Static Response Models

Routing Summary

Static models estimate same-period marketing effects. Core note is Functional Forms.

Concept Map

ConceptNoteTypeDepends OnKey Result
Functional forms & elasticitiesFunctional Forms in MarketingconceptMarkets Data and Sales Drivers, Response Models for Marketing ManagementCatalogues ten functional forms for sales response with elasticity formulas
Attraction market-share modelsMarket Share ModelsconceptFunctional Forms in Marketing, Markets Data and Sales DriversMCI and MNL models specify brand shares from marketing variables
Aggregation of relationsAggregation of RelationsconceptFunctional Forms in Marketing, Markets Data and Sales DriversAggregate models recover or bias individual parameters depending on functional form
Static model designDesign of Static Response ModelsconceptFunctional Forms in Marketing, Market Share Models, Aggregation of RelationsDesign choices for estimating contemporaneous marketing-to-sales relationships

Notes

  • Functional Forms in Marketing — CONTAINS: linear, semilog, power/log-log (constant elasticity), multiplicative, exponential (increasing returns), log-reciprocal (S-shaped saturation), Gompertz, modified exponential, logistic, and ADBUDG (Little 1970) forms, plus the SCAN*PRO scanner model, random-coefficients model, and switching models (Goldfeld-Quandt, Maddala-Nelson).
  • Market Share Models — CONTAINS: attraction-based share framework, MCI (multiplicative competitive interaction) model, log-centering transformation, own/cross-share elasticities, MNL (multinomial logit), IIA property, differential-effects/heterogeneous MCI, SUR log-centering estimation, primary-vs-selective demand decomposition (Schultz-Wittink), and nested/random-coefficients (BLP)/probit relaxations.
  • Aggregation of Relations — CONTAINS: aggregation bias, exact aggregation (linear case) theorem, approximate aggregation with second-order correction, random-coefficients model, temporal vs cross-sectional aggregation, and Clarke (1976) temporal-aggregation correction.
  • Design of Static Response Models — CONTAINS: model completeness, variable-selection principles, competitive specification (absolute levels, share of voice, market-share approaches), interaction terms and moderation, feature-multiplier dummy variables, share of voice (SOV), specification checklist, SUR, and ADL.

Sources

See Also