Econometric models for market decision making

Econometric Models for Marketing Decision Making
The general objective is to improve the allocation of resources to the marketing instruments. This improved allocation should result in substantially higher sales or profits for the companies under study, and it should be based on scientifically innovative and managerially useful models. The innovativeness lies in the application of micro-economic theories to marketing using econometric methodologies. Almost all current marketing models completely lack a theoretical background in micro-economics. The new models should be applicable to readily available secondary data, in particular store-level scanner data and household-level scanner data.

This research project has three main objectives, which are based on major unresolved marketing issues. The first objective is to increase the knowledge of the short-term effects of marketing instruments. There are several issues in this area that are very relevant for tactical (short-term) marketing decisions by managers. The second objective focuses on long-term effects, which are important for strategic (long-term) marketing decisions. The third objective is to develop a micro-economic theory-based model for �category management�. This model includes short-term and long-term effects and contains a demand-side part and a supply-side part.