The Research

For every brand and product category there exists a process generating its sales. By incorporating the basic premise of marketing—that a company can take actions that affect its own sales—market response models can be built and used to aid in planning and forecasting. For over 50 years, market response research has produced generalizations about the effects of marketing mix variables on sales. Sales response functions and market share models are now core ideas of marketing science. Together with discrete choice models that explain household behavior and market structure analysis that describes the pattern of competition, research on market response paints a rather complete picture of customer and market behavior.

 The Book

Market Response Models: Econometric and Time Series Analysis, Second Edition
by Dominique M. Hanssens, Leonard J. Parsons and Randall L. Schultz

 Applications

Market response models have become accepted tools for marketing decision making in a wide variety of industries. Companies have relied on market response models to set prices, allocate advertising expenditures, forecast sales, and test the effectiveness of alternative marketing plans. Many examples of these applications are shown in the boxed Industry Perspectives that appear throughout this book. Today market response analysis is estimated to be a $200 million sector of the marketing research industry, proving its economic value to marketing management.

» A preview of the book is now available on Google Books.

» The Chinese edition of Market Response Models was published in 2003 by Shanghai People's Press. Read Foreword.

» The paperback edition of Market Response Models was published in December, 2002. It incorporates the errata shown on this site.