Greg Allenby - Profile on Academia.edu (original) (raw)
Papers by Greg Allenby
Analysis of Variance
Journal of Consumer Psychology - J CONSUM PSYCHOL, 2001
APA PsycNET Our Apologies! - The following features are not available with your current Browser c... more APA PsycNET Our Apologies! - The following features are not available with your current Browser configuration. - alerts user that their session is about to expire - display, print, save, export, and email selected records - get My ...
Analysis of constant sum scores
Journal of Consumer …, 2001
CONTINUOUS AND DISCRETE VARIABLES 41 CONTINUOUS AND DISCRETE VARIABLES 41 ... To illustrate what ... more CONTINUOUS AND DISCRETE VARIABLES 41 CONTINUOUS AND DISCRETE VARIABLES 41 ... To illustrate what I mean, I think it is easier to consider an example using more tangible entities than thoughts. Suppose a researcher ismeasuring the emissions from two oil ...
Analysis of Variance
Journal of Consumer Psychology, 2001
APA PsycNET Our Apologies! - The following features are not available with your current Browser c... more APA PsycNET Our Apologies! - The following features are not available with your current Browser configuration. - alerts user that their session is about to expire - display, print, save, export, and email selected records - get My ...
Direct marketers are often faced with the task of ranking, or scoring individual customers in ter... more Direct marketers are often faced with the task of ranking, or scoring individual customers in terms of their ex- pected value to the firm. A critical element of their scoring systems is expected frequency of customer interaction. In this paper the authors develop a hierarchical Bayes model of purchase frequency that combines a Poisson like- lihood with a gamma mixing
The predictive relationship of a large and comprehensive set of personal descriptors to aspects o... more The predictive relationship of a large and comprehensive set of personal descriptors to aspects of product and brand use is examined. The descriptors comprise demographic and general psychographic variables frequently used in segmentation studies and studies of consumer purchase behavior. The evidence is overwhelming that the covariates are related to brand use in an identical way for all brands, indicating
Marketing Letters, 2000
Standard methods of understanding customer behavior in marketing allow for differences in sensiti... more Standard methods of understanding customer behavior in marketing allow for differences in sensitivity across consumers, but often assume that the sensitivity of a particular individual is fixed through time. In many situations, this assumption may not be valid. Both the importance of variables, and the manner that they are combined to form an overall measure of value for an offer,
A Choice Model for Packaged Goods: Dealing with Discrete Quantities and Quantity Discounts
Marketing Science, 2004
Utility maximizing solutions to economic models of choice for goods with either discrete quantiti... more Utility maximizing solutions to economic models of choice for goods with either discrete quantities or non-linear prices cannot always be obtained using standard first-order conditions such as Kuhn-Tucker and Roy's identity. When quantities are discrete, there is no guarantee that derivatives of the utility function are equal to derivatives of the budget constraint. Moreover, when prices are nonlinear, as in
Journal of Marketing Research, 2003
We thank the Editor and reviewers for their constructive comments and suggestions. We also thank ... more We thank the Editor and reviewers for their constructive comments and suggestions. We also thank seminar participants at Abstract An individual's preference for an offering can be influenced by the preferences of others in many ways, ranging from the influence of social identification and inclusion, to the benefits of network externalities. In this paper, we introduce a Bayesian autoregressive discrete choice model to study the preference interdependence among individual consumers. The autoregressive specification can reflect patterns of heterogeneity where influence propagates within and across networks. These patterns cannot be modeled with standard random-effect specifications, and can be difficult to capture with covariates in a linear model. Our model of interdependent preferences is illustrated with data on automobile purchases, where preferences for Japanese made cars are shown to be related to geographic and demographically defined networks.
The effects of in-store displays and feature advertising on consideration sets
International Journal of Research in Marketing, 1995
A heteroscedastic random utility model which allows for a flexible pattern of cross elasticities ... more A heteroscedastic random utility model which allows for a flexible pattern of cross elasticities at the household level is explored. This flexibility enables the model to describe patterns of price sensitivity among competing brands which correspond to the competitive structure reflected in consideration sets. The effects of displays and features on these price sensitivities and the consideration sets are examined.
Customer Needs and Solutions, 2014
Researchers and practitioners are facing a world with ever-increasing amounts of data and analyti... more Researchers and practitioners are facing a world with ever-increasing amounts of data and analytic tools, such as Bayesian inference algorithms, must be improved to keep pace with technology. Bayesian methods have brought substantial benefits to the discipline of Marketing Analytics, but there are inherent computational challenges with scaling them to Big Data. Several strategies with specific examples using additive regression trees and variable selection are discussed. In addition, the important observation is made that there are limits to the type of questions that can be answered using most of the Big Data available today.
Market segmentation research is currently focused too narrowly on the task of segment identificat... more Market segmentation research is currently focused too narrowly on the task of segment identification as opposed to its strategic relevance within a firm. In this paper we distinguish an ex ante approach to market segmentation research, which begins with studying the motivating conditions that lead people to the tasks and interests in their lives, from an ex post approach which begins with an individual's reaction to marketplace offerings. We argue that the marketing task of guiding managements to 'make what people will want to buy' will be more successful in light of a deep understanding of behavior in the context of everyday life and work, rather than a detailed understanding of preferences in the marketplace. Directions for future research are discussed.
The emergence of Bayesian methodology has facilitated respondent-level conjoint models, and deriv... more The emergence of Bayesian methodology has facilitated respondent-level conjoint models, and deriving utilities from choice experiments has become very popular among those modeling product line decisions or new product * Co-chairs. Author order is alphabetical.
This paper presents a research agenda for making scanner data more useful to managers. Recommenda... more This paper presents a research agenda for making scanner data more useful to managers. Recommendations are generated in three areas. First, we draw on three case examples to distill a list of characteristics of research that encourage managerial impact. Second, we generate a master list of managerial research issues, and then, compile a list of nine priority topics. Third, we define a set of research topics on translating research into action. These topics involve the manner in which managers react to research and how they communicate research findings with other managers. The theme throughout is that a combination of rigor and relevance is a potent force for improving managerial practice.
Quantitative Marketing and Economics, 2000
In models of demand and supply, consumer price sensitivity affects both the sales of a good throu... more In models of demand and supply, consumer price sensitivity affects both the sales of a good through price, and the price that is set by producers and retailers. The relationship between the dependent variables (e.g., demand and price) and the common parameters (e.g., price sensitivity) is typically nonlinear, especially when heterogeneity is present. In this paper, we develop a Bayesian method to address the computational challenge of estimating simultaneous demand and supply models that can be applied to both the analysis of household panel data and aggregated demand data. The method is developed within the context of a heterogeneous discrete choice model coupled with pricing equations derived from either specific competitive structures, or linear equations of the kind used in instrumental variable estimation, and applied to a scanner panel dataset of light beer purchases. Our analysis indicates that incorporating heterogeneity into the demand model all but eliminates the bias in the price parameter due to the endogeneity of price. The analysis also supports the use of a full information analysis.
Marketing Science, 2003
Bayesian methods have become widespread in the marketing literature. We review the essence of the... more Bayesian methods have become widespread in the marketing literature. We review the essence of the Bayesian approach and explain why it is particularly useful for marketing problems. While the appeal of the Bayesian approach has long been noted by researchers, recent developments in computational methods and expanded availability of detailed marketplace data has fueled the Bayesian growth in marketing. We emphasize the modularity and flexibility of modern Bayesian approaches. Finally, the usefulness of Bayesian methods in situations in which there is limited information about a large number of units or where the information comes from different sources is noted
Marketing Science, 2007
The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in... more The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in part-worth estimates using sampling experiments. In this paper, we re-examine the endogeneity issue in light of the likelihood principle. The likelihood principle asserts that all relevant information in the data about model parameters is contained in the likelihood function. We show that, once the data are collected, adhering to the likelihood principle leads to analysis where endogeneity becomes ignorable for estimation. The likelihood principle is implicit to Bayesian analysis, and discussion is offered for detecting and dealing with endogeneity bias in marketing.
Marketing Science, 2011
Marketing expenditures in the form of pricing, product development, promotion and channel develop... more Marketing expenditures in the form of pricing, product development, promotion and channel development are made to maximize return on investment. A challenge in evaluating the effectiveness of these expenditures is that decisions such as whether to lower prices or run promotions are made based on managers' knowledge of how sensitive consumers are to these marketing activities. While marketing control variables are explanatory of sales, they are often set in anticipation of a market response, reflecting strategic behavior on the part of the firm. A challenge in developing a model of strategic behavior is that the process by which marketing expenditures are made is often not directly observable. We propose tests for comparing supplyside model formulations in which input variables are strategically determined. In these models, the joint likelihood of demand (y) and supply (x) can be factored into a conditional factor of demand given supply, and a marginal factor of supply. We illustrate our approach using data from a services company operating in multiple geographic regions. *
Marketing Science, 2002
Consumers are often observed to purchase more than one variety of a product on a given shopping t... more Consumers are often observed to purchase more than one variety of a product on a given shopping trip. The simultaneous demand for varieties is observed not only for packaged goods such as yogurt or soft drinks, but in many other product categories such as movies, music compact disks, and apparel. Multinomial (MN) choice models can-
Analysis of Variance
Journal of Consumer Psychology - J CONSUM PSYCHOL, 2001
APA PsycNET Our Apologies! - The following features are not available with your current Browser c... more APA PsycNET Our Apologies! - The following features are not available with your current Browser configuration. - alerts user that their session is about to expire - display, print, save, export, and email selected records - get My ...
Analysis of constant sum scores
Journal of Consumer …, 2001
CONTINUOUS AND DISCRETE VARIABLES 41 CONTINUOUS AND DISCRETE VARIABLES 41 ... To illustrate what ... more CONTINUOUS AND DISCRETE VARIABLES 41 CONTINUOUS AND DISCRETE VARIABLES 41 ... To illustrate what I mean, I think it is easier to consider an example using more tangible entities than thoughts. Suppose a researcher ismeasuring the emissions from two oil ...
Analysis of Variance
Journal of Consumer Psychology, 2001
APA PsycNET Our Apologies! - The following features are not available with your current Browser c... more APA PsycNET Our Apologies! - The following features are not available with your current Browser configuration. - alerts user that their session is about to expire - display, print, save, export, and email selected records - get My ...
Direct marketers are often faced with the task of ranking, or scoring individual customers in ter... more Direct marketers are often faced with the task of ranking, or scoring individual customers in terms of their ex- pected value to the firm. A critical element of their scoring systems is expected frequency of customer interaction. In this paper the authors develop a hierarchical Bayes model of purchase frequency that combines a Poisson like- lihood with a gamma mixing
The predictive relationship of a large and comprehensive set of personal descriptors to aspects o... more The predictive relationship of a large and comprehensive set of personal descriptors to aspects of product and brand use is examined. The descriptors comprise demographic and general psychographic variables frequently used in segmentation studies and studies of consumer purchase behavior. The evidence is overwhelming that the covariates are related to brand use in an identical way for all brands, indicating
Marketing Letters, 2000
Standard methods of understanding customer behavior in marketing allow for differences in sensiti... more Standard methods of understanding customer behavior in marketing allow for differences in sensitivity across consumers, but often assume that the sensitivity of a particular individual is fixed through time. In many situations, this assumption may not be valid. Both the importance of variables, and the manner that they are combined to form an overall measure of value for an offer,
A Choice Model for Packaged Goods: Dealing with Discrete Quantities and Quantity Discounts
Marketing Science, 2004
Utility maximizing solutions to economic models of choice for goods with either discrete quantiti... more Utility maximizing solutions to economic models of choice for goods with either discrete quantities or non-linear prices cannot always be obtained using standard first-order conditions such as Kuhn-Tucker and Roy's identity. When quantities are discrete, there is no guarantee that derivatives of the utility function are equal to derivatives of the budget constraint. Moreover, when prices are nonlinear, as in
Journal of Marketing Research, 2003
We thank the Editor and reviewers for their constructive comments and suggestions. We also thank ... more We thank the Editor and reviewers for their constructive comments and suggestions. We also thank seminar participants at Abstract An individual's preference for an offering can be influenced by the preferences of others in many ways, ranging from the influence of social identification and inclusion, to the benefits of network externalities. In this paper, we introduce a Bayesian autoregressive discrete choice model to study the preference interdependence among individual consumers. The autoregressive specification can reflect patterns of heterogeneity where influence propagates within and across networks. These patterns cannot be modeled with standard random-effect specifications, and can be difficult to capture with covariates in a linear model. Our model of interdependent preferences is illustrated with data on automobile purchases, where preferences for Japanese made cars are shown to be related to geographic and demographically defined networks.
The effects of in-store displays and feature advertising on consideration sets
International Journal of Research in Marketing, 1995
A heteroscedastic random utility model which allows for a flexible pattern of cross elasticities ... more A heteroscedastic random utility model which allows for a flexible pattern of cross elasticities at the household level is explored. This flexibility enables the model to describe patterns of price sensitivity among competing brands which correspond to the competitive structure reflected in consideration sets. The effects of displays and features on these price sensitivities and the consideration sets are examined.
Customer Needs and Solutions, 2014
Researchers and practitioners are facing a world with ever-increasing amounts of data and analyti... more Researchers and practitioners are facing a world with ever-increasing amounts of data and analytic tools, such as Bayesian inference algorithms, must be improved to keep pace with technology. Bayesian methods have brought substantial benefits to the discipline of Marketing Analytics, but there are inherent computational challenges with scaling them to Big Data. Several strategies with specific examples using additive regression trees and variable selection are discussed. In addition, the important observation is made that there are limits to the type of questions that can be answered using most of the Big Data available today.
Market segmentation research is currently focused too narrowly on the task of segment identificat... more Market segmentation research is currently focused too narrowly on the task of segment identification as opposed to its strategic relevance within a firm. In this paper we distinguish an ex ante approach to market segmentation research, which begins with studying the motivating conditions that lead people to the tasks and interests in their lives, from an ex post approach which begins with an individual's reaction to marketplace offerings. We argue that the marketing task of guiding managements to 'make what people will want to buy' will be more successful in light of a deep understanding of behavior in the context of everyday life and work, rather than a detailed understanding of preferences in the marketplace. Directions for future research are discussed.
The emergence of Bayesian methodology has facilitated respondent-level conjoint models, and deriv... more The emergence of Bayesian methodology has facilitated respondent-level conjoint models, and deriving utilities from choice experiments has become very popular among those modeling product line decisions or new product * Co-chairs. Author order is alphabetical.
This paper presents a research agenda for making scanner data more useful to managers. Recommenda... more This paper presents a research agenda for making scanner data more useful to managers. Recommendations are generated in three areas. First, we draw on three case examples to distill a list of characteristics of research that encourage managerial impact. Second, we generate a master list of managerial research issues, and then, compile a list of nine priority topics. Third, we define a set of research topics on translating research into action. These topics involve the manner in which managers react to research and how they communicate research findings with other managers. The theme throughout is that a combination of rigor and relevance is a potent force for improving managerial practice.
Quantitative Marketing and Economics, 2000
In models of demand and supply, consumer price sensitivity affects both the sales of a good throu... more In models of demand and supply, consumer price sensitivity affects both the sales of a good through price, and the price that is set by producers and retailers. The relationship between the dependent variables (e.g., demand and price) and the common parameters (e.g., price sensitivity) is typically nonlinear, especially when heterogeneity is present. In this paper, we develop a Bayesian method to address the computational challenge of estimating simultaneous demand and supply models that can be applied to both the analysis of household panel data and aggregated demand data. The method is developed within the context of a heterogeneous discrete choice model coupled with pricing equations derived from either specific competitive structures, or linear equations of the kind used in instrumental variable estimation, and applied to a scanner panel dataset of light beer purchases. Our analysis indicates that incorporating heterogeneity into the demand model all but eliminates the bias in the price parameter due to the endogeneity of price. The analysis also supports the use of a full information analysis.
Marketing Science, 2003
Bayesian methods have become widespread in the marketing literature. We review the essence of the... more Bayesian methods have become widespread in the marketing literature. We review the essence of the Bayesian approach and explain why it is particularly useful for marketing problems. While the appeal of the Bayesian approach has long been noted by researchers, recent developments in computational methods and expanded availability of detailed marketplace data has fueled the Bayesian growth in marketing. We emphasize the modularity and flexibility of modern Bayesian approaches. Finally, the usefulness of Bayesian methods in situations in which there is limited information about a large number of units or where the information comes from different sources is noted
Marketing Science, 2007
The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in... more The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in part-worth estimates using sampling experiments. In this paper, we re-examine the endogeneity issue in light of the likelihood principle. The likelihood principle asserts that all relevant information in the data about model parameters is contained in the likelihood function. We show that, once the data are collected, adhering to the likelihood principle leads to analysis where endogeneity becomes ignorable for estimation. The likelihood principle is implicit to Bayesian analysis, and discussion is offered for detecting and dealing with endogeneity bias in marketing.
Marketing Science, 2011
Marketing expenditures in the form of pricing, product development, promotion and channel develop... more Marketing expenditures in the form of pricing, product development, promotion and channel development are made to maximize return on investment. A challenge in evaluating the effectiveness of these expenditures is that decisions such as whether to lower prices or run promotions are made based on managers' knowledge of how sensitive consumers are to these marketing activities. While marketing control variables are explanatory of sales, they are often set in anticipation of a market response, reflecting strategic behavior on the part of the firm. A challenge in developing a model of strategic behavior is that the process by which marketing expenditures are made is often not directly observable. We propose tests for comparing supplyside model formulations in which input variables are strategically determined. In these models, the joint likelihood of demand (y) and supply (x) can be factored into a conditional factor of demand given supply, and a marginal factor of supply. We illustrate our approach using data from a services company operating in multiple geographic regions. *
Marketing Science, 2002
Consumers are often observed to purchase more than one variety of a product on a given shopping t... more Consumers are often observed to purchase more than one variety of a product on a given shopping trip. The simultaneous demand for varieties is observed not only for packaged goods such as yogurt or soft drinks, but in many other product categories such as movies, music compact disks, and apparel. Multinomial (MN) choice models can-