consumer) are unrelated to responses of other entities. In contrast, models constructed using tools from spatial statistics allow for cross-sectional and longitudinal correlations among responses to be explicitly modeled by locating entities on some type of map. By generalizing the notion of a map to include demographic and psychometric representations, spatial models can capture a variety of effects (spatial lags, spatial autocorrelation, and spatial drift) that impact firm or consumer decision behavior. Marketing science applications of spatial models and important research opportunities are discussed. Copyright Springer Science + Business Media, Inc. 2005

2 Bookmarks
 · 
115 Views
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: Our research examines the hypothesis that products chosen on a shopping trip to a supermarket indicate the preference interdependencies of consumers between different products or brands. The bundle chosen on the trip can be regarded as an indicator of a global utility function. This function implies a cross-category dependence of brand choice behavior. We hypothesize that the global utility function related to a product bundle is the result of the marketing-mix of the underlying brands. The structure of the chosen products allows us to uncover the impact of certain marketing-mix variables and product bundle buying behavior.
    Schmalenbach Business Review (sbr). 01/2008; 60(4):400-422.
  • [Show abstract] [Hide abstract]
    ABSTRACT: Traditional customer relationship management (CRM) models often ignore the correlation that could exist in the purchase behavior of neighboring customers. Instead of treating this correlation as nuisance in the error term, a generalized linear autologistic regression can be used to take these neighborhood effects into account and improve the predictive performance of a customer identification model for a Japanese automobile brand. In addition, this study shows that the level on which neighborhoods are composed has an important influence on the extra value that results from the incorporation of spatial autocorrelation.
    Foundations of Intelligent Systems - 19th International Symposium, ISMIS 2011, Warsaw, Poland, June 28-30, 2011. Proceedings; 01/2011
  • [Show abstract] [Hide abstract]
    ABSTRACT: With the rapid penetration of broadband technologies, content sellers have become one of the fastest growing businesses on the Internet. With content being made available in many forms and formats, these firms are grappling with the problem of pricing their product line appropriately. In this paper, we examine this problem in the context of a publisher who sells books in print and PDF forms online. At the time of this study, the publisher was already selling books in print form online and was contemplating the launch of PDF forms of these books. However, it was not clear how these forms were to be priced relative to each other. This decision depended on the relative preferences of customers for these different forms, their willingness to pay for these forms and the trade offs involved. On the one hand, the PDF form could be priced low enough relative to the print form to stimulate market expansion for content, while on the other hand a low priced PDF form could cannibalize the print form resulting in lower revenues. In order to examine these issues, a novel choice experiment was conducted online at the publisher's Web site, and a model was developed to analyze the data and provide pricing recommendations. The paper describes the choice experiment, the model and the results. It provides useful insights into how online content providers can develop pricing models for their content.
    41st Hawaii International International Conference on Systems Science (HICSS-41 2008), Proceedings, 7-10 January 2008, Waikoloa, Big Island, HI, USA; 01/2008

Full-text (2 Sources)

View
200 Downloads
Available from
May 30, 2014