Measuring Long-Run Marketing Effects and Their Implications for Long-Run Marketing DecisionsCoauthor(s): Bart Bronnenberg, J. P. Dubé, Carl Mela, Paulo Albuquerque, Tulin Erdem, Dominique Hanssens, Gunter Hitsch, Han Hong, Baohong Sun. View Publication
A central element in this literature is the role of agents' (e.g., consumers and firms) beliefs about future outcomes. For instance, a consumer might base her current shopping decisions on her beliefs about future prices (e.g., forward-buying a stockpile). Similarly, a firm might base its current marketing decisions on beliefs about future competition (e.g., precipitate a product launch to preempt future competitive entry). We use the term forward-looking to denote the incorporation of future beliefs into current decision-making. Understanding the complex role of expectations about the future and how they govern various agents' behavior constitutes a significant opportunity to enrich empirical research in marketing. The role of future beliefs can be central to the incidence of fundamentally different equilibrium behavior in a dynamic environment relative to a myopic one. Accordingly, we begin with a general discussion of the role of agents' beliefs and their implications for behavioral dynamics. We also discuss the corresponding planning problems facing both firms and consumers in their current decision-making. After our general discussion of the consumer and firm problem, we present some illustrative examples of some of the extant empirical literature on dynamic choice behavior.
Source: Marketing Letters
Bronnenberg, Bart, J. P. Dubé, Carl Mela, Paulo Albuquerque, Tulin Erdem, Brett Gordon, Dominique Hanssens, Gunter Hitsch, Han Hong, and Baohong Sun. "Measuring Long-Run Marketing Effects and Their Implications for Long-Run Marketing Decisions." Marketing Letters 19, no. 3-4 (December 2008): 367-382.
Date: 12 2008