Hruschka, Harald (2006) Relevance of functional flexibility for heterogeneous sales response models - A comparison of parametric and semi-nonparametric models. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 174 (2). pp. 1009-1020. ISSN 0377-2217,
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So far studies estimating sales response functions on the basis of store-specific data either consider heterogeneity or functional flexibility. That is why in this contribution a model is developed possessing both these features. It is a multilayer perceptron with store-specific coefficients which follows a hierarchical Bayesian framework. An appropriate Markov Chain Monte Carlo estimation technique is introduced capable to satisfy theoretical constraints (e.g. sign constraints on elasticities). The empirical study refers to a data base consisting of weekly observations of sales and prices for nine leading brands of a packaged consumer good category. The data were acquired in 81 stores over a time span of at least 61 weeks. The multilayer perceptron is compared to a strict parametric multiplicative model and turns out to be clearly superior in terms of posterior model probability. This result indicates the benefits of using a flexible model even if heterogeneity is dealt with. Estimated sales curves and elasticities demonstrate that both models differ with regard to implications on price response. (c) 2005 Elsevier B.V. All rights reserved.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | CHAIN MONTE-CARLO; CONSTRAINED PARAMETER; FEEDFORWARD NETWORKS; ECONOMETRIC-MODELS; PRICE; ELASTICITIES; REGRESSION; sales response; hierarchical Bayes; multilayer perceptron; neural networks; marketing |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Marketing (Prof. Dr. Harald Hruschka) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 20 Jan 2021 09:43 |
| Last Modified: | 20 Jan 2021 09:43 |
| URI: | https://pred.uni-regensburg.de/id/eprint/33873 |
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