Editorial: Who Is Afraid to Give Freedom of Speech to Marketing Folks?
Marketing Science
A Neurocognitive Model of Advertisement Content and Brand Name Recall
Marketing Science
EditorialAre Consumers Rational? Experimental Evidence?
Marketing Science
Optimal Data Interval for Estimating Advertising Response
Marketing Science
Editorial: Who Is Afraid to Give Freedom of Speech to Marketing Folks?
Marketing Science
Exogenous Learning, Seller-Induced Learning, and Marketing of Durable Goods
Management Science
Drug prescription behavior and decision support systems
Decision Support Systems
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We develop a brand choice model with learning based on the Kalman filter methodology. The model enables us to separate the effects of contemporaneous marketing promotions from the impact of the perceived quality valuation accrued through product usage over time. We also account for idiosyncratic consumer learning and preferences. The results point to the presence of heterogeneity in the valuation carryover coefficients across consumers and brands. In contrast to our expectations, a higher price is not important for most of the consumers in the sample. The model enables us to compare brands in terms of their memorability, which determines brand salience on the next purchase occasion. Our findings suggest that price promotions may be deficient as a tool to increase market share in the studied product category. The proposed model is applicable to other consumer goods contingent on consumers' being sufficiently motivated to learn their own preferences via personal experience. Brand managers can use the model for comparative diagnostics and market performance simulation under different price and promotion scenarios. This paper is instructive to the application of a relatively new methodology; we illustrate the analytical potential of the model by demonstrating its inferential power in a specific marketing context.